Invesque Inc. Provides May Rental Revenue Collections Update
Toronto, Ontario, June 8, 2020 – Invesque Inc. (TSX: IVQ.U and IVQ) (the “Company” or “Invesque”) announced today an update of the Company’s rental revenue collections given elevated market volatility due to the COVID-19 pandemic.
Rental Revenue Collections
|(all figures shown are rounded)||April 2020||May 2020|
|Senior Housing Owner Occupied Portfolio||99%||99%|
|Medical Office Portfolio||96%||93%|
|Triple-Net Lease (“NNN”) Portfolio||73%||85%|
Rent Deferral Update
As of today, the Company has granted one NNN operator a rent deferral of 25% for the month of May. The Company is also in discussions with another NNN operator for a rent deferral for April, May, and June. The numbers in the table above include wholly owned properties, and reflect the full amounts owed under the original contractual arrangement and are therefore not adjusted for any deferral agreements.
This press release contains forward-looking information that reflects the current expectations of management about the future results and opportunities for the Company, including without limitation information with respect to rental revenue collection and the number of tenants who have received rent deferrals from the Company. Forward-looking statements generally can be identified by words such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, “project”, or “continue” or similar expressions suggesting future outcomes or events. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s control. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information, including the assumption that the Company’s tenants will continue to pay rental revenues pursuant to their contractual arrangements. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements. Additional risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in the Company’s public disclosure documents available at www.sedar.com, including in the risk factors described in the Company’s current annual information form. In addition, the Company is subject to the risk and uncertainties related to the COVID-19 pandemic, including the negative impact that COVID-19 could have on the ability of the Company’s tenants to pay their rental revenue. In particular, a novel strain of coronavirus causing the disease known as COVID-19 has spread throughout the world, including across the United States and Canada, causing the World Health Organization to declare the COVID-19 outbreak a pandemic in March 2020. In an attempt to contain the spread and impact of the pandemic, authorities throughout the United States and Canada have implemented measures such as travel bans and restrictions, stay-at-home orders, social distancing guidelines and limitations on other business activity. The pandemic has resulted in a significant economic downturn in the United States, Canada and globally, and has also led to disruptions and volatility in capital markets. The Company is not able to fully quantify the impact that the COVID-19 pandemic will have on the Company’s financial results during 2020, but expect that the pandemic could have a material adverse effect on its results of operations, financial position and/or cash flows (including as a result of the Company’s tenants failing to pay their rental revenue as a result of the negative impacts of COVID-19 on their businesses), particularly if negative economic and public health conditions in the United States and Canada persist for a significant period of time. The ultimate impact of the pandemic on the Company’s financial results will depend on, among other factors, the duration and severity of the pandemic as well as negative economic conditions arising therefrom, the impact of the pandemic on occupancy rates in our communities, the volume of COVID-19 patients cared for across our portfolio, and the impact of government actions on the seniors housing industry and broader economy, including through existing and future stimulus efforts. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
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 highly diversified 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. For more information, please visit www.invesque.com.
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