Invesque (IVQ) Status Update summary

Company History and Strategic Shift

• Rapid growth after the 2016 IPO led to a diversified healthcare real estate portfolio valued at $1.5 billion at its peak.

• COVID-19 severely impacted skilled nursing and senior housing segments, reducing cash flow and increasing leverage.

• Aggressive loan covenants from KeyBank forced a strategic pivot to focus on senior housing and divest other assets.

Market Environment and Industry Outlook

• Senior housing demand is rising due to demographic trends, with over 10,000 Americans turning 65 daily and the 65+ population at a record high.

• New construction starts for senior housing are at all-time lows due to pandemic impacts and higher material costs.

• Financing markets are improving, with interest rates retreating from 2024 peaks and reliable access to permanent financing.

• Limited new construction and more active financing markets are expected to drive higher occupancy and asset values.

Financial Restructuring and Asset Sales

• Sold 16 assets for $161.9 million in 2024, reducing the KeyBank facility by $114 million and further by $10 million in Q1 2025.

• Restructured corporate debt, reducing annual interest expense by $2.9 million and simplifying the capital structure.

• Converted $131.1 million of preferred equity into common shares valued at $114.7 million; Magnetar Financial LLC now owns about 80% of common shares.

• Substantially simplified capital structure as of December 30, 2024.