RHE Stock: Regional Health Properties surges on sympathy play

Shares of Regional Health Properties (RHE) surges on Brooklyn ImmunoTherapeutics (BTX) sympathy play.

The two stocks were among today’s leading gainers in the healthcare sector. The company has also reported it’s earnings for the fourth quarter of 2020. In it you’ll find that the company:

  • Successfully transitioned two non-performing facilities affiliated with one operator, preliminary results for transitioned facilities for January and February 2021 very encouraging
  • Collected 91% of 2020 cash rent
  • Generated positive free cash flow from continuing operations for the fourth quarter and year ended December 31, 2020, despite covid-19 headwinds

Brent Morrison, Regional Health Properties’ Chief Executive Officer and President, commented, “Our portfolio occupancy experienced some softness going into yearend but we remain hopeful that the vaccine rollout and reinstating family visitation privileges should reverse the downward trend by the second half of 2021. We have a strong and experienced portfolio of operating partners and remain confident in their abilities to continue to navigate through the challenges resulting from the ongoing pandemic.”

Ben Waites, Regional’s Chief Financial Officer added “I’m excited to join the Regional team. I look forward to furthering the company’s progress and see Regional well positioned to weather the storm. We see opportunities to refinance some of our senior debt secured by U.S. Department of Housing and Urban Development (HUD) as well as other capital structure improvements.”

Management periodically monitors a number of facility performance metrics, including rent coverages both before and after management fees. In the fourth quarter of 2020, the Company’s portfolio rent coverage before management fees was 1.77x and rent coverage after management fees was 1.28x. Occupancy and skilled mix for the Company’s portfolio were 67.3% and 28.4% for the fourth quarter of 2020, respectively. These data exclude the impact of three managed facilities located in Ohio.