Company sees a promising second quarter
Chartwell Retirement Residences, one of Canada's largest senior housing operators, has announced its financial results for the second quarter of 2024.
The company, which serves approximately 25,000 residents across four provinces, reported a substantial increase in resident revenue, rising by $21.4 million compared to Q2 2023. This growth contributed to a narrowing net loss of $2.8 million, an improvement from the $7.5 million loss recorded in the same period last year.
Chartwell CEO Vlad Volodarski credited the improved financial performance to increased occupancy and robust demand.
“With continuing strength in our leading sales indicators – initial contacts, personalized tours and signed leases, we now expect to achieve 88.7% occupancy in our same property portfolio in September 2024 as we enter into our historically strong fall leasing season," said Volodarski.
The REIT’s funds from operations (FFO) from continuing operations saw a substantial 45.3% increase, rising to $44.7 million from $25.9 million in Q2 2023. This growth was largely driven by higher adjusted net operating income (NOI), which was up 20.6% year over year.
Despite the positive financial trends, the company reported a series of challenges that have impacted its bottom line, including higher finance costs and depreciation expenses.
Additionally, the absence of income from the sale of its Ontario Long Term Care platform and a net loss on asset sales contributed to the overall financial performance.
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Chartwell’s financial position remains strong, with liquidity of $376.2 million as of June 30, 2024. This includes $18.2 million in cash and cash equivalents and $358.0 million in available borrowing capacity on its credit facilities.
The company has continued to optimize its portfolio in Quebec, a strategy Volodarski believes will further enhance its growth prospects.
"In the environment of growing demand and limited new supply, we are accelerating our portfolio optimization initiatives, including the recently announced acquisitions of 13 modern, high-quality residences in Quebec,” Volodarski said in Chartwell’s financial report.
As Chartwell moves into the latter half of 2024, the REIT remains optimistic about its growth trajectory, supported by strong demand fundamentals and ongoing portfolio enhancements. The company also reported a positive employee engagement score, with 57% of its workforce classified as highly engaged, surpassing its 2025 target.
“Our teams remain focused on delivering personalized, memorable experiences to our residents, growing occupancy and optimizing our property portfolio, with the goal of creating sustainable long-term value for all our stakeholders," Volodarski added.
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