Chartwell Announces Second Quarter 2025 Results, Provides an Update on Growth and Portfolio Optimization Activities, and Increases Size of At-the-Market Program

Executive Summary

• Chartwell Retirement Residences reported its Second Quarter 2025 financial results, highlighting significant growth in resident revenue and Funds from Operations (FFO), alongside a strategic increase in its At-the-Market (ATM) equity distribution program.
• The company announced a series of strategic acquisitions totaling over $500 million in committed investments for 2025, including a definitive agreement for a 449-suite portfolio in Montreal and a 1,024-suite portfolio in Ontario.
• Operational metrics showed strong performance with same-property adjusted NOI up 20.0% and occupancy rates increasing to 91.9%, with management forecasting 95% occupancy by year-end 2025.

Key Details

• Financial Performance (Q2 2025):
  • Resident revenue increased by $78.4 million (41.4%) to $268.0 million.
  • Net loss was $5.7 million (compared to a $2.8 million loss in Q2 2024).
  • Funds from Operations (FFO) rose 51.1% to $67.6 million ($0.24 per unit).
  • Same property adjusted Net Operating Income (NOI) increased 20.0% to $74.0 million.
  • Same property adjusted operating margin improved by 360 basis points to 42.5%.
  • Weighted average same property occupancy increased by 490 basis points to 91.9%.
  • Same property adjusted NOI per occupied suite (NOIPOS) increased 13.4% to $2,133.
• Financial Performance (Six Months Ended June 30, 2025):
  • Resident revenue increased by $138.1 million (37.0%) to $511.6 million.
  • Net income was $27.5 million (compared to a $4.8 million loss in 2024 YTD).
  • FFO increased to $123.7 million ($0.44 per unit), up from $83.9 million in 2024 YTD.
• M&A and Portfolio Activities:
  • Completed over $0.7 billion of acquisitions in 2025 year-to-date.
  • June 1, 2025: Acquired additional 5% interest in The Sumach (Toronto) for $6.7 million; now holds 50%.
  • June 11, 2025: Acquired 50% interest in Chartwell Le Prescott II (247 suites) for $7.8 million.
  • July 3, 2025: Acquired 50% interest in Lib Vaudreuil-Drion (187 suites) for $6.3 million.
  • July 10, 2025: Entered definitive agreement to acquire 100% of Les Tours Angrignon (449 suites, Montreal) for $88.5 million; expected close Q3 2025.
  • July 21, 2025: Entered definitive agreement to acquire portfolio of six communities (1,024 suites, Ontario) for $432.0 million, including a forward purchase agreement for 29 townhomes; expected close Q4 2025.
• Financing and Liquidity:
  • ATM Program: Increased the size of the At-the-Market equity distribution program from $250.0 million to $500.0 million. Net proceeds to be used for acquisitions, development, debt repayment, and general trust purposes.
  • Credit Facility: Amended agreements on June 3, 2025, to extend maturity to May 29, 2029, and reduce secured facility interest by 10 basis points.
  • Liquidity: As of June 30, 2025, liquidity was $423.1 million ($28.2 million cash + $394.9 million borrowing capacity). As of August 7, 2025, liquidity increased to $502.9 million ($108.0 million cash + $394.9 million borrowing capacity).
  • Debt Metrics: Net Debt to Adjusted EBITDA was 7.8x; Interest Coverage Ratio was 3.0x.
• Outlook:
  • Management forecasts reaching 93.5% occupancy by September 2025 and 95% by December 2025.
  • Sector driven by robust senior population growth and multi-year slowdown in new construction.

Notable Quotes

• "Q2 2025 marked the eighth successive quarter of double-digit growth in our same property adjusted NOI and our FFO per unit. This performance reflects the outstanding efforts of our teams who remain focused on delivering exceptional resident experiences, growing occupancy, enhancing operational efficiencies, and expanding our portfolio with high quality residences in vibrant markets," said Vlad Volodarski, CEO of Chartwell.
• "We are pleased to launch an upsizing of our ATM Program today given the successful execution of the program since it was established in Q4 of 2024. The program has supported Chartwell's acquisition activity over this period where we closed on approximately $800 million of property acquisitions," commented Jeffrey Brown, Chartwell's Chief Financial Officer.