Chartwell Retirement Residences (CSH-UN) Q2 2026 earnings summary

Executive summary

• Achieved twelfth consecutive quarter of double-digit FFO per unit growth, with Q2 2026 FFO per unit up 17% year-over-year.

• Completed and announced over $1 billion in acquisitions year-to-date, including a major partnership for a 30% stake in Seasons Retirement Communities (23 properties, 2,943 suites) for $382.5 million.

• Continued portfolio optimization with $167 million in non-core asset sales and agreements to sell two more properties for $132.8 million.

• Strong leasing activity and effective marketing drove occupancy and brand recognition, with same property occupancy reaching 94.3%.

• Strategic focus on disciplined capital allocation and expansion in key growth markets.

Financial highlights

• Q2 2026 net loss was $1.3 million, improved from $5.7 million in Q2 2025.

• FFO grew 34% to $90.5 million, and FFO per unit increased 16.7% to $0.28 year-over-year.

• Same property occupancy rose 320 bps to 94.3%, and same property adjusted NOI increased $9.2 million or 11.9%.

• NOI per occupied suite increased 8.1% year-over-year; adjusted operating margin rose 110 bps to 42.5%.

• Revenue for the rolling 12 months ended June 30, 2026, was $1.3 billion, with adjusted NOI at $505 million.

Outlook and guidance

• Expectation to continue rate growth above 4% and expense growth below 4%, supporting ongoing NOI growth.

• Management targets >95% occupancy, >4% REVPOS growth, <4% DOEPOS growth, and <60% FFO payout ratio by 2028.

• Forecasts same property occupancy to reach 95% in September, with Q4 historically being the strongest leasing season.

• Robust industry supply and demand fundamentals support positive outlook, with demographic tailwinds and limited new construction.

• Ongoing commitment to sustainable distribution increases, supported by a 21% FFOPU CAGR since 2023.