Mr. Scott White reports

INVESQUE INC. REPORTS FOURTH QUARTER 2023 AND FULL-YEAR RESULTS

Invesque Inc. has released its results for the three and 12 months ended Dec. 31, 2023.

Fourth quarter and subsequent highlights:

• As previously announced, on Oct. 27, 2023, the company received final licensure approval for a newly constructed senior housing community in Parker, Colo. The assisted living and memory care community is part of a joint venture between the company and Health Dimensions Group.
• As previously announced, on Nov. 1, 2023, the company sold two senior housing communities in Georgia and two senior housing communities in South Carolina for $25.1-million (U.S.).
• As previously announced, on Nov. 8, 2023, the company executed an amended and restated credit agreement with a syndicate of lenders led by KeyBank. The amended and restated credit agreement extended the maturity from Dec. 19, 2023, to March 31, 2025.
• Reported funds from operations (FFO) were three U.S. cents and 33 U.S. cents per common share for the three months and 12 months ended Dec. 31, 2023. The company reported adjusted funds from operations (AFFO) of three U.S. cents and 30 U.S. cents per common share for the three months and 12 months ended Dec. 31, 2023.
• As previously announced, on Jan. 31, 2024, the company sold a senior housing community in South Carolina for $4-million (U.S.).
• On Feb. 29, 2024, the company sold two skilled nursing facilities in Pennsylvania for gross proceeds of $12.9-million. Proceeds generated by the sale were used to pay down the KeyBank credit facility.
• On March 5, 2024, the company executed an amendment to the amended and restated credit agreement. Subject to the company meeting specific conditions, including further repayment of the outstanding principal balance, the amended and restated credit agreement amendment provides for the following adjustments to the covenant requirements:
  • Reduction of the minimum fixed charge coverage ratio;
  • Reduction of the minimum required liquidity;
  • Reduction of the assumed debt service coverage ratio for assets pledged to the borrowing base.
• On March 5, 2024, the company sold two skilled nursing facilities in Texas and one skilled nursing facility in Missouri previously operated under a triple-net lease for gross proceeds of $55.5-million. Following the payoff of applicable property-level debt, proceeds were used to further pay down the KeyBank credit facility.

"I am pleased to announce the disposition of five skilled nursing facilities over the last 30 days. A few years ago, Invesque set out to become a [predominantly] private-pay seniors housing company, and, with only four skilled nursing facilities remaining in our portfolio today, the company has successfully achieved that goal," commented Scott White, chairman and chief executive officer for the company. "We will continue to focus on our seniors housing portfolio, which we believe is positioned well to take advantage of the expected increase in demand throughout 2024 and beyond. Where possible, we will continue to sell non-strategic assets, and make improvements to our balance sheet, as evidenced by the A&R credit agreement amendment that was executed last week."

About Invesque Inc.

The company is a North American health care real estate company with an investment thesis focused on the premise that an aging demographic in North America will continue to utilize health care services in growing proportion to the overall economy. The company currently capitalizes on this opportunity by investing in a portfolio of income-generating predominantly private-pay senior housing communities. The company's portfolio includes investments primarily in independent living, assisted living and memory care, which are operated under long-term leases and joint venture arrangements with industry-leading operating partners. The company's portfolio also includes investments in owner-occupied senior housing properties, in which the company owns the real estate and the licensed operations and provides management services through Commonwealth Senior Living LLC, a Delaware limited liability company.

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