Invesque Inc. Closes Previously Announced Acquisition of Three Property Memory Care Portfolio
TORONTO, ONTARIO, FEBRUARY 12, 2018 – Invesque Inc. (TSX: HLP.U) (the “Company”) completed its previously announced acquisition (“Acquisition”) of three memory care properties located throughout the greater Dallas, Texas area.
“Growing our portfolio with high quality operators is the foundation of our strategy. Adding these facilities, with Constant Care as an operator, exemplifies our ability to execute that strategy,” stated Scott White, Chief Executive Officer. “We are excited about the opportunity to grow with an operator like Constant Care.”
High Quality Portfolio: Invesque acquired three stabilized memory care communities (total of 114 units) located in Garland, Grapevine and McKinney, Texas for US$21.5 million.
Attractive Operating Partner: The communities are leased to Constant Care Management Company, a Dallas, Texas based operator of memory care communities with a regional presence in the southern United States. Upon closing the Acquisition, Invesque and Constant Care entered into an absolute net master lease agreement with an initial 15 year term and two five-year extension options.
Enhanced Diversification: The Acquisition further expands Invesque’s geographic diversification into high quality markets, in addition to adding Constant Care to its roster of high-quality operating partners. The Acquisition enhances the Company’s payor mix, as 100% of revenue is expected to be derived from private pay funding sources.
Additional Investment Opportunities: Invesque received a first right to fund and acquire the next three senior housing projects developed and operated by Constant Care.
Immediately Accretive Transaction: The Acquisition is expected to be immediately accretive to the Company’s Adjusted Funds from Operations (“AFFO”) per share.
Upon closing the transaction, the Company’s portfolio expanded to 87 properties with more than 8,900 beds/units across 19 U.S. states and one Canadian province.
Invesque Inc. is a North American healthcare real estate company with a growing portfolio of high quality properties located in the United States and Canada and operated by best-in-class senior living and care operators primarily under long-term leases and joint ventures. The Company recently closed the acquisition of Care Investment Trust on February 1, 2018. Invesque’s mission is to create long-term shareholder value while providing an investment opportunity that matters. For more information, visit www.invesque.com.
NON-IFRS FINANCIAL MEASURES:
AFFO is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. Such a measure is presented in this news release because management of the Company believes that such a measure is relevant in interpreting the purchase price metrics and performance of the acquisition. Such a measure, as computed by the Company, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to the measure reported by such other organizations. Please see the Company’s most recent management’s discussion and analysis, which is available on SEDAR at www.sedar.com, for how the Company reconciles AFFO and net operating income to the nearest IFRS measure.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This press release contains forward-looking information that reflects the current expectations of management about the future results and opportunities for the Company. Forward-looking statements generally can be identified by words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, “project”, or “continue” or simila r expressions suggesting future outcomes or events. More particularly and without limitation, this press release contains forward looking statements and information concerning the effect of the Acquisition on the Company’s operations and AFFO. Such forward-looking statements reflect the Company’s current beliefs and are based on information currently available to management. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof and to not use such forward looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.
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