Invesque Inc · TSX:IVQ
Invesque — Investor Presentation (November 2022)
22 slides from Invesque's investor presentation, Nov 9, 2022
Slide 1: Company Overview
COMPANY OVERVIEW TSX: IVQ.U, IVQ
Slide 2: Disclaimer
DISCLAIMER General You are advised to read this disclaimer carefully before reading, accessing, or making any other use of the information included herewith. This presentation (this “Presentation”) contains materi- als that are not an offer or the solicitation of an offer to purchase any securities
Slide 3: Disclaimer (Cont.)
DISCLAIMER (Cont.) only as of the date of this Presentation. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate as a
Slide 4: Invesque at a Glance
Invesque at a Glance Macro Opportunity Investment Thesis Strategy Massive wave of aging baby boomers Health care real estate generates long- Build a quality portfolio of private-pay will utilize greater health care services term, out-paced risk adjusted returns. seniors housing real estate, diversif
Slide 5: Building the Platform
Building the Platform Invesque has successfully built a ~$1.3B diversified health care real estate portfolio and platform The Company’s property portfolio generates stable cash flows with strong organic growth • Leases are signed with operating tenants on an absolute triple-net ("NNN") basis • 90%+
Slide 6: Pro Forma Invesque Portfolio Snapshot
Pro Forma Invesque Portfolio Snapshot Geographically diversified across 81 ~10 years 13 17 States Properties Effective average age of portfolio Partnerships with and 1 high-quality operators Canadian Province ~7,650 Beds ~11 years ~ 67% ~49% Weighted average of NOI from private of NOI from SHOP ~190
Slide 7: Spectrum of Care
Spectrum of Care Hospitals Inpatient Acute Care High Acuity Skilled Nursing and Care Post Acute/Transitional Care ("TC") Long Term Care ("LTC") Seniors Housing Memory Care ("MC") Assisted Living ("AL") Independent Living ("IL") Senior Apartments Complementary Health Care Medical Office Buildings Fre
Slide 8: Attractive and Stable Industry Dynamics
Attractive and Stable Industry Dynamics Highly fragmented industry focused on a need-driven, cost-effective care model Highly Fragmented Industry • Top 10 assisted living and independent living community owners represent ~27% of total units • Publicly traded REITs and operating companies own ~21% of
Slide 9: Attractive Industry Dynamics
Attractive Industry Dynamics Strong Demographic Driven Growth US 80+ Age Group Seniors Housing Demand Projections • 85+ age group is expected to grow ~4.9% over the next 20 years compared to ~0.6% for the US population Penetration Rates 13% 18% 23% 5M Need Driven Services 4M • 85+ age group health c
Slide 10: Preparing for Unprecedented Growth
Preparing for Unprecedented Growth We are at the leading edge of the aging baby boom demographic Future Need 4,500 Age 62 4,000 Age 67 # of Annual Births 3,500 Age 72 (In Thousands) Utilizing Current Aging Facilities 3,000 Age 102 Age 77 Age 97 2,500 Age 92 Age 82 Age 87 2,000 1,500 1,000 1920 1925
Slide 11: Exposure to Stable Long-Term Triple-Net Leases and Operating Properties with Growth
Exposure to Stable Long-Term Triple-Net Leases and Operating Properties with Growth Attractive cash flow profile comprised of stable triple-net leases and SHOP portfolio with private pay seniors housing operating properties Stability Stable Triple-Net Upside participation Lease Portfolio through SHO
Slide 12: Pro Forma Portfolio Composition
Pro Forma Portfolio Composition NOI by Asset Type Portfolio Operator Exposure NOI by State Other Other 22% SNF Operators Commonwealth VA 33% 27% 36% 32% CAN 5% SH 67% PA Cascade 8% 7% Symphony TX IL 15% 11% 22% Providence 7% VA Constant Care 26% 8% US Health Care Asset Age (Years)(1) Youngest averag
Slide 13: Pro Forma Geographic Footprint
Pro Forma Geographic Footprint 81 ~7,650 ~190,000 ~$1.3B Properties Beds MOB ft 2 of Investment Properties 5 Ontario 1 Wisconsin 5 New York 2 New Jersey 9 Pennsylvania 3 Maryland 23 Virginia 1 Tennessee 3 South Carolina 2 Georgia 1 Florida Texas 8 3 Indiana 11 Illinois 1 Louisiana Missouri 1 Arkansa
Slide 14: Commonwealth Senior Living
Commonwealth Senior Living A Case Study in Building a Vertically Integrated Health Care Real Estate Platform In 2019, Invesque closed on the transformative ~$340 million acquisition of Commonwealth Senior Living ("CSL") comprising a portfolio of 20 private-pay seniors housing properties in Virginia
Slide 15: Commonwealth Senior Living
Commonwealth Senior Living • Founded in 2002 by Richard Brewer with three 2021 / 2022 communities: Churchland House, Gloucester House, and King’s Grant Strategic Expansion • Through strategic acquisition, disciplined expansion, and organic growth, CSL transformed into a leading US platform 2019 IVQ
Slide 16: Commonwealth Senior Living – Regionally Focused Premier Provider
Commonwealth Senior Living – Regionally Focused Premier Provider CSL currently operates 36 communities, making them one of the largest operators of seniors housing in Virginia and a premier operator in the mid-Atlantic • 28 Invesque owned properties in Pennsylvania, Maryland, Virginia, and Tennessee
Slide 17: Well-Established Industry Leading Operating Partners
Well-Established Industry Leading Operating Partners 17
Slide 18: Financial Profile and Strategy
Financial Profile and Strategy Low Cost of Capital and Flexible Debt Funding Structure as of September 30, 2022 • Weighted average interest rate of 4.5% • ~84% fixed rate / ~16% floating rate • $400 million senior unsecured credit facility which includes a $200 million term loan and $200 million rev
Slide 19: Investment Highlights
Investment Highlights Growth Opportunities • SHOP portfolio provides the opportunity to participate in the operating upside of the private with SHOP Portfolio pay seniors housing segment • Long-term NNN leases with experienced operators Exposure to Long- Term NNN Leases • Weighted average NNN lease
Slide 20: Experienced Management Team
Experienced Management Team Scott White Chairman and Chief Executive Officer • Served as Executive Vice President of HealthLease Properties until its acquisition by Welltower in 2014; prior to that Mr. White was a Senior Vice President in the Private Funds Group of Brookfield Asset Management • 25 y
Slide 21: Experienced Management Team
Experienced Management Team Bryan Hickman Dennis Dechow Senior Vice President – Investments Senior Vice President – Asset Services Quinn Haselhorst Kari Onweller Senior Vice President – Finance Senior Vice President – Partner and Investor Relations 21
Slide 22: Contact
8701 E. 116th Street, Suite 260, Fishers, IN 46038 (317) 643-4017 ir@invesque.com Invesque.com 22-IVQ-060