Chartwell Retirement Residences (CSH-UN) Q1 2025 earnings summary

Executive summary

• Achieved strong operating and financial results in Q1 2025, with significant occupancy and margin gains driven by innovative sales, marketing strategies, and portfolio optimization.

• Net income reached CAD 33.2 million, reversing a CAD 2 million loss in Q1 2024, mainly due to higher asset disposal gains and increased revenue.

• Continued investments in management platform and people positioned the business to capitalize on accelerating demand and limited new supply in seniors' housing.

• Completed operational reorganizations, reduced staffing agency costs by 50% year-over-year, and integrated recent acquisitions.

• Focused on portfolio optimization, including recent acquisitions and ongoing asset repositioning.

Financial highlights

• Net income reached CAD 33.2 million in Q1 2025, compared to a net loss of CAD 2 million in Q1 2024.

• FFO grew 43.1% year-over-year to CAD 56.2 million, or $0.20 per unit, benefiting from higher adjusted NOI, interest income, and other income.

• Same property adjusted NOI increased by CAD 12.4 million or 21.3% year-over-year; adjusted NOI reached $70.5 million.

• Same property occupancy rose 530 basis points to 91.5% in Q1 2025.

• Operating margin expanded by 400 basis points, reaching around 41%.

Outlook and guidance

• Forecasts same property occupancy to reach 92.2% by June 2025 and targets 95% by year-end, supported by strong demand and limited new supply.

• Expects to maintain operating margins in the low 40% range for the remainder of the year.

• Ongoing focus on operational excellence, portfolio optimization, and prudent capital management in post-2025 strategy.

• Industry fundamentals remain strong, with demand for seniors housing projected to double over 20 years, requiring significant new supply.