Earnings release
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CHARTWell Chartwell Announces Strong Q2 2026 Results with Twelfth Consecutive Quarter of Double - Digit Growth in Funds from Operations per Unit MISSISSAUGA , ONTARIO - August 6 , 2026 - Chartwell Retirement Residences ( " Chartwell " ) ( TSX : CSH.UN ) announced today its results for the three and six months ended June 30 , 2026 . Highlights Q2 2026 compared to Q2 2025 : Property revenue increased $ 52.3 million or 19.5 % . • Net loss decreased $ 4.4 million . • Funds from operations ( " FFO " ) ( 1 ) increased $ 23.0 million or 34.0 % , and $ 0.04 per unit or 16.7 % . • Same property adjusted net operating income ( " NOI " ) ( ¹ ) increased 11.9 % . • Same property adjusted operating margin increased 110 basis points ( " bps " ) to 42.5 % . • Weighted average same property occupancy increased 320 bps to 94.3 % . • Same property adjusted resident revenue per occupied suite ( " REVPOS " ) ( 1 ) increased 4.6 % . • Same property adjusted NOI per occupied suite ( " NOIPOS " ) ( 1 ) increased 8.1 % . " Our teams delivered another strong quarter in Q2 2026 , with FFO per unit increasing 17 % over Q2 2025 , marking our twelfth consecutive quarter of double - digit growth in FFO per unit . During the quarter , we continued to execute our portfolio optimization strategy through acquisitions , developments and the disposition of non - core assets , further strengthening our presence in key growth markets with newer , more efficient communities . " The recent announcement of four development projects with our trusted partners representing 828 suites , reflects our commitment to leading the next phase of retirement residence development in Canada . Together , these investments will expand the supply of high - quality , purpose - built communities and increase choice for Canadian seniors as demand for retirement living continues to grow , " said Vlad Volodarski , Chartwell's Chief Executive Officer . " These results reflect the commitment of our people across our residences and support offices to delivering exceptional experiences for our residents . I thank them for their hard work , passion and continued focus on the residents and families we have the privilege of serving . " Results of Operations Three Months Ended ( $ 000s , except per unit amounts , number of units , per occupied suite amounts , and percentages ) 2026 Property revenue 320,356 Direct property operating expense Net income / ( loss ) FFO ( 1 ) ( 1,339 ) 90,524 June 30 2025 268,034 187,229 159,683 ( 5,737 ) 67,553 FFO per unit ( 1 ) 0.28 Weighted average number of units outstanding ( 000s ) ( 2 ) 327,251 G & A expenses 15,788 0.24 285,514 14,126 22,971 0.04 41,737 1,662 Change 52,322 623,306 27,546 366,440 4,398 6,653 176,102 0.54 323,832 30,490 2026 Six Months Ended June 30 2025 Change 511,602 111,704 309,739 56,701 27,457 ( 20,804 ) 123,722 52,380 0.44 281,749 31,209 0.10 42,083 ( 719 ) Same property : Adjusted resident revenue ( 1 ) Adjusted other property revenue ( 1 ) Adjusted property revenue ( 1 ) Adjusted DOE ( 1 ) 199,903 4,831 204,734 117,794 184,723 2,931 187,654 109,936 Adjusted NOI ( 1 ) 86,940 77,718 15,180 398,827 1,900 7,647 17,080 406,474 7,858 234,608 9,222 171,866 366,140 32,687 6,314 1,333 372,454 34,020 221,414 13,194 151,040 20,826 Adjusted operating margin ( 1 ) 42.5 % 41.4 % 1.1pp 42.3 % 40.6 % 1.7pp Weighted average occupancy rate ( 3 ) 94.3 % 91.1 % 3.2pp 94.4 % 90.8 % 3.6pp REVPOS ( 1 ) 4,915 4,698 217 4,894 4,671 223 Adjusted direct property operating expense per occupied suite ( " DOEPOS " ) ( 1 ) 2,896 2,796 100 2,879 2,824 55 NOIPOS ( 1 ) 2,138 1,977 161 2,109 1,927 182 1
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2 For Q2 2026, property revenue increased $52.3 million or 19.5%, and direct property operating expense increased $ 27.5 million or 17.3%. For Q2 2026, net loss was $1.3 million compared to net loss of $5.7 million in Q2 2025 primarily due to: • higher property revenue, and • higher reversal of impairment expense, partially offset by: • higher direct property operating expense, • higher depreciation of property, plant and equipment (“PP&E”), • higher deferred tax expense, • higher finance costs, and • higher general, administrative and Trust (“G&A”) expenses. For Q2 2026, FFO was $90.5 million or $0.28 per unit, compared to $67.6 million or $0.24 per unit for Q2 2025. FFO does not include $2.8 million or $0.01 per unit of income guarantees related to recently acquired properties. The change in FFO was primarily due to: • higher adjusted NOI of $27.6 million, partially offset by: • higher finance costs of $4.0 million, and • higher G&A expenses of $1.7 million. For 2026 YTD, property revenue increased $111.7 million or 21.8%, and direct property operating expense increased $ 56.7 million or 18.3%. For 2026 YTD, net income was $6.7 million compared to $ 27.5 million in 2025 YTD that included the gain on sale of $60.3 million due to the completed Welltower Transaction. The remaining differences are primarily due to: • higher direct property operating expense, • higher depreciation of PP&E, • higher deferred tax expense, and • higher finance costs, partially offset by: • higher property revenue, • no current income tax expense in 2026 YTD as compared to income tax expense in 2025 YTD, • lower negative changes in fair value of financial instruments, • lower transaction costs related to dispositions, and • higher reversal of impairment expense. For 2026 YTD, FFO was $176.1 million or $0.54 per unit, compared to $123.7 million or $0.44 per unit for 2025 YTD. FFO does not include $6.0 million or $0.02 per unit of income guarantees related to recently acquired properties. The change in FFO was primarily due to: • higher adjusted NOI of $55.3 million, partially offset by: • higher finance costs of $4.5 million. Financial Position June 30, 2026 December 31, 2025 December 31, 2024 Net Debt to Adjusted EBITDA(4) 7.0x 6.9x 8.4x Interest Coverage Ratio(4) 3.5x 3.5x 2.7x Available liquidity(1) ($000) 408,056 504,043 314,295 Weighted average interest rate (consolidated) 3.99% 3.92% 4.30% As at June 30, 202 6, liquidity(1) amounted to $ 408.1 million, which included $38.1 million of cash and cash equivalents and $370.0 million of available borrowing capacity on our credit facilities.
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3 2026 Outlook and Recent Developments An updated discussion of our business outlook can be found in the “202 6 Outlook” section of our Management’s Discussion and Analysis for the three months ended June 30, 2026 (the “Q2 2026 MD&A”). Operations Figure 1 provides an update in respect of our same property occupancy. We experienced a seasonal occupancy dip during the 2026 winter that was more in-line with historical periods given severe weather conditions and a more pronounced flu season. We expect to see continued strong leasing activity given the robust industry supply and demand fundamentals and expect to achieve our full year average occupancy target of 95%. Portfolio Optimization Activities We continue to execute on our portfolio optimization strategy of enhancing our asset base to generate growing NOI, acquiring newer properties in core markets , selling non-core properties, repositioning underperforming properties and pursuing new developments. Recent activities include: • On June 2, 2026, we completed the acquisition of a 30% ownership interest in the Seasons Retirement Communities portfolio (the “Portfolio”) through a joint arrangement with Fengate Asset Management (“Fengate”). The portfolio includes 23 seniors housing communities comprising 2,943 suites in Ontario, British Columbia and Alberta. Chartwell will manage the operations of these residences. The purchase price for our interest was $382.5 million and was partially satisfied by the proportionate assumption of approximately $208.8 million of mortgages with a weighted average interest rate of 4.46% and a weighted average term to maturity of 5.0 years, with the remainder paid in cash. Under our agreement with Fengate, both parties have contractual rights that are expected to result in our acquiring an additional 20% ownership interest in the Portfolio upon the achievement of specified milestones. • On June 3, 2026, we completed the acquisition of Palermo Village Retirement Residence, comprising 116 suites in Oakville, Ontario for $43.0 million which was settled in cash. • On July 2, 2026, we completed the sale of nine non-core properties in Ontario for $117.9 million. Net proceeds were $82.3 million, after $2.0 million of transaction costs and repayment of $33.6 million of mortgages with a weighted average interest rate of 3.30% and weighted average term to maturity of 4.3 years. • On July 16 , 2026, we completed the acquisition of a 50% ownership interest in Chartwell Le Montcalm, a 283- suite retirement residence in Candiac, Quebec , for a purchase price of $ 43.3 million before closing costs and working capital adjustments. The purchase price included the proportionate assumption of the $22.3 million mortgage bearing interest at 6.0% maturing on October 1, 2026, with the balance settled in cash. • On July 24, 2026, we announced four new development projects in Alberta, British Columbia and Quebec representing 828 suites offering a mix of seniors apartments, independent living and memory living. The projects are in partnership
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4 with experienced developers and through forward purchase agreements enhance Chartwell's future acquisition pipeline (refer to our press release dated July 24, 2026). • On August 4, 2026, we entered into a definitive agreement to acquire a 100% ownership interest in a retirement residence located in the Greater Toronto Area, for a purchase price of $136.0 million. This transaction is expected to close in Q3 2026. • On August 4, 2026, we entered into a definitive agreement to sell one non-core property in Ontario for $41.8 million. This transaction is subject to customary adjustments in accordance with the terms of the purchase and sale agreement and is expected to close in Q3 2026. • On August 4, 2026, we entered into a definitive agreement to sell one property in Ontario for $91.0 million. This transaction is subject to customary adjustments in accordance with the terms of the purchase and sale agreement and is expected to close in Q3 2026. This property has an in-place CMHC-insured mortgage with an outstanding balance of $21.3 million bearing interest at 3.13% maturing in 2028. Liquidity and Financing As at August 6, 2026, liquidity amounted to $614.2 million, which included $219.2 million of cash and cash equivalents and $395.0 million of available borrowing capacity on our Credit Facility. As of the date of this release, for the remainder of 2026, we have $227.1 million of mortgage debt maturing with a weighted average interest rate of 2.8% and senior unsecured debentures of $250.0 million with an interest rate of 6.0%. At August 6, 2026, 10-year CMHC-insured mortgage rates are estimated at approximately 4.17% and five-year unsecured debenture rate to be approximately 4.38%. On June 30, 2026, we amended our credit facilities agreement, combining our secured and unsecured credit facilities into a single $400.0 million credit facility (the “Credit Facility”). Under the amended agreement, the Credit Facility has separate secured and unsecured tranches. The amendment allows Chartwell, subject to availability of sufficient security, to maximize borrowing capacity of the credit facility at secured pricing. At the current BBB rating by DBRS, last confirmed by DBRS on May 7, 2026, amounts borrowed under the secured tranche bear interest at the banks’ prime rate (“Prime”) plus 30 bps or at the the Canadian Overnight Repo Rate Average (“CORRA”) plus 130 bps plus credit spread adjustment, and amounts borrowed under the unsecured tranche bear interest at Prime plus 45 bps or CORRA plus 145 bps plus credit spread adjustment. The cost of our Credit Facility is based on our credit rating. The amendment also extended the maturity of the Credit Facility from May 29, 2029 to May 29, 2031. On November 6, 2025, we filed a new prospectus supplement to renew our at -the-market equity distribution program (the “2025 ATM Program ”) to allow us to issue up to $500.0 million of Trust Units from treasury to the public from time to time. During the six months ended June 30, 2026, we issued an aggregate 6,755,772 Trust Units under the 2025 ATM Program at an average price of $21.08 per Trust Unit for total gross proceeds of $142.4 million. Commission and other costs amounted to $2.1 million. The 2025 ATM Program was terminated on May 7, 2026, with approximately $382.4 million of cumulative Trust Units issued and sold under the program. On May 7, 2026, we filed a new final base shelf prospectus and a new prospectus supplement for the ATM Program (the “2026 ATM Program”) to allow us to issue up to an additional $500.0 million of Trust Units. The 2026 ATM Program is expected to remain in place until June 7, 2029, unless terminated prior to such date by Chartwell or otherwise in accordance with the terms of the Equity Distribution Agreement which sets out the terms of the sale of Trust Units under the 2026 ATM Program. During the three months ended June 30, 2026, we issued an aggregate 3,343,539 Trust Units under the 2026 ATM Program at an average price of $21.74 per Trust Unit for total gross proceeds of $72.7 million. Commission and other costs amounted to $1.3 million. Quarterly Investor Materials and Conference Call We invite you to review our Q2 2026 investor materials on our website at investors.chartwell.com. Q2 2026 Financial Statements Q2 2026 MD&A Q2 2026 Investor Presentation A conference call hosted by Chartwell’s senior management will be held Friday, August 7 , 2026, at 10:00 AM ET . Participation in the live conference call can be accessed by registering on the Investor Relations section of Chartwell’s website or by clicking on the following link Participant Registration. A slide presentation to accompany management’s comments during the conference call will be available on the website. To access the live webcast of the conference call and presentation, please go to the Investor Relations section of Chartwell’s website or click on the following link Q2 2026 Results Webcast. A replay of the webcast will be available following the conference call on the Investor Relations section of Chartwell’s website at investors.chartwell.com. ****
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5 Footnotes (1) FFO, FFO per unit, adjusted property revenue, adjusted resident revenue, adjusted other property revenue, adjusted DOE, adjusted NOI, adjusted operating margin, NOIPOS, REVPOS, DOEPOS, liquidity, interest coverage ratio, imputed cost of debt, 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 Financial Measures” on page 6 of this press release. Certain information about non-GAAP financial measures, non-GAAP ratios, capital management measures, and supplementary measures found in Chartwell’s Q2 2026 MD&A, is incorporated by reference. Full definitions of FFO and FFO per unit can be found on page 15, adjusted NOI on page 16, same property adjusted NOI on page 17, same property adjusted operating margin, NOIPOS, REVPOS, and DOEPOS on page 17, liquidity on page 22, interest coverage ratio on page 36, and net debt to adjusted EBITDA ratio on page 38 of the Q2 2026 MD&A available on Chartwell’s website, and under Chartwell’s profile on the System for Electronic Document and Analysis Retrieval (“SEDAR+”) website at sedarplus.com. The definitions 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; calculated in accordance with the Trust indentures for Chartwell’s 6.000% Series C senior unsecured debentures, 4.400% Series D senior unsecured debentures, 3.650% Series E senior unsecured debentures, and 4.500% Series F senior unsecured debentures and may not be comparable to similar metrics used by other issuers or to any GAAP measures. (5) Forecast includes leases and notices as at July 31, 2026, and an estimate of mid- month move-ins of 20 bps for August and 40 bps for September, based on the preceding 12-month average of such activity. About Chartwell Chartwell is in the business of serving and caring for Canada's seniors, committed to its vision of Making People's Lives BETTER and to providing a happier, healthier, and more fulfilling life experience for its residents. Chartwell is an unincorporated, open -ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent living through to assisted living and long term care. Chartwell is one of the largest operators in Canada, serving approximately 25,000 residents in four provinces across the country. For more information visit www.chartwell.com. 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. Examples of forward- looking information in this document include, but are not limited to, statements regarding acquisitions and dispositions, including closing and financing details; development activities; debt financings ; portfolio optimization strategies ; joint ventures ; expectations with respect to taxes that are expected to be payable in the current and future years ; statements regarding occupancy and rate forecasts; and the 2026 ATM Program, including the expected benefits thereof and intended use of net proceeds. Forward-looking information can be generally identified by the use of words such as “anticipate,” “continue,” “estimate,” “expect,” “expected,” “intend,” “may,” “will,” “project,” “plan,” “should,” “believe,” and similar expressions. 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 assumptions, ri sks and uncertainties are more fully described in the “Risks and Uncertainties and Forward-Looking Information” section in Chartwell’s Q2 2026 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 (the “AIF”). A copy of the Q2 202 6 MD&A, the AIF , and Chartwell’s other publicly filed documents can be accessed under Chartwell’s profile on the SEDAR+ website at sedarplus.com. E xcept as required by law, Chartwell does not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or for any other reason. For more information, please contact: Chartwell Retirement Residences Jeffrey Brown, Chief Financial Officer Tel: (905) 501-6777 Email: investorrelations@chartwell.com
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6 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, adjusted operating margin, REVPOS, DOEPOS, NOIPOS, 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 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 Q2 2026 MD&A available on Chartwell’s website and on SEDAR+. The following table reconciles pro perty revenue and direct property operating expense from our financial statements to adjusted property revenue and adjusted direct property operating expense, and NOI to Adjusted NOI , and identifies contributions from our same property portfolio, our growth portfolio, and our repositioning portfolio: ($000s, except occupancy rates) Q2 2026 Q2 2025 Change 2026 YTD 2025 YTD Change Property revenue 320,356 268,034 52,322 623,306 511,602 111,704 Add (Subtract): Share from joint ventures (1) 16,382 10,622 5,760 28,078 32,251 (4,173) Share from non-controlling interest (2) - (900) 900 - (2,144) 2,144 Adjusted property revenue 336,738 277,756 58,982 651,384 541,709 109,675 Comprised of: Same property 204,734 187,654 17,080 406,474 372,454 34,020 Growth 88,190 52,022 36,168 158,956 86,624 72,332 Repositioning 43,814 38,080 5,734 85,954 82,631 3,323 Adjusted property revenue 336,738 277,756 58,982 651,385 541,709 109,676 Resident revenue 314,241 263,654 50,587 613,119 502,693 110,426 Add (Subtract): Share from joint ventures (1) 16,234 10,505 5,729 27,822 31,891 (4,069) Share from non-controlling interest (2) - (886) 886 - (2,115) 2,115 Adjusted resident revenue 330,475 273,273 57,202 640,941 532,469 108,472 Comprised of: Same property 199,903 184,723 15,180 398,827 366,140 32,687 Growth 87,097 51,159 35,938 156,858 85,152 71,706 Repositioning 43,475 37,391 6,084 85,256 81,177 4,079 Adjusted resident revenue 330,475 273,273 57,202 640,941 532,469 108,472 Other property revenue 6,115 4,380 1,735 10,187 8,909 1,278 Add (Subtract): Share from joint ventures (1) 148 117 31 256 360 (104) Share from non-controlling interest (2) - (14) 14 - (29) 29 Adjusted other property revenue 6,263 4,483 1,780 10,443 9,240 1,203 Comprised of: Same property 4,831 2,931 1,900 7,647 6,314 1,333 Growth 1,093 863 230 2,098 1,472 626 Repositioning 339 689 (350) 698 1,454 (756) Adjusted other property revenue 6,263 4,483 1,780 10,443 9,240 1,203 Direct property operating expense 187,229 159,683 27,546 366,440 309,739 56,701 Add (Subtract): Share from joint ventures 9,696 6,259 3,437 16,327 19,768 (3,441) Share from non-controlling interest - (446) 446 - (1,072) 1,072 Adjusted direct property operating expense 196,925 165,496 31,429 382,767 328,435 54,332 Comprised of: Same property 117,794 109,936 7,858 234,608 221,414 13,194 Growth 48,723 28,574 20,149 87,904 49,013 38,891 Repositioning 30,408 26,986 3,422 60,255 58,008 2,247 Adjusted direct property operating expense 196,925 165,496 31,429 382,767 328,435 54,332 NOI 133,127 108,351 24,776 256,866 201,863 55,003 Add (Subtract): Share from joint ventures 6,686 4,363 2,323 11,751 12,483 (732) Share from non-controlling interest - (454) 454 - (1,072) 1,072 Adjusted NOI 139,813 112,260 27,553 268,617 213,274 55,343 Comprised of: Same property 86,940 77,718 9,222 171,866 151,040 20,826 Growth 39,467 23,448 16,019 71,052 37,611 33,441 Repositioning 13,406 11,094 2,312 25,699 24,623 1,076 Adjusted NOI 139,813 112,260 27,553 268,617 213,274 55,343 Weighted average occupancy rate: Same property portfolio 94.3% 91.1% 3.2pp 94.4% 90.8% 3.6pp Growth portfolio 90.7% 91.2% (0.5pp) 90.7% 90.8% (0.1pp) Repositioning portfolio 93.3% 89.2% 4.1pp 93.3% 88.7% 4.6pp Total portfolio 93.0% 90.9% 2.1pp 93.0% 90.4% 2.6pp (1) Non-GAAP; represents Chartwell’s proportionate share of the property revenue and direct property operating expense of our Equity -Accounted JVs, respectively. (2) Non-GAAP; r epresents Chartwell’s proportionate share of the resident revenue and direct property operating expense of our non-controlling interest , respectively.
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7 The following table provides a reconciliation of net income/(loss) to FFO: ($000s, except per unit amounts and number of units) Q2 2026 Q2 2025 Change 2026 YTD 2025 YTD Change Net income/(loss) (1,339) (5,737) 4,398 6,653 27,457 (20,804) Add (Subtract): B Depreciation of PP&E 74,677 59,694 14,983 141,831 112,386 29,445 D Amortization of limited life intangible assets 341 439 (98) 719 905 (186) 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 (892) (833) (59) (1,885) (1,713) (172) E Loss/(gain) on disposal of assets 409 (249) 658 (2,011) (60,501) 58,490 J Transaction costs arising on dispositions 1,196 1,674 (478) 1,499 6,131 (4,632) H Impairment losses/(reversals) (3,549) (1,963) (1,586) (3,549) (1,963) (1,586) F Tax on gains or losses on disposal of properties - (157) 157 - 7,968 (7,968) G Deferred income tax 9,797 5,962 3,835 21,183 17,579 3,604 O Distributions on Class B Units recorded as interest expense 226 224 2 449 452 (3) M Changes in fair value of financial instruments 6,867 7,608 (741) 7,311 13,087 (5,776) Q FFO adjustments for Equity-Accounted JVs 2,791 973 1,818 3,913 2,104 1,798 U Non-controlling interest - (82) 82 - (170) 170 FFO 90,524 67,553 22,971 176,102 123,722 52,380 Weighted average number of units (000) 327,251 285,514 41,737 323,832 281,749 42,083 FFO per unit 0.28 0.24 0.04 0.54 0.44 0.10 The following table provides details of the weighted average number of occupied suites used in calculations of REVPOS, DOEPOS, and NOIPOS: Q2 2026 Q2 2025 Change 2026 YTD 2025 YTD Change Weighted average number of occupied suites 13,558 13,106 452 13,581 13,066 515