Chartwell Announces Strong Q3 2026 Results with Thirteenth Consecutive Quarter of Double-Digit Growth in Funds from Operations per Unit

MISSISSAUGA, ON, Nov. 5, 2026 /CNW/ -- Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN) announced today its results for the three and nine months ended September 30, 2026.

Highlights 

Q3 2026 compared to Q3 2025: 

• Property revenue increased $45.9 million or 16.7%.
• Net income increased $120.2 million and includes gain on disposal of assets of $113.3 million.
• Funds from operations ("FFO")⁽¹⁾ increased $27.8 million or 38.0%, and $0.06 per unit or 25.0%.
• Same property adjusted net operating income ("NOI")⁽¹⁾ increased 14.1%.
• Same property adjusted operating margin increased 230 basis points ("bps") to 43.4%.
• Weighted average same property occupancy increased 230 bps to 94.8%.
• Same property adjusted resident revenue per occupied suite ("REVPOS")⁽¹⁾ increased 5.8%.
• Same property adjusted NOI per occupied suite ("NOIPOS")⁽¹⁾ increased 11.3%.

"We delivered another quarter of strong financial performance, extending our record of double-digit FFO per unit growth to 13 consecutive quarters. We are making solid progress in all aspects of our strategy - growing and high-grading our property portfolio, successfully integrating newly acquired properties, and enhancing effectiveness and efficiency of our management platform. I am grateful to our teams across Chartwell for delivering exceptional experiences to our residents, embracing curiosity and innovation, and advancing our strategic initiatives with excellence. With strong operating momentum and a growing portfolio of high-quality properties, we see significant opportunities to create sustainable long-term value for all our stakeholders," said Vlad Volodarski, Chartwell's Chief Executive Officer. 

Results of Operations

For Q3 2026, property revenue increased $45.9 million or 16.7%, and direct property operating expense increased $17.8 million or 10.8%.

For Q3 2026, net income was $115.0 million compared to net loss of $5.2 million in Q3 2025 primarily due to:

• higher gain on disposal of assets of $113.3 million,
• higher property revenue,
• deferred income tax recovery,
• positive changes in fair values of financial instruments,
• higher other income, and
• higher net income from joint ventures,

partially offset by:

• current tax expense in Q3 2026 as compared to income tax recovery in Q3 2025,
• higher depreciation of property, plant and equipment ("PP&E"),
• higher direct property operating expense,
• higher finance costs, and
• higher transaction costs related to dispositions.

For Q3 2026, FFO was $100.8 million or $0.30 per unit, compared to $73.1 million or $0.24 per unit for Q3 2025. FFO does not include $1.4 million or $0.01 per unit of income guarantees related to recently acquired properties. The change in FFO was primarily due to:

• higher adjusted NOI of $34.9 million,
• lower G&A expenses of $1.2 million, and
• higher other income of $1.1 million,

partially offset by:

• higher finance costs of $6.5 million,
• lower management fees of $1.9 million, and
• lower interest income of $1.2 million.

For 2026 YTD, property revenue increased $157.6 million or 20.0%, and direct property operating expense increased $74.5 million or 15.7%.

For 2026 YTD, net income was $121.6 million compared to $22.3 million in 2025 YTD primarily due to:

• higher property revenue,
• higher gain on disposal of assets of $113.3 million,
• lower deferred income tax expense,
• lower negative changes in fair value of financial instruments,
• higher other income,
• higher net income from joint ventures, and
• lower G&A expenses,

partially offset by:

• higher direct property operating expense,
• higher depreciation of PP&E,
• higher current tax expense, and
• higher finance costs.

For 2026 YTD, FFO was $276.9 million or $0.85 per unit, compared to $196.8 million or $0.68 per unit for 2025 YTD. FFO does not include $7.5 million or $0.02 per unit of income guarantees related to recently acquired properties. The change in FFO was primarily due to:

• higher adjusted NOI of $90.3 million,
• lower G&A expenses of $1.9 million, and
• higher other income of $1.3 million,

partially offset by:

• higher finance costs of $11.0 million, and
• lower management fees of $1.8 million.

Financial Position

As at September 30, 2026, liquidity⁽¹⁾ amounted to $467.4 million, which included $72.3 million of cash and cash equivalents and $395.1 million of available borrowing capacity on our credit facilities. 

2026 Outlook and Recent Developments 

An updated discussion of our business outlook can be found in the "2026 Outlook" section of our Management's Discussion and Analysis for the three and nine months ended September 30, 2026 (the "Q3 2026 MD&A").

Operations

Figure 1 provides an update in respect of our same property occupancy.

Robust industry supply and demand fundamentals and strong leasing activity supported monthly occupancy gains following the winter 2026 seasonal dip. We expect to achieve 96% occupancy in our same property portfolio in December 2026.

Portfolio Optimization Activities

We continue to execute on our portfolio optimization strategy of enhancing our asset base to generate growing NOI, acquiring newer properties in core markets, selling non-core properties, repositioning underperforming properties and pursuing new developments.  Recent activities include: 

• On September 1, 2026, we completed the acquisition of Greenway Retirement Residence, comprising 237 suites in Brampton, Ontario for $136.0 million which was settled in cash.
• On September 1, 2026, we completed the sale of one property in Ontario for $91.0 million. Net proceeds were $68.1 million, after $1.0 million transaction cost and repayment of $21.1 million of mortgage, bearing interest at 3.13% and maturity in 2028.
• On October 1, 2026, we completed the sale of one non-core property in Victoriaville, Quebec for $8.0 million.
• On October 1, 2026, we completed the sale of one non-core property in Kitchener, Ontario for $41.8 million.

Liquidity and Financing 

As at November 5, 2026, liquidity amounted to $573.4 million, which included $178.3 million of cash and cash equivalents and $395.1 million of available borrowing capacity on our Credit Facility.

As of the date of this release, for the remainder of 2026, we have $81.8 million of mortgage debt maturing with a weighted average interest rate of 2.29% and senior unsecured debentures of $250.0 million with an interest rate of 6.0%. At November 5, 2026, 10-year CMHC-insured mortgage rates are estimated at approximately 4.38% and five-year unsecured debenture rate to be approximately 4.70%.

On May 7, 2026, we filed a new final base shelf prospectus and a new prospectus supplement for the ATM Program (the "2026 ATM Program") to allow us to issue up to an additional $500.0 million of Trust Units. The 2026 ATM Program is expected to remain in place until June 7, 2029, 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 2026 ATM Program.During the three months ended September 30,2026, there were no Trust units issued under the 2026 ATM Program. During the nine months ended September 30, 2026, we issued an aggregate 3,343,539 Trust Units under the 2026 ATM Program at an average price of $21.74 per Trust Unit for total gross proceeds of $72.7 million. Commission and other costs amounted to $1.5 million.

Quarterly Investor Materials and Conference Call

We invite you to review our Q3 2026 investor materials on our website at investors.chartwell.com.

A conference call hosted by Chartwell's senior management will be held Friday, November 6, 2026, 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 Q3 2026 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.

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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 over 30,000 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 acquisitions and dispositions, including closing and financing details; development activities; debt financings; portfolio optimization strategies; joint ventures; expectations with respect to taxes that are expected to be payable in the current and future years; statements regarding occupancy and rate forecasts; and the 2026 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 assumptions, risks and uncertainties are more fully described in the "Risks and Uncertainties and Forward-Looking Information" section in Chartwell's Q3 2026 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 Q3 2026 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: investorrelations@chartwell.com

Chartwell's condensed consolidated interim 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 Q3 2026 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:

The following table provides a reconciliation of net income/(loss) to FFO:

The following table provides details of the weighted average number of occupied suites used in calculations of REVPOS, DOEPOS, and NOIPOS:

SOURCE Chartwell Retirement Residences (IR)

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