Chartwell Announces Third Quarter 2025 Results, Provides an Update on Growth and Portfolio Optimization Activities, and Renews At-the-Market Program
Executive Summary
- Chartwell reported Q3 2025 resident revenue of $275.2 M (+32.3% YoY) and FFO of $73.1 M (+30.8% YoY), despite a net loss of $5.2 M versus a $23.6 M profit in Q3 2024.
- Completed four Quebec acquisitions in October‑November 2025 totaling ~$404 M, expanding the portfolio by ~1,400 suites.
- Renewed its at‑the‑market (ATM) equity distribution program, authorizing up to $500 M of Trust Units; proceeds are earmarked for future acquisitions, development, debt repayment and general corporate purposes.
Key Details
- Financial Performance
- Resident revenue: $275.2 M (Q3 2025) vs. $208.0 M (Q3 2024).
- Direct property operating expense: $165.4 M vs. $128.4 M.
- Net loss: $(5.2) M vs. net income $23.6 M a year earlier.
- Funds from Operations (FFO): $73.1 M, or $0.24 per unit (up 30.8% YoY).
- Same‑property adjusted NOI: $74.7 M (+10.2 M YoY).
- Adjusted operating margin: 42.0% (up 250 bps YoY).
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Weighted average occupancy: 93.1% (up 470 bps YoY).
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Liquidity & Capital Structure
- Liquidity as of Sept 30 2025: $679.3 M (cash $284.4 M + borrowing capacity $394.9 M).
- Net debt to adjusted EBITDA: 6.9× (down from 8.4× Dec 31 2024).
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Interest coverage ratio: 3.2× (up from 2.7×).
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Acquisition Activity
- Les Tours Angrignon – 449 suites, Montreal; purchase price $88.5 M (cash + assumption of $68.7 M CMHC‑insured mortgage @ 2.22%).
- Résidence Azalis – 334 suites, Repentigny; definitive agreement for $111.0 M, close expected Q4 2025.
- Résidence L'Aubier – 376 suites, Lévis; purchase price $128.2 M (cash + repayment of $10.0 M loan to seller; $0.65 M held back for vendor NOI guarantee).
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Résidence Panorama – 238 suites, Laval; purchase price $76.0 M (cash).
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ATM Equity Distribution Program
- New prospectus supplement filed Nov 6 2025 to renew ATM program, permitting issuance of up to $500 M Trust Units.
- Prior ATM program (Nov 14 2024) issued ~$500 M; renewed program provides additional financing flexibility through May 30 2026.
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Use of proceeds: future property acquisitions, development/redevelopment, debt repayment, general trust purposes.
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Outlook & Guidance
- Management expects occupancy to reach 95% by Dec 2025.
- Continued focus on portfolio growth, strategic acquisitions, and divestiture of non‑core assets.
Notable Quotes
“We are pleased to launch a $500 million renewed ATM Program today given the successful execution of the Prior ATM Program… This cost‑effective tool may be used, from time to time during favourable market conditions, to continue supporting Chartwell’s capital requirements.” – Jeffrey Brown, Chief Financial Officer
All figures are presented in Canadian dollars unless otherwise noted.