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

Chartwell Announces Fourth Quarter and Year End 2025 Results, Provides an Update on Growth and Portfolio Optimization Activities, and Increase to Distributions Canada NewsWire MISSISSAUGA, ON, Feb. 26, 2026 MISSISSAUGA, ON, Feb. 26, 2026 /CNW/ - Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN) announced today its results for the fourth quarter and year ended December 31, 2025. Highlights  Property revenue increased $73.8 million or 33.8% in Q4 2025, and $279.1 million or 34.9% for the year. Net income increased $3.7 million in Q4 2025, and $7.1 million for the year. Funds from operations ("FFO")(1) increased $23.6 million or 40.9% in Q4 2025, and $80.6 million or 40.8% for the year. Same property adjusted net operating income ("NOI")(1) increased 16.9% in Q4 2025, and 18.4% for the year. Same property adjusted operating margin increased 310 basis points ("bps") to 41.6% in Q4 2025, and 330 bps to 41.7% for the year. Weighted average same property occupancy increased 430 bps to 94.7% in Q4 2025, and 480 bps to 92.8% for the year, ending at 95.2% on December 31, exceeding our occupancy target of 95.0%. Same property adjusted NOI per occupied suite ("NOIPOS")(1) increased 11.6% in Q4 2025 on higher adjusted resident revenue per occupied suite ("REVPOS")(1) and lower adjusted direct property operating expense per occupied suite ("DOEPOS")(1), and increased 12.2% for the year on higher REVPOS and lower DOEPOS. Distribution increase of 2.0% effective March 31, 2026. "2025 was a record year for Chartwell, and a powerful reflection of the dedication, care and professionalism of our people. Our teams delivered strong operating and financial performance and achieved all our 2025 strategic targets. We continued to grow our portfolio with over $1.7 billion in completed and announced acquisitions. These investments accelerated our shift to newer, high‑quality residences that are better aligned with the evolving needs and expectations of today's seniors. With continued focus on process improvement and technology deployment, we strengthened the long‑term quality and resilience of our management platform," said Vlad Volodarski, Chartwell's Chief Executive Officer. "I am deeply grateful to our employees for their passion, care and unwavering focus on making people's lives better. 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." Results of Operations ($000s, except per unit amounts, number of units, per occupied suite Three Months Ended December 31 Year Ended December 31 amounts, and percentages) 2025 2024 Change 2025 2024 Change Property revenue 292,258 218,445 73,813 1,079,035 799,923 279,112 Direct property operating expense 174,944 138,707 36,237 650,076 509,179 140,897 Net income 7,244 3,544 3,700 29,495 22,378 7,117 FFO(1) 81,241 57,663 23,578 278,020 197,462 80,558 FFO per unit(1) 0.26 0.21 0.05 0.95 0.76 0.19 Weighted average number of units outstanding (000s)(2) 310,769 275,494 35,275 293,288 260,119 33,169 G&A expenses 12,714 10,334 2,380 56,601 49,460 7,141 Same property: Adjusted property revenue(1) 182,391 168,452 13,939 705,927 647,327 58,600    Adjusted resident revenue(1) 179,526 165,273 14,253 694,304 634,103 60,201    Adjusted other property revenue(1) 2,865 3,179 (314) 11,623 13,224 (1,601) Adjusted direct property operating expense(1) 106,567 103,586 2,981 411,629 398,774 12,855 Adjusted NOI(1) 75,824 64,866 10,958 294,298 248,553 45,745 Adjusted operating margin(1) 41.6 % 38.5 % 3.1pp 41.7 % 38.4 % 3.3pp Weighted average occupancy rate(3) 94.7 % 90.4 % 4.3pp 92.8 % 88.0 % 4.8pp REVPOS(1) 5,026 4,848 178 4,959 4,778 181 DOEPOS(1) 2,984 3,039 (55) 2,940 3,005 (65) NOIPOS(1) 2,123 1,903 220 2,102 1,873 229 Fourth Quarter Results For Q4 2025, property revenue increased $73.8 million or 33.8%, and direct property operating expense increased $36.2 million or 26.1%. For Q4 2025, net income was $7.2 million compared to $3.5 million in Q4 2024 primarily due to: higher property revenue, and reversal of impairment expense, partially offset by: higher direct property operating expense, higher depreciation of property, plant and equipment ("PP&E"), negative changes in fair value of financial instruments in Q4 2025 as compared to positive changes in fair value of financial instruments in Q4 2024, higher deferred tax expense, higher finance costs lower net income from joint ventures, and higher general, administrative, and Trust ("G&A") expenses. For Q4 2025, FFO was $81.2 million or $0.26 per unit, compared to $57.7 million or $0.21 per unit for Q4 2024. The change in FFO was primarily due to: higher adjusted NOI of $28.8 million, and higher adjusted interest income of $1.5 million, and higher other lease revenue of $1.2 million, partially offset by: higher adjusted finance costs of $3.3 million, higher G&A expenses of $2.4 million, and lower management fees of $2.2 million. Annual / Year End Results For 2025, property revenue increased $279.1 million or 34.9%, and direct property operating expense increased $140.9 million or 27.7%. For 2025, net income was $29.5 million compared to $22.4 million in 2024 primarily due to: higher property revenue, reversal of impairment expense, and higher gain on disposal of assets, partially offset by: higher direct property operating expense, higher depreciation of PP&E, higher finance costs, higher deferred tax expense, lower net income from joint ventures,  higher G&A expenses, and higher negative changes in fair value of financial instruments. For 2025, FFO was $278.0 million or $0.95 per unit, compared to $197.5 million or $0.76 per unit for 2024. The change in FFO was primarily due to: higher adjusted NOI of $109.8 million, higher adjusted interest income of $3.7 million, higher other lease revenue of $2.2 million, and lower depreciation of PP&E and amortization of intangibles assets used for administrative purposes of $0.5 million, partially offset by: higher adjusted finance costs of $20.0 million, lower management fees of $7.6 million, higher G&A expenses of $7.1 million, and lower other income of $0.9 million.  Financial Position December 31, 2025 December 31, 2024 December 31, 2023 Net Debt to Adjusted EBITDA(4) 6.9x 8.4x 10.2x Interest Coverage Ratio(4) 3.5x 2.7x 2.3x Available liquidity(1)($000) 504,043 314,295 348,631 Weighted average interest rate (consolidated) 3.92 % 4.30 % 3.84 % As at December 31, 2025, liquidity(1) amounted to $504.0 million, which included $109.1 million of cash and cash equivalents and $394.9 million of available borrowing capacity on our credit facilities.  2026 Outlook and Recent Developments  A discussion of our business outlook can be found in the "2026 Outlook" section of our Management's Discussion and Analysis for the year ended December 31, 2025 (the "2025 MD&A").  Operations Figure 1 provides an update in respect of our same property occupancy (NOTE: Same property for the purpose of this graph is in accordance with our 2026 definition. Same property references elsewhere in this document reflect the 2025 composition of our same property portfolio). We experienced a seasonal occupancy dip during the 2026 winter that is more in-line with historical periods given severe weather conditions and a more pronounced flu season. We expect to see strong spring permanent move-in activity given the robust industry supply and demand fundamentals and expect to achieve our full year average occupancy target of 95%. Growth and Portfolio Optimization Activities We continue to execute on our portfolio strategy of enhancing our asset base to generate increased NOI, acquiring new strategic properties in core markets, selling non-core properties, and repositioning underperforming properties.  We are also pursuing new developments that support future growth of our asset base in line with our strategy.  Recent activities include: On December 1, 2025, we acquired a 334-suite retirement residence (rebranded Chartwell Azalis) in Repentigny, Quebec for $111.0 million. The purchase price was settled in cash. On December 2, 2025, we acquired the newly developed 155-suite retirement residence (rebranded Chartwell Edgewater) in Nanaimo, British Columbia for $102.7 million. The purchase price was settled in cash. On December 15, 2025, we acquired The Edward, a 90-suite retirement residence in Calgary, Alberta for $53.0 million. The purchase price was settled in cash. On December 18, 2025, we acquired the remaining 15% ownership interest in Résidence Légende, a 368-suite retirement residence in Longueuil, Quebec from Batimo for $17.9 million before working capital adjustments and closing costs. The purchase price included the proportionate assumption of the $10.1 million mortgage in place at closing, with the balance settled in cash. We now have 100% ownership interest in this residence. On February 19, 2026, we entered into a definitive agreement to sell one non-core property in Ontario, for $49.0 million with closing expected in Q1 2026. Liquidity and Financing On November 6, 2025, we filed a new prospectus supplement to renew our at-the-market equity distribution program (the "2025 ATM Program") that allows Chartwell to issue up to $500.0 million of Trust Units from treasury to the public from time to time during the term of the program. The 2025 ATM Program is effective until May 30, 2026, unless terminated prior to such date by Chartwell or otherwise in accordance with the terms of the Equity Distribution Agreement which sets out the terms of the sale of Trust Units under the 2025 ATM Program. As of December 31, 2025, we had issued and sold approximately $240.0 million of the Trust Units under the 2025 ATM Program. During the year ended December 31, 2025, under both the 2025 ATM Program and our prior at-the-market equity distribution program, Chartwell issued an aggregate 38,894,442 of Trust Units at an average price of $18.52 per Trust Unit for total gross proceeds of $720.5 million. Commission and other costs amounted to $11.5 million, offset by a deferred tax asset of $6.1 million. As at February 26, 2026, liquidity amounted to $483.8 million, which included $88.9 million of cash and cash equivalents and $394.9 million of available borrowing capacity on our Credit Facilities. As of the date of this release, for the remainder of 2026, we have $209.6 million of mortgage debt maturing with a weighted average interest rate of 2.99%. At February 26, 2026, 10-year CMHC-insured mortgage rates are estimated at approximately 3.85% and five-year unsecured debenture rate to be approximately 3.88%. Distributions Increase On February 26, 2026, the Trustees approved an increase in our monthly distributions from $0.051 per unit ($0.612 annualized) to $0.052 per unit ($0.624 annualized). The increase will be effective for the March 31, 2026 distribution payable on April 15, 2026. Quarterly Investor Materials and Conference Call We invite you to review our Q4 and Year End 2025 investor materials on our website at investors.chartwell.com 2025 Financial Statements 2025 MD&A 2025 Investor Presentation A conference call hosted by Chartwell's senior management will be held Friday, February 27, 2025, at 10:00 AM ET.  Participation in the live conference call can be accessed by registering on the Investor Relations section of Chartwell's website or by clicking on the following link Participant Registration. A slide presentation to accompany management's comments during the conference call will be available on the website. To access the live webcast of the conference call and presentation, please go to the Investor Relations section of Chartwell's website or click on the following link Q4 and Year End 2025 Results Webcast.   A replay of the webcast will be available following the conference call on the Investor Relations section of Chartwell's website at investors.chartwell.com. Footnotes (1) FFO, FFO per unit, adjusted property revenue, adjusted resident revenue, adjusted other property revenue, adjusted direct property operating expense, adjusted NOI, adjusted operating margin, NOIPOS, REVPOS, DOEPOS, liquidity, interest coverage ratio, Imputed Cost of Debt, and net debt to adjusted EBITDA ratio are non-GAAP measures. These measures do not have standardized meanings prescribed by GAAP and, therefore, may not be comparable to similar measures used by other issuers. These measures are used by management in evaluating operating and financial performance. Please refer to the heading "Non-GAAP Financial Measures" on page 6 of this press release. Certain information about non-GAAP financial measures, non-GAAP ratios, capital management measures, and supplementary measures found in Chartwell's 2025 MD&A, is incorporated by reference. Full definitions of FFO and FFO per unit can be found on page 20, same property adjusted NOI on page 21, adjusted NOI on page 21, adjusted operating margin, NOIPOS, REVPOS, and DOEPOS on page 21, liquidity on page 28, interest coverage ratio on page 43, and net debt to adjusted EBITDA ratio on page 44 of the 2025 MD&A available on Chartwell's website, and under Chartwell's profile on the System for Electronic Document and Analysis Retrieval ("SEDAR+") website at sedarplus.com. The definitions of these measures have been incorporated by reference. (2) Includes Trust Units, Class B Units of Chartwell Master Care LP, and Trust Units issued under Executive Unit Purchase Plan and Deferred Trust Unit Plan. (3) 'pp' means percentage points. (4) Non-GAAP; calculated in accordance with the Trust indentures for Chartwell's 6.000% Series C senior unsecured debentures, 4.400% Series D senior unsecured debentures, 3.650% Series E senior unsecured debentures, and 4.500% Series F senior unsecured debentures and may not be comparable to similar metrics used by other issuers or to any GAAP measures. (5) Forecast includes leases and notices as at January 31, 2026, and an estimate of mid-month move-ins of 20 bps for February and 50 bps for March, based on the preceding 12-month average of such activity. About Chartwell Chartwell is in the business of serving and caring for Canada's seniors, committed to its vision of Making People's Lives BETTER and to providing a happier, healthier, and more fulfilling life experience for its residents. Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent living through to assisted living and long term care. Chartwell is one of the largest operators in Canada, serving approximately 25,000 residents in four provinces across the country. For more information visit www.chartwell.com. Forward-Looking Information This press release contains forward-looking information that reflects the current expectations, estimates and projections of management about the future results, performance, achievements, prospects or opportunities for Chartwell and the seniors housing industry. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. Examples of forward-looking information in this document include, but are not limited to, statements regarding our business strategies, operational sales, marketing and portfolio optimization strategies including targets, and the expected results of such strategies, predictions and expectations with respect to industry trends including growth in the senior population, a deficit of long term care beds and the pace of new construction starts, expectations with respect to taxes that are expected to be payable in the current and future years and statements regarding the tax classification of distributions, occupancy and rate forecasts, and the ATM Program, including the expected benefits thereof and intended use of net proceeds. Forward-looking information can be generally identified by the use of words such as "anticipate," "continue," "estimate," "expect," "expected," "intend," "may," "will," "project," "plan," "should," "believe," and similar expressions. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. These factors are more fully described in the "Risks and Uncertainties and Forward-Looking Information" section in Chartwell's Management's Discussion and Analysis for the year ended December 31, 2025 (the "2025 MD&A"), and in materials filed with the securities regulatory authorities in Canada from time to time, including but not limited to our most recent Annual Information Form the ("AIF"). A copy of the 2025 MD&A, the AIF, and Chartwell's other publicly filed documents can be accessed under Chartwell's profile on the SEDAR+ website at sedarplus.com. Except as required by law, Chartwell does not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or for any other reason. For more information, please contact: Chartwell Retirement Residences Jeffrey Brown, Chief Financial Officer Tel: (905) 501-6777 Email: [email protected] Non-GAAP Financial Measures Chartwell's audited consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Management uses certain financial measures to assess Chartwell's operating and financial performance, which are measures not defined in generally accepted accounting principles ("GAAP") under IFRS. The following measures: FFO, FFO per unit, same property adjusted NOI, adjusted NOI, adjusted operating margin, REVPOS, DOEPOS, NOIPOS, liquidity, interest coverage ratio and net debt to adjusted EBITDA ratio as well as other measures discussed elsewhere in this release, do not have a standardized definition prescribed by IFRS. They are presented because management believes these non-GAAP measures are relevant and meaningful measures of Chartwell's performance and as computed may differ from similar computations as reported by other issuers and may not be comparable to similarly titled measures reported by such issuers. For a full definition of these measures, please refer to the 2025 MD&A available on Chartwell's website and on SEDAR+. The following table reconciles property revenue and direct property operating expense from our financial statements to adjusted property revenue and adjusted direct property operating expense, and NOI to Adjusted NOI, and identifies contributions from our same property portfolio, our growth portfolio, and our repositioning portfolio: ($000s, except occupancy rates) Q4 2025 Q4 2024 Change 2025 2024 Change Property revenue 292,258 218,445 73,813 1,079,035 799,923 279,112 Add (Subtract):   Share from joint ventures (1) 11,468 39,485 (28,017) 54,726 142,430 (87,704)   Share from non-controlling interest (2) - (1,382) 1,382 (3,070) (2,710) (360) Adjusted property revenue (3) 303,726 256,548 47,178 1,130,691 939,643 191,048 Comprised of:   Same property 182,391 168,452 13,939 705,927 647,327 58,600   Growth 93,614 42,290 51,324 315,971 112,200 203,771   Repositioning 27,721 45,806 (18,085) 108,793 180,116 (71,323) Adjusted property revenue 303,726 256,548 47,178 1,130,691 939,643 191,048   Resident revenue 287,861 214,699 73,162 1,061,351 784,266 277,085   Add (Subtract):     Share from joint ventures (1) 11,355 39,136 (27,781) 54,139 141,050 (86,911)     Share from non-controlling interest (2) - (1,364) 1,364 (3,028) (2,673) (355)   Adjusted resident revenue 299,216 252,471 46,745 1,112,462 922,643 189,819   Comprised of:     Same property 179,526 165,273 14,253 694,304 634,103 60,201     Growth 92,125 41,697 50,428 310,792 110,687 200,105     Repositioning 27,565 45,501 (17,936) 107,366 177,853 (70,487)   Adjusted resident revenue 299,216 252,471 46,745 1,112,462 922,643 189,819   Other property revenue 4,397 3,746 651 17,684 15,657 2,027   Add (Subtract):     Share from joint ventures (1) 113 349 (236) 587 1,380 (793)     Share from non-controlling interest (2) - (18) 18 (42) (37) (5)   Adjusted other property revenue 4,510 4,077 433 18,229 17,000 1,229   Comprised of:     Same property 2,865 3,179 (314) 11,623 13,224 (1,601)     Growth 1,489 593 896 5,179 1,513 3,666     Repositioning 156 305 (149) 1,427 2,263 (836)   Adjusted other property revenue 4,510 4,077 433 18,229 17,000 1,229 Direct property operating expense 174,944 138,707 36,237 650,076 509,179 140,897 Add (Subtract):   Share from joint ventures 6,594 25,137 (18,543) 32,694 92,177 (59,483)   Share from non-controlling interest - (697) 697 (1,528) (1,374) (154) Adjusted direct property operating expense 181,538 163,147 18,391 681,242 599,982 81,260 Comprised of: Same property 106,567 103,586 2,981 411,629 398,774 12,855 Growth 52,843 25,713 27,130 182,983 67,550 115,433 Repositioning 22,128 33,848 (11,720) 86,630 133,658 (47,028) Adjusted direct property operating expense 181,538 163,147 18,391 681,242 599,982 81,260 NOI 117,314 79,738 37,576 428,959 290,744 138,215 Add (Subtract):   Share from joint ventures 4,874 14,348 (9,474) 22,032 50,253 (28,221)   Share from non-controlling interest  - (685) 685 (1,542) (1,336) (206) Adjusted NOI 122,188 93,401 28,787 449,449 339,661 109,788 Comprised of: Same property 75,824 64,866 10,958 294,298 248,553 45,745 Growth 40,771 16,577 24,194 132,988 44,650 88,338 Repositioning 5,593 11,958 (6,365) 22,163 46,458 (24,295) Adjusted NOI 122,188 93,401 28,787 449,449 339,661 109,788 Weighted average occupancy rate: Same property portfolio 94.7 % 90.4 % 4.3pp 92.8 % 88.0 % 4.8pp Growth portfolio 91.8 % 88.4 % 3.4pp 90.1 % 87.5 % 2.6pp Repositioning portfolio  88.7 % 84.0 % 4.7pp 86.1 % 83.8 % 2.3pp Total portfolio 93.0 % 88.7 % 4.3pp 90.7 % 87.1 % 3.6pp (1) Non-GAAP; represents Chartwell's proportionate share of the property revenue and direct property operating expense of our Equity-Accounted JVs, respectively. (2) Non-GAAP; represents Chartwell's proportionate share of the resident revenue and direct property operating expense of our non-controlling interest, respectively. The following table provides a reconciliation of net income/(loss) to FFO: ($000s, except per unit amounts and number of units) Q4 2025 Q4 2024 Change 2025 2024 Change Net income/(loss) 7,244 3,544 3,700 29,495 22,378 7,117 Add (Subtract): B Depreciation of PP&E 71,693 49,225 22,468 245,509 166,371 79,138 D Amortization of limited life intangible assets 399 485 (86) 1,739 2,195 (456) B Depreciation of PP&E and amortization of intangible assets used for administrative purposes included in    depreciation of PP&E and amortization of intangible assets above (1,039) (1,125) 86 (3,626) (4,092) 466 E Loss/(gain) on disposal of assets (1,128) 941 (2,069) (62,918) (53,963) (8,955) J Transaction costs arising on dispositions 266 491 (225) 6,719 5,518 1,201 H Impairment losses/(reversals) (11,000) - (11,000) (12,963) - (12,963) F Tax on gains or losses on disposal of properties (2,535) (2,744) 209 1,066 (255) 1,321 G Deferred income tax 11,492 7,166 4,326 43,675 34,752 8,923 O Distributions on Class B Units recorded as interest expense 223 231 (8) 898 927 (29) M Changes in fair value of financial instruments 4,528 (1,660) 6,188 24,348 19,875 4,473 Q FFO adjustments for Equity-Accounted JVs 1,098 1,196 (98) 4,332 3,887 445 U Non-controlling interest - (87) 87 (254) (131) (123) FFO 81,241 57,663 23,578 278,020 197,462 80,558 Weighted average number of units (000) 310,769 275,494 35,275 293,288 260,119 33,169 FFO per unit 0.26 0.21 0.05 0.95 0.76 0.19 The following table provides details of the weighted average number of occupied suites used in calculations of REVPOS, DOEPOS, and NOIPOS: Q4 2025 Q4 2024 Change 2025 2024 Change Weighted average number of occupied suites 11,906 11,363 543 11,667 11,059 608   SOURCE Chartwell Retirement Residences (IR) View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2026/26/c4871.html