Invesque Inc. (TSE: IVQ.U) admitted that current skilled nursing prices have made it think strategically about how to expand or divest in the space moving forward during its second quarter earnings call last week. It also updated its shareholders on its final series of deals with Symphony Care Network (SymCare).
“Transactions have been closed at featured cap rates that are well below historic norms for our industry and many have featured attractive per unit prices, which we estimate to average around $200,000 around per unit,” Adlai Chester, Invesque chief investment officer, said of the senior housing and skilled nursing transaction activity he’s seen recently. “These valuations compel us to continue to diligently manage our portfolio and look for opportunities to dispose of non-core assets at attractive pricing, where such opportunities present themselves.”
He said the Carmel, Ind.-based real estate investment firm may find opportunities to recycle capital from dispositions as it looks to grow with its preferred operating partners.
“We continue to review our overall portfolio and look for opportunities to recycle capital to eliminate non-core assets to redeploy capital,” Scott White, CEO and chairman of Invesque, added. “There is nothing immediately on the horizon of things that we’re working on but that’s an ongoing process.”
Invesque’s portfolio includes assets in independent living, assisted living, memory care, skilled nursing and transitional care, which are operated primarily under long-term leases and joint venture arranging with operating partners.
Symphony Deal
After completing the transition of four skilled nursing facilities (SNFs) in May to Cascade Capital Group, previously leased to Symphony, and selling another property to Symphony in Chesterton, Ind. in the first quarter, Invesque sold three additional facilities as part of the final series of transactions, White added.
“This is a complex, thoughtful and collaborative process between both the Invesque and Symphony teams and I am thankful for all the hard work both sides put in to execute this new framework,” he said.
As it looks at how best to build its portfolio, one reality Invesque and operators across the country face is that the release of the vaccine hasn’t ended the pandemic entirely.
Now with delta variant cases rising, operators are forced to think a little bit differently strategy-wise heading into the fall.
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