Despite a continuing challenging operating environment in the face of a global pandemic, the senior living industry is better prepared to navigate a rapidly changing environment, Invesque Chairman and CEO Scott White said Thursday.
“Our financing continues to be busy exploring opportunities to take advantage of the current capital market, with a renewed focus on consolidating debt to further ladder our maturity,” Invesque Chief Financial Officer Scott Higgs said in Thursday’s earnings call.
Although the past year was a challenging one for the senior living industry, Invesque Chairman and CEO Scott White said he has seen positive momentum in the company’s portfolio over the past 45 days that he expects will continue through this year and into next.
2020 was a unique year in so many ways, challenging the senior living industry and companies operating within that sector.
The senior living industry will emerge from the COVID-19 pandemic with a greater appreciation for the value of its care providers and the myriad of unique and necessary services provided in the facility setting, according to Scott White, chairman and CEO of Invesque.
The senior living industry faces COVID-19 headwinds that are expected to continue into 2021, but Invesque Chairman and CEO Scott White said he is confident the industry has “figured out how to handle and contain” the virus and is better prepared for future outbreaks.
Invesque is in discussions with the Symphony Care Network in light of the effect of the COVID-19 pandemic on its operations. Although Invesque said it is too early to comment on the restructuring, options include rent reduction, new operators at certain buildings and / or the sale of some properties.
When it comes to portfolio diversification, Invesque Chairman and CEO Scott White said he never anticipated that something like the COVID-19 pandemic would figure into its strengths in geographic diversification.
Invesque announced several moves Wednesday to preserve cash and strengthen the company’s balance sheet. These included the suspension of its dividend for common shareholders, executive compensation and personnel cost reductions and a deferral of all non-essential capital expenditures. The announcements came as the real estate investment trust reported its 2020 first-quarter earnings. Invesque reported funds from operations of 25 cents per share for the quarter, up one cent year-over-year.
Invesque plans to “opportunistically divest non-core assets and redeploy capital with our preferred partners” in 2020, Chairman and CEO Scott White said Thursday. The healthcare real estate company also shared operators’ responses to the coronavirus.
