Chartwell Retirement Residences

TICKER CSH-UN.TO

ISIN CA16141A1030

Market cap. CAD

6,258,306,760

Shs outstanding 303,948,847

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 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.

Strategy: Beat the TSX

Return at exit: -1.4%

Valuation concerns amid volatile performance

• Chartwell rotated out due to relative valuation concerns and recent performance metrics. • Despite strong long-term performance (+30.2% over 1 year), recent results have lagged with -1.4% over 3 months and -2.9% in the past week, suggesting momentum may be slowing. • Valuation metrics appear stretched with a P/E ratio of 236.4 and P/B of 4.2, while the significant gap between analyst fair value ($23.05 CAD) and InvestingPro fair value ($13.87 CAD) indicates valuation uncertainty. • The company maintains solid fundamentals with impressive revenue growth (~28%) and EBITDA growth (42%), along with strategic acquisitions and improved occupancy rates (93.1%). • This change reflects portfolio optimization, not a sell signal.