Chartwell Retirement’s Earnings Call: Growth Amid Challenges

Chartwell Retirement (($TSE:CSH.UN)) has held its Q3 earnings call. Read on for the main highlights of the call.

Chartwell Retirement’s recent earnings call conveyed a generally positive sentiment, underscored by continued growth in adjusted NOI and FFO, robust occupancy rates, and strategic acquisitions. Despite facing challenges such as a net loss compared to the previous year’s net income, increased general and administrative expenses, and reduced management fees, the overall tone was optimistic due to strong operational performance and strategic growth initiatives.

Continued Growth in Same-Property Adjusted NOI and FFO

Chartwell Retirement marked its ninth consecutive quarter of double-digit growth in same-property adjusted NOI and FFO per unit. The funds from operations (FFO) grew to $73.1 million in the third quarter of 2025, representing a significant 30.8% increase compared to the same period in 2024. This growth highlights the company’s robust financial performance and effective management strategies.

Strong Occupancy and Leasing Activity

The company reported a strong increase in same-property occupancy, which rose by 470 basis points to 93.1%. This improvement was driven by a net positive move-in to move-out ratio, with an increase in both leases and permanent move-ins, reflecting the company’s successful leasing strategies and market demand.

Significant Acquisitions

Chartwell completed over $1 billion in acquisitions during 2025, significantly expanding its portfolio with key properties in Quebec, including Les Tours Angrignon and Residence L’Aubier. These strategic acquisitions are expected to bolster the company’s market position and growth prospects.

Reduction in Staffing Agency Costs

The company achieved a notable reduction in staffing agency costs, which were cut by 66% in the third quarter of 2025 compared to the same period in 2024. This reduction reflects Chartwell’s efforts to optimize operational efficiency and cost management.

Resident Satisfaction

Chartwell achieved a 67% very satisfied resident score, significantly above the industry average of 51%. This high level of resident satisfaction underscores the company’s commitment to providing quality living experiences for its residents.

Net Income Decline

Despite the positive operational metrics, Chartwell reported a net loss of $5.2 million in the third quarter of 2025, compared to a net income of $23.6 million in the same quarter of the previous year. This decline highlights some of the financial challenges the company is facing.

Higher G&A Expenses

General and administrative expenses increased by $0.9 million, indicating rising operational costs that the company needs to manage effectively to maintain profitability.

Lower Management Fees and Other Income

Chartwell experienced a decrease in management fees by $1.9 million and a reduction in other income by $1.4 million, which impacted its overall financial performance.

Forward-Looking Guidance

Looking ahead, Chartwell plans to maintain its growth trajectory with continued investments in strategic acquisitions and operational efficiencies. The company aims to invest $700 million in 2025 and early 2026, supported by a strong liquidity position of approximately $508 million. Chartwell also plans to maintain a net debt-to-adjusted EBITDA ratio of 7.5x, reflecting its commitment to financial stability and growth in the senior living sector.

In summary, Chartwell Retirement’s earnings call highlighted a positive outlook driven by strong growth in key financial metrics and strategic initiatives. Despite facing some financial challenges, the company’s focus on operational excellence and strategic acquisitions positions it well for future growth in the senior living market.