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Chartwell Retirement Residences (TSE:CSH.UN)
TSX:CSH.UN
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Chartwell Retirement Residences (CSH.UN) AI Stock Analysis

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TSE:CSH.UN

Chartwell Retirement Residences

(TSX:CSH.UN)

Rating:66Neutral
Price Target:
C$20.00
▲(8.34% Upside)
Chartwell Retirement Residences benefits from strong operational performance and strategic expansion, as highlighted in the earnings call. However, financial risks due to high leverage and cash flow challenges, along with a high P/E ratio, moderate the overall score.
Positive Factors
Earnings
Earnings outlook points to an impressive 2024-26E earnings CAGR of 16%.
Market Position
The largest public player, Chartwell is well-positioned to capitalize on attractive fundamentals in the Canadian seniors housing space.
Operational Initiatives
Chartwell's portfolio of private-pay retirement residences is expected to benefit from operational initiatives, demographic tailwinds, and a period of limited supply.
Negative Factors
Supply Constraints
A period of limited supply may challenge the ability to meet increasing demand, despite potential benefits from operational initiatives.

Chartwell Retirement Residences (CSH.UN) vs. iShares MSCI Canada ETF (EWC)

Chartwell Retirement Residences Business Overview & Revenue Model

Company DescriptionChartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent supportive living through assisted living to long term care. It is the largest operator in the Canadian seniors living sector with over 200 quality retirement communities in four provinces including properties under development. Chartwell is committed to its vision of Making People's Lives BETTER and to providing a happier, healthier and more fulfilling life experience for its residents.
How the Company Makes MoneyChartwell Retirement Residences generates revenue primarily through the rental and service fees charged to its residents. The company's revenue model is centered around occupancy rates in its various types of residences, including independent living, assisted living, and long-term care facilities. Key revenue streams include monthly rent payments from residents, fees for additional care services, and government funding for long-term care services. Chartwell may also engage in partnerships with healthcare providers and community organizations to enhance service offerings. Factors contributing to its earnings include demographic trends favoring an aging population, which increases demand for senior living options, and the company's focus on maintaining high occupancy rates and efficient operations.

Chartwell Retirement Residences Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong growth in same-property NOI, occupancy increases, and significant acquisition activities, indicating robust operational performance and strategic expansion. However, challenges remain with increased net losses and G&A expenses, as well as lease-up issues in some new acquisitions.
Q2-2025 Updates
Positive Updates
Continued Growth in Same Property Adjusted NOI
Q2 2025 marked the eighth successive quarter of double-digit growth in same property adjusted NOI and FFO per unit, with same-property adjusted NOI increasing by 20%.
Strong Occupancy Growth
Same-property occupancy increased 490 basis points to 91.9%, with a forecast to reach 93.5% by September and a target of 95% by the end of 2025.
Successful Cost Management
Staffing agency costs were reduced by 50% in Q2 2025 compared to Q2 2024, due to recruitment and retention activities.
Significant Acquisitions and Investments
Over $700 million of acquisitions completed year-to-date with further committed investments of $600 million for completion in 2025.
High Employee Engagement Achieved
56% of employees reported high engagement levels, surpassing the strategy target of 55%.
Negative Updates
Net Loss Increase
Net loss was $5.7 million in Q2 2025, compared to a net loss of $2.8 million in Q2 2024.
Higher G&A Expenses
General and administrative expenses increased by $1.2 million in Q2 2025.
Challenge with Recently Acquired Properties
One of the recently acquired properties on Vancouver Island had only reached 40% occupancy, up from 29% since its opening in 2021, indicating a prolonged lease-up period.
Company Guidance
During the Chartwell Retirement Residences Q2 2025 Financial Results Conference Call, CEO Vlad Volodarski provided guidance that highlighted strong performance metrics, including the eighth consecutive quarter of double-digit growth in same property adjusted NOI and FFO per unit. The company forecasts achieving 93.5% occupancy by September and aims for 95% occupancy by the end of 2025. They reported a same-property occupancy increase of 490 basis points to 91.9% and a 20% increase in same-property adjusted NOI. Chartwell's liquidity stands at approximately $503 million, and they raised $137.2 million of equity through their ATM program. The company is focused on strategic acquisitions, having completed over $700 million of acquisitions year-to-date, with further investments of $600 million anticipated. They are also pursuing a portfolio optimization strategy, identifying noncore properties, representing less than 10% of their NOI, for potential disposition to support future development and acquisitions. Chartwell is positioned to benefit from the positive operating environment, driven by the growing seniors population and a slowdown in new construction.

Chartwell Retirement Residences Financial Statement Overview

Summary
Chartwell Retirement Residences shows strong revenue growth and improved profitability metrics, but high leverage and significant challenges in free cash flow generation pose financial risks.
Income Statement
72
Positive
Chartwell Retirement Residences shows a positive revenue growth rate of 7.67% TTM, indicating strong top-line growth. The gross profit margin is healthy at 35.76%, though it has slightly decreased from the previous year. The net profit margin has improved to 6.36% TTM, reflecting better profitability. EBIT and EBITDA margins are robust at 24.42% and 38.72% respectively, showcasing operational efficiency. However, the decline in gross profit margin and the historical volatility in revenue growth are areas to monitor.
Balance Sheet
60
Neutral
The company has a high debt-to-equity ratio of 2.39 TTM, indicating significant leverage, which is common in the REIT industry but poses financial risk. Return on equity has improved to 5.25% TTM, suggesting better utilization of equity. The equity ratio stands at 28.42%, showing a moderate level of equity financing. While the improvement in ROE is positive, the high leverage remains a concern.
Cash Flow
55
Neutral
Free cash flow has significantly declined by 1459.72% TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.30, indicating moderate cash conversion efficiency. The negative free cash flow to net income ratio suggests challenges in generating free cash flow relative to net income. The cash flow situation requires attention due to the substantial decline in free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue974.32M848.54M736.24M706.80M903.61M924.72M
Gross Profit397.48M339.36M272.87M242.10M273.89M302.22M
EBITDA376.95M328.20M184.49M188.43M220.04M256.46M
Net Income54.59M22.41M128.27M27.39M10.13M14.88M
Balance Sheet
Total Assets4.47B4.09B3.23B3.51B3.42B3.49B
Cash, Cash Equivalents and Short-Term Investments28.22M20.05M24.62M28.47M95.49M70.16M
Total Debt2.86B2.60B2.03B2.34B2.35B2.52B
Total Liabilities3.20B3.01B2.44B2.74B2.59B2.76B
Stockholders Equity1.27B1.07B791.46M769.80M826.11M733.98M
Cash Flow
Free Cash Flow141.36M93.58M28.18M26.35M40.98M52.23M
Operating Cash Flow277.11M200.85M157.43M137.71M156.32M184.62M
Investing Cash Flow-768.21M-652.99M78.94M-165.61M-36.49M-62.19M
Financing Cash Flow501.15M447.57M-240.21M-39.11M-94.51M-75.16M

Chartwell Retirement Residences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.46
Price Trends
50DMA
18.08
Positive
100DMA
17.72
Positive
200DMA
16.73
Positive
Market Momentum
MACD
0.09
Negative
RSI
58.51
Neutral
STOCH
70.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CSH.UN, the sentiment is Positive. The current price of 18.46 is above the 20-day moving average (MA) of 18.23, above the 50-day MA of 18.08, and above the 200-day MA of 16.73, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 70.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CSH.UN.

Chartwell Retirement Residences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$472.09M13.176.45%6.74%5.14%209.83%
75
Outperform
C$2.17B3.8219.03%4.04%5.82%83.08%
66
Neutral
C$5.42B93.494.59%3.32%25.79%-65.80%
63
Neutral
$7.06B13.77-0.50%7.05%4.08%-25.24%
56
Neutral
C$1.87B-7.49%2.95%1.56%-9446.15%
55
Neutral
C$6.72B84.510.88%3.66%-2.56%
$2.73B10.616.62%2.16%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CSH.UN
Chartwell Retirement Residences
18.46
4.27
30.09%
TSE:CAR.UN
Canadian Apartment
41.77
-9.69
-18.83%
TSE:IIP.UN
InterRent REIT Un
13.35
0.77
6.12%
TSE:KMP.UN
Killam Apartment REIT Un
17.74
-1.86
-9.49%
TSE:PLZ.UN
Plaza Retail REIT
4.15
0.68
19.60%
BOWFF
Boardwalk REIT
50.28
-12.75
-20.23%

Chartwell Retirement Residences Corporate Events

Dividends
Chartwell Announces Cash Distribution and Reinvestment Plan
Positive
Aug 15, 2025

Chartwell Retirement Residences has announced a cash distribution of $0.051 per Trust Unit, payable on September 15, 2025, to unitholders of record as of August 29, 2025. The company also offers a Distribution Reinvestment Plan (DRIP) that allows unitholders to reinvest their distributions into additional Trust Units, with a 3% bonus, enabling them to increase their ownership without incurring additional fees.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Chartwell Retirement Residences Reports Strong Revenue Growth Amidst Increased Expenses
Neutral
Aug 7, 2025

Chartwell Retirement Residences reported a significant increase in resident revenue by 41.4% in Q2 2025 compared to the previous year, despite a net loss of $5.7 million due to higher operating expenses and other financial factors. The company continues to experience growth in its funds from operations and occupancy rates, with expectations to reach 95% occupancy by the end of 2025. This growth is attributed to strategic acquisitions and a positive operating environment, positioning Chartwell well for sustainable results.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Chartwell Expands Ontario Presence with Major Acquisition
Positive
Jul 22, 2025

Chartwell Retirement Residences has announced a significant acquisition of six senior housing communities in southwestern Ontario, totaling 1,024 suites, for $432 million. This strategic move aims to expand Chartwell’s presence in a growing market, enhance its portfolio with modern, purpose-built assets, and provide opportunities for sustainable growth through asset optimization and development.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

DividendsBusiness Operations and Strategy
Chartwell Announces Cash Distribution and Positive Occupancy Trends
Positive
Jul 15, 2025

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on August 15, 2025, with an option for unitholders to reinvest through the Distribution Reinvestment Plan (DRIP). The company also provided an occupancy update, highlighting positive trends in occupancy rates driven by strong demand, demographic growth, and limited new construction starts, which are expected to continue benefiting the company through 2025.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Chartwell Expands Quebec Footprint with Strategic Acquisitions and Developments
Positive
Jul 14, 2025

Chartwell Retirement Residences is expanding its presence in Quebec with strategic investments, including the acquisition of Les Tours Angrignon in Montréal and new development projects in Vaudreuil-Dorion and Terrebonne. These initiatives, totaling over $292 million, aim to meet the growing demand for senior living accommodations and enhance Chartwell’s market position in the province. The acquisition and developments are expected to improve resident experiences and support long-term value creation, with the first residents anticipated in fall 2026.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Financial Disclosures
Chartwell to Release Q2 2025 Financial Results and Host Conference Call
Neutral
Jul 9, 2025

Chartwell Retirement Residences announced that it will release its financial results for the second quarter of 2025 on August 7, with a conference call and webcast scheduled for August 8 to discuss the outcomes. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, which are crucial for assessing its market position and future prospects.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

DividendsBusiness Operations and Strategy
Chartwell Announces Cash Distribution and Positive Occupancy Outlook
Positive
Jun 16, 2025

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on July 15, 2025, with an option for unitholders to participate in a Distribution Reinvestment Plan (DRIP) that offers bonus units. The company also provided an occupancy update, indicating positive momentum in occupancy rates due to strong demand driven by demographic growth and a shortage of long-term care beds, which is expected to continue throughout 2025.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

DividendsBusiness Operations and Strategy
Chartwell Announces Cash Distribution and Investment Incentives
Positive
May 15, 2025

Chartwell Retirement Residences has announced a cash distribution of $0.051 per Trust Unit, payable on June 16, 2025, to unitholders of record as of May 30, 2025. The announcement includes details about the Distribution Reinvestment Plan (DRIP), which allows unitholders to reinvest their distributions into additional Trust Units and receive bonus units, enhancing their investment without additional fees. This move reflects Chartwell’s commitment to providing value to its investors and could potentially strengthen its market position by encouraging increased investment from existing stakeholders.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025