Invesque (IVQ) Q2 2024 earnings summary

Executive summary

• Completed sale of Symcare portfolio for $121 million, reducing skilled nursing exposure to nine properties.

• Sold MetroWest Medical Center for $6.4 million, continuing exit from medical office portfolio.

• Completed $77.5 million in asset sales year-to-date, including a $5.1 million skilled nursing facility sale in Q2.

• Refinanced or extended $209.5 million of debt in Q2, reducing KeyBank credit facility by $33 million.

• Added Chapters Living as a new operator for three memory care communities, showing positive operational progress.

Financial highlights

• Q2 2024 revenue was $43.1 million, down from $50.3 million in Q2 2023.

• Net loss for Q2 2024 was $15.8 million, compared to $45.9 million in Q2 2023.

• FFO for Q2 2024 was $1.4 million ($0.03 per share), down from $5.8 million ($0.10 per share) in Q2 2023.

• AFFO for Q2 2024 was $1.1 million ($0.02 per share), down from $5.9 million ($0.10 per share) in Q2 2023.

• NOI for the SHOP portfolio increased by 5.5% sequentially, driven by occupancy and rate growth.

Outlook and guidance

• Management expects continued asset sales and refinancings to further reduce leverage in the second half of 2024.

• Expect continued proactive portfolio management, including further asset dispositions.

• Anticipate more muted occupancy growth in senior housing after recent recovery to pre-pandemic levels.

• Staffing costs have stabilized, with improvements in retention and availability.