Chartwell Announces Fourth Quarter and Year End 2025 Results, Provides an Update on Growth and Portfolio Optimization Activities, and Increase to Distributions

Executive Summary

• Chartwell Retirement Residences reported record Q4 2025 and full‑year 2025 performance, with property revenue up 34.9% YoY and net income rising to $29.5 M (up $7.1 M).
• Funds from Operations (“FFO”) increased 40.8% year‑over‑year to $278.0 M ($0.95 per unit), and same‑property adjusted NOI margin improved to 41.6% in Q4.
• The company completed five acquisitions totaling ~$334 M, sold a non‑core Ontario property for $49 M, and raised $720.5 M gross proceeds from its ATM equity program; liquidity stands at $483.8 M.

Key Details

• Financial Highlights – Q4 2025
• Property revenue: $292.3 M (+33.8%) vs. $218.4 M in Q4 2024.
• Net income: $7.2 M (+$3.7 M) vs. $3.5 M prior year.
• Adjusted NOI: $75.8 M (+$10.9 M).
• Same‑property adjusted operating margin: 41.6% (up 310 bps).
• Financial Highlights – Full Year 2025
• Property revenue: $1,079.0 M (+34.9%).
• Net income: $29.5 M (+$7.1 M).
• FFO: $278.0 M (+40.8%) = $0.95 per unit (up from $0.76).
• Weighted‑average same‑property occupancy: 94.7% (Q4) – 92.8% annual, exceeding 95% target by year‑end.
• Liquidity & Capital Structure
• Available liquidity: $504.0 M as of Dec 31 2025; $483.8 M as of Feb 26 2026 (incl. $88.9 M cash).
• Net debt/adjusted EBITDA: 6.9× (down from 8.4× in 2024).
• Interest coverage: 3.5× (up from 2.7×).
• Distribution Update
• Monthly distribution increased 2.0% to $0.052 per unit (annualized $0.624), effective March 31 2026 payout on April 15 2026.
• Acquisition Activity (Dec 2025 – Feb 2026)
• Repentigny, QC: 334‑suite residence for $111.0 M (cash).
• Nanaimo, BC: 155‑suite residence for $102.7 M (cash).
• Calgary, AB: The Edward, 90‑suite residence for $53.0 M (cash).
• Longueuil, QC: Remaining 15% of Résidence Légende for $17.9 M plus assumption of $10.1 M mortgage – now 100% owned.
• Divestiture
• Signed definitive agreement to sell a non‑core Ontario property for $49.0 M; closing expected Q1 2026.
• Equity Financing (ATM Program)
• New prospectus supplement filed Nov 6 2025 authorizing up to $500 M of Trust Units; program runs until May 30 2026.
• To date, $720.5 M gross proceeds from issuance of 38,894,442 Trust Units at an average price of $18.52 per unit (net of $11.5 M commissions, offset by $6.1 M deferred tax asset).
• Outlook
• Management expects full‑year 2026 occupancy to return to target 95% after seasonal dip.
• Continued focus on portfolio growth, repositioning and disciplined capital allocation.

Notable Quotes

“2025 was a record year for Chartwell… we continued to grow our portfolio with over $1.7 billion in completed and announced acquisitions… I am proud of what we have accomplished together and confident in our team’s ability to sustain this momentum as we work toward our 2026–2028 strategic goals.” – Vlad Volodarski, President & CEO

All figures are presented in Canadian dollars unless otherwise noted.