Selectis Health, Inc.

What they do

Selectis Health owns and operates healthcare facilities through wholly-owned subsidiaries, focusing on senior housing (independent and assisted living) and post-acute/skilled nursing. The company transitioned from a pure landlord model to an owner-operator model beginning in 2019. As of March 31, 2026, it owned ten long-term care facilities (including a campus of three buildings in Tulsa, OK), with seven operated by the company and one leased to a third party.

Revenue drivers

• Healthcare revenue — Revenue from operating facilities (room, board, and care services), primarily from Medicaid and other payors. For FY2025, healthcare revenue was $41.4M, up 6% from $39.2M in 2024, driven by Medicaid rate increases in Georgia and Oklahoma.
• Management fee revenue — Fees from managing facilities under a management arrangement; $65,795 in FY2025 and $107,441 in Q1 2026, representing a small but growing stream.
• Rental revenue — Historically from leasing properties to third-party operators, but ceased after the June 2024 sale of the Archway Property; no rental revenue recorded in FY2025.

Recent performance

FY2025 revenue was $41.4M (up 5% from $39.5M in 2024), and net loss improved to $-1.0M (EPS $-0.34) from $-2.4M (EPS $-0.80) in 2024. Operating cash flow turned positive at $1.9M in 2025 versus $-1.8M in 2024. In Q1 2026, revenue dropped sharply to $7.3M (from $10.5M in Q1 2025) due to the January 2026 sale of two Georgia facilities and the pending sale of the remaining two. As of March 31, 2026, total assets were $30.0M, total liabilities $29.8M, and shareholder equity was just $258,344.

Strategy

Management's stated goal is to increase shareholder value through profitable growth and quality healthcare, focusing on opportunistic investing, portfolio diversification, and conservative financing. The company has been divesting its Georgia skilled nursing facilities, completing sales of two in January 2026 and another two in May 2026, to exit that state entirely. It continues to evaluate operations that enhance its portfolio of healthcare centers, with an emphasis on direct ownership and operation rather than leasing.

Risks

• Elevated leverage and thin equity — As of March 31, 2026, total liabilities ($29.8M) nearly equal total assets ($30.0M), with shareholder equity of only $258,344 and long-term debt of $13.3M, leaving little cushion against losses or further divestitures.
• Revenue concentration and payor risk — Healthcare revenue depends heavily on Medicaid and Medicare reimbursement; changes in rates or regulations could materially affect profitability, as seen with the positive impact of Medicaid rate hikes in Georgia and Oklahoma.
• Geographic concentration — A large share of operations is in Oklahoma (six facilities, 412 beds) and Arkansas (one facility, 141 beds); any regional downturn or regulatory change could disproportionately hurt the portfolio.
• Transition risk from divestitures — The company is rapidly selling facilities, which reduces its asset base and may strain remaining operations; the Q1 2026 revenue decline highlights the immediate impact of these sales.

Outlook

Management expects to continue as an owner-operator, with a smaller portfolio after exiting Georgia. They anticipate that the remaining seven operated facilities and one leased facility will generate revenue from healthcare services and management fees, though no specific guidance was provided. The company is actively pursuing opportunistic investments and evaluating operations to enhance its portfolio.