Invesque to suspend dividend distributions

• Healthcare real estate company, Inveqsue (TSX:IVQ), has said that it will suspend dividends until further notice
• The decision comes as part of a wider initiative to preserve liquidity during the COVID-19 pandemic
• The implementation of further cost-reduction measures will likely save the company between C$3 million and $4 million
• These measures included executive compensation changes and other staff cutbacks
• Invesque (IVQ) is down 26.97 per cent to $2.41 per share, with a market cap of $136.06 million

Healthcare real estate company, Inveqsue (TSX:IVQ), has said that it will suspend dividends until further notice.

With 123 income-generating properties across North America, Invesque’s portfolio includes independent living, assisted living, skilled nursing, and medical office assets.

In conjunction with the dividends suspension, the company also announced the suspension of its dividend reinvestment program.

The decision comes as Inveqsue braces for a potential impact to its finances as COVID-19 continues to spread.

Invesque’s Chairman and CEO, Scott White, said that no material impacts to cash flow have been reported. However, its assets provide care for the ageing demographic, which is the group at most risk to COVID-19.

“Given the unprecedented, rapid changes taking place in the market, the board of directors and management believe it is prudent to preserve cash and strengthen the balance sheet by suspending the dividend at this time.

“This is a fluid situation that we will continue to re-evaluate on a real time basis,” he added.

Invesque also noted that it is currently exploring further options to either reduce or defer its non-essential capital expenditures.

So far, the company has implemented adjustments to executive salaries and compensations, as well as a variety of staff cutbacks. Invesque is also complying with work-from-home policies, subsequently reducing the utilisation of office space, travel, and other corporate-level expenses.

The impact of these cutbacks has not yet been quantified. However, Invesque is expecting an overall saving of between C$3 million and $4 million.

Invesque (IVQ) is down 26.97 per cent to $2.41 per share at 10:31am EST.