Regional Health Properties, Inc. (RHE) stock prices were up a staggering 90.39% during the course of the trading day on May 5th, 2021, bringing the price per share up to USD$18.91.
Promising Rent Collection Reports
As of December 31st, 2020, RHE had collected 80% of contractual cash due for the fourth quarter of 2020 and 82% of the cash due over the 12 months ended December 31st, 2020. At the beginning of April 2021, the company had collected 91% of contractual cash due for the fiscal year 2020 and all of the expected contractual rent for the fiscal year 2021 until the end of March.
RHE announced the termination of a lease for two facilities in Georgia with a single operator. One of the facilities was subsequently transitioned to Empire Care Centers who would serve as the new operator, while the other facility was leased out to Vero Health Care. The company has reported promising preliminary operating results from January and February indicating the success of the decision.
Rent Revenue Reports
Total rent revenues for Q4 2020 were down to USD$3.4 million from the USD$4.3 million reported in Q4 2019, representing a 20.2 decrease. Total rent revenues were down 14.3% year-over-year for the 12 months ended December 31st, 2020 compared to the prior-year period, which reported USD$19 million.
Offsetting Further Revenue Loss
The significant difference is primarily attributable to the termination of two subleases in Q4 2020 of two skilled nursing facilities. This costly transition was partially offset by the sale of four of the company’s facilities in Q3 2019, as well as the disposition of two facilities the company subleased “Omega Disposition” in Q1 2019.
RHE’s Liquidity Position
As of December 31sst 2020, RHE reported having cash that amounted to USD$4.2 million, down marginally from the USD$4.4 million reported as of December 31st, 2019. The company’s restricted cash came out to USD$3.3 million as of December 31st, 2020, as compared to USD$3.7 million reported in 2019. The company’s outstanding total debt was reported at USD$54.4 million as of December 31st, 2020, compared to the USD$55.4 million reported a year earlier.
Future Outlook for RHA
The onset of the global Covid-19 pandemic wrought havoc across entire economies and RHE was particularly affected by changes in consumer behaviors and government regulations during the year of coronavirus. The company is hopeful for unprecedented growth in a post-pandemic economy as it sets the stage for the lucrative fiscal year 2021, wherein it can leverage its solid liquidity position and resources to maintain the skyrocketing gains in RHE stock price.