MISSISSAUGA, ON, Nov. 9, 2022
/CNW/ - Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN)
announced today its results for the third quarter ended
September 30, 2022.
Highlights
- In Q3 2022 same property Retirement Operations average
occupancy increased 60 basis points from Q2 2022 and 50 basis
points from Q3 2021, led by strong growth in Western Canada.
- Execution of operating, sales, marketing, and portfolio
optimization strategies is underway. Further occupancy growth of 40
basis points was achieved in October
2022.
- In Q3 2022, net income was $4.3
million compared to $0.9
million in Q3 2021 primarily due to higher resident revenue,
higher positive changes in fair values of financial instruments and
higher net income from discontinued operations partially offset by
higher pandemic-related expenses due in part to lower government
reimbursements and higher General and Administrative ("G&A")
expenses.
"We continue to focus on occupancy and cash flow
recovery. Various operational, sales and marketing strategies are
in place to support our residences' leadership teams and staff in
their efforts to drive faster recovery in 2023 and beyond,"
commented Vlad Volodarski, CEO. "We
are also building on the strength of our management platform to
become an even more agile and scalable organization to support the
future growth of our portfolio, through stronger empowerment of our
managers and front-line employees, streamlining our corporate
support and deploying specialized teams to execute complex
operating and capital allocation strategies. Such strategies may
include service model changes, capital upgrades, changes in use or
dispositions of properties identified as non-core. We believe that
these strategies, combined with pent-up demand for retirement
accommodation, driven by Canada's
increasingly ageing population, slower new construction starts, and
the persistent shortage of long term care beds will support
sustainable long-term value for all our stakeholders."
Operating Performance
Trends
- For Q3 2022 compared to Q3 2021, same property adjusted Net
Operating Income ("NOI") decreased $0.5
million or 1.1% primarily due to higher net pandemic
expenses of $3.7 million, in part due
to lower government reimbursements, higher agency staffing, and
food and utilities expenses, partially offset by higher revenue
from regular annual and market-based rental and service rate
increases and higher occupancy.
- Same property retirement leasing activity and permanent
move-ins exceeded Q3 2021 by 12.8% and 6.3% respectively.
Financial Results
For Q3 2022, net income was $4.3
million compared to $0.9
million in Q3 2021 primarily due to:
- higher resident revenue,
- higher positive changes in fair values of financial
instruments, and
- higher net income from LTC Discontinued Operations,
partially offset by:
- higher direct operating expenses,
- higher depreciation of property, plant and equipment
("PP&E"),
- higher finance costs,
- higher G&A expenses, and
- lower deferred tax benefit.
For Q3 2022, Funds from Operations ("FFO") from continuing
operations was $28.3 million or
$0.12 per unit compared to
$28.8 million or $0.13 per unit for Q3 2021. The following
items impacted the change in FFO from continuing operations:
- higher G&A expenses of $1.6
million primarily due to higher severance, cloud-based
information technology system implementations, education, and
travel expenses partially offset by lower performance-based
compensation expense, and
- higher finance costs of $1.5
million,
partially offset by:
- higher adjusted NOI from continuing operations of $2.3 million which is comprised of changes as
follows:
-
- higher adjusted NOI of $4.6
million due to higher contributions from our acquisitions
and development portfolio, and
- lower same property adjusted NOI of $0.5
million due to the following:
-
- higher net pandemic expenses of $3.7
million due to lower government reimbursements and higher
pandemic expenses, and
- and higher agency staffing, food and utilities expenses,
partially offset
by:
-
-
-
-
- higher revenue from both regular annual and market-based rental
and service rate increases and increased occupancy,
- lower NOI of $1.8 million from
our dispositions, repositioning and other portfolio,
- lower depreciation of PP&E and amortization of intangible
assets used for administrative purposes of $0.2 million, and
- higher interest income of $0.2
million.
FFO from continuing operations for Q3 2022 includes $1.2 million of Lease-up-Losses and Imputed Cost
of Debt related to our development projects (Q3 2021 – $1.5 million).
Total FFO for Q3 2022 was $31.9
million or $0.13 per unit,
compared to $33.9 million or
$0.15 per unit in Q3 2021. Effective
March 31, 2022, our Long Term Care
Operations segment was reclassified as discontinued operations.
Total FFO per unit includes $0.01 per
unit in Q3 2022 and $0.02 per unit in
Q3 2021, respectively from LTC Discontinued Operations or a
decrease of $0.01 per unit in Q3 2022
due to lower preferred accommodation revenue, timing of flow
through funding envelope expenditures and incremental pandemic
expense funding partially offset by higher retirement accommodation
and ancillary revenue.
For Q3 2022, resident revenue increased $12.3 million or 7.9% primarily due to revenue
growth in our same property portfolio and contributions from our
acquisitions and development portfolio partially offset by our
dispositions, repositioning and other portfolio.
For Q3 2022, direct property operating expense increased
$10.4 million or 9.7% primarily due
to higher expenses in our same property portfolio and our
acquisitions and development portfolio partially offset by our
dispositions, repositioning and other portfolio.
In Q3 2022, weighted average occupancy in our same property
portfolio was 77.6%, compared to 77.1% in Q3 2021 an increase of
0.5 percentage points. In Q3 2022, move-ins exceeded Q3 2021 by
6.0% and move outs were 3.3% lower than Q3 2021. All platforms
experienced occupancy gains in Q3 2022 compared to Q2 2022.
For 2022 YTD, net income was $2.1
million compared to net loss of $8.6
million in 2021 YTD primarily due to:
- higher resident revenue,
- positive changes in fair values of financial instruments,
- higher net income from LTC Discontinued Operations,
- lower net loss from joint ventures,
partially offset by:
- higher direct operating expenses,
- higher G&A expenses,
- lower gain on disposal of assets,
- lower deferred tax benefit and,
- higher finance costs.
For 2022 YTD, FFO from continuing operations was $74.3 million or $0.31 per unit compared to $94.0 million or $0.43 per unit for YTD 2021. The following items
impacted the change in FFO from continuing operations:
- lower adjusted NOI from continuing operations of $13.2 million which is comprised of changes as
follows:
-
- lower same property adjusted NOI of $16.6 million primarily due to the following
items:
-
- net pandemic expense of $12.0
million in 2022 YTD compared to net pandemic expense
recoveries of $5.5 million in YTD
2021, or higher net pandemic expenses of $17.5 million due to lower government subsidies
and higher pandemic expense,
- lower occupancy, and
- higher agency staffing, utilities, food and supplies
expenses,
partially offset
by:
-
-
-
-
- increased revenue from regular market-based rental and service
rate increases,
- lower NOI of $5.9 million from
our dispositions, repositioning and other portfolio, and
- higher adjusted NOI of $9.3
million due to higher contribution from our acquisitions and
development portfolio,
- higher G&A expenses of $5.6
million primarily due to lower government subsidies and
higher cloud-based information technology system implementations,
severance, travel and education expenses partially offset by lower
performance-based compensation expense,
- higher finance costs of $0.8
million, and
- lower management fee revenue of $0.6
million,
partially offset by:
- lower depreciation of PP&E and amortization of intangible
assets used for administrative purposes of $0.4 million.
FFO from continuing operations for 2022 YTD includes
$3.3 million of Lease-up-Losses and
Imputed Cost of Debt related to our development projects (2021 YTD
– $3.7 million).
Total FFO for 2022 YTD was $93.6
million or $0.39 per unit,
compared to $103.8 million or
$0.47 per unit in 2021 YTD. Total FFO
per unit for 2022 YTD includes $0.08
per unit from LTC Discontinued Operations compared to $0.04 per unit in 2021 YTD, due to higher
adjusted NOI from Long Term Care Operations primarily as a result
of government reimbursements for prior years direct operating
expenses and higher ancillary, preferred and retirement
accommodation revenues.
For 2022 YTD, resident revenue increased $22.3 million or 4.8% primarily due to revenue
growth in our same property portfolio and contributions from our
acquisitions and development portfolio, partially offset by our
dispositions, repositioning and other portfolio.
For 2022 YTD, direct property operating expense increased
$33.0 million or 10.6% primarily due
to higher expenses in our same property portfolio and our
acquisitions and development portfolio, partially offset by our
dispositions, repositioning and other portfolio.
The following table summarizes select financial and operating
performance measures:
|
|
Three Months
Ended
September 30
|
Nine Months
Ended
September 30
|
($000s, except per unit
amounts, number of units, and
occupancy)
|
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
Resident
revenue
|
168,758
|
156,430
|
12,328
|
490,562
|
468,260
|
22,302
|
Direct property
operating expense
|
117,811
|
107,374
|
10,437
|
344,032
|
311,017
|
33,015
|
Net
income/(loss)
|
4,278
|
917
|
3,361
|
2,068
|
(8,600)
|
10,668
|
FFO
(1)
|
|
|
|
|
|
|
Continuing
operations
|
28,290
|
28,830
|
(540)
|
74,269
|
94,026
|
(19,757)
|
Total
|
31,880
|
33,937
|
(2,057)
|
93,560
|
103,824
|
(10,264)
|
FFO per unit
(1)
|
|
|
|
|
|
|
Continuing
operations
|
0.12
|
0.13
|
(0.01)
|
0.31
|
0.43
|
(0.12)
|
Total
|
0.13
|
0.15
|
(0.02)
|
0.39
|
0.47
|
(0.08)
|
Weighted average number
of units outstanding (000s) (2)
|
237,837
|
225,074
|
12,763
|
236,921
|
220,673
|
16,248
|
Same property occupancy
(3)
|
77.6 %
|
77.1 %
|
0.5pp
|
77.2 %
|
77.8 %
|
(0.6pp)
|
Same property adjusted
NOI (1)
|
50,361
|
50,899
|
(538)
|
146,646
|
163,256
|
(16,610)
|
G&A
expenses
|
11,215
|
9,652
|
1,563
|
40,307
|
34,695
|
5,612
|
|
|
|
|
|
|
|
|
Debt leverage and interest coverage metrics
The interest coverage ratio (1) on a rolling 12-month
basis was 2.6 at September 30, 2022
compared to 2.9 at September 30,
2021. The net debt to adjusted EBITDA ratio (1)
at September, 2022 was 11.2 compared to 9.6 at September 30, 2021.
Outlook
Operations
Our same property weighted average occupancy rate increased 0.4
percentage point to 78.1% in October
2022. Same property leasing activity and permanent move-ins
were higher than October 2021 by 5.5%
and 7.1%, respectively. Our same property weighted average
occupancy rate (based on leases and notices on hand as at
October 31, 2022) is forecast to
increase 0.1 percentage points in November and ending December at
78.2%. We have consistently experienced mid-month move ins,
particularly in our Ontario
platform, which are not accounted for in our forecasts.
From April 2022 to September 2022 our total portfolio occupancy
increased 1.6% percentage points. Our properties in 11 of our top
15 markets experienced average occupancy increases of 2.8
percentage points in this period. Our properties in the highly
competitive Ottawa, Calgary, Durham and Quebec
City markets, experienced average occupancy declines of 1.3
percentage points. Property and region-specific sales and marketing
strategies such as multi-channel advertising, select use of
tailored promotions and incentives, business development and
resident referral programs, open houses and other prospect
nurturing events are being implemented to support occupancy
recovery across our portfolio with the enhanced support available
in underperforming markets.
We believe that there is a pent-up demand for retirement
accommodation and services, driven by the increased ageing
population, disruptions of community-based support services for
seniors during the pandemic and a persistent shortage of long term
care beds. Accelerated growth in the population of seniors over the
age of 75 over the next 20 plus years, as well as the slowdown of
construction activity in the last two years should support
occupancy recovery in the short term and growth from pre-pandemic
levels over the long term. Pandemic-related restrictions have
eased, and assuming this continues, we expect our occupancy to
continue to recover into 2023 and beyond across all platforms.
Our 2021 MD&A provided our expected combined rental and
services rate growth of approximately 3.0% for 2022 for our
retirement operations. In light of current inflationary conditions,
beginning in August 2022 we are
increasing our combined rental and services rates, on renewal, by
75 basis points on average higher than previously expected.
We expect the elevation in direct operating expenses in our
retirement residences experienced through the Omicron Waves of the
pandemic to continue due to higher-than-normal staffing costs as a
result of increased agency staffing used to augment vacancies.
Staffing shortages continue in select markets in Ontario and Quebec and as a result we continue to incur
agency costs to maintain resident services. In Q4 2022, we expect
that net pandemic and incremental agency staffing costs will range
from $3 to $5
million. We expect that our initiatives to reduce staff
vacancies by improving our recruitment and retention and to
optimize staff levels to better align to occupancy and service
levels, along with lower usage of agency staffing will bring these
costs down gradually through Q4 2022 and into 2023 subject to
labour market and outbreak conditions.
Our 2021 MD&A provided our expected G&A growth in 2022.
We expect G&A for Q4 2022 to be approximately $10.0 to $11.0
million.
Liquidity and Financing Update
As at November 9, 2022 liquidity
amounted to $182.4 million, which
included $24.9 million of cash and
cash equivalents and $157.5 million
of available borrowing capacity on our credit facilities. In
addition, Chartwell's share of cash and cash equivalents held in
its equity-accounted joint ventures was $11.2 million.
As at November 9, 2022, our
remaining maturities in 2022 are $24.0
million and are expected to be refinanced in the normal
course. As at November 9, 2022
10-year Canada Mortgage and Housing Corporation ("CMHC") insured
mortgage rates are estimated at approximately 4.50% and
five-year conventional mortgage financing is available at
5.65%.
The previously announced sales of two LTC homes in B.C. which is
expected to close in Q4 2022, and our Ontario LTC platform,
expected to close in the spring of 2023, are estimated to generate
net cash proceeds of $334.2 million,
which will be initially deployed to reduce debt.
Taxation
Based on our current forecasts, the previously announced sales
of two B.C LTC homes, expected to
close in Q4 2022 and Ontario LTC platform, expected to close in
spring of 2023 are estimated to result in specified investment
flow-through ("SIFT") taxes of approximately $34.0 million in 2023. As a result of these sales
the majority of our 2023 distributions are expected to be
classified as eligible dividends. We expect to have sufficient
deductions and losses carried forward to offset any other SIFT
taxes in 2022 and 2023.
Quarterly Investor Materials and Conference Call
We invite you to review our Q3 2022 investor materials on our
website at investors.chartwell.com
Q3 2022 Financial Statements
Q3 2022 Management's Discussion and
Analysis
Third Quarter 2022 Investor
Presentation
A conference call hosted by Chartwell's senior management team
will be held Thursday, November 10,
2022, at 9:00 AM ET. The
telephone numbers for the conference call are: Local: (416)
340-2217 or Toll Free: 1-800-898-3989. The passcode for the
conference call is: 6479378#. The conference call can also be
heard over the Internet by accessing the Chartwell website at
www.chartwell.com, clicking on "Investor Relations" and following
the link at the top of the page. A slide presentation to accompany
management's comments during the conference call will be available
on the website. Please log on at least 15 minutes before the call
commences.
The telephone numbers to listen to the call after it is
completed (Instant Replay) are: Local (905) 694-9451 or Toll-Free:
1-800-408-3053. The Passcode for the Instant Replay is 3331531#.
These numbers will be available for 30 days following the call. An
audio file recording of the call, along with the accompanying
slides, will also be archived on the Chartwell website at
www.chartwell.com.
Footnotes
(1)
|
FFO, FFO per unit,
same property adjusted NOI, adjusted NOI, liquidity, interest
coverage ratio, and net debt to adjusted EBITDA ratio are non-GAAP
measures. These measures do not have standardized meanings
prescribed by GAAP and, therefore, may not be comparable to similar
measures used by other issuers. These measures are used by
management in evaluating operating and financial performance.
Please refer to the heading "Non-GAAP Measures" on page
6 of this press release. Full definitions of FFO
& FFO per unit can be found on page 22, same property adjusted
NOI on page 25, adjusted NOI on page 25, liquidity on page 37,
interest coverage ratio on page 44 and net debt to adjusted EBITDA
ratio on page 62 of the Q3 2022 MD&A available on Chartwell's
website and at www.sedar.com. The definition of these measures have
been incorporated by reference.
|
(2)
|
Includes Trust
Units, Class B Units of Chartwell Master Care LP, and Trust Units
issued under Executive Unit Purchase Plan and Deferred Trust Unit
Plan.
|
(3)
|
'pp' means
percentage points.
|
(4)
|
Non- GAAP; Share of
resident revenue and direct property operating expense from joint
ventures represents Chartwell's proportionate share of the resident
revenue and direct property operating expense of our
Equity-Accounted JVs.
|
(5)
|
Resident revenue and
direct property operating expense reported in LTC Discontinued
Operations represents the resident revenue and direct property
operating expense related to LTC Discontinued
Operations.
|
COVID-19 Risk Factors
Please refer to the 2021 MD&A to review risk factors to
Chartwell relating to COVID-19.
Forward-Looking Information
This press release contains forward-looking information that
reflects the current expectations, estimates and projections of
management about the future results, performance, achievements,
prospects or opportunities for Chartwell and the seniors housing
industry. Forward-looking statements are based upon a number of
assumptions and are subject to a number of known and unknown risks
and uncertainties, many of which are beyond our control, and that
could cause actual results to differ materially from those that are
disclosed in or implied by such forward-looking statements. There
can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ
materially from those expected or estimated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. These factors are more fully described
in the "COVID-19 Business Impacts and Related Risks" section, and
the "Risks and Uncertainties and Forward-Looking Information"
section in Chartwell's 2021 MD&A, and in materials filed with
the securities regulatory authorities in Canada from time to time, including but not
limited to our most recent Annual Information Form.
Non-GAAP Financial Measures
Chartwell's condensed consolidated interim financial
statements are prepared in accordance with International Financial
Reporting Standards ("IFRS"). Management uses certain financial
measures to assess Chartwell's operating and financial performance,
which are measures not defined in generally accepted accounting
principles ("GAAP") under IFRS. The following measures: FFO, FFO
per unit, same property adjusted NOI, adjusted NOI,
liquidity, interest coverage ratio and net debt to adjusted EBITDA
ratio as well as other measures discussed elsewhere in this
release, do not have a standardized definition prescribed by IFRS.
They are presented because management believes these non-GAAP l
measures are relevant and meaningful measures of Chartwell's
performance and as computed may differ from similar computations as
reported by other issuers and may not be comparable to similarly
titled measures reported by such issuers. For a full definition of
these measures, please refer to the 2021 MD&A available on
Chartwell's website and at www.sedar.com.
The following table reconciles resident revenue and direct
property operating expense from our financial statements to
adjusted resident revenue and adjusted direct property operating
expense and NOI to Adjusted NOI from continuing operations and
Adjusted NOI and identifies contributions from our same property
portfolio and our acquisition, development, dispositions,
repositioning and other portfolio:
($000s, except
occupancy rates)
|
Q3
2022
|
Q3 2021
|
Change
|
2022
YTD
|
2021 YTD
|
Change
|
|
|
|
|
|
|
|
Resident
revenue
|
168,758
|
156,430
|
12,328
|
490,562
|
468,260
|
22,302
|
Add:
Share of resident
revenue from joint ventures (4)
|
29,192
|
27,152
|
2,040
|
85,856
|
82,023
|
3,833
|
Resident revenue from
LTC Discontinued
Operations (5)
|
60,121
|
55,106
|
5,015
|
188,449
|
171,206
|
17,243
|
Adjusted resident
revenue
|
258,071
|
238,688
|
19,383
|
764,867
|
721,489
|
43,730
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
159,866
|
152,593
|
7,273
|
471,924
|
457,730
|
14,194
|
Acquisitions and development
|
20,078
|
10,319
|
9,759
|
51,786
|
30,814
|
20,972
|
Dispositions, repositioning and other
|
78,127
|
75,776
|
2,351
|
241,157
|
232,945
|
8,212
|
Adjusted resident revenue
|
258,071
|
238,688
|
19,383
|
764,867
|
721,489
|
43,378
|
|
|
|
|
|
|
|
Direct property
operating expense
|
117,811
|
107,374
|
10,437
|
344,032
|
311,017
|
33,015
|
Add:
Share of direct
property operating expense from
joint ventures (4)
|
20,413
|
18,800
|
1,613
|
61,396
|
55,105
|
6,291
|
Direct property
operating expense from LTC
Discontinued Operations (5)
|
54,732
|
48,259
|
6,473
|
163,846
|
156,096
|
7,750
|
Adjusted direct
property operating expense
|
192,956
|
174,433
|
18,523
|
569,274
|
522,218
|
47,056
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
109,505
|
101,694
|
7,811
|
325,278
|
294,474
|
30,804
|
Acquisitions and development
|
12,658
|
7,550
|
5,108
|
32,881
|
21,247
|
11,634
|
Dispositions, repositioning and other
|
70,793
|
65,189
|
5,604
|
211,115
|
206,497
|
4,618
|
Adjusted direct property operating expense
|
192,956
|
174,433
|
18,523
|
569,274
|
522,218
|
47,056
|
|
|
|
|
|
|
|
NOI
|
50,947
|
49,056
|
1,891
|
146,530
|
157,243
|
(10,713)
|
Add:
Share of NOI from joint ventures
|
8,779
|
8,352
|
427
|
24,460
|
26,918
|
(2,458)
|
Adjusted NOI from
continuing operations
|
59,726
|
57,408
|
2,318
|
170,990
|
184,161
|
(13,171)
|
Add:
NOI from LTC
Discontinued Operations
|
5,389
|
6,847
|
(1,458)
|
24,603
|
15,110
|
9,493
|
Adjusted
NOI
|
65,115
|
64,255
|
860
|
195,593
|
199,271
|
(3,678)
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
50,361
|
50,899
|
(538)
|
146,646
|
163,256
|
(16,610)
|
Acquisitions and development
|
7,420
|
2,769
|
4,651
|
18,905
|
9,567
|
9,338
|
Dispositions, repositioning and other
|
7,334
|
10,587
|
(3,253)
|
30,042
|
26,448
|
3,594
|
Adjusted NOI
|
65,115
|
64,255
|
860
|
195,593
|
199,271
|
(3,678)
|
|
|
|
|
|
|
|
Weighted average
occupancy rate - same property
portfolio
|
77.6 %
|
77.0 %
|
0.6pp
|
77.2 %
|
77.7 %
|
(0.5pp)
|
Weighted average
occupancy rate – acquisitions
and development portfolio
|
73.8 %
|
58.3 %
|
15.5pp
|
71.0 %
|
58.9 %
|
12.2pp
|
Weighted average
occupancy rate – dispositions,
repositioning and other portfolio
|
85.6 %
|
84.9 %
|
0.7pp
|
85.0 %
|
81.5 %
|
3.5pp
|
Weighted average
occupancy rate - total portfolio
|
78.4 %
|
77.1 %
|
1.3pp
|
77.8 %
|
77.1 %
|
0.7pp
|
The following table provides a reconciliation of net income/(loss)
to FFO for continuing operations:
|
($000s, except per unit
amounts and number
of units)
|
Q3
2022
|
Q3 2021
|
Change
|
2022
YTD
|
2021
YTD
|
Change
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
750
|
(1,839)
|
2,589
|
(14,516)
|
(10,933)
|
(3,583)
|
|
|
|
|
|
|
|
|
|
Add
(Subtract):
|
|
|
|
|
|
|
B
|
Depreciation of PP&E
|
38,958
|
36,966
|
1,992
|
113,506
|
112,478
|
1,028
|
D
|
Amortization of limited life intangible assets
|
809
|
862
|
(53)
|
2,375
|
2,467
|
(92)
|
B
|
Depreciation of PP&E and amortization of
intangible assets used for administrative
purposes included in depreciation of
PP&E
and amortization of intangible assets
above
|
(1,186)
|
(1,416)
|
230
|
(3,610)
|
(4,059)
|
449
|
E
|
Loss/(gain) on disposal of assets
|
(656)
|
(149)
|
(507)
|
(1,626)
|
(6,986)
|
5,360
|
J
|
Transaction costs arising on dispositions
|
122
|
420
|
(298)
|
200
|
516
|
(316)
|
G
|
Deferred
income tax
|
(2,248)
|
(2,724)
|
476
|
(2,718)
|
(3,362)
|
644
|
O
|
Distributions on Class B Units recorded as
interest expense
|
234
|
234
|
-
|
702
|
702
|
-
|
M
|
Changes in
fair value of financial instruments
and foreign exchange loss/(gain)
|
(9,054)
|
(4,274)
|
(4,780)
|
(18,856)
|
953
|
(19,809)
|
Q
|
FFO
adjustments for Equity-Accounted JVs
|
561
|
750
|
(189)
|
(1,188)
|
2,250
|
(3,438)
|
|
FFO
|
28,290
|
28,830
|
(540)
|
74,269
|
94,026
|
(19,757)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of units
|
237,837
|
225,074
|
12,763
|
236,921
|
220,673
|
16,248
|
|
FFOPU
|
0.12
|
0.13
|
(0.01)
|
0.31
|
0.43
|
(0.12)
|
The following table provides a reconciliation of net income/(loss)
to FFO for total operations:
|
($000s, except per unit
amounts and number of
units)
|
Q3
2022
|
Q3
2021
|
Change
|
2022
YTD
|
2021
YTD
|
Change
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
4,278
|
917
|
3,361
|
2,068
|
(8,600)
|
10,668
|
|
|
|
|
|
|
|
|
|
Add
(Subtract):
|
|
|
|
|
|
|
B
|
Depreciation of PP&E
|
38,958
|
39,109
|
(151)
|
115,322
|
119,316
|
(3,994)
|
D
|
Amortization of limited life intangible assets
|
809
|
1,072
|
(263)
|
2,577
|
3,093
|
(516)
|
B
|
Depreciation of PP&E and amortization of
intangible assets used for administrative
purposes included in depreciation of PP&E
and
amortization of intangible assets
above
|
(1,186)
|
(1,416)
|
230
|
(3,610)
|
(4,059)
|
449
|
E
|
Loss/(gain) on disposal of assets
|
(655)
|
(151)
|
(504)
|
(1,622)
|
(6,985)
|
5,363
|
J
|
Transaction costs arising on dispositions
|
183
|
420
|
(237)
|
885
|
516
|
369
|
G
|
Deferred
income tax
|
(2,248)
|
(2,724)
|
476
|
(2,718)
|
(3,362)
|
644
|
O
|
Distributions on Class B Units recorded as
interest expense
|
234
|
234
|
-
|
702
|
702
|
-
|
M
|
Changes in
fair value of financial instruments
and foreign exchange loss/(gain)
|
(9,054)
|
(4,274)
|
(4,780)
|
(18,856)
|
953
|
(19,809)
|
Q
|
FFO
adjustments for Equity-Accounted JVs
|
561
|
750
|
(189)
|
(1,188)
|
2,250
|
(3,438)
|
|
FFO
|
31,880
|
33,937
|
(2,057)
|
93,560
|
103,824
|
(10,264)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of units
|
237,837
|
225,074
|
12,763
|
236,921
|
220,673
|
16,248
|
|
FFOPU
|
0.13
|
0.15
|
(0.02)
|
0.39
|
0.47
|
(0.08)
|
About Chartwell
Chartwell 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
nearly 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. For more information, visit www.chartwell.com
For more information, please contact:
Chartwell Retirement Residences
Sheri Harris, Chief Financial Officer
Tel: (905) 501-6777
slharris@chartwell.com
SOURCE Chartwell Retirement Residences