Chartwell Retirement reviews status of acquisitions

Executive Summary

• Chartwell Retirement Residences announced significant strategic growth, including the completion of the $88.5M acquisition of Les Tours Angrignon and definitive agreements to acquire three additional properties (Residence Panorama, Residence Azalis, and Residence L'Aubier) totaling approximately $315.2M.
• The company completed a $250M equity raise via its at-the-market (ATM) program and secured $87.0M in new CMHC-insured financings, while receiving a positive trend upgrade from Morningstar DBRS.
• Chartwell initiated development activity in Calgary with a $4.5M advance on a $6.5M mezzanine financing for the Chartwell Kingsview Retirement Residence.

Key Details

• Completed Acquisition (Les Tours Angrignon):
  • Closed on Oct. 1, 2025.
  • Location: Montreal, Que.
  • Size: 449 suites (426 Independent Living, 23 Assisted Living) across three towers.
  • Purchase Price: $88.5 million (before closing costs/working capital adjustments).
  • Funding: Assumption of $68.7 million CMHC-insured mortgage (2.22% interest, maturing Dec. 2026) plus cash.
  • Current Occupancy: 90%.
• Definitive Agreements for Future Acquisitions:
  • Residence Panorama (Laval, Que.):
    • Size: 238 suites (206 IL, 32 AL) + 49 condominium suites.
    • Purchase Price: $76.0 million (cash).
    • Occupancy: 98%.
    • Closing: Expected Q4 2025.
  • Residence Azalis (Repentigny, Que.):
    • Size: 334 suites (304 IL, 30 AL).
    • Purchase Price: $111.0 million (cash).
    • Occupancy: 97%.
    • Closing: Expected Q4 2025.
  • Residence L'Aubier (Levis, Que.):
    • Size: 376 suites (340 IL, 36 AL).
    • Purchase Price: $128.2 million (cash).
    • Terms: $650,000 held back for vendor NOI guarantee obligations.
    • Occupancy: 82%.
    • Closing: Expected Q4 2025.
• Development Activity (Calgary):
  • Project: Chartwell Kingsview Retirement Residence (111 suites).
  • Financing: Advance of $4.5 million of a total $6.5 million mezzanine loan.
  • Loan Terms: 3-year term (1-year extension option), 13% interest (reducing to 12% upon breakeven cash flow), secured by second charge.
  • Chartwell Role: Operations manager with a call option to acquire upon stabilization.
• Financing and Credit Updates:
  • ATM Equity Raise: Issued 13.7 million trust units at an average price of $18.27, generating ~$250 million gross proceeds.
  • CMHC Financings: Completed $87.0 million in new mortgages on previously unencumbered properties.
  • Mortgage Terms: 4.33% interest, maturing August 2035.
  • Credit Rating: Morningstar DBRS changed trend to "Positive" from "Stable" and confirmed BBB (low) rating on Sept. 30, 2025.

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... we have also been busy laying the groundwork to build an important pipeline of future acquisition opportunities, including through strategic development partnerships." — 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