Invesque Continues Executing on Strategy of Simplifying the Portfolio by Selling Non-Core Assets via Sale of its Calamar Portfolio and the Majority of its Medical Office Portfolio
Toronto, Ontario, July 28, 2022 – Invesque Inc. (TSX: IVQ.U and IVQ) (the “Company” or “Invesque”) today announced the sale of US$113 million of non-core assets. Inclusive of previously announced dispositions, the Company has sold US$292 million of assets over the last twelve months.
On June 15, 2022, Invesque closed on the sale of its interests in two 55+ communities in Wheatfield, New York.
- The communities were acquired in 2018 as part of the acquisition of Care Investment Trust and were managed by Calamar under a joint venture structure.
- The implied pricing from the sale transaction was very favorable with an implied price per unit of US$145 thousand and an implied cap rate of 5.7% on trailing NOI.
- The two Calamar communities operate as age restricted apartment complexes and feature substantially less resident and health care services than traditional seniors housing owned by Invesque.
- The Company received net cash proceeds of US$10.0 million at closing and plans to utilize proceeds to continue de-levering and simplifying its balance sheet.
On July 26, 2022, the Company closed on the sale of the University Boulevard medical office building in Orlando, Florida for US$9.85 million.
- This stand-alone transaction was consummated with the operator of the surgery center that is the largest tenant at the property.
- The sale price reflected the high quality of the underlying real estate equal to nearly US$300 per rentable square foot and a cap rate of 7.2% on trailing NOI.
On July 28, 2022, the Company closed on the sale of nine medical office buildings in Canada for CA$94.3 million.
- The purchaser, Appelt Properties, an owner, developer, and manager of medical office buildings along with multifamily and retail properties, was uniquely positioned to acquire the portfolio based on its operating complexities and geographic diversity.
- The pricing for the nine properties was equal to CA$265 per rentable square foot and represented a 5.0% cap rate on trailing NOI.
“We have been very active over the past year executing on our strategy to simplify our story, simplify our portfolio, and simplify our balance sheet,” remarked Scott White, Chairman and CEO of the Company. “The recently closed transactions allow us to continue de-levering and simplifying the balance sheet and further positions the Invesque portfolio toward being predominantly private pay seniors housing. The sale of the majority of our medical office portfolio represents a simplification of our portfolio, which will allow our team to focus on value creation in our remaining private pay seniors housing communities.”
Following the completion of these transactions, the Company’s portfolio consists of 83 properties with approximately 5,700 units, 7,800 beds, and 190,000 square feet of medical office buildings across 18 states and one Canadian province.
BMO Capital Markets acted as financial advisor to Invesque in connection with the sale of the Canadian medical office properties.
Invesque 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. Invesque currently capitalizes on this opportunity by investing in a portfolio of income generating properties across the health care spectrum. Invesque’s portfolio includes investments in independent living, assisted living, memory care, skilled nursing, transitional care, and medical office properties, which are operated primarily under long-term leases and joint venture arrangements with industry leading operating partners. Invesque’s portfolio also includes investments in owner-occupied seniors housing properties in which Invesque owns the real estate and provides management services through its subsidiary management company, Commonwealth Senior Living.
This press release (this “Press Release”) contains certain forward-looking information and/or statements (“forward-looking statements”) that reflect and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future, including the utilization of proceeds of dispositions. Forward-looking information are typically identified by terms such as “believe,” “continue”, “expect,” “expected,” “expectations,” “may,” “plan,” “plans,” “should,” “will,” “would,” and other similar expressions that do not relate solely to historical matters. Readers should not place undue reliance on forward-looking statements and are cautioned that forward-looking statements may not be appropriate for other purposes. Forward-looking statements in this Press Release are based on current beliefs, expectations, and certain assumptions of the Company’s management and are subject to significant known and unknown risks, uncertainties, and other factors that are beyond the Company’s ability to predict or control and may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Such risks include, but are not limited to, the risks described in the Company’s current annual information form and management’s discussion and analysis, available on SEDAR at www.sedar.com, which risks may be dependent on market factors and not entirely within the Company’s control. Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. These forward-looking statements reflect current expectations of the Company as at the date of this news release and speak only as at the date of this news release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
For more information, please visit www.invesque.com.