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Highlights

  • Chartwell Retirement Residences’ FY24 revenue surged 15.3% YoY to CAD 852.1 million
  • Net income after taxes for FY24 fell 82.6% YoY, largely due to the exceptional CAD 178.7 million gain from the LTC Transactions in FY23
  • On March 17, 2025, Chartwell announced a cash distribution of CAD 0.051 per Trust Unit, payable on April 15, 2025
  • Chartwell aims to achieve 95% same-property occupancy by December 2025

Chartwell Retirement Residences (TSX:CSH.UN) is an open-ended real estate trust based in Canada. It is engaged in the ownership, operations, and management of retirement and long-term care communities in Canada.

For the fiscal year 2024 (FY24), the company saw a 15.3% YoY increase in revenue, rising to CAD 852.1 million from CAD 738.8 million in FY 2023. This growth was mainly driven by the performance of the resident segment. However, total expenses remained relatively stable, decreasing slightly by 0.2% YoY to CAD 795.2 million, despite elevated direct property operating costs and finance costs.

Net income before taxes for FY24 was CAD 56.8 million, a notable improvement compared to the net loss of CAD 58.2 million in FY23. However, net income after taxes fell sharply by 82.6% YoY, reaching CAD 22.3 million from CAD 128.2 million in the prior year. This decline was largely due to the previous year’s exceptional gain of CAD 178.7 million from the completed LTC Transactions.

Recent Business Update

On March 17, 2025, the company announced a cash distribution of CAD 0.051 per Trust Unit, which would be paid to unitholders on April 15, 2025. This distribution is set for unitholders of record as of March 31, 2025.

Additionally, the company reported a positive update on its occupancy rates, with winter sales contributing to higher occupancy in January 2025. This marked a notable decrease in the seasonal dip experienced in previous periods. The company remains optimistic about maintaining strong performance throughout 2025, driven by a growing initial contacts database, personalized tours, and high conversion rates.

Company Outlook

The management expects the seniors housing sector to have another fruitful year in 2025, fueled by favorable supply and demand dynamics, despite limited growth in retirement residence inventory. The company’s growth strategy is focused on reaching 95% same-property occupancy by December 2025, along with continuing market rate increases, improved operating margins, and reduced interest expenses.

Top 10 Shareholders

The top 10 shareholders of Chartwell collectively account for approximately 23.77% of the total shareholding. RBC Global Asset Management Inc. holds the largest stake at around 4.66%, followed by 1832 Asset Management L.P. with a stake of approximately 3.86%.

Stock Information

The stock price of CSH.UN has appreciated by around 12.26% and ~28.25% in the past three months and past nine months, respectively. The stock’s 52-week low and high spans from CAD 11.91 to CAD 17.69. As of 03 April 2025, the stock’s closing price is CAD 16.93.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is April 03, 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock, and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.