Q2 2026 Chartwell Retirement Residences Earnings Call Transcript
Key Points
- FFO per unit increased 17% in Q2 2026, marking the 12th consecutive quarter of double-digit growth.
- Completed over $1 billion in acquisitions year-to-date, including a strategic partnership with Fengate Asset Management for 23 properties.
- Same-property occupancy increased 320 basis points to 94.3%, with all platforms above 90% occupancy.
- Same-property adjusted NOI grew 11.9% in Q2, driven by an 8.1% increase in NOI per occupied suite.
- Strong liquidity of $614 million and a solid balance sheet with an interest coverage ratio of 3.5x and net debt to adjusted EBITDA of 7.0x.
- Announced four new development projects totaling 828 suites, enhancing the future acquisition pipeline through partnerships.
- Continued non-core asset dispositions, recycling capital into higher-growth, newer properties.
- Effective marketing campaigns, including a new brand promise 'Joy is Ageless,' leading to an 11% increase in personalized tours.
- Reduced staffing agency costs by 43% year-to-date, improving expense control.
- Successful repositioning of Chartwell Churchill House, with occupancy rising from 78% to 92% and operating margin improving to 53%.
- Net loss of $1.3 million in Q2 2026, though improved from a $5.7 million loss in Q2 2025.
- Same-property expenses increased 7% in Q2, partly due to timing, with year-to-date DOE per occupied suite up 1.9%.
- Ontario same-property occupancy dipped in Q2 due to seasonality, though expected to recover in Q3.
- Higher finance costs of $4 million and G&A expenses of $1.7 million partially offset FFO growth.
- The discount to replacement cost for acquisitions has narrowed, reducing the margin of safety on new deals.
- Development partnerships involve variations in terms, which may introduce complexity and potential balance sheet strain.
- Occupancy growth is expected to slow as properties reach stabilized levels, limiting future NOI growth from occupancy gains.
- The company faces potential competition from new supply in certain markets, though not currently a major concern.
- The ATM program dilutes existing unitholders, with $72.7 million raised in Q2 at an average price of $21.74.
- Debt maturities of $227.1 million in mortgages and a $250 million debenture are due in 2026, requiring refinancing at higher rates.
Hello, everyone. Thank you for joining us, and welcome to the Chartwell second quarter 2026 results conference call. (Operator Instructions)
I will now hand the conference over to Vlad Volodarski, CEO. Please go ahead.
Thank you, Kristen. Good morning, and thank you for joining us today. There is a slide presentation to accompany this conference call available on our website at chartwell.com under the Investor Relations tab.
Joining me are Karen Sullivan, President and Chief Operating Officer; Jeffrey Brown, Chief Financial Officer; Jonathan Boulakia, Chief Investment Officer and Chief Legal Officer; and Gordon Chiu, Chief Technology Officer.
Before we begin, I direct you to the cautionary statements on slide 2 because during this call, we will make statements containing forward-looking information and non-GAAP and other financial measures. Our MD&A and other securities filings contain information about the assumptions, risks and
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