Invesque Inc. continued to reduce its skilled nursing exposure and focus more on seniors housing holdings during the first quarter.
During an earnings call on Thursday, executives for the Toronto-based healthcare real estate company highlighted progress on an existing strategy as it works to create a “strong portfolio of private-pay, seniors housing assets” in an effort to reduce its skilled nursing footprint in the pandemic’s wake.
Following several dispositions over the last three quarters, nearly 60% of the company’s net operating income (NOI) is now coming from seniors housing, according to Chief Investment Office Adlai Chester. Seventy-five percent of the company’s NOI came from skilled nursing five years ago in comparison.
The company’s portfolio of 96 total properties is down to about 36% skilled nursing, with another 7% or so in medical office buildings.
“I expect the seniors housing number will continue to increase over the coming months as we deliver on our outlined strategy,” Chester said.
Invesque executives hope the shift will help the company weather ongoing challenges impacting the industry, including slowed or reduced occupancy recovery.
“As operators continue to rev up the sales engine, the normal course move-outs that happen across our industry have not slowed. This has created a challenging environment for many owners and operators to navigate,” Chester said.
“However, as we have executed on our strategy, we are very well-positioned to weather these challenges with a streamlined and much stronger portfolio. We expect the positive momentum to continue as the year progresses,” he added.
Several companies, including Sabra Health Care REIT and CareTrust REIT, are also in the process of reducing their skilled nursing exposure to invest more in behavioral health.
“I’m proud of the progress our team has made and where we are as a company today, and I am optimistic that we will see continued improvement in the operations of our portfolio over the rest of 2022,” Invesque CEO Scott White said.