REGIONAL HEALTH PROPERTIES, INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Regional Health Properties, Inc. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

REGIONAL HEALTH PROPERTIES, INC (RHEPB) filed a Annual Report (10-K) with the SEC on April 1, 2024. The company filed its 2023 10-K report on April 1, 2024. The filing covers the fiscal year ending December 31, 2023. Regional Health Properties, Inc. was formerly known as ADCARE HEALTH SYSTEMS, INC. The company's business address is in Atlanta, GA. The SIC code is 6519 - Lessors of Real Property, NEC.

Why It Matters

For investors and stakeholders tracking REGIONAL HEALTH PROPERTIES, INC, this filing contains several important signals. The 10-K filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the fiscal year 2023. Investors and stakeholders can use this filing to assess the company's financial health, strategic direction, and potential risks.

Risk Assessment

Risk Level: — REGIONAL HEALTH PROPERTIES, INC shows moderate risk based on this filing. The company has a complex debt structure and has been involved in forbearance agreements, indicating potential financial strain or operational challenges.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand the company's debt obligations and operational stability.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-04-01 — Filing Date (Date of submission)
• 0000950170-24-039414 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• REGIONAL HEALTH PROPERTIES, INC. (company) — Filer
• ADCARE HEALTH SYSTEMS, INC (company) — Former company name
• Atlanta, GA (location) — Business address
• 6519 (industry_code) — Standard Industrial Classification
• 2023-12-31 (date) — Fiscal year end
• 2024-04-01 (date) — Filing date

FAQ

Industry Context

Regional Health Properties, Inc. operates within the real estate sector, specifically as lessors of real property.

Regulatory Implications

The company is subject to SEC regulations for its periodic filings, including the annual 10-K report.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year 2023.
2. Review the risk factors section for potential business challenges.
3. Note the company's former names and history of name changes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the company's 2023 annual report on Form 10-K, filed on April 1, 2024.

Key Financial Figures

• $67.2 million — 23, we had investments of approximately $67.2 million in eleven health care real estate facil

Filing Documents

• rhe-20231231.htm (10-K) — 4101KB
• rhe-ex21_1.htm (EX-21.1) — 60KB
• rhe-ex23_1.htm (EX-23.1) — 4KB
• rhe-ex31_1.htm (EX-31.1) — 12KB
• rhe-ex31_2.htm (EX-31.2) — 12KB
• rhe-ex32_1.htm (EX-32.1) — 8KB
• rhe-ex32_2.htm (EX-32.2) — 8KB
• rhe-ex97_1.htm (EX-97.1) — 47KB
• 0000950170-24-039414.txt (&nbsp;) — 16953KB
• rhe-20231231.xsd (EX-101.SCH) — 2490KB
• rhe-20231231_htm.xml (XML) — 3214KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 23 Item 1B. Unresolved Staff Comments 42 Item 1C. Cybersecurity 42 Item 2.

Properties

Properties 44 Item 3.

Legal Proceedings

Legal Proceedings 46 Item 4. Mine Safety Disclosures 46 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47 Item 6. [Reserved] 47 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 63 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 106 Item 9A.

Controls and Procedures

Controls and Procedures 106 Item 9B. Other Information 107 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 107 Part III Item 10. Directors, Executive Officers and Corporate Governance 108 Item 11.

Executive Compensation

Executive Compensation 115 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 127 Item 13. Certain Relationships and Related Transactions, and Director Independence 130 Item 14. Principal Accountant Fees and Services 131 Part IV Item 15. Exhibits, Financial Statement Schedules 132 Item 16. Form 10-K Summary 145

Signatures

Signatures 146 1 Certain statements in this Annual Report on Form 10-K (this "Annual Report") contain "forward-looking" information as that term is defined by the Private Securities Litigation Reform Act of 1995. Any statements that do not relate to historical or current facts or matters are forward-looking statements. Examples of forward-looking statements include all statements regarding our expected future financial position, results of operations, cash flows, liquidity, financing and refinancing plans, strategic and business plans, tenants, operators, projected expenses and capital expenditures, competitive position, growth and acquisition opportunities, and compliance with, and changes in, governmental regulations. You can identify some of the forward-looking statements by the use of forward-looking words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "should," "may" and other similar expressions, although not all forward-looking statements contain these identifying words. Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following: The increased risks associated with our portfolio stabilization measures; Increases in market interest rates and inflation; Epidemics or pandemics, including the COVID-19 pandemic, and the related impact on our tenants, operators and healthcare facilities: Our ability to raise capital through equity and debt financings, and the cost of such capital; Our ability to meet the continued listing requirements of the NYSE American LLC (the "NYSE American") and to maintain the listing of our securities thereon; Our dependence on the operating success of our tenants and their ability to meet their obligations to us; Operational risks with respect to our Healthcare Services segment; The effect of increasing healthcare regul

Business

Item 1. Business Description of Business In this Annual Report, except as the context suggests otherwise, the words "Regional Health" or "Regional" refer to Regional Health Properties, Inc., a Georgia corporation, and the words "Company," "we," "ours" and "us" refer to Regional Health and its subsidiaries. Regional Health is a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior housing. Our primary business consists of acquiring and owning real estate property to be leased to third-party tenants in the healthcare sector. We primarily generate revenues by leasing properties to tenants and owning properties operated by third-party property managers throughout the United States ("U.S."). In select circumstances, from time to time, in order to preserve the value of our assets, we may elect to take our facilities back from an operator and either hire a third-party manager or operate the facility ourselves until a new operator for the facility is secured. We operate through two reportable segments: (i) real estate segment, which consists of owning and leasing/subleasing healthcare facilities, predominantly skilled nursing facilities ("SNFs") and assisted living facilities ("ALFs"), to third-party tenants, which in turn operate the facilities (the "Real Estate segment"); and (ii) healthcare services segment, which consists of operating healthcare facilities (the "Healthcare Services segment"). We expect to grow our Real Estate segment while diversifying our portfolio by tenant and facility type within the healthcare sector. We plan to achieve these objectives primarily through making investments directly or indirectly in investments in joint ventures with larger firms. Regional Health is successor to, and a former wholly owned subsidiary of, AdCare Health Systems, Inc. ("AdCare"). On September 29, 2017, AdCare merged with and into Regional Health, with Regional Health continuing as the survi

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View this 10-K filing on SEC EDGAR