In announcing fourth quarter earnings results, Invesque (TSX: IVQ) said Thursday that it was selling eight skilled nursing facilities for $125 million as the company moves toward a primarily private-pay, seniors housing portfolio.
In February, the Company entered into a purchase and sale agreement to sell the skilled nursing facilities the company currently leases to SymCare. Invesque executives said they expect to complete the transaction before the end of the second quarter.
Invesque Chairman and CEO Scott White said that over the last two years Invesque has exited approximately $450 million in non-strategic assets to streamline and simplify their portfolio, also selling a medical center in Canada for $7.8 million, and another in Florida for $6.4 million.
In Q3, the company was down to only four skilled nursing operator relationships across 17 properties with the sale of two skilled nursing facilities in Nebraska to former operator Hillcrest Health Services, representing a $168,000 price per bed.
“I am also delighted to announce that we have reached an agreement to sell the remaining SymCare leased properties,” White said in a press release. “This is a key element of the strategy we announced last year to become a predominantly private pay seniors housing company. At closing, we estimate that 80% of our portfolio’s NOI will be related to seniors housing investments, a substantial increase from the beginning of 2021.”
Five years ago, more than 75% of the company’s pro forma NOI came from its skilled nursing assets. As of Q4 2021, about 60% of pro forma NOI came from private-pay senior housing assets. Invesque sold more than $210 million in assets in 2021.
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