Invesque (IVQ) Q3 2024 earnings summary

Executive summary

• Sold a skilled nursing facility in Illinois for $16.5M and seven seniors housing assets for $65.4M, using proceeds to reduce debt and improve liquidity.

• Entered a definitive agreement to sell interests in 20 seniors housing assets and CSL management company, expected to close Q1 2025, subject to conditions.

• Proposed amendments to convertible debentures and a preferred share exchange, with shareholder meetings scheduled for November 26, 2024.

Financial highlights

• Q3 2024 revenue was $42.4M, down from $46.7M in Q3 2023; nine-month revenue was $129.1M, down from $146.5M year-over-year.

• Q3 2024 net loss was $7.5M, compared to net income of $0.6M in Q3 2023; nine-month net loss was $29.6M, improved from $60.9M loss year-over-year.

• Q3 2024 FFO was $1.1M ($0.02/share), down from $4.2M ($0.07/share) in Q3 2023; nine-month FFO was $5.0M ($0.09/share), down from $17.0M ($0.30/share) year-over-year.

• Q3 2024 AFFO was $1.0M ($0.02/share), down from $3.0M ($0.05/share) in Q3 2023; nine-month AFFO was $4.2M ($0.07/share), down from $15.5M ($0.27/share) year-over-year.

Outlook and guidance

• Expects leverage to fall below 50% following recent and pending asset sales and corporate transactions.

• Sale of 20 seniors housing assets and CSL management company interest anticipated to close in Q1 2025, but subject to due diligence and closing conditions.