Chartwell Retirement Residences (TSE:CSH.UN) capped what management described as the successful completion of its five-year strategy with sharp gains in occupancy, operating income, and funds from operations (FFO) in 2025, while outlining a new multi-year plan centered on sustaining high occupancy, driving revenue growth, and continuing portfolio renewal through acquisitions, developments, and dispositions.
Occupancy and operations: leasing momentum and lower agency costs
Chief Executive Officer Vlad Volodarski said same-property occupancy reached 95.2% in December, highlighting strong demand and execution across the portfolio. President and COO Karen Sullivan said fourth-quarter leasing activity remained strong, with 276 more permanent move-ins than permanent move-outs and occupancy growth across all four provinces.
Operational initiatives discussed included marketing and sales training as well as technology adoption. Sullivan highlighted the launch of an AI-powered chatbot on Chartwell’s website, which she described as a first-of-its-kind application in Canadian seniors housing at the individual property level, intended to provide prospects an always-on engagement channel and support tour bookings. She also said Chartwell conducted training sessions for more than 200 sales personnel in Q4 and rolled out a new sales commission program effective in January along with an automated commission payment process.
On expenses, Sullivan said same-property staffing agency costs were reduced by 57% in 2025 versus 2024 through recruitment and retention efforts.
Financial results: FFO up more than 40% in Q4 and full-year
Chief Financial Officer Jeffrey Brown reported fourth-quarter 2025 net income of CAD 7.2 million, up from CAD 3.5 million in Q4 2024. FFO in Q4 increased to CAD 81.2 million, representing 40.9% growth year-over-year. Brown noted reported FFO did not include CAD 2.5 million (or CAD 0.008 per unit) of income guarantees related to recently acquired properties.
Brown attributed Q4 FFO growth to higher adjusted NOI (CAD 28.8 million), higher adjusted interest income (CAD 1.5 million), and higher other lease revenue (CAD 1.2 million), partially offset by higher adjusted finance costs (CAD 3.3 million), higher G&A expenses (CAD 2.4 million), and lower management fees (CAD 2.2 million).
Same-property results in Q4 included a 430 basis point increase in occupancy to 94.7% and a CAD 11 million (16.9%) increase in same-property adjusted NOI. NOI per occupied suite increased 11.6% in the quarter.
For full-year 2025, Chartwell reported net income of CAD 29.5 million versus CAD 22.4 million in 2024, while FFO increased to CAD 278 million, up 40.8%. Reported FFO excluded CAD 8.2 million (or CAD 0.028 per unit) of income guarantees tied to recently acquired properties. Same-property occupancy rose 480 basis points to 92.8%, and same-property adjusted NOI rose CAD 45.7 million (18.4%). NOI per occupied suite increased 12.2% for the year.
By platform, Chartwell said all platforms posted occupancy gains and were operating above 90% occupancy in Q4. Same-property adjusted NOI increased CAD 3.0 million (14.4%) in Western Canada, CAD 6.2 million (17.1%) in Ontario, and CAD 1.8 million (22.8%) in Quebec.
Balance sheet, liquidity, and distribution increase
As of Feb. 26, 2026, Brown said liquidity totaled CAD 483.8 million, consisting of CAD 88.9 million in cash and CAD 394.9 million of credit facility borrowing capacity. During 2025, the company raised CAD 720.5 million of gross equity proceeds through its at-the-market programs at an average price of CAD 18.52 per unit.
Brown said leverage metrics improved, with interest coverage rising to 3.5x and net debt to adjusted EBITDA declining to 6.9x. He also said Chartwell’s unencumbered asset base increased to CAD 2.1 billion.
For the remainder of 2026, Brown said debt maturities include CAD 209.6 million of mortgages with a weighted average interest rate of 2.99%. As of Feb. 26, 2026, management estimated the 10-year CMHC insured mortgage rate at about 3.85% and the five-year unsecured debenture rate at about 3.88%.
Brown also announced the board approved a 2% increase in monthly distributions to CAD 0.052 per unit from CAD 0.051, effective for the March 31, 2026 distribution payable April 15, 2026.
Acquisitions, development pipeline, and non-core dispositions
Chief Investment and Legal Officer Jonathan Boulakia detailed several fourth-quarter acquisitions and said Chartwell completed and announced more than CAD 1.7 billion of acquisitions in 2025. Q4 transactions included:
- Les Tours Angrignon (Montreal): 449 suites for CAD 88.5 million (Oct. 1, 2025)
- Résidence L’Aubier (Quebec): acquired from development partner Batimo for CAD 128.2 million (Nov. 3)
- Résidence Panorama (Laval): 238 suites for $76 million (Nov. 3); described as the tallest residence in Chartwell’s portfolio at 31 stories
- Résidence Azalis (Repentigny): 334 suites for $111 million (Dec. 1)
- The Edgewater Retirement Residence (Nanaimo): purchased under a forward purchase agreement for $102.7 million (Dec. 2)
- The Edward (Calgary): 90-suite boutique residence for $53 million (Dec. 15)
- Remaining 15% interest in Résidence Légende (Greenfield Park): for CAD 17.9 million (Dec. 18)
Management said it remains disciplined on underwriting, diligence, and integration. On the call, Volodarski said he was “pleasantly surprised” by how well the teams integrated the recent acquisition volume and said the vast majority of acquisitions over the last two years had exceeded expectations financially.
On development, management emphasized a preference for off-balance-sheet structures with call options to acquire at stabilization, while noting there are also ongoing on-balance-sheet additions in the Montreal area. Chartwell also announced development of the 111-suite Chartwell Kingsview retirement residence in Calgary, including an advance of CAD 4.5 million of a total committed CAD 6.5 million mezzanine financing to local developers; Chartwell will manage operations and hold a call option to acquire upon stabilization.
Chartwell also said it has identified non-core properties for disposition. Boulakia said the company entered into a definitive agreement to sell a non-core Ottawa property for CAD 49 million. Management reiterated a three-year goal of approximately CAD 2 billion of acquisitions and developments funded in part by about CAD 1 billion of dispositions through 2028, while noting it does not set annual targets and will act as market conditions allow.
2026–2028 strategy: targets for occupancy, rent growth, and capital recycling
Volodarski said Chartwell’s 2026–2028 strategy targets “robust” FFO per unit growth supported by resident experience, empowered teams, and a scalable management platform. He outlined targets that include maintaining weighted average occupancy above 95%, growing revenue per occupied suite by more than 4%, controlling costs, maintaining balance sheet capacity, and executing the acquisition/development and disposition plans through 2028.
During Q&A, management said renewal pricing is typically “inflation plus 1% or 2%,” while turnover pricing has been in the mid- to high-single digits, with some markets seeing low double-digit increases. However, management said incentives used in 2024 and 2025 to drive occupancy would have a full-year impact in 2026 and could temper blended rate growth; incentives were described as approximately 5% of revenue, with roll-off expected as resident turnover occurs and more meaningful “burning off” in 2027 and 2028.
On margins, Chartwell said it expects further margin expansion in 2026, with an opportunity to move from the low 40% range into the low-to-mid 40% range as rates rise faster than expenses. Management also discussed its view that new retirement residence supply remains limited, and said it is in “uncharted territory” given industry-wide occupancy levels.
About Chartwell Retirement Residences (TSE:CSH.UN)
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.
