Invesque Reports Third Quarter 2018 Results
Third Quarter Highlights
- Completed bought deal convertible debenture offering of US$50 Million
- Continued expansion of medical office building portfolio with acquisition of US$7.7 Million property in Williamsville, NY a suburb of Buffalo
- Reported funds from operations (“FFO”) of US$0.23 per common share, and US$0.80 per common share for the three and nine months respectively ending September 30, 2018. The Company reported adjusted funds from operations (“AFFO”) of US$0.20 per common share, and US$0.68 per common share for the three and nine months respectively ending September 30, 2018. Excluding deal pursuit costs, the Company reported FFO of US$0.27 per common share, and US$$0.84 per common share for the three and nine months ending September 30, 2018. Excluding deal pursuit costs, the Company reported AFFO of US$0.24 per common share for, and US$$0.72 per common share for the three and nine months respectively ending September 30, 2018.
- Expanded partnership with Hearth Management with the acquisition of Keepsake Village at Greenpoint, located in Liverpool, NY
- Entered into a purchase and sale agreement for the US$70 Million disposition of seven skilled nursing facilities in Georgia
- The Company has incorporated a strategic share buyback program for 2019
Financial Highlights
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| (in thousands of U.S dollars, except per share values) | 2018 | 2017 | 2018 | 2017 |
| Revenue | $31,581 | $16,605 | $83,974 | $47,129 |
| Net income | $8,654 | $4,571 | $21,500 | $14,260 |
| Funds from operations (“FFO”) (1) | $12,401 | $7,726 | $39,623 | $22,181 |
| Funds from operations per share | $0.23 | $0.24 | $0.80 | $0.69 |
| Adjusted funds from operations (“AFFO”) (1) | $10,541 | $7,062 | $33,578 | $23,411 |
| Adjusted funds from operations per share | $0.20 | $0.22 | $0.68 | $0.72 |
(1) FFO and AFFO are measures used by management to evaluate operating performance. Please refer to the section “Non-IFRS Measures” in this press release for more information.
Balance Sheet and Portfolio Highlights
| (in thousands of U.S. dollars, except number of properties) | September 30, 2018 | December 31, 2017 |
|---|---|---|
| Total assets | $1,384,152 | $785,005 |
| Number of owned properties | 104 | 40 |
| Debt | $751,313 | $428,377 |
| Debt / Gross Book Value | 54.3% | 54.6% |
“We are excited about the success of our debenture offering, and our share buyback program through the normal course issuer bid,” stated Scott Higgs, Chief Financial Officer for the Company. “The debentures provide us with additional capital flexibility, and ability consolidate property level debt and enhance our debt profile, while the normal course issuer bid allows us to accretively capitalize on the current undervaluation of our share price.”
Other Recent Activity
On October 31st, the Company closed the US$11.0 Million acquisition of previously announced Keepsake Village at Greenpoint (“Property”) in Liverpool, New York. The property is leased to Hearth Management, LLC (“Hearth”). The Company now has three properties operated by Hearth.
The Company has entered into a definitive purchase and sale agreement for the sale of seven properties located in Georgia currently leased to Traditions Senior Management (collectively, “Traditions Portfolio”) for US$70 Million. The Company purchased the Traditions portfolio as part of the acquisition of Care Investment Trust in February 2018. The Traditions Portfolio was assembled as part of a specific value add and opportunistic strategy in the beginning of 2017. The company intends to redeploy the capital toward its robust pipeline.
Investor Conference Call
A conference call hosted by the Company’s senior management team will be held Thursday, November 15, 2018 at 10:00 AM ET. The telephone numbers for the conference call are: Local: (647) 427-7450 or Toll Free: (888) 231-8191. The passcode for the conference call is: 2586197. The conference will also be available via webcast at www.invesque.com/company-presentations/. Please log on at least 15 minutes before the call commences. The telephone numbers to listen to the call after it is completed (taped replay) are: Local: (416) 849-0833 or Toll Free: (855) 859-2056. The Passcode for the taped replay is 2586197.
About Invesque
Invesque is a healthcare real estate company with an investment thesis centered around the opportunity created by the global aging demographic trend. Invesque currently capitalizes on this opportunity by investing in a highly diversified portfolio of income generating healthcare properties located across the United States and Canada through long-term absolute net leases, joint ventures, and development capital. For more information, visit www.invesque.com.
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 “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, “project”, or “continue” or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect the Company’s current beliefs and are based on information currently available to management. This forward-looking information represents our views as of the date of this press release and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. We have attempted to identify important factors that could cause actual results or performance to vary from those current expectations or estimates expressed or implied by the forward-looking information. See risk factors highlighted in materials filed with the securities regulatory authorities in Canada from time to time, including, but not limited to, the Company’s annual information form available on SEDAR at www.sedar.com.
Non-IFRS Measures
The Company reports its financial results in accordance with International Financial Reporting Standard (“IFRS”). Included in this news release are certain non-IFRS financial measures as supplemental indicators used by management to track the Company’s performance. These non-IFRS measures are FFO and AFFO.
The Company believes that these non-IFRS financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. For a full definition of these measures and a reconciliation to net profit for the three months ended September 30, 2018, please refer to the Financial Measures section of the September 30, 2018 MD&A available on the Company’s website and on SEDAR at www.sedar.com.
SOURCE Invesque Inc.
For further information: Investor Relations, 1-317-643-4017, ir@invesque.com