Chartwell Retirement Residences (CSH-UN) Q2 2025 earnings summary

Executive summary

• Achieved eighth consecutive quarter of double-digit growth in same property adjusted NOI and FFO per unit, with Q2 2025 FFO up 51.1% to $67.6 million and occupancy gains across all regions.

• Portfolio optimization, targeted acquisitions, and development added 27 properties and 7,612 suites since 2024, supporting long-term NOI growth.

• Industry fundamentals remain favorable, with accelerating demand, constrained supply, and demographic tailwinds supporting future growth.

• Resident revenue grew 41.4% year-over-year in Q2 2025, with same property occupancy up 490 bps to 91.9%.

• Net loss widened to $5.7 million in Q2 2025 from $2.8 million in Q2 2024, mainly due to higher operating and finance costs.

Financial highlights

• Q2 2025 net loss was $5.7 million, compared to $2.8 million net loss in Q2 2024.

• FFO grew 51.1% year-over-year to $67.6 million ($0.24/unit), and FFOPU increased 33.3%.

• Same property adjusted NOI increased $12.3 million or 20% year-over-year; same property occupancy rose to 91.9%.

• Rolling 12-month revenue reached $1.1 billion, with adjusted EBITDA at $380 million as of June 30, 2025.

• Adjusted operating margin up 360 bps to 42.5% in Q2 2025.

Outlook and guidance

• Forecasting 93.5% occupancy by September and targeting 95% by year-end 2025, supported by robust demand and limited new supply.

• Market rent growth anticipated to remain strong due to supply constraints and demographic trends.

• Expense growth expected to normalize at 3%-4% as occupancy stabilizes above 90%.

• Continued focus on sales execution, asset high-grading, and leveraging supportive macroeconomic trends.