Invesque Inc. Reports Third Quarter 2024 Results

Reiterates Year-to-Date Disposition Activity and Ongoing Balance Sheet Improvement

TORONTO, Nov. 7, 2024 /CNW/ - Invesque Inc. (TSX:IVQ) (TSX: IVQ) (the "Company") today announced its results for the three and nine months ended September 30, 2024.

Third Quarter and Recent Highlights

As previously announced, on September 23, 2024, the Company sold a skilled nursing facility in Illinois for US$16.5 million. Proceeds from the sale were used to reduce borrowings under the KeyBank credit facility.

As previously announced, on October 15, 2024, the Company sold seven seniors housing assets that were previously managed by Commonwealth Senior Living ("CSL") for US$65.4 million. The Company used sale proceeds to pay off the property level mortgage debt associated with the communities, and further reduce borrowings under the KeyBank credit facility. The remaining cash was retained by the Company to maintain appropriate liquidity levels.

As previously announced, the Company has entered into a definitive agreement to sell its interest in twenty seniors housing assets currently managed by CSL and the Company's interests in the CSL management company. Invesque expects this sale to close during the first quarter of 2025, subject to satisfaction or waiver of a due diligence condition in favour of the purchaser and other customary closing conditions. Accordingly, there is no certainty that this transaction will close on the expected timeline or at all.

As disclosed by the Company in press releases dated September 17, 2024, and October 17, 2024, Invesque has announced proposed amendments (the "Debenture Amendments") to the terms of its convertible unsecured subordinated debentures due January 31, 2025 (the "2025 Debentures"), and its convertible unsecured subordinated debentures due September 30, 2026 (the "2026 Debentures"), and the exchange (the "Preferred Share Exchange") of preferred shares owned by Magnetar Financial, LLC for common shares of the Company ("Common Shares"). The Company is seeking the approval of holders of its 2025 Debentures, its 2026 Debentures and its Common Shares with respect to the Debenture Amendments and the Preferred Share Exchange, at meetings to be held on November 26, 2024, at the offices of the Company at 8701 E. 116th Street, Suite 260, Fishers, Indiana 46038. Meeting materials have been mailed to holders and are available on the Company's website and on SEDAR at www.sedarplus.ca.

The Company reported funds from operations ("FFO")1 of US$0.02 and US$0.09 per Common Share for the three- and nine-months ending September 30, 2024, and reported adjusted funds from operations ("AFFO")[2] of US$0.02 and US$0.07 per Common Share for the three- and nine-months ending September 30, 2024.

"Year to date, we have sold over US$160 million of assets, and made substantial progress de-levering," commented Quinn Haselhorst, Chief Financial Officer of the Company. "The continued asset dispositions and corporate-level transactions contemplated to occur over the next 120 days will reduce Company leverage to below 50%, further representing our commitment to reducing debt."

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1 FFO is a measure used by management to evaluate operating performance. Please refer to the section "Non-IFRS Measures" in this press release for more information.

2 AFFO is a measure used by management to evaluate operating performance. Please refer to the section "Non-IFRS Measures" in this press release for more information.

 

Financial Highlights

Three months endedSeptember 30,

Nine months ended

September 30,

(in thousands of U.S dollars, except per share values)

2024

2023

2024

2023

Revenue

$          42,381

$          46,741

$        129,122

$        146,539

Net income (loss)

$           (7,523)

$               592

$         (29,581)

$        (60,932)

FFO

$            1,081

$            4,223

$            5,009

$          16,950

FFO per share

$              0.02

$              0.07

$              0.09

$              0.30

AFFO

$            1,003

$            3,017

$            4,195

$          15,515

AFFO per share

$              0.02

$              0.05

$              0.07

$              0.27

 

Balance Sheet and Portfolio Highlights

(in thousands of U.S. dollars, except number of properties)

September 30, 2024

December 31, 2023

Total assets

$711,100

$828,283

Number of properties3

28

66

Debt

$471,363

$588,245