Chartwell Provides Update on Strategic Growth and Financing Initiatives

Executive Summary

• Chartwell completed the $88.5 M acquisition of Les Tours Angrignon (426 IL + 23 AL suites) and announced three additional cash acquisitions totaling ~$315 M (Panorama, Azalis, L’Aubier) slated to close in Q4 2025.
• The company raised approximately $250 M through its at‑the‑market equity distribution program and secured $87 M of new CMHC‑insured mortgage financing at 4.33% interest.
• Morningstar DBRS upgraded Chartwell’s trend rating to Positive from Stable, reaffirming its BBB (low) credit rating.

Key Details

• Les Tours Angrignon Acquisition (closed Oct 1 2025) – Purchase price $88.5 M; financed with assumption of a $68.7 M CMHC‑insured mortgage (2.22% interest, mat. Dec 2026) and cash; 90% occupied.
• Residence Panorama (agreement) – 238 suites (206 IL, 32 AL, 49 condo); purchase price $76.0 M cash; 98% occupied; expected close Q4 2025.
• Residence Azalis (agreement) – 334 suites (304 IL, 30 AL); purchase price $111.0 M cash; 97% occupied; expected close Q4 2025.
• Residence L’Aubier (agreement) – 376 suites (340 IL, 36 AL); purchase price $128.2 M cash with $0.65 M hold‑back for vendor NOI guarantee; 82% occupied; expected close Q4 2025.
• Chartwell Kingsview Development – New 111‑suite retirement residence in Calgary; $4.5 M mezzanine loan funded (total commitment $6.5 M); 3‑year term, 1‑year extension, interest 13% (step‑down to 12% at break‑even), secured by second charge and personal guarantees; Chartwell holds operations management rights and a call option on stabilization.
• ATM Equity Program – Issued 13.7 M Trust Units at an average price of $18.27, generating ~​$250 M gross proceeds (upsized Aug 7 2025).
• CMHC‑Insured Financing – Two new mortgages totaling $87.0 M; interest rate 4.33%; maturity August 2035.
• Credit Rating Update – Morningstar DBRS changed trend to Positive on Sep 30 2025, confirming BBB (low) rating, citing portfolio optimization, capital recycling, and improved operating performance.

Notable Quotes

“We are pleased to continue our strategic growth by acquiring modern, efficient, and highly desirable properties in dynamic urban markets at a significant discount to replacement costs.” – Jonathan Boulakia, Chief Investment Officer

“The successful execution of our ATM program and mortgage financings enables us to support strategic growth of our portfolio while ensuring prudent debt leverage management within our established targets.” – Jeffrey Brown, Chief Financial Officer