Mr. Jonathan Boulakia reports

CHARTWELL COMPLETES STRATEGIC TRANSACTIONS TO STRENGTHEN PORTFOLIO AND SUPPORT LONG-TERM GROWTH

Chartwell Retirement Residences Real Estate Investment Trust has closed and expects to close previously announced acquisitions, further advancing the company's disciplined growth strategy focused on high-quality retirement communities in strong Canadian markets.

Acquisition activity

Chartwell has completed its previously announced acquisition of a 30-per-cent ownership interest in the Seasons Retirement Communities portfolio through a joint venture with Fengate Asset Management, the existing owner and a leading alternative investment manager and real estate developer acting on behalf of its investor, the LiUNA Pension Fund of Central and Eastern Canada. Fengate retains a 70-per-cent ownership interest in the joint venture.

The portfolio is comprised of 23 seniors housing communities totalling 2,943 suites across Ontario, British Columbia and Alberta. The communities are strategically located in markets with strong demographic fundamentals and currently operate at approximately 86-per-cent occupancy.

The purchase price for Chartwell's 30-per-cent interest was $382.5-million, representing a total portfolio value of $1.275-billion at 100-per-cent ownership. The acquisition was financed through the assumption of approximately $208.8-million of in-place mortgages with a weighted average interest rate of 4.48 per cent and a weighted average term to maturity of 4.08 years, with the balance paid in cash.

Chartwell will serve as operations manager of the portfolio, while Fengate will continue to provide asset management services. Chartwell also has the opportunity to acquire an additional 20-per-cent ownership interest in the portfolio upon certain milestones being achieved. The strategic partnership also creates opportunities for future retirement residence development projects with Fengate in Ontario.

In addition, Chartwell expects to complete its previously announced acquisition of Palermo Village Retirement Residence, a 116-suite retirement residence located in Oakville, Ont., on June 3, 2026, for a purchase price of $43.0-million. Situated in one of Ontario's strong and growing retirement markets, the residence features a modern amenity offering including contemporary dining venues, a theatre, spa and salon services, and a variety of social and recreational gathering areas designed to support an engaging retirement lifestyle.

"These acquisitions reflect the continued execution of our disciplined investment strategy focused on expanding our presence in high-quality retirement communities located in attractive markets with strong long-term-demand fundamentals," said Jonathan Boulakia, chief investment officer and chief legal officer of Chartwell. "The Seasons portfolio transaction establishes a strategic partnership with Fengate while providing meaningful growth opportunities through operational optimization and future development potential. Combined with the acquisition of Palermo Village Retirement Residence, these transactions further strengthen our platform and position Chartwell for continued long-term value creation."

About Chartwell Retirement Residences Real Estate Investment Trust

Chartwell is in the business of serving and caring for Canada's seniors. 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.

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