Chartwell raises funds from operations per unit 25% to C$0.30 in third quarter
Key Facts
Chartwell Retirement Residences reported results on November 5, 2026, for the three and nine months ended September 30, with funds from operations (FFO) per unit rising 25% to C$0.30 from C$0.24 in the third quarter of 2025. Total FFO increased 38% to C$100.8 million from C$73.1 million a year earlier. The company linked the improvement to higher adjusted net operating income and lower general and administrative expenses. The results continued a run of double-digit FFO per unit growth that Chief Executive Officer Vlad Volodarsky said had extended to 13 consecutive quarters. Management attributed the trend to portfolio expansion, integrating acquired properties and improving the efficiency of its management platform.
Improved performance at same-property assets was a central factor in the increase, with adjusted net operating income growing 14.1% year over year. The adjusted operating margin rose 230 basis points to 43.4%, reflecting improved operating returns at these properties. Weighted average occupancy also increased to 94.8% from 92.5% in the comparable period, a rise of 2.3 percentage points. Adjusted revenue per occupied suite rose 5.8%, while adjusted net operating income per occupied suite increased 11.3%. These indicators show that FFO growth coincided with higher occupancy and improved revenue and returns per occupied suite.
Property revenue increased to C$321.073 million in the third quarter from C$275.175 million in the same period a year earlier, a rise of C$45.898 million. Meanwhile, direct property operating expenses climbed to C$183.230 million from C$165.393 million, an increase of C$17.837 million. The company said, however, that a C$34.9 million increase in adjusted net operating income and a C$1.2 million decline in general and administrative expenses contributed to FFO growth. Financing costs rose C$6.5 million compared with the third quarter of 2025, partially limiting the increase. The comparison shows that revenue growth also came with higher operating and financing costs.
Net income surged to C$115.0 million, compared with a net loss of C$5.2 million in the third quarter of 2025. Net income included a C$113.3 million gain on asset sales, distinguishing this figure from FFO growth tied to operating performance. The company said the gain on asset disposals was among the reasons net income increased by C$120.2 million from the comparable period. Net income growth alone therefore does not reflect the change in recurring operating results during the quarter. In the first nine months of 2026, FFO was C$276.9 million, or C$0.85 per unit, compared with C$196.8 million and C$0.68 per unit in the corresponding period of 2025.
Chartwell had liquidity of about C$573.4 million on November 5, 2026, including C$178.3 million in cash and cash equivalents and C$395.1 million in available borrowing capacity. As of September 30, adjusted net debt to adjusted earnings before interest, taxes, depreciation and amortization stood at 6.8 times, while the interest coverage ratio was 3.5 times. The company said FFO and FFO per unit are not defined under International Financial Reporting Standards and have no standardized definitions, so they may not be comparable with similar measures reported by other issuers. Management was scheduled to discuss the third-quarter results on a call on November 6, 2026, at 10:00 a.m. Eastern Time. These financial and operating indicators provide context for assessing FFO growth alongside liquidity, financing and the asset-sale gain.