Chartwell Retirement Residences Stock

Hello, everyone. Thank you for joining us, and welcome to the Chartwell Second Quarter 2026 Results Conference Call. [Operator Instructions]

I will now hand the conference over to Vlad Volodarski, CEO. Please go ahead.

Thank you, Christine. Good morning, and thank you for joining us today. There is a slide presentation to accompany this conference call available on our website at chartwell.com under the Investor Relations tab. Joining me are Karen Sullivan, President and Chief Operating Officer; Jeffrey Brown, Chief Financial Officer; Jonathan Boulakia, Chief Investment Officer and Chief Legal Officer; and Gordon Chiu, Chief Technology Officer.

Before we begin, I direct you to the cautionary statements on Slide 2 because during this call, we will make statements containing forward-looking information and non-GAAP and other financial measures. Our MD&A and other securities filings contain information about the assumptions, risks and uncertainties inherent in such forward-looking statements and details of such non-GAAP and other financial measures. More specifically, I direct you to the disclosures in our Q2 2026 MD&A under the heading Risks and Uncertainties and Forward-Looking Information for a discussion of risks and uncertainties. These documents can be found on our website or on SEDAR+ website.

Turning to Slide 3. In Q2 2026, our teams delivered another strong quarter of operating and financial results with FFO per unit increasing 17% compared to Q2 2025. This marks our 12th consecutive quarter of double-digit FFO per unit growth. We've been making great progress advancing our portfolio growth and optimization strategy. Year-to-date, we have completed and announced over $1 billion of acquisitions, including our new partnership with Fengate Asset Management, spanning 23 properties and nearly 3,000 suites.

In the last 2 years, we have invested over $3.2 billion in acquisitions of high-quality newer residences across the country at a significant discount to replacement costs. Our investment team continues to pursue other opportunities in the market. And at the same time, we're building our own pipeline for future growth through partnerships with reputable developers. In July, we announced 4 development projects, representing 828 suites across Quebec, Alberta and British Columbia. These projects will bring modern purpose-built residences to attractive markets where demand continues to grow.

We also continued our noncore asset disposition program, repositioning our portfolio towards high-growth, newer, more efficient assets in our core markets. So far in 2026, we completed $167 million of noncore asset sales and announced agreement to sell 2 other properties for $132.8 million. Our operations teams are busy developing exciting programs for our residents. In wellness, dining experience, activities, care, marketing and sales, the teams are constantly enhancing our service delivery to cater to the evolving needs and wants of the new generation of seniors who are coming to our residences.

Our strong financial results reflect the outstanding work of our residences teams and support teams across the country. Every day, they deliver exceptional experiences to residents and families, and I'm deeply grateful for their dedication, professionalism and commitment to continuous improvement.

With that, I'll pass the mic to my partners. Karen will discuss our operating initiatives, Jeff will review financial results, and Jonathan will provide an update on our growth and portfolio optimization activities. Karen?

Thanks, Vlad. Moving on to Slide 4. We had another strong quarter of leasing activity with a positive net per move-in to permanent move-out of plus 80 units with contributions from all operating platforms. Our marketing strategies continue to be very effective with an 11% increase in personalized tours for marketing sources quarter-over-quarter. Our conversion ratio of marketing initial contacts to personalized tours was 50% in Q2 of this year compared to 44% in Q2 2025.

We recently developed a new brand promise, Joy is Ageless, and launched a marketing campaign to share this message across TV, radio, out-of-home channels, Facebook and YouTube. The campaign expanded Chartwell's reach through millions of video views, including over 5 million just combining YouTube and Facebook. In a La Presse study, a prominent Quebec online media platform, 81% of respondents agreed that the campaign projected a positive image of Chartwell. I encourage you to go to the home page of our website and see this fresh and dynamic approach that focuses on today's generation of seniors and what brings them joy.

In April, we hosted a very successful open house event that generated the highest number of personalized tours in the past 12 months. We are preparing for another open house event in September.

Turning to Slide 5. In terms of expense control, we reduced our staffing agency costs by 43% year-to-date 2026 compared to 2025 through our continued focus on recruitment and retention activities. In order to continue to strengthen our sales and operating standards and initiatives across our residences, we have held several continuing education sessions this past quarter, including sales training for our retirement living consultants and general managers and communities of practice for our management teams.

We also hosted a strategic planning and education event for the senior operations team focused on continuously improving and positioning our offerings to meet the expectations of the baby boomer generation of residents beginning to choose retirement living. In Q2, we have been very busy with integrating our new acquisitions, including the 6 homes in Ontario previously owned by Sifton, located in Southwestern Ontario, Waterloo and Mississauga as well as Palermo Village in Oakville.

By all accounts, these have gone very smoothly as we use our newly defined cross-functional approach that includes day 1 nonnegotiables and then milestones at 30, 60, 90 and 120 days post closing. We're also well into the operational integration of the Chartwell properties in B.C., Alberta and Ontario, which we have been completing in tranches that will be finished by mid-August.

Finally, I want to take a moment to talk about the progress that has been made at Chartwell Churchill House, a 98-unit residence in North Vancouver. In 2025, we made the decision to reposition this property by concluding our assisted living arrangement with the Fraser Health Authority and returning 31 government-funded suites to private pay and investing $3 million in common area upgrades. I'm pleased to report that based on this strategy, occupancy has increased to 78% in January to 92% and in July, and the operating margin increased from approximately 48% prior to the change to 53%.

I'll now turn it over to Jeff to take you through our financial results.

Thank you, Karen. As shown on Slide 6, in Q2 2026, net loss was $1.3 million compared to $5.7 million in Q2 2025. FFO grew to $90.5 million in Q2 2026, an increase of 34% compared to Q2 2025, and our FFO per unit grew $0.04 or 16.7% to $0.28 in Q2 2026 compared to Q2 2025. Our reported FFO does not include $2.8 million or $0.01 per unit of income guarantees related to recently acquired properties. Q2 2026 FFO growth benefited from higher adjusted NOI of $27.6 million, partially offset by higher finance costs of $4 million and higher G&A expenses of $1.7 million. In Q2 2026, our same-property occupancy increased 320 basis points to 94.3% and our same-property adjusted NOI increased $9.2 million or 11.9%. We also had an 8.1% increase in our NOI per occupied suite.

Slide 7 summarizes our same-property operating results for each platform. All of our platforms posted occupancy gains in Q2 2026 compared to Q2 2025 and all are operating above 90% occupancy, which positively impacted our results. Our Western Canada platform same-property adjusted NOI increased $4.4 million or 19.5%. Our Ontario platform same property adjusted NOI increased $3 million or 7.4% and our Quebec platform same-property adjusted NOI increased $1.8 million or 12.3%.

Turning to Slide 8. At August 7, 2026, liquidity amounted to approximately $614 million, which included $219 million of cash and cash equivalents and $395 million of borrowing capacity on our credit facility. On May 7, 2026, we filed a new final base shelf prospectus and a new prospectus supplement for our ATM program to allow us to issue up to an additional $500 million of trust units, which will further support our transaction activity.

During the 3 months ended June 30, 2026, we raised total gross proceeds of $72.7 million through the program at an average price of $21.74. Our balance sheet remains in a very strong position with interest coverage ratio of 3.5x and net debt to adjusted EBITDA ratio of 7.0x. And we continue to improve our financing flexibility, having grown our unencumbered asset pool to $2.2 billion.

For the remainder of 2026, our debt maturities include $227.1 million of mortgages with a weighted average interest rate of 2.8% and a $250 million senior unsecured debenture with an interest rate of 6%. As of August 6, 2026, we estimate the 10-year CMHC insured mortgage rate to be approximately 4.17% and the 5-year unsecured debenture rate to be approximately 4.38%.

I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Thank you, Jeff. Turning to Slide 9. We continue to execute on our portfolio strategy of enhancing our asset base to generate increased quality NOI. I'll highlight some of the deals that we've completed in and subsequent to Q2 2026. On June 2, 2026, we completed the acquisition of a 30% ownership interest in the Seasons Retirement Communities portfolio through a joint arrangement with Fengate Asset Management, a leading alternative investment manager and real estate developer. The portfolio includes 23 seniors housing communities comprising 2,943 suites in Ontario, British Columbia and Alberta.

The integration of these residences into Chartwell's management platform is well underway. 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 years, wit the remainder paid in cash.

Under our agreement with Fengate, both parties have contractual rights that may result in our acquiring an additional 20% ownership in the portfolio upon the achievement of specified milestones. As part of the ongoing strategic partnership, Chartwell will have the option to participate in Fengate's future development of retirement residences in Ontario. Should Chartwell elect to participate in any such development, Chartwell will provide operations management services. And the parties will have certain put and call rights once the residence is stabilized. The partnership brings together 2 experienced organizations with a shared commitment to high-quality seniors housing and long-term stewardship of retirement residences.

On June 3, 2026, we completed the acquisition of Palermo Village Retirement Residence, comprising 116 suites in Oakville, Ontario for $43 million, which was settled in cash. On July 2, 2026, we completed the sale of 9 noncore properties in Ontario for $117.9 million. Net proceeds were $82.3 million after $2 million of transaction costs and repayment of $33.6 million of mortgages with a weighted average interest rate of 3.3% 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%, maturing on October 1, 2026, with the balance settled in cash. On July 24, 2026, we announced 4 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 with experienced vertically integrated developers in each jurisdiction and through forward purchase agreements, enhance Chartwell's future acquisition pipeline. On August 4, 2026, we entered into a definitive agreement to acquire 100% ownership interest in retirement residence in the Greater Toronto area for a purchase price of $136 million. This transaction is expected to close in Q3 2026. On August 4, 2026, we also entered into a definitive agreement to sell a 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.

And finally, on October 4, 2026, we entered into a definitive agreement to sell a second property in Ontario for $91 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. In 2026, we continue to grow our portfolio under management by over $2 billion and invested $1 billion at our ownership share, not including our development pipeline commitments.

We are doing so prudently, shifting capital from noncore assets to strategic core residences, while taking advantage of our strong access to capital, including through our ATM program. We continue to evaluate several interesting opportunities to grow and enhance the quality of our real estate portfolio. We remain disciplined in how we approach underwriting, diligence and integration of our [indiscernible] to deliver enhanced services to the residents, mitigate disruption to operations and achieve our required investment returns.

As disclosed with some examples above, we are engaged in discussions with local and national developers across the country and have created a meaningful pipeline of state-of-the-art assets to bring into our portfolio. We pursue such developments in a prudent manner with a preference for off-balance sheet development, similar to our arrangement in Quebec, while ensuring that our balance sheet will be able to support our forward purchase commitments. We intend to continue on this path of optimizing our portfolio through strategic acquisitions, prudent off-balance sheet development with sophisticated partners, the diversification of our sources of capital and the divestiture of noncore assets.

I'll turn the call back to Vlad to wrap up.

Thank you, Jonathan. Turning to Slide 10. I remain confident in the momentum of our business and our long-term growth prospects. The fundamentals supporting retirement living in Canada remain very strong. Demand continues to grow, while new supply is expected to remain limited for the foreseeable future. This creates a favorable backdrop for occupancy, NOI and earnings growth.

With 30,000 residents across the country and 12,000 dedicated team members, a sophisticated management platform and strong culture, Chartwell is well positioned to benefit from these trends. We continue to grow and renew our portfolio through acquisitions, development partnerships and strategic capital recycling, adding newer and more efficient residences in attractive markets.

At the same time, we are becoming a more sophisticated and efficient organization. Our teams continue to streamline processes and adopt technology, automation and AI-enabled tools responsibly, helping us serve residents better while improving productivity and execution across the business. Our culture remains one of our greatest strength. It enables us to integrate newly acquired properties successfully and consistently deliver results that meet or exceed underwriting expectations. It also supports the strong pipeline of future growth opportunities we're building through acquisitions and development partnerships.

Most importantly, our focus remains on our residents. We are committed to delivering exceptional experiences, enhancing wellness programs, expanding care and support services and helping residents remain in the communities they know and love as their needs evolve. Initiatives such as our partnership with Dr. Greg Wells in developing Chartwell's proprietary resident and employee wellness programs reinforce that commitment. What gives me the greatest confidence is our people. Their dedication, compassion and relentless focus on improving the lives of the residents is the foundation of our success. I'm incredibly grateful for everything they do.

I will now close our prepared remarks with a story from one of our residences as pictured on Slide 11. Dining remains one of the defining elements of the Chartwell experience and an important part of our hospitality strategy. This quarter, that commitment was recognized in Quebec, where our team at Chartwell Cité-Jardin received the People's Choice Award at the [indiscernible] Challenge and Chartwell Shawinigan earned the 2026 Bonjour Residences Signature Award for Excellence in Nutrition and Gourmet dining. These recognitions reflect the dedication of our food services teams and our continued focus on delivering an exceptional resident experience.

Thank you for your attention this morning. We would now be pleased to answer your questions.

[Operator Instructions]

Your first question comes from the line of Lorne Kalmar with Desjardins.

Just wanted to get an idea on the same-property NOI growth outlook now that occupancies have largely reached stabilized levels. And how much longer do you think you guys can do double-digit same-property NOI growth? And what are the levers that should continue to drive that?

Sure. So we have outlined in our 3-year strategy that we think we can continue to deliver rate growth above 4% and DOE growth below 4%. And that combined, I think you can model out what that can drive in NOI growth. And that -- we also have a substantial occupancy growth opportunity still in our growth portfolio. That portfolio sits around 90% occupancy. And so as we continue to sort of pursue our acquisition and portfolio optimization strategy that will also drive significant NOI growth in the business.

Okay. And then on the development agreements, the Batimo one, I think, was pretty explicit for the other 3. Just wanted to get an idea if there were different mechanisms like puts and calls like you have with Batimo or if there's a -- if the acquisition is more fixed in terms of timing, who's in the driver's seat? And if for some reason, like if you were in a position from a balance sheet perspective to acquire one of these assets on stabilization or completion, would you still be forced to do so? Or is there some wiggle room there?

Yes, I'll take that one. So each one has its variation, but they are largely based on the Batimo model. So that model is that we align with a vertically integrated developer. We apply on and sign off on the plans and specs and the location. We provide operations management services and lease it up. And the variation in these models is on some of them, we will commit to acquire 50% interest at construction completion and the balance on stabilization. And on others, that acquisition is done at stabilization entirely.

Okay. But I just want to get a sense of like is -- so when you get to completion, it's a -- like you have to buy it or do they put it to you? I'm just trying to get an understanding of how that part of the process works.

Again, there are slight variations in the agreements, but generally, there will be a put-call mechanism.

And similarly to the Batimo structure, we view these developments as our own, like the buildings will bear Chartwell name from the day of opening. So we are basically getting access to future acquisition opportunities without taking on the development risk and construction risk.

Okay. Understood. And then maybe just one last one. I was wondering, do you guys see any more meaningful opportunities to leverage the Chartwell platform and grow the management business? Obviously, the Seasons deal was one such opportunity. Just wondering if there's anything else out there, whether you actually acquire any interest in the portfolio or not.

Well, that is the principal difference, Lorne. We are not going to be in the third-party management business where we do not have significant ownership interest in the real estate portfolio. The way the market prices, I guess, this business is all the value that is created by management accretes to real estate. So for us, the strategy is -- part of our strategy is to diversify our capital sources and potentially, there'd be more partnerships with other capital providers, but we will always aim to retain a significant ownership interest in the properties.

Your next question comes from the line of Jonathan Kelcher with TD Cowen.

Just going back to the same-property results. First, maybe on the occupancy. If I look, I see Western Canada and Quebec occupancy kind of held flat versus Q1, but Ontario was down a little bit. Can you maybe give us some color as to why?

Yes. Jonathan, that is more seasonal, and we are seeing growth in all of the platforms and are forecasting that same-property portfolio now to get up to that 95% level in September.

Okay. So just a function of kind of a tougher winter/spring and it's not really...

Nothing indicative in that portfolio other than the seasonality of that winter season.

Okay. And then secondly, on the expense side, the same-property expense side, I get on the occupied suite, it's fine, like up 3.5%, I think. But the overall same-property expenses were up 7%. Could you maybe give a little bit of color as to why? Was that just sort of elevated marketing spend or some timing on spend? What kind of drove that?

I think it was primarily timing. So Q1 expenses were probably a little lighter in Q2 a little heavier because of that. And if you look at year-to-date expense level, it's probably a more balanced and more indicative of that run rate spend growth or expense growth.

Okay. So if I look at the first half this year in terms of overall expense growth for the same property, kind of think of that for the second half?

Yes. And some of it is a function of the continued occupancy growth. So if you look at the DOE per occupied suite, it was up 1.9% in the first half.

Your next question comes from the line of Himanshu Gupta with Scotiabank.

So just going back on this Ontario occupancy dip in Q2. I think you mentioned mostly seasonality, and that has come back in Q3. So just wondering, is there -- was there any pricing adjustments made to bring back the occupancy in Q3?

Yes. It's coming back in Q3, as Jeff pointed out, Himanshu. No, there wasn't any specific pricing adjustments. The way the seasonality works, particularly in Ontario, it's always a bit more pronounced than the rest of the country. And if you think about what causes the seasonality decline, it's not the departures as much. It is less leasing being done in the winter months.

So usually, you see the pronounced impact of very strong move-ins in December manifesting themselves in Q1 occupancy and then you have a bit slower lease-up during the winter months that actually show up more in Q2 than in Q1. So this is nothing unusual and generally to be expected. I mean, for the last couple of years, you couldn't see it because the occupancy was growing very quickly everywhere. But this is a more usual seasonality pattern that we're seeing this year.

Got it. That's helpful. And then maybe any markets in Ontario or in general on your watch list, beginning to see more new supply or more construction activity going on or maybe impact from new LTC suppliers?

Not really. I mean, there's no new construction to speak of that has started at this point that we know of. Obviously, we announced a few projects. They will start in Q3. There'll probably be some others. But at this point in time, nothing is on the watch list. Remember, it takes now -- anything that's being built is large buildings. So it takes at least 2 years to build them. So they're not going to become competition for at least 2 years, if not longer.

And so from our perspective, we haven't seen much construction going on anywhere in our markets. As we spoke before, there were some markets that got impacted more than others because of the pre-COVID oversupply like Durham and Ottawa. And so they are coming back and maybe it's just going to take a little longer for those to come back. And again, it just depends on the properties. Many of our properties in those markets are full today.

Just turning attention to the growth portfolio. NOI margin is obviously pretty nice there, almost mid-40s. Occupancy, obviously, you mentioned 90%, and there is more room for occupancy. Do you see more operating leverage as well as that occupancy goes up, margins can stabilize at what levels?

Yes. Himanshu, we do see some more opportunity in the operating margin level as occupancy continues to grow in that portfolio. And that contains all the acquisitions we've been doing over the last couple of years. So they're typically newer, larger, higher-margin opportunity properties.

And are they more like going to be around like 50% stabilized or like just above mid-40s? Like any sense -- I know these are larger newer properties?

Sorry, Himanshu, can you repeat that question? We didn't -- there was some static...

My question was that the growth NOI margin, do you think that will stabilize at like high 40% margin or 50% margin given, as you mentioned, these are newer properties, larger properties as well?

I think there's just a variety of properties in this bucket. So it's -- some of them will definitely be in 50s. Some of them will be lower. It's probably safer to assume that they will be kind of mid-40s, a little higher than our same-property portfolio margins. But it really depends on the composition of that bucket. And as you know, changing now quarterly.

Yes. No, that's a good point. And maybe just a last question on the acquisition, disposition activity. I mean GTA acquisition you announced looks like a larger property. Anything on the pricing on dollar per suite basis? Any color on that GTA property on pricing?

Yes. It's larger correctly -- it's a larger property. It's done at sort of similar cap rates that we've been seeing lately for good quality properties in strong markets. So kind of high 5s, low 6s is what our underwriting would be on this property.

And that continue to be a certain discount to replacement cost on these...

We think it's at some discount to replacement costs, although, I mean, I think Jonathan spoke about it at the last call, that gap has been narrowing now as both construction cost growth stabilized and there's more capital chasing high-quality properties. So it's certainly not a 30% discount to replacement costs as we've been seeing before, but we think it's still below replacement cost today.

Got it. Okay. And maybe just the last one here on -- and I know you've been active on dispositions. Any change in like the disposition strategy in the context of competition [ Bureau ] review earlier this year? I mean, are you still targeting older properties or now certain markets where you might have higher concentration as well?

No, there's no change in our disposition strategy. We've identified a number of noncore assets that we do plan on moving out of the portfolio over the next 2 or so years. And we're seeing, as Vlad mentioned, a lot of capital -- new capital in the sector, and we would expect to see success in selling those noncore assets as we see a lot of interest. The competition issues are very local. So [indiscernible] we have properties across the country. And we are a big player. But when we're looking at any competitive issues, it's at the very micro level. So as those issues come up, we have sufficient scale to address it. But right now, it's not really affecting our strategy.

Your next question comes from the line of Pammi Bir with RBC Capital Markets.

I just wanted to come back to the 95% same-property occupancy target. I think just based on the forecast for Q3, I think you'll need to hit maybe 96% as an average for Q4. So I'm just curious, what signs are you seeing that maybe give you the confidence that we'll see that pick up?

Well, our leasing, as Karen pointed out, has been pretty strong. So we're seeing continuing strong demand for our services. And historically, our Q4 is the strongest leasing season. So it starts in September and goes to November, December. And so we expect that those historical trends will continue, and we will see a strong pickup in the Q4.

And I guess, Vlad, is the bulk of that really coming from Ontario?

Well, there's more opportunity in Ontario. So it's fair to say that it should come mostly from Ontario, although, again, sometimes people ask us the question, what's the highest occupancy that you can normally maintain? And our answer is we don't have the data points to point to, to say it was 98% 5 years ago, so it should be that. We do have properties that are running at 100% occupancy for 3 years in a row without a day of revenue loss. So that's a long-winded answer to say that we also expect contributions from Western Canada and Quebec. They have less opportunity, but they can continue to grow occupancy in the properties that are not yet at 100%.

Okay. And then just maybe to clarify, none of the pickup, I guess, in Q4 would really be a result of any sort of shift in the mix, maybe any asset sales that are currently in the same property bucket that might be sold in Q4?

At this time, we do not have any significant plans to show or at least deals are not progressed far enough for that to happen on scale that would change that composition of that bucket significantly.

Got it. Okay. And then just, again, nice to see some of the, I guess, new partnerships from a development standpoint. Can you talk about maybe what else is in the works and how that pipeline may or may not maybe expand over the next year or so?

Sure. So we've announced 4, as you know, we have an established partnership in Quebec, and we expect the pipeline to continue to grow through that partnership. In the rest of the country, we have either established or are working on a couple at least partnerships in each of the provinces that we hope will be modeled on the Batimo relationship. And we've had success as we've announced, and we would expect to announce more in the coming quarters.

And Pammi, maybe just to build on that, somewhere in our investor presentation, we identified opportunity to build close to 6,400 suites across our portfolio. They're all not going to be built in the next couple of years, but this is over a longer period of time. All of these are potential opportunities either because we have excess land that we already own or the discussions that are progressing with various development partners. There's been quite an increased interest from developers in our asset class now that the multi-residential development is not progressing as fast.

So our expectation is certainly -- and the team is working very hard to continue to build more of that pipeline going forward. Having said all of that, we do have guidelines that we established for ourselves to make sure that our future purchase commitments are not going to put an excessive strain on our balance sheet.

Your next question comes from the line of Giuliano Thornhill with National Bank.

I just wanted to stick with the development partnership announcements. I guess my first question is just why -- like I know Western Canada is probably a little more skinnier in your portfolio, but why do these make good investments for you right now and for the future? Like is it something about the market that you like or just supply/demand in that area?

Well, it's a combination of things. Definitely, we're only going to the markets that we think that has growth potential, has access unmet demand. The other part of it is we're building buildings that are a new generation of buildings that we think will be a lot more desirable for the new generation of seniors that we serve that would have larger amenity areas and more robust service offering that both between our operations team and real estate team, we are designing these buildings in that shape and form.

And as much as we like investing capital back to the existing property portfolio and upgrading our own properties, and we're doing quite a good job with that. New buildings have something that these old buildings cannot offer, and you cannot buy with money repositioning the older buildings. And so this is all done with the goal of improving our portfolio to the new age of residences and creating growth opportunities for ourselves where we do not have to compete with others for high-quality properties.

And just kind of getting into the terms of the partnerships. Is this yourselves kind of dictating the terms? Or are you -- just because you have introduced quite a few kind of new structures now. I'm just wondering if that was more like a mutual agreement or if this was like you had to make the terms for the projects just to get some buy with the partner rather than keeping a kind of more standard development like Batimo structure?

Well, our objective is to standardize these terms and base them on the Batimo model. Of course, they're going -- every time you talk to a different counterparty, they're going to have their own interests. And what's important to them might not be the same as what's important to another party. So there will be some variations to those agreements. But by and large, we're on the same model where -- which I described a few minutes ago, which is we're aligning with vertically integrated partners who put on their balance sheet the development.

We provide the management and the oversight and the design oversight, and we acquire at the back end either construction completion or stabilization or some kind of mix of the 2. So at a high level, they are all on the same terms, and there will be some slight variations. And of course, we might be willing to accept more variation for the perfect site than in other cases.

And just if cap rates compress or expand, is there anything like who ultimately kind of captures that value? Is there anything to protect you or your partner in a scenario like that?

We have in most of our agreements, some level of protection for those types of scenarios.

We have reached the end of the Q&A session. I will now turn the call back to Vlad Volodarski, CEO, for closing remarks.

Thank you, Christine, and thank you, everybody, for joining us today. If you have any further questions, please do not hesitate to give us a call. Goodbye.

This concludes today's call. Thank you for attending. You may now disconnect.

Hello, and welcome to the Annual Meeting of Unitholders of Chartwell Retirement Residences. Please note that today's meeting is being recorded. [Operator Instructions]

It is now my pleasure to turn today's meeting over to Huw Thomas. Mr. Thomas, the floor is yours.

Thank you, and good afternoon, and welcome to the Annual and Special Meeting of the Unitholders of Chartwell Retirement Residences. My name is Huw Thomas, and I am the Chair of the Board.

2025 was a record year for Chartwell, both strategically and operationally. On behalf of the Board of Directors, I would like to thank every member of the Chartwell staff from the senior leadership team to the employees in the corporate office and all of our homes for their contributions in delivering a strong, operating and financial performance and achieving all of Chartwell's 2025 strategic targets and the core objective of making people's lives better.

Earlier this calendar year, Ann Davis and Jamie Scarlett stepped down from the Board. I wanted to specifically acknowledge their contributions to Chartwell's progress and thank them for their dedication to Chartwell's governance and strategic development during their tenure.

We are pleased to continue to offer a virtual option today for those of you who aren't able to join us here in-person in Mississauga. This format allows all unitholders and proxy holders from any location to attend, participate and vote at the meeting. Guests are also welcome to attend, listen to our meeting and ask questions.

I will set out a few rules now for the orderly conduct of the meeting. For virtual and in-person attendees, firstly, questions in respect of a motion can be submitted by any registered unitholder or duly appointed proxy holder using the instant messaging feature of the virtual interface. When sending a question, please provide your name and if you are representing an entity, which is a unitholder, please provide the name of the entity you represent.

General questions will be addressed during the question period at the end of the meeting, which the operator of the call will facilitate and I request that you hold any general questions until that time. Questions regarding procedural matters or directly related to the motions before the meeting will be addressed at the appropriate time.

For those attending in-person, all the votes today will be conducted by ballot. A number of registered unitholders or proxy holders have provided their voting instructions in advance of the meeting. If you are a registered unitholder or proxy holder attending in-person, you will have received ballots when you arrived at the meeting and registered with Computershare.

If you are a proxy holder and did not receive your ballots or if you receive the ballots and have not turned them in, please raise your hand now and the scrutineer will assist you. Unitholders and proxy holders attending virtually and who have logged into the meeting using their control number are able to vote on each matter until voting is closed. You will be able to see on the screen or motions and can vote online by clicking as appropriate at the top of the screen and completing the ballot.

If you have already voted by proxy before the meeting, voting online will revoke your previously submitted proxy. Once voting is closed, your online ballot will automatically be submitted. Voting on all matters is now open and will remain open until I close voting shortly before the end of the formal part of the meeting.

We will now proceed with the formal portion of today's meeting. I will now call the meeting to order. I will act as Chair of the meeting. Jonathan Boulakia, will act as Secretary of the meeting. And Computershare Trust Company of Canada, through its representative, Louise Waltenbury, will act as scrutineer to compute the votes of any polls taken at the meeting and to report the results to me.

The purposes of today's meeting are set out in the Management Information Circular of Chartwell dated April 24, 2026. The notice, management information circular and proxy form were provided on or around May 12, 2026 to each unitholder of record as of April 24, 2026.

Our transfer agent, Computershare, has attested to the proper mailing of the notice calling this meeting, proof of which will be annexed to the minutes of this meeting as a schedule. With the consent of the meeting, we will dispense with the reading of the minutes of the last annual meeting of unitholders.

The agenda for today's meeting will be as follows: Firstly, the presentation of the financial statements of Chartwell for the year ended December 31, 2025. Secondly, the election of the trustees of Chartwell, the nomination of trustees for CHS Trust (sic) [ CSH Trust ] and the nomination of directors for Chartwell Master Care Corporation. Thirdly, the reappointment of auditors for Chartwell. Fourthly, amendments to CSH Trust Declaration of Trust. Fifthly, amendments to Chartwell Master Care LP Limited Partnership Agreement. Sixth, an advisory resolution on Chartwell's approach to executive compensation. And finally, management's presentation to unitholders, followed by a question period.

I would like to take this opportunity to introduce the other trustees and directors and senior officers of Chartwell in the room or online. We have Brent Binions, Director; Rael Diamond, Director; Alka Gautam, Director; Valerie Pisano, Director; Sharon Sallows, Director; Gary Whitelaw, Director; Vlad Volodarski, Director and Chief Executive Officer; Jeff Brown, Chief Financial Officer; Karen Sullivan, President and Chief Operating Officer; Jonathan Boulakia, Chief Investment Officer, Chief Legal Officer and Secretary; and finally, Gordon Chiu, Chief Technology Officer.

Notice of this meeting and for those who requested it, the management information circular were mailed to unitholders and the transfer agent has provided us with proof of this mailing. The scrutineer has reported on the number of units represented at this meeting and has computed and recorded the votes received to date on the matters submitted for consideration at this meeting. I am therefore advised that a quorum of unitholders is present. I declare the meeting to be duly called and properly constituted for the transaction of business.

Moving now to the business to be transacted at the meeting. Firstly, financial statements. I wish to present to the meeting the financial statements of Chartwell for the year ended December 31, 2025, and the report of the auditors on those statements. Copies of these financial statements were mailed to those unitholders of Chartwell, who requested them and are available on our website at www.chartwell.com. I do not propose to read the financial statements to the meeting nor is there approval by the unitholders required.

Secondly, election of trustees of Chartwell. The next group of related items of business is the election of trustees for Chartwell, the approval of directions regarding the election of trustees of CSH Trust and direction regarding the election of directors of Chartwell Master Care Corporation. Chartwell has a policy that entitles unitholders to vote for each nominee on an individual basis. We will proceed first with the election of the trustees of Chartwell.

The numbers of trustees of Chartwell has been fixed at 3. I will now ask Jonathan Boulakia to nominate the 3 trustees.

I nominate Alka Gautam, Huw Thomas and Gary Whitelaw to serve as trustees of Chartwell Retirement Residences.

As no other nominations were submitted within the required time frame set out in Chartwell's Declaration of Trust, I declare the nominations closed.

Unitholders of Chartwell are also entitled to direct the trustees of Chartwell to elect nominees who will serve as the 3 trustees of CSH Trust.

I will now ask Jonathan to move a motion in favor of the election of nominees as the 3 trustees of CSH Trust.

I move that the trustees of Chartwell be directed to vote the units of CSH Trust held by Chartwell in favor of the election of all Rael Diamond, Valerie Pisano and Sharon Sallows as trustees of CSH Trust.

I would ask someone to second the motion?

I second the motion.

Thank you, Karen. As no other nominations were submitted within the required time frame, I declare the nominations closed. Unitholders of Chartwell are also entitled to direct the trustees of Chartwell to elect nominees who will serve as the 9 directors of Chartwell Master Care Corporation.

I will now ask Karen Sullivan to move a motion in favor of the election of nominees as the 9 directors of Chartwell Master Care Corporation.

I move that the trustees of Chartwell be directed to vote the common shares of Chartwell Master Care Corporation held by Chartwell in favor of the election of Brent Binions, Rael Diamond, Alka Gautam, Douglas MacLatchy, Valerie Pisano, Sharon Sallows, Huw Thomas, Vlad Volodarski and Gary Whitelaw as Directors of Chartwell Master Care Corporation.

I second the motion.

As no other nominations were submitted within the required time frame set out in Chartwell's Declaration of Trust, I declare the nominations closed.

Next, the appointment of auditors for Chartwell. The next item of business is the reappointment of auditors for Chartwell. I will now ask Jeff Brown to please move a motion in this regard.

I move that KPMG LLP be reappointed auditors of Chartwell until the next annual meeting or until a successor is appointed and that their remuneration as such be fixed by the Directors of Chartwell Master Care Corporation.

I second the motion.

Next, the amendment to the CSH Trust declaration. The next item of business is to consider and if thought advisable, to approve the resolution included in Appendix A of the information circular authorizing certain amendments to CSH Trust declaration of trust as set out on Page 27 of the management information circular.

I will now ask Jonathan Boulakia, to please move a motion in this regard.

I move that the CSH Trust resolution set out as Appendix A to the management information circular be approved.

Can I have a seconder?

I second the motion.

Are there any questions on the motion? Hearing none, we move to amendments to the partnership agreement.

The next item of business is to consider and if thought advisable, to approve the resolution included in Appendix B of the information circular, authorizing certain amendments to Chartwell Master Care LP's Limited Partnership Agreement as set out on Page 28 of the Management Information Circular.

I will now ask Karen Sullivan to please move a motion in this regard.

I move that the partnership agreement resolution set out as Appendix B Management Information Circular be approved.

Can I have a seconder?

I second the motion.

Again, are there any questions on the motion? Hearing none, we move to advisory resolution on executive compensation.

The last item of business to consider and if thought advisable, to approve the advisory resolution on approach to executive compensation set out on Page 29 of the Management Information Circular.

I will now ask Karen Sullivan to move a motion in favor of the resolution.

I move that the resolution as set out on Page 29 of the Management Information Circular be approved.

Can I have a seconder?

I second the motion.

Again, are there any questions on this motion? Hearing none, we now move to voting.

As mentioned earlier, virtual voting will be conducted by electronic ballot, which has been open since the start of the meeting for registered holders and appointed proxy holders. Voting is still open. Those who wish to register your votes by accessing the voting page and selecting the for or withhold buttons next to the name of each proposed trustee and Director; and next to the resolution with respect to the appointment of KPMG as Chartwell's auditor may proceed.

Please register your votes by selecting for or against next to the resolutions with respect to the CSH Trust resolution, the partnership agreement resolution, and the advisory resolution on executive compensation. We will provide registered unitholders and duly appointed proxy holders approximately 1 more minute to complete their ballots.

[Voting]

Voting is now closed. Would the scrutineer please collect any remaining paper ballots from those in the room who wish to vote.

I would ask that the scrutineer tabulate the results of voting. We will disclose the official voting results shortly after the meeting on sedarplus.ca. However, based on the proxies we have received to date, I do have a preliminary report from the scrutineer, with respect to each of the motions voted upon at the meeting, and I can now confirm the results of your votes today either in person or virtually by duly appointed proxyholders.

The results are as follows: On the first motion, the election of trustees of Chartwell, each of the 3 nominees has been elected. I declare Alka Gautam, Huw Thomas and Gary Whitelaw to be duly elected as trustees of Chartwell Retirement Residences.

On the second motion, the nomination of trustees of CSH Trust, the nomination of all 3 nominees has been approved. I declare the trustees of Chartwell are hereby directed to vote the units of CSH Trust held by Chartwell in favor of the election of Rael Diamond, Valerie Pisano, Sharon Sallows and as trustees of CSH Trust.

On the third motion, the nomination of directors of Chartwell Master Care Corporation, the nomination of all 9 nominees has been approved. I declare the trustees of Chartwell are directed to vote the common shares of Chartwell Master Care Corporation held by Chartwell in favor of the election of Brent Binions, Rael Diamond, Alka Gautam, Douglas MacLatchy, Valerie Pisano, Sharon Sallows; myself, Huw Thomas, Vlad Volodarski and Gary Whitelaw as Directors of Chartwell Master Care Corporation.

I would like to specifically welcome as new directors, Rael Diamond and Douglas MacLatchy, both of whom bring a wealth of relevant experience to Chartwell and who I'm sure will make valuable contributions to the Board discussions during their tenure.

On the motion to appoint auditors, I declare KPMG LLP have been appointed auditors of Chartwell in accordance with the motion and that the Directors of Chartwell Master Care Corporation are authorized to fix their remuneration.

On the CSH Trust Declaration of Trust Resolution, the resolution has been approved by a majority of votes cast by the unitholders represented at this meeting. Accordingly, I declare the resolution carried. On the Chartwell Master Care LP Limited Partnership Agreement resolution, the resolution has been approved by a majority of votes cast by the unitholders represented at this meeting. Accordingly, I declare the resolution carried.

On the advisory resolution on executive compensation, the resolution has been approved by a majority of votes cast by the unitholders represented at this meeting. Accordingly, I declare the resolution carried.

The formal business of the meeting is now concluded. As there is no further business, with the consent of the meeting, I now terminate the meeting and hand it over to Vlad Volodarski, the management's presentation to unitholders.

On behalf of Chartwell, I would like to thank you all for attending today's meeting.

Thank you, Huw. I will now make some remarks about the operations of Chartwell, which will be followed by a general question period. For those in the room, if you have a question, please raise your hand and a microphone will be brought to you. For virtual attendees, I would like -- who would like to ask a question, I ask that you use the instant messaging feature of the virtual interface to do so. We will answer as many questions as time permits. For each question we answer, we will read out or summarize the question, and we will read out the name of the person who asked such question, and if applicable, the entity such person represents.

I would like to remind you that questions which were already answered or that are redundant, repetitive, or inappropriate will not be answered or published.

During this presentation, we may make statements containing forward-looking information and non-GAAP measures and ratios. I direct you to our MD&A and other securities filings for information about the assumptions, risks and uncertainties inherent in such forward-looking information and details of such non-GAAP measures and ratios.

More specifically, I direct you to the disclosures in our 2025 MD&A under the headings 2026 outlook in risks and uncertainties and forward-looking information. These documents can be found on our website or at sedarplus.ca.

2025 was a record year for Chartwell. Last year, same property occupancy increased by 480 basis points. Same-property net operating income grew 18.4% and funds from operations per unit increased by 25% year-over-year. That strong broad-based performance, and it reflects disciplined execution across the business. Those results start and end with our people.

In 2025, our combined resident satisfaction score reached 82%, including 67% of residents who said that they were very satisfied living at Chartwell. On the employee side, 85% of our team members reported being engaged at work, including 57% who were highly engaged. Those numbers matter because they reflect real experiences inside of our homes every day.

Strong operating momentum continued into the first quarter of 2026. Compared to Q1 of last year, occupancy improved 400 basis points. Same-property net operating income increased 15.6% and funds from operations per unit grew 35%. This is a strong start to the year, driven by demand, operating focus and great work of our teams.

Looking ahead, the demand for senior housing is expected to grow 4% to 5% per year over the next decade, driven by the rapid growth in the population over the age of 80 years old. At the same time, new supply has been muted and is expected to remain so for at least 3 years. Against that backdrop, we are continuing to reposition our portfolio towards newer, higher growth assets in attractive markets, while also enhancing the effectiveness and efficiency of our operations.

Our people give me confidence in Chartwell's ability to continue delivering exceptional services to our residents, peace of mind to their families, opportunity for growth for our employees and creation of sustainable value for our unitholders for many years to come.

So our residents and their families, thank you for your trust. For our investors, thank you for your continued support. We do not take it for granted. My fellow directors and our executive leadership team, thank you for your guidance, commitment and courage. And to our Chartwell people in residences, regional offices and corporate support teams, you are the heart of this organization. Thank you for what you do every day.

We are excited about the road ahead, and we remain focused on delivering results that matter for our residents, our employees, our communities and our unitholders.

We would now be pleased to answer your questions.

Hello. My name is Gary [ Norris ]. In addition to being an extremely small investor in Chartwell, I'm a regular volunteer at the Chartwell Grenadier across the street from High Park in Central Toronto. And I have a certain amount of insight into the operation of the place.

I had a brief chat with Vlad on the way in and it wasn't entirely satisfied with the procedures or determining simple things like well, the architectural arrangements, there's a major renovation going on there now. I might mention that Chartwell Grenadier, I believe, is at 100% occupancy. So it's either FROCH project getting a French stairway removed, and there really is a necessity for another elevator, but I haven't seen that, that is part of the plan. And there wasn't as far as I can tell, any real significant reference to the residents as to where they would regard their priorities in this whole process.

I did mention to Vlad that a certain amount of the renovation is a restoration of how the facility was before the last makeover, which I believe was 7 or 8 years ago, things carpeting and coloring and so on. The whole place, basically, all the hallways were painted gray, which a resident that I was chatting with, former social worker mentioned, yes, I've seen that color before at the Metro East Detention Center.

And the general opinion was not favorable about that. I take it, we're now getting a bland beige or cream color as the default color. And as I mentioned to Vlad that this is not a matter of taste that there is a body of scientific research into the psychological effects of color on people with different ages and so on.

So I just wanted to get on the record that as I say, a minor investor in the company, I think that the interest of an impossible business. I realize you have shareholders on one side and you have the responsibility for caring for vulnerable people in their final years on the other. But the employees and residents may -- it might be advisable to try and work out better procedures for gathering opinion and processing the outcomes. A swimming pool would be nice, but I don't think that's going to happen. Okay. Thank you.

Thank you, Mr. [ Norris ] for your question. More importantly, thank you for volunteering at the residence. This is extremely important part of what we create in our communities, it's not just created by the residents and staff, but also volunteers play an important role in that. So thank you for doing that.

Grenadier, in fact, is undergoing a significant renovation and it's a very important project for Chartwell because it is one of our core properties that -- and a great example of how we invest back in the properties that we consider to be core to Chartwell. They are going to be a several year long project because it's a significant renovation. We're completely revamping the building, and it will look ready when it's done.

We have to operate within the confines of the envelope that we have. So things like elevators and swimming pools are a lot more difficult to create. Impossible in fact in these situations. But I can assure you that the process that the team goes through in designing the environments is exhaustive. They are using a lot of science that is out there. They are consulting numerous design firms. And our team staying ahead of or watching the current trends in design as it relates to senior living, but also not in senior living as well because people that are coming in may not necessarily be comparing us to senior living. They may compare us to other places that we will be competing with.

And so all of that takes -- is being taken into consideration when we design our buildings. So that development is -- I call it development because it's of the size of development. It's a large building, and we're investing a lot of capital in it, and we are all very excited about that particular investment and what this building will look like and services that we will continue to deliver to our residents there.

Another question. What is the budget for the upgrade of the Grenadier?

It is $1 million.

Other questions? Right. There's no questions then this will wrap up today's meeting. Thank you, everybody, for joining us. And as always, if you have any further questions, please do not hesitate to contact any one of us. Bye.

Thank you. This concludes the meeting. You may now disconnect.

Hello, everyone. Thank you for joining us, and welcome to the Chartwell First Quarter 2026 Results Conference Call. This call is being recorded. [Operator Instructions]

I will now hand the call over to Mr. Vlad Volodarski, Chief Executive Officer of Chartwell Retirement Residences. Please go ahead.

Thank you, Lucas. Good morning, and thank you for joining us today. There is a slide presentation to accompany this conference call available on our website at chartwell.com under the Investor Relations tab.

Joining me are Karen Sullivan, President and Chief Operating Officer; Jeffrey Brown, Chief Financial Officer; Jonathan Boulakia, Chief Investment Officer and Chief Legal Officer; and Gordon Chiu, Chief Technology Officer.

Before we begin, I direct you to the cautionary statements on Slide 2 because during this call, we will make statements containing forward-looking information and non-GAAP and other financial measures. Our MD&A and other securities filings contain information about assumptions, risks and uncertainties inherent in such forward-looking statements and details of such non-GAAP and other financial measures. More specifically, I direct you to the disclosures in our Q1 2026 MD&A under the headings Risks and Uncertainties and Forward-Looking Information for a discussion of risks and uncertainties. These documents can be found on our website or on the SEDAR+ website.

Turning to Slide 3. On the heels of a record year 2025, Chartwell delivered exceptionally strong operating and financial results in the first quarter in 2026. This performance is a direct result of the great work of our residences teams who serve residents every day and of their corporate support teams who enable that work behind the scenes.

Together, they continue to execute with dedication and with the mindset of innovation and continuous improvement. So far, this year, I've toured 35 retirement living communities, including visits to over a dozen Chartwell Residences across the country. What stands out immediately is the energy in our homes, driven by the teams that are proud of their achievements, optimistic about what's ahead and constantly focused on improving the experience for residents.

In virtually every interaction I had with our residents, they expressed their gratitude to the people who serve them and their appreciation of the environment of kindness, care and engagement that our teams create. Our residents are special people, bringing with them tremendous life stories and memories and the desire to create new stories and memories with Chartwell. Their positivity and determination to live life fully is genuinely inspiring.

Our Q1 results reflect continuing strong operating momentum. Weighted average same-property occupancy increased 400 basis points to 94.7%. That drove solid financial performance with the same-property adjusted NOI up 15.6% and FFO per unit increasing 35% compared to Q1 last year.

Q1 2026 marked the first period of our new 3-year strategy. In addition to the solid operating results, we made strong progress in our investment and portfolio optimization strategy. We invested $435 million in high-quality acquisitions and announced $425 million in future acquisitions, including a new strategic partnership with Fengate Asset Management, a leading investment management and real estate developer, a partnership which we expect to grow in the future, including through joint development opportunities.

We also closed on the $49 million disposition of a non-core property and announced dispositions of 10 other noncore properties for approximately $186 million. These results reflect consistent execution in all aspects of our business and many thoughtful decisions made every day. More importantly, they reflect the dedication and professionalism of our people, their successes make me proud, and I'm deeply grateful to them for their exceptional work.

With that, I'll pass the mic to my partners. Karen will walk you through the operational initiatives. Jeff will cover our financial performance, and Jonathan will update you on our growth and portfolio optimization initiatives. Karen?

Thanks, Vlad. Moving on to Slide 4. We had another strong quarter of leasing activity with a positive net permanent move-in to permanent move-out of 110 units, led by Quebec and Western Canada with a slight winter dip in Ontario.

Our marketing strategies continue to be very effective with a 6% increase in personalized tours from marketing sources in Q1 compared to the same period in 2025. The website generated a 15% increase in personalized tours compared to last year. In April, we held a very successful 2-day open house, which generated close to 1,500 initial contacts.

With occupancy at an all-time high, we are also focused on effectively managing our waitlist through Chartwell's Insiders program, which includes opportunities to keep prospects engaged while they wait for a suite to become available. We have also made improvements to add KPIs and functionality to our CRM that allows our retirement living consultants to view internal and external waitlists for improved inventory management as part of our high occupancy strategy.

Also in Q1, we introduced a new sales commission structure to incentivize our sales team to maintain budgeted market rates, reinforcing our focus on value-based selling. We also introduced a brand experience assessment, which evaluates the RLC's overall compliance with our sales program, processes and performance expectations. During our leadership conference in January, we recognized our general managers and RLCs who delivered exceptional results in 2025 by presenting Circle of Excellence and President's Club awards to our top performers.

Turning to Slide 5. In terms of expense control, we reduced our staffing agency costs by 59% in Q1 2026 compared to Q1 2025 through our continued focus on recruitment and retention activities. This quarter, we also started the rollout of our Oracle time and labor and workforce scheduling project in 5 pilot homes. This project is centered on automating complex scheduling and payroll processes to reduce administrative workload, improve accuracy and ensure compliance with our numerous collective bargaining agreements. The pilot has gone very well, and we're in the process of configuring the next group of properties to come onto this new system. The system will be rolled out in phases in all of our residences over the next 18 months.

As we continue to execute on our acquisition and development strategies, my team has very clearly defined the processes necessary to effectively integrate new properties, including a set of day 1 nonnegotiables and then milestones at 30, 60, 90 and 120 days post closing. This approach is already serving us well with the integration of the homes previously owned by Sifton and will be used as we plan for the integration of the Seasons homes that Jonathan will be speaking about shortly.

Finally, I want to take a moment to commend the team from Chartwell Carrington House in Mission, B.C., as well as the local first responders who all worked heroically together on March 9 to ensure that all 142 residents were safely evacuated when a fire broke out. Feedback from the local fire department with respect to the preparedness of the Carrington House team and their actions that evening was extremely positive. Within a week, we had welcomed 54 residents back to the adjacent building that was not damaged by the fire. And within weeks, we were able to find places for the remaining residents, including 25 who were living in other Chartwell Retirement Residences in the area. We are working with our insurance adjusters on site security, demolition and rebuilding.

I'll now turn it over to Jeff to take you through our financial results.

Great. Thank you, Karen. As shown on Slide 6, in Q1 2026, net income was $8 million compared to $33.2 million in Q1 2025 and that included the gain on sale of $60.3 million due to the completed Welltower transaction.

FFO grew to $85.6 million in Q1 2026, an increase of 52.4% compared to Q1 2025, and our FFO per unit grew $0.07 or 35% to $0.27 in Q1 2026 compared to Q1 2025. Our reported FFO does not include $3.3 million or $0.01 per unit of income guarantees related to recently acquired properties. Q1 2026 FFO growth benefited from higher adjusted NOI of $27.8 million and lower G&A expenses of $2.4 million, partially offset by lower management fees of $1 million.

In Q1 2026 our same-property occupancy increased 400 basis points to 94.7%, and our same-property adjusted NOI increased $11.6 million or 15.6%. We also had a 10.7% increase in our NOI per occupied suite.

Slide 7 summarizes our same-property operating results for each platform. All of our platforms posted occupancy gains in Q1 2026 compared to Q1 2025 and all are operating above 90% occupancy, which positively impacted our results. Our Western Canada platform same-property adjusted NOI increased $4.9 million or 22.7%. Our Ontario platform same-property adjusted NOI increased $4.1 million or 10.7%, and our Quebec platform same-property adjusted NOI increased $2.6 million or 18.1%.

Turning to Slide 8. At May 7, 2026, liquidity amounted to approximately $581.6 million, which included $186.7 million of cash and cash equivalents and $394.9 million of borrowing capacity on our credit facilities. During the 3 months ended March 31, 2026, we raised total gross proceeds of $142.4 million of equity through our ATM program at an average price of $21.08. And on May 7, 2026, we filed a new base shelf prospectus and a new prospectus supplement for our ATM program to allow us to issue up to an additional $500 million of trust units, which will further support our transaction activity.

The ATM proceeds along with $91 million of CMHC insured mortgage financing closed since quarter end and $86 million of CMHC insured mortgage financings planned for May, supported the acquisition of the recently closed Sifton portfolio and provide the financing required for both the Seasons portfolio acquisition and for Palermo that are both expected to close later this quarter.

We also continue to improve our leverage metrics with interest coverage ratio growing to 3.7x, and our net debt to adjusted EBITDA ratio declined to 6.3x. And we continue to improve our financing flexibility, having grown our unencumbered asset base to $2.2 billion. As a reflection of the strengthening balance sheet, we were upgraded today by Morningstar DBRS to BBB with a stable outlook.

For the remainder of 2026, our debt maturities include $209.6 million of mortgages with a weighted average interest rate of 2.99% and a $250 million debenture with a 6% coupon. As of May 7, 2026, we estimate the 10-year CMHC insured mortgage rate to be approximately 4.13% and the 5-year unsecured debenture rate to be approximately 4.44%.

I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Thank you, Jeff. We continue to execute on our portfolio strategy of enhancing our asset base to generate increased quality NOI. I'll highlight some of the deals that we completed and subsequent to Q1 2026 as pictured on Slide 9.

On March 2, 2026, we acquired the remaining 15% ownership interest in Chartwell L’Unique, a 421-suite retirement residence located in the Saint-Eustache suburb of Montreal, Quebec from Batimo for $18.8 million before working capital adjustments and closing costs. The purchase price was partially settled through the proportionate assumption of the $6.5 million mortgage in place with the balance settled in cash. We now have a 100% ownership interest in this residence.

On March 24, 2026, we completed the sale of 1 non-core property in Ottawa, Ontario for $49 million.

On April 2, 2026, we completed the acquisition of 6 seniors housing communities comprising 1,024 suites located in London, Waterloo and Mississauga, for a total purchase price of $416.2 million. The purchase price at closing was partially settled through the assumption of $229.2 million of mortgages, the majority of which are CMHC-insured, with a weighted average interest rate of 4.5% and weighted average remaining term of 18.9 years. The remainder of the purchase price subject to normal working capital and other closing adjustments was settled in cash.

In addition, we entered into a forward purchase agreement to acquire 29 townhomes currently under development in London, Ontario for a purchase price of $15.8 million, subject to normal working capital adjustments. These townhomes will be acquired upon construction completion expected in Q1 2027.

On April 15, 2026, we entered into a definitive agreement to acquire 100% ownership interest in Palermo Village, a 116-suite retirement residence in Oakville, Ontario for $43 million. This transaction is expected to close in Q2 2026.

On April 25, 2026, we entered into a definitive agreement to sell 9 non-core properties with 635 suites in Ontario for $117.9 million. Net proceeds after debt repayment of $33.7 million and transaction costs are expected to be $82.1 million. The transaction is expected to close in Q2 2026.

On May 1, 2026, we entered into a definitive agreement to sell a long-term care residence in Ontario for $68.3 million. The transaction is subject to regulatory and other required approvals and is expected to close in Q4 2026.

On May 7, 2026, we entered into a definitive agreement to acquire a 30% ownership interest in the Seasons Retirement Communities portfolio through a joint arrangement with Fengate Asset Management, a leading alternative investment manager and real estate developer. The portfolio includes 23 seniors housing communities comprising 2,943 suites in Ontario, British Columbia and Alberta.

Current occupancy stands at approximately 85%. Chartwell will manage the operations of these residences. The purchase price for Chartwell's interest is $382.5 million, and will partially -- will be partially satisfied by the proportionate assumption of approximately $195.8 million of in-place mortgages with the remainder to be settled in cash. The transaction is expected to close in Q2 of 2026. Chartwell will have the ability to acquire another 20% interest in the portfolio 12 months after closing this transaction.

Fengate will continue its role as a long-term owner and asset manager. This transaction represents a significant milestone in Chartwell's strategy to grow its platform with high-quality assets through partnerships with institutional capital. As part of the ongoing strategic partnership, Chartwell will have the option to participate in Fengate's future development of retirement residences in Ontario. Should Chartwell elect to participate in any such development, Chartwell will provide operations management services and the parties will have certain put and call rights once the residence is stabilized. The partnership brings together 2 experienced organizations with a shared commitment to high-quality senior housing and long-term stewardship of retirement residences.

In 2026, we continue to grow our portfolio with over $860 million of completed and announced acquisitions. We're doing so prudently, shifting capital from the non-core assets to strategic core residences, while taking advantage of our strong access to capital. We continue to evaluate several interesting opportunities to grow and enhance the quality of our real estate portfolio.

We remain disciplined in how we approach underwriting, diligence and integration of our new acquisitions to deliver enhanced services to residents, mitigate disruption to operations and achieve our required investment returns. We are also engaged in discussions with local and national developers across the country and have restarted our development program with a meaningful pipeline of state-of-the-art assets to bring into our portfolio. We pursue such developments in a prudent manner with a preference for off-balance sheet development similar to our arrangement in Quebec.

We intend to continue on this path of optimizing our portfolio through strategic acquisitions, prudent off-balance sheet development with sophisticated partners, the diversification of our sources of capital and the divestiture of non-core assets.

I'll turn the call back to Vlad to wrap up.

Thank you, Jonathan. Turning to Slide 10. I remain confident in the strong positive momentum in our business. Demand continues to grow, new supply remains limited, which should continue to support medium-term occupancy, NOI and earnings growth.

Our investment team led by Jonathan continues to pursue numerous acquisition opportunities across the country, and we have been making solid strides in building out our development pipeline with various partners and moving a number of projects through design and entitlement processes. We expect to start several of these later this year.

Our Board continues to be proactive in its succession planning and renewal process. At our upcoming Annual General Meeting, 2 new directors, Rael Diamond, who was appointed to the Board on January 1, 2026, and Douglas MacLatchy will be standing for their first election. Doug brings more than 30 years of leadership experience across senior living, real estate and financial services. He has built and led several senior housing platforms. Most recently, he co-founded and acted as the CEO and Vice Chair of the Board of Amica.

Doug understands operations, development and capital allocation deeply and knows our sector exceptionally well. Our Board and executive team are excited to have Doug joining us. This addition to the Board is especially important now as we execute our strategic objectives to grow and optimize our property portfolio and continue exploring ways to innovate and enhance services we deliver to our residents.

What gives me the most confidence isn't just the results. It is what's happening inside our residences every day, engaged and dedicated teams who see it as a privilege to be able to serve those who choose to live at Chartwell. Teams who despite their successes do not rest on their laurels. They drive to innovate and improve, enhancing experiences for our residents, making their services even more personalized and memorable. That's the foundation we're building on.

I will now close our prepared remarks with a story from one of our residences pictured on Slide 11. This story speaks to how we build our organization through a people-first approach. Karen Kim, one of our general managers, came to Canada in 2018 as a nurse and joined Chartwell New Edinburgh Square while working towards her Canadian license. Like many newcomers, she was starting over, taking on the frontline role, getting to know residents and understanding day-to-day realities of senior living. She was so passionate about her work at Chartwell that she helped to recruit several of her friends to join Chartwell in Ottawa where she was working at the time.

Over time, with the support of leaders who recognized her potential, she progressed into various leadership roles and today leads Chartwell Rockcliffe in Ottawa, a premium residence in the market. What stands out is not just our individual journey, but what it represents, our ability to develop talent from within to create pathways for growth and to foster a culture where people are empowered to contribute and lead with purpose. This is how we build strength in the organization over the long term by investing in people and in doing so, strengthening the experience we deliver to our residents.

Thank you for your attention this morning. We will now be pleased to answer your questions.

[Operator Instructions] Your first question comes from the line of Lorne Kalmar from Desjardins.

Congrats on all of the acquisition activity. Sticking with that theme, I just wanted to get an idea, given the challenges of the Competition Bureau and the Sifton portfolio closing, the end of quarter closing timeline feels a little ambitious. I was just wondering if based on what you know of the updated -- or the Competition Bureau's updated criteria, are there any residences that might be at risk? Or is that being mitigated by the fact that you're only acquiring a 30% interest?

Yes. So thanks for the question. We're aware of the Competition Bureau's evolving approach and focus on market share by property type in each local market. But this transaction is only subject to retirement regulatory approval, so -- and lender consent. So we're confident in the end of Q2 closing date.

Sorry. So just to confirm, the Competition Bureau is not going to be evaluating this?

That would be our expectation.

Okay. And then you mentioned that the 20%, the additional 20% you can acquire, I think, within 12 months. Could you maybe give us an idea of what milestones need to be achieved? How do you really -- what is the timing -- sorry, expected timing on acquiring this? And how would you determine pricing?

Yes. The pricing will be consistent with the pricing that we went in at on the 30%. The milestone is the 12-month -- the passing of the 12 months and then the acquisition will be contingent on either partner's desire to proceed.

Okay. And then maybe just the last one because I think you guys have management fees on the portfolio. Could you maybe help us understand maybe from a modeling perspective, how to think about that?

How to think about the management of the portfolio?

The management fee that you'll earn on the portfolio.

We will be earning 5% management revenue -- 5% of revenue as management fee as operations manager for this portfolio, a standard market management fee.

Your next question comes from the line of Brad Sturges Raymond James -- sorry, Jonathan Kelcher from TD Cowen.

Nice to [ butt on ] Brad. Just sticking with the joint venture, what's the going-in yield on the 30%?

It would be in the high 5s.

High 5s. Okay. And that's with the 85% occupancy. And on that occupancy, is that a function of some of the assets still being in lease-up?

Yes. There are assets that are still in lease-up in the portfolio.

Okay. And how long do you think it will take -- how long do you think it will take to get the portfolio up to a stabilized level?

We think we can get there within 12 months period. There's one residence that is still in that was recently opened. So that one may take longer. But on average, we should get to stabilize occupancy levels within 12 months.

And Jonathan, there's also a few assets going through accretive capital projects that should help support the lease-up.

Okay. That's helpful. And then just, I guess, looking ahead on acquisitions, you talked about several interesting opportunities. Are you looking at all at markets that are outside of ones where you currently own assets?

Not aggressively. We do see some opportunities in some Canadian markets outside of our current markets. And so we look at opportunities when they are presented. But right now, our focus is on our core markets.

Your next question comes from the line of Brad Sturges from Raymond James.

[indiscernible] my questions. Just on the -- I guess, on the lease-up aspect of going in high 5% yield, I guess, how should we think about as occupancy reaches stabilization, I guess, margins stabilize, what that stabilized yield could look like in the next 12 to 24 months?

That will go into the low 6% range at stabilized.

And I guess you have the opportunity to participate in future development with Fengate. How should we think about that opportunity set today and whether you can kind of comment on what the -- what could be in the pipeline from an existing opportunity perspective?

Yes. So Fengate is an established developer, a mature and sophisticated developer. So we're very excited to have this partnership with them. We would expect it to be similar to the partnership we have with Batimo in Quebec in terms of structure and our ability to opt in or out of their developments. And our opt-in would give us, as I mentioned, those rights to acquire on stabilization and our obligation to manage the property. I would expect it to be a modest amount in the province of Ontario, so probably 1 to 2 developments at any given time.

Your next question comes from the line of Himanshu Gupta from Scotiabank.

So on the Seasons portfolio, will there be a rebranding of these assets to Chartwell? Or are you going to stick to Seasons brand? And then the next question is, can you spell out the upside on margins here as you move up the occupancy?

We will rebrand the portfolio as Chartwell in due course, of course. And the margin opportunity will be similar to what we would normally describe to as margin opportunities as the occupancies grow from 86% today to hopefully 95% in the future. A lot of the additional revenue that will be generated will fall down to the bottom line and will continue to improve margins in this portfolio.

The -- I mean, if I look at the Alberta portion of the Seasons portfolio, it's a heavier mix of AL. Is that like the continuum of care part there? And then there was a recent government funding increase in Alberta, do you benefit from that?

Yes, it's a portion of the portfolio, 6 properties out of 7 have government funding in them, and the funding increases will help with the revenue in that portfolio as well.

Okay. Moving on to the dispositions, the 9 properties you kind of disclosed, have they been sold to one buyer? Or is it a collection of rent? I mean just trying to sense -- get a sense of is the capital available for these kind of older non-core assets?

They're being sold to one buyer.

Okay. They've been sold to one buyer. Okay. Good to know that. Okay. Moving on -- maybe a couple of housekeeping here. On income guarantees, how's the Vista and Edgewater ramping up? I mean, do you see this income guarantees burning off? Or when do you see that burning? I see that no IFFO was disclosed this quarter.

Yes. Himanshu. Yes, we did have $3.3 million of income guarantees in the quarter, and those do burn off and convert to NOI as we successfully lease up the properties, and we're seeing -- I think you asked about Vista?

If you did, I think we're seeing good lease-up activity there. So those will tail off during the balance of this year and may continue a bit into 2027 and then subject to us doing potentially new acquisitions that may involve income guarantees in the future.

Got it. Okay. And maybe just one last question here on the balance sheet. So Sifton is already closed now. You spoke about some CMHC debt financing post quarter. How much cash do we have here for the Seasons portfolio?

So systems closed on April 2. So it wasn't captured in the March 31st balance sheet. So we are carrying $187 million of cash on hand now. So that included $91 million of CMHC financing that we did over the last week.

In addition, we have another $86 million financing that should close in the next 2 to 3 weeks. So that would more than cover the Seasons acquisition requirements. And then that, in addition to future CMHC financings and asset sale proceeds that supports future acquisition activity, including potentially the additional 20% if that is exercised.

Got it. And you will receive that 9 asset property sale in Q2 as well. So that funding is coming through and the Ballycliffe is coming as well.

Yes, Ballycliffe later in the year, likely because it requires some regulatory approvals, but the Ontario 9 portfolio sale will be this quarter as well or is expected to be this quarter.

Your next question comes from the line of Tal Woolley from CIBC Capital Markets.

Just on the Fengate joint venture, is there like a natural size that this would grow to? I think you'd measured it at $1.3 billion, and you'll be adding developments over time. Is there like a sort of land bank in there already that you kind of have an idea of like exactly how many assets this could be in the future? And then would this JV ever look at acquiring existing properties, too?

Our expectation, as Jonathan pointed out, that there hopefully will be 1 or 2 developments a year that would be added to this joint venture arrangement. We just negotiated the deal to acquire 30% interest in that. So we may acquire properties in this joint venture or may not. This is not decided at this point in time.

Okay. And then one of your peers mentioned on the quarterly conference call, they had sort of talked about the evolution of their care platform and that unsurprising or not surprisingly, like during COVID and in the immediate years following COVID that there was barely any profitability from delivering care, if not meaningful losses in that -- this is sort of the first year where they're sort of seeing meaningful profit per care hour. Does that track with what your experience has been? And how do you guys measure sort of the profitability of that going forward? And is margin growth really a function of that care profitability improving?

Some of it is -- so if you look at our additional care services, they have been growing by double digits now for 3 or 4 years in a row. We expect that trend to continue because there continues to be additional need in the people who are staying with us. So we expect that, that line item will continue to grow. You should realize the care services obviously come with cost.

Our target is to get 25% to 30% margin on those services. And so we think we're achieving those margins on the services. But overall, if you look at our overall margins being in low 40s, the more services that we provide, the margins can go lower, but the profitability of the business will go higher. So it's a trade-off in that sense, but there is certainly an opportunity to continue to improve and deliver more and better services to the customers and generate additional profitability.

And overall, just in terms of the scale for Chartwell of this opportunity, our care services -- additional care services are about 50%, $50 million on $1 billion of revenue. So it's not a huge opportunity, but it is an important opportunity for us to make sure that we are set to deliver services that are required by our residents.

And then just finally, staying on this topic. You're growing in scale pretty rapidly here. Are you able to extract like better pricing from vendors in recent years as you guys have grown, like whether it's food distribution or supplies, that kind of stuff, those vendor contracts come up for renewal and you expect to see more gains there?

Yes. Tal, I mean the short answer is yes. We are seeing good scale benefits, including on food and repair and maintenance. So it is helping drive some margin improvement.

And our supply team has been doing phenomenal work for many, many years now, and they -- this is an ongoing process. This is not just a function of we've grown, so let's go and talk to our vendors. They do this on an ongoing basis every time the contracts come up for renewals. And we treat our vendors as partners. And so we want to make sure that there's fair distribution of profits and risk and deliver quality product to Chartwell. So that always comes into consideration as well.

Okay. And then finally, Jeff, just on -- congratulate on the credit rating upgrade. Any material interest rate savings you expect to see from the upgrade?

Nothing imminent. We're not using our credit facility right now. So there would be a benefit in pricing there. And we may ultimately come back to the unsecured market later in the year, but that's still to be determined. But if we do, we would expect to see, again, some benefit from that market.

Your next question comes from the line of Giuliano Thornhill from National Bank.

I was just turning back to the Seasons portfolio. I'm wondering if you could just kind of explain the geographic exposure and why you think that fits Chartwell, just as well as the kind of long-term rental growth rate in that portfolio?

The majority of the portfolio is in Ontario. There are 2 properties in British Columbia and 7 in Alberta. The rest of them are in Ontario, mostly Southwestern Ontario. And your second question was on rental rate growth opportunities. We see them being similar to what they are in the Chartwell overall portfolio.

Our expectation is that as demand continues to grow, there's an opportunity to increase market rates that we're asking our new residents to pay. And the philosophy on the rent increases for the existing residents will be consistent with our philosophy, which will be similar to kind of inflation plus 1% or 2% to address cost escalations in the business.

And I'm just wondering, would it be right to view the kind of low occupancy in the portfolio as kind of the reason why you guys were brought in because yourselves are better operators here and that you can possibly operate the portfolio better than before and keep it [ full for ] longer?

Absolutely not. Seasons is a great operator, and they've done a very good job running this portfolio. There are a few properties that are in lease-up that are leasing up over time and will drive overall average occupancy up. We certainly think that we can improve on certain things as operators and operators at scale, and we certainly will put these processes in place to drive those improvements. But this is -- Seasons has been doing a very good job building and operating this portfolio for many years.

And then just in terms of the management fee there, will that be partially offset by kind of associated G&A? Or do you think you can scale the platform going forward?

We think we certainly are at a scale every time we add more properties to our portfolio. The management fees that these properties generate or notional management fees, if we look at our 100% owned properties are higher than the cost that we need to incur to support these properties. That's certainly the benefits of the scale and a lot of the technology implementations that we put in place and process improvements that we put in place over the last number of years that now help us to grow and scale the business profitably.

Okay. And then just lastly, on the disposition of the non-core, the 9 Home portfolio, were you guys able to disclose the cap rate for that?

Yes, we're actually seeing strength in cap rates for this asset class and a deeper buyer pool. So the cap rate is about 100 to 150 basis points higher than what we're buying Class A assets for. So it's in the mid-7s.

There are no further questions at this time. I will now turn the call back to Vlad Volodarski, Chief Executive Officer of Chartwell for closing remarks.

Thank you, Lucas. That wraps up our today's conference call. A reminder that our AGM will be held in a hybrid format on Thursday, June 18, at 4:30 p.m. Details will be posted on our website next week. We are looking forward to you joining us then. Thanks again to everybody for joining us. If you have any further questions, please do not hesitate to give us a call. Goodbye.

This concludes today's call. Thank you for attending. You may now disconnect.

Hello, everyone. Thank you for joining us, and welcome to the Chartwell Q4 and Year-end 2025 Results Conference Call. [Operator Instructions]

I will now hand the call over to Vlad Volodarski, Chief Executive Officer of Chartwell. Vlad, please go ahead.

Thank you, Hillary. Good morning, and thank you for joining us today. There is a slide presentation to accompany this conference call available on our website at chartwell.com under the Investor Relations tab. Joining me are Karen Sullivan, President and Chief Operating Officer; Jeffrey Brown, Chief Financial Officer; Jonathan Boulakia, Chief Investment Officer and Chief Legal Officer; and Gordon Chiu, Chief Technology Officer.

Before we begin, I direct you to the cautionary statements on Slide 2 because during this call, we will make statements containing forward-looking information and non-GAAP and other financial measures. Our MD&A and other securities filings contain information about the assumptions, risks and uncertainties inherent in such forward-looking statements and details of such non-GAAP and other financial measures. More specifically, I direct you to the disclosures in our 2025 MD&A under the heading Risks and Uncertainties and Forward-Looking Information for a discussion of risks and uncertainties. These documents can be found on our website or on the SEDAR+ website.

Turning to Slide 3. 2025 marked the successful completion of our 5-year strategy. Our teams achieved all strategic goals in resident satisfaction, employee engagement and occupancy. Same-property occupancy reached 95.2% in December, reflecting both strong demand and outstanding execution by our teams across the country.

As shown on Slide 4, 2025 was also another exceptional year operationally and financially. Same-property average occupancy increased 480 basis points. Same-property adjusted NOI increased 18.4% and FFO increased 40.8%. These results were broad-based and consistent across our operating platforms.

These results are a powerful reflection of the dedication, care and professionalism of our people. Across all aspects of our business, our teams introduced new programs, tested ideas, shared learnings and scaled what worked. At the same time, we continue to invest in technology and management processes to simplify work, improve insight and support better decision-making at the residence level.

What stands out is the culture behind the performance, teams staying focused on customer experience, taking accountability for outcomes, remaining curious and innovative and working together across functions. We are tremendously grateful to our teams for their excellent work that produced these outstanding results.

With that, I'll pass the mic to my partners. Karen will walk you through the operational initiatives. Jeff will cover our financial performance, and Jonathan will provide you an update on our growth and portfolio optimization initiatives. Karen?

Thanks, Vlad. Moving on to Slide 5. We had another strong quarter of leasing activity with a positive net permanent move-in to permanent move-out of 276 units and continued growth in occupancy in all four provinces. Our closing ratios in Q4 were significantly higher at 22% initial contacts to permanent move-ins compared to our typical closing ratio of 15% as prospects took advantage of 2025 rates before market increases came into effect in January.

Although the outbreak season started relatively early, it peaked in late December and has been trending down ever since. Our winter dip is quite similar to 2025 and in line with our expectations. We held our first open house event in select properties in January prior to the very cold spell in order to add to our pipeline of qualified prospects.

In addition to this event, we continue to implement property-specific marketing strategies as well as numerous corporate initiatives. This includes the recent introduction of an AI-powered chatbot on our website, representing the first-of-its-kind application in Canadian seniors housing at the individual property level. The chatbot provides prospects with a new always-on channel to engage, receive property-specific information and convert into booked tours.

In Q4, we held training sessions across the country for over 200 of our sales personnel. The focus was on building proactive sales behaviors, strengthening [ personal ] brand and digital presence, increasing confidence with care-related conversations and understanding how AI influences the prospect journey. We also launched a new more competitive sales commission program, which came into effect in January as well as an automated commission payment process. In terms of expense control, we reduced our same-property staffing agency costs by 57% in 2025 compared to 2024 through our continued focus on recruitment and retention activities.

Turning to Slide 6. Chartwell's Wish of a Lifetime continued to contribute positively to earned media through -- sorry, this quarter through human interest storytelling that highlighted residents' experiences and acts of kindness. One notable example is the story of Angie Carnegie from Aurora, who wished to see her original play staged and brought to life for the first time. The story was covered in local media and included attendance from local dignitaries, including the Mayor.

Finally, in Q4, the operations teams integrated three new properties, two in Quebec, Chartwell Azalis and Chartwell Panorama, both of which are large 30- and 31-story residences in beautiful locations in the Greater Montreal area as well as The Edward in Calgary, our first boutique living property. We also opened Edgewater by Chartwell in December, a 155-unit independent living property in Nanaimo, BC and have already welcomed the first 30 residents with an additional 7 due to move in shortly.

I'll now turn it over to Jeff to take you through our financial results.

Great. Thank you, Karen. As shown on Slide 7, in Q4 2025, net income was $7.2 million compared to net income of $3.5 million in Q4 2024.

FFO grew to $81.2 million in Q4 2025, an increase of 40.9% compared to Q4 2024. Our reported FFO does not include $2.5 million or $0.08 per unit of income guarantees related to recently acquired properties. Q4 2025 FFO growth benefited from higher adjusted NOI of $28.8 million, higher adjusted interest income of $1.5 million and higher other lease revenue of $1.2 million, partially offset by higher adjusted finance costs of $3.3 million, higher G&A expenses of $2.4 million and lower management fees of $2.2 million.

In Q4 2025, our same-property occupancy increased 430 basis points to 94.7% and our same-property adjusted NOI increased $11 million or 16.9%. We also had an 11.6% increase in our NOI per occupied suite.

In 2025, net income was $29.5 million compared to $22.4 million in 2024. FFO grew to $278 million, an increase of 40.8% compared to 2024. Our reported FFO does not include $8.2 million or $0.028 per unit of income guarantees related to recently acquired properties. 2025 FFO growth benefited from higher adjusted NOI of $109.8 million, higher adjusted interest income of $3.7 million, higher other lease revenue of $2.2 million and lower depreciation of PP&E and amortization of intangible assets used for administrative purposes of $0.5 million, partially offset by higher adjusted finance costs of $20 million, lower management fees of $7.6 million, higher G&A expenses of $7.1 million and lower other income of $0.9 million.

For 2025, our same-property occupancy increased 480 basis points to 92.8% and our same-property adjusted NOI increased $45.7 million or 18.4%. Our same-property NOI for occupied suite increased by 12.2% during the year.

Slide 8 summarizes our same-property operating results for each platform. All of our platforms posted occupancy gains in Q4 2025 compared to Q4 2024, and all are operating above 90% occupancy, which has positively impacted our results. Our Western Canada platform same-property adjusted NOI increased $3 million or 14.4%. Our Ontario platform same-property adjusted NOI increased $6.2 million or 17.1% and our Quebec platform same-property NOI -- adjusted NOI increased $1.8 million or 22.8%.

Turning to Slide 9. At February 26, 2026, liquidity amounted to $483.8 million, which included $88.9 million of cash and cash equivalents and $394.9 million of borrowing capacity on our credit facilities. During the year ended December 31, 2025, we raised total gross proceeds of $720.5 million of equity through our ATM programs at an average price of $18.52, which helped support our transaction activity. And we continue to improve our leverage metrics with interest coverage ratio growing to 3.5x and our net debt-to-adjusted EBITDA ratio declining to 6.9x. We also continue to improve our financing flexibility and have grown our unencumbered asset base to $2.1 billion.

For the remainder of 2026, our debt maturities include $209.6 million of mortgages with a weighted average interest rate of 2.99%. As of February 26, 2026, we estimate the 10-year CMHC-insured mortgage rate to be approximately 3.85% and the 5-year unsecured debenture rate to be approximately 3.88%.

Yesterday, our Board approved a 2% increase in our monthly distributions from $0.051 per unit to $0.052 per unit. The increase will be effective for the March 31, 2026 distribution, which is payable on April 15, 2026.

I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Thanks, Jeff. We continue to execute on our portfolio strategy of enhancing our asset base to generate increased quality NOI. I'll highlight some of the deals that we completed in Q4 2025 as pictured on Slide 10.

On October 1, 2025, we acquired a 449-suite retirement residence, Les Tours Angrignon in Montreal, Quebec for $88.5 million. On November 3 (sic) [ November 1, ] we acquired Residence L'Aubier in Quebec, which was developed by our development partner in Quebec, Batimo for $128.2 million. Also on November 3, we acquired Residence Panorama, a 238-suite waterfront residence in Laval, Quebec for $76 million. At 31 stories, Chartwell Panorama is the tallest residence in our portfolio.

On December 1, we acquired Residence Azalis, a 334-suite, 30-story waterfront residence in Repentigny, Quebec, for a purchase price of $111 million. On December 2, we acquired the Edgewater Retirement Residence in Nanaimo, BC for a purchase price of $102.7 million. This waterfront new property was purchased pursuant to a forward purchase agreement.

On December 15, 2025, we acquired a 90-suite boutique residence, The Edward, in Calgary, Alberta for a purchase price of $53 million. And finally, on December 18, we acquired the remaining 15% ownership interest in Residence Legende in Greenfield Park, Quebec from Batimo for $17.9 million.

As you can see, in 2025, we continued to grow our portfolio with over $1.7 billion of completed and announced acquisitions. We continue to evaluate several interesting opportunities to grow and enhance the quality of our real estate portfolio. We remain disciplined in how we approach underwriting, diligence and integration of our new acquisitions to deliver enhanced services to the residents, mitigate disruption to operations and achieve our required investment returns.

We are also engaged in discussions with local and national developers across the country to restart our development program and create a meaningful pipeline of state-of-the-art assets to bring in our portfolio. We will purchase such developments in a prudent manner with a preference for off-balance sheet development similar to our arrangement in Quebec.

Further to this initiative, we announced the development of the 111 suite Chartwell Kingsview Retirement Residence in Calgary with an advance of $4.5 million of the total committed $6.5 million mezzanine financing to local developers. Chartwell will be the operations manager of the project and will have a call option to acquire the residence on stabilization. The project is in an affluent residential area of Calgary in proximity to various neighborhood amenities and will feature self-contained IL apartments and an attractive amenity package.

As I've noted, we have invested significant financial and management capital pursuing acquisitions in line with this strategy and have initiated new development projects to support a strong pipeline of future property growth.

We have also identified properties within our portfolio that no longer fit this core strategic focus due to their location, size, age and/or service offering. We entered into a definitive agreement to sell one of these noncore properties in Ottawa for $49 million. We intend to pursue dispositions of some or all of these properties as market conditions allow with proceeds expected to be used to support future development and acquisition activity that is in line with Chartwell's current strategy.

I'll turn it back to Vlad to wrap up.

Thank you, Jonathan. Turning to Slide 11. We are entering the next phase of Chartwell evolution with clarity and confidence. Our 2026-2028 strategy is focused on generating robust FFO per unit growth through exceptional resident experiences, empowered teams, a well-established agile management platform and the prominent Chartwell brand, driving market-leading occupancies across a growing and renewing portfolio of community-tailored residences.

From a performance perspective, our targets are clear. We're focused on maintaining weighted average occupancy above 95%, growing revenue per occupied suite by more than 4%, controlling costs, maintaining strong balance sheet capacity and executing approximately $2 billion of acquisitions and developments, funded in part by approximately $1 billion of dispositions through 2028.

Underpinning all of this is our leading management platform, strong company culture and most importantly, our people. Our success depends on teams who put residents first, take ownership of outcomes, stay curious and innovative, simplify and improve how we work and collaborate across the organization. These guiding principles are not aspirational. They're embedded in how we do business every day. With a proven strategy, strong industry fundamentals and exceptional teams, I'm confident in Chartwell's ability to continue delivering strong operating performance and long-term value for all of our stakeholders.

Chartwell culture manifests itself in our results, and it leaves in our stories. I will now close our prepared remarks with a story from one of our residences as pictured on Slide 12. Shortly after Kathy and her husband, Mike, moved into Chartwell Thunder Bay, their plans to settle into their new community were disrupted by an unexpected and serious health crisis. Kathy was hospitalized with a condition that required intensive treatment and an extended period of care away from the residence. Throughout this difficult time, our team stayed closely connected to Kathy and Mike, checking in regularly, offering reassurance and supporting them through a period filled with uncertainty.

When Kathy's conditions stabilized enough for her to leave the hospital briefly, the team looked for a way to help her reconnect with life beyond treatment. Knowing how meaningful music was to Kathy, they worked with the local community to arrange for her to attend the Christmas concert by Juno award-winning Canadian singer/songwriter, Johnny Reid. It was Kathy's first outing since being hospitalized. The evening included not only the performance, but a personal moment with the artist and a dedication made especially for her.

This may sound like a small gesture, but it reflects something fundamental for Chartwell, always a resident-first approach delivered by people who truly know those they serve and who are empowered to act with compassion and purpose. These are the moments that build trust, reinforce why our work matters and quietly brings our responsibility to life.

Thank you for your attention this morning. We would now be pleased to answer your questions.

[Operator Instructions] Your first question comes from Lorne Kalmar from Desjardins.

Congrats on a great finish to a great year. Just on the development side, it looks like you guys reintroduced a disclosure we haven't seen since the early innings of COVID. Obviously, a lot of talk about, developments ramping up here in the next little bit with you guys and more broadly.

I was just wondering, over maybe the next 2 years, what do you expect, if you can give us a range in terms of annual development spend? I know obviously, there's a preference for off-balance sheet, but just trying to get an idea of where your heads are at in this regard.

Thanks, Lorne. We have a couple of projects that are ongoing already, and those are on our balance sheet. So we have two developments in Montreal area. Those are additions to the existing residences. And as I said, those are on balance sheet.

We look to really invest in development mostly off balance sheet with options to purchase the properties when they get to stabilized occupancy. There may be a few additions that we will execute on our balance sheet, but the majority of the development that we expect to conduct over the next couple of years will be off balance sheet.

Okay. That's really good color. And then maybe just sticking on the development side with the ramp-up, is that a reflection of just a great opportunity to develop? Or is it also a reflection of a declining acquisition opportunity set?

Well, for us, it's strategic to grow the portfolio with high-quality newer assets. We continue to see very interesting, as Jonathan pointed out, acquisition opportunities, and we're working through a few right now. With those, we never know whether we're going to be the ultimate purchaser of the properties or not. There is some competition always for high-quality properties.

And also, Canadian market is not very large. And especially when people focus on properties types that we're focusing on, newer, larger, more efficient and larger urban markets, it becomes even smaller. And so our development strategy is really the one that is more in our control, where we're trying to build our own pipeline of future acquisitions that will not be dependent of the availability of somebody else's product in the market.

Okay. And then maybe just one last one. I know it's still early days in terms of seeing this next development cycle kick off. But are there any markets where you're concerned at this point that we might see an oversupply or an overbuild in terms of just projects that are sitting at the early stages of development or permits?

At this point, no, it's hard to tell. As you know, it takes at least 2 years to build a building from the time you put the shovel in the ground. So it's too early to speak about that because we have not really seen any meaningful construction starts yet. I think everybody expects that we will see some in 2026.

But I also want to remind everybody that demand has been growing by 4%, 4.5% per year for the last 4 years and will continue at that pace for the next 20 years. It's hard to imagine that the industry will be able to build that much product to really catch up and exceed that demand that continues to grow. Some markets probably could be disrupted for a short period of time. But at this point, it's hard to tell which ones they're going to be.

Your next question comes from Jonathan Kelcher from TD Cowen.

First question, just on the outlook for 2026, same-property occupancy to maintain an average of 95%. Is there any new supply hitting some of your markets that might impact some of that same-property occupancy?

Nothing -- there are some LTC openings that could have some impact, but we're not seeing a lot of new retirement residence competition opening up.

Okay. So it's -- you guys are just being a little conservative on that...

Well, Jonathan, we are in this uncharted territory, right, where it is really hard to predict the potential for occupancy growth because we've never been at these -- not just Chartwell, the industry-wide never been at these high levels of occupancy. So it's not like we can point to 5 years ago, everybody was at 98%, so that's achievable.

So for us, we continue to focus on great resident experience, great sales processes, marketing processes, and we hope that we can exceed the 95% occupancy, but we will see by how much.

And we still want to obviously have our move-ins exceed our move-outs with -- just given the higher turnover in the senior sector compared to other housing sectors.

Yes. Fair enough. I was just trying to get is there anything out there that you're seeing that might stop just the sort of general increase for the industry.

And secondly, just on the rent growth for -- 4%, how would that break down on what you're seeing on when units turn over versus what you're pushing through on renewals?

So our renewal pricing strategy has and continues to be inflation plus 1% or 2%, sort of matching the cost increases in the properties with the rate increase. And then on turnover, we're seeing mid- to high single digits and in some markets, even low single-digit rate increases.

Low double digit.

Low double-digit rate increases, sorry.

Okay. So shouldn't that work out to higher than 4% then overall? If you're getting 1/3 at 8% or 9% and the other 2/3 at 3% to 4%?

It might. We continue seeing the impact of the incentives that's been granted throughout 2025. So you'll see our occupancies increase significantly in 2025, and there have been some incentives that were put in place to achieve that occupancy growth, the full year impact of those incentives will be felt in 2026. And so that will suppress a little bit the overall blended rate growth.

Okay. Fair enough. And then just lastly, like Ballycliffe, haven't talked about that one in a while. It's up running complete. Would you -- would that be something you'd expect to sell this year?

Yes.

Yes.

And the ballpark pricing?

We're not yet ready to announce. It's still in progress. So as soon as we can talk about it, we will.

Your next question comes from Tom Callaghan from BMO.

Maybe just to start on the acquisition side and building off some of Lorne's questions there. Can you just talk about what you're seeing in terms of pricing and competition, maybe relative to 12 months ago? I think over the course of '25, we've obviously seen some cap rate compression. Just given the outlook and underlying supply-demand fundamentals, like would you expect to continue to see tightening on pricing over the balance of '26? Or do you think it's kind of more stabilized?

We have seen some -- a little cap rate compression. I think it's probably stabilizing now. We're still seeing a lot of opportunities in the market, both one-offs and portfolio level. And in terms of the market, it is somewhat competitive, but we think we have a competitive advantage being -- our reputation in the market as a credible buyer. We do a lot of underwriting work really early on in the process. We give credible offers early on in the process that we stick by.

So vendors -- the feedback we're getting is that vendors like working with us because of our experience, our experience underwriting, our credibility, our speed of execution and our ability to integrate properties into our platform effectively with as little disruption to residents and staff as possible. And so that kind of gives us, we feel, a competitive advantage, but it is a competitive process.

Got it. That's helpful, Jonathan. And maybe I think you referenced some interesting opportunities in prepared remarks. Would some of those encompass kind of more of the portfolio-type deals? Or is it mostly one-off buildings?

We're seeing both. One-off...

Maybe the last one -- sorry.

No, go ahead.

And maybe last one for me is just you did note in your '26 outlook there the expectation for margins to expand year-on-year. Can you just maybe talk about some goalposts in terms of the quantum of that expansion?

Yes. We do think that we should have margin expansion again in 2026, and it -- still be in the low 40% range, where we think there's an opportunity to move that up into the low to mid-40% range as we continue to grow rate above operating expenses.

Our next question comes from the line of Himanshu Gupta from Scotiabank.

On expected rent growth of 4%, do you think there was a view that once we get to that 95% occupancy, cross the bridge to get there, that blended rent growth could become like 5%?

And maybe now like the affordability angle is coming up. So it's not just about full capacity, but there's an affordability as well. So that's why 4% is the right number, and not the 5% you can achieve. Fair to say that?

Well, the strategy statement that we put out and the metrics around it says above 4% growth. So 4% marks in our minds, at least the bottom of what is possible for the next 3 years. And as Jeff pointed out, we are continuing to be measured in the rent increases that we put through for our existing residents. They will be tied more to the overall inflation in our cost, labor, food and others. And then market rents, we do think can grow by high single digits in the next 3 years given the supply-demand dynamics.

Okay. And then talking about incentives, you did mention that incentive coming down. Can you elaborate what is it now and where it can go?

Yes. Himanshu, it's approximately 5% of revenue right now. And they come down. There's a number of recurring incentives that were used over the 2024 and 2025, and those roll off or burn off with turnover. So it's hard to predict exact resident turnover, but we expect them to grow this year as we have the full year impact of the 2025 incentives and then start really burning off in 2027, 2028.

Okay. Okay. That's helpful. And then turning attention towards the acquisition activity, The Edward, Calgary acquisition. What kind of cap rate are you expecting there? I don't remember you guys doing anything in Alberta in the last couple of years. So is that like a focus market now?

Sorry, is Calgary a focus market?

I mean, do you expect to be more active in Alberta, Jonathan? I mean, obviously, you were active in the other three provinces quite a bit in the last couple of years. And is Alberta [indiscernible] very well now?

For sure. We consider Alberta and Calgary specifically in Alberta to be core markets and areas of focus for future growth, both on the acquisition side and on the development side.

And the cap rate would be consistent with published guideline cap rates that we see in publications. So we don't normally disclose the actual cap rates that we pay, but it would be in the high 5%, low 6s cap rate.

Okay. And would you say -- is there like a spread between Alberta versus Ontario? Or is it quite comparable?

Alberta and Ontario, I think, would be relatively similar in terms of cap rates.

Okay. Okay. And maybe just last question since I have you, Jonathan here. You did mention about some cap rate compression you have seen. For this development cycle to continue, do you need to see more cap rate compression from here? Or whatever you have achieved is enough to bring on more supply?

Well, we're seeing some developments pencil out now with the current cap rates and current expectations on rate. But as Vlad mentioned, most of our development is what we call off balance sheet. So we're going to be buying these at prevailing cap rates and fair market value when they're stabilized or on construction completion. So if and when that happens, we'll be paying whatever the appropriate price is.

Okay. Okay. Fair enough. And just one last one. That Ontario -- that portfolio acquisition, when are you expecting it to close? Is it the CMHC approval which is taking forever?

Well, we are still waiting for third-party approvals, yes, and we would expect to close in Q2.

Your next question comes from Sairam Srinivas from ATB Cormark Capital Markets.

Just looking to the quarter, and I might have missed this, but did you guys guide for the acquisition and disposition number for '26?

I'm sorry, can you repeat that?

Just looking at your commentary on acquisitions and dispositions. I'm not sure if I missed this, but do you have a number for '26 in terms of your...

No. We provided a strategic plan for the next 3 years of a target of $2 billion of acquisitions and $1 billion of dispositions of noncore properties. But we don't set an annual goal or plan. It's as market conditions allow. And so we will sell and buy as we see opportunities to do so.

Okay. And Jonathan, maybe going back to your comments on the competition you're seeing in the acquisition market. Can you give us a color in terms of the kind of firms you're seeing competing over there? Is it more like more funds competing or more operators as well?

We're seeing the typical competition for assets. We're seeing competition from domestic owners and operators like us, and we're also seeing U.S. capital coming into Canada as it has been doing so for the last decade. So we just see more of that, but nothing particularly new.

That's good color. And maybe just on the developments, Vlad, I know you mentioned thinking about on balance sheet versus the option and developments. When you historically look at acquiring a new project or newly developed facility versus something that you have probably developed on balance sheet or through your partnerships, are there advantages you've seen operationally that work better for your design builds versus those that you probably acquired through the market?

Definitely. So when we're doing the off-balance sheet or on-balance sheet development for that matter, we are involved from the get-go from the site selection point to the preliminary design, the feasibility, the programming and all the way to the finishes. And we play an oversight role on the construction quality. So we know exactly what we're getting and what we're getting at the end is exactly what we want. So there is certainly a difference.

Now we've been very fortunate in our last 2 years of acquisitions where we have been buying new properties and they are great state-of-the-art properties. By and large, they're almost all newly developed properties. So we've been fortunate. But as Vlad said, we want to plant the seeds for the future where we don't know if those conditions will continue to exist. And so we're preparing ourselves for that potential turn in the market where we don't have those great opportunities. And so we will create them for ourselves. And yes, when we create them for ourselves, we have, I guess, more of a say in what we're ultimately going to buy.

Your next question comes from Giuliano Thornhill from National Bank.

I just kind of wanted to start on the margins. So the low 40s, 95% occupancy looks pretty achievable. And just given that occupancy last year for the same property pool was up by 480 bps, the margins were up in that 300 bps. Going forward, do you see that margin increase accelerating as we get into these higher occupancy levels?

I would say they would accelerate. We're already operating at the high occupancy levels, but we do expect them to increase with the increase in occupancy.

Right. Okay. And then moving to the growth portfolio. I know that's higher quality, recently built. Where does something of that quality stable out to at those levels?

And that -- just to be clear, that portfolio includes properties where we've had a change in ownership. So there's a number of properties that we are part of, the Welltower joint venture, that are included in there as well just for clarity. But we do think that portfolio as well can get into that low to mid-40% range.

Okay. And just going back to the transaction volumes that you guys commented on earlier, how much of that is Chartwell actually interested in? Like what's the, I guess, dollar volume? And what would Chartwell be interested in and what's out there?

Sorry, are you asking what's the dollar value of potential acquisitions that we see?

Yes, yes, exactly.

Yes. We don't typically comment on things that are in the market that we're still kind of kicking the tires on. But we would expect 2026 to be a very active year in the seniors' real estate market.

And is it still going to be focusing on that kind of care-lite product type that you've been acquiring?

Yes. By and large, yes, but we do like continuum of care type properties. So we are focused -- we are looking at all -- the whole spectrum of care on the privately funded -- on the private side. But yes, our [indiscernible] thought would be the more independent side with preferably some care component in the building.

Yes. And I guess the follow-up I'd ask is just kind of do you think with the LTC waitlist growing and obviously higher acuity patients coming in, do you think that could impact the demand later on given like 3, 5 years out, just as more and more people come in with other issues?

We think that the demand is going to grow on all sides of the continuum of care spectrum. We think there's going to be continuing strong demand for more independent senior apartment type of developments. And there's definitely always going to be demand for care.

And so our team has been putting in place programs, Care Assist Program in particular, that is Chartwell's proprietary program on care. We have technology that helps people to deliver care -- assess clients, deliver care and bill for it. And you'll see our care revenue has been growing at a pretty robust pace for the last couple of years, and we expect that, that will continue and our properties will be set in such a way that we can accommodate people and their care needs and help them to stay with us as long as they choose to.

Your next question comes from Pammi Bir from RBC Capital Markets.

Just coming back to maybe the Investor Day and the outlook that you presented there. As you kind of look now at 2026, and we've now had a few months passed, has your view changed at all either perhaps better or maybe even moderating a bit in terms of how you think about 2026? I mean the commentary seems optimistic, but also at the same time, seems perhaps conservative. So just trying to get a pulse on how you're thinking about the year relative to a few months ago.

I don't think anything has changed from a couple of months ago. We're very optimistic about our ability to continue to deliver great services to our residents and continue to grow profitability through occupancy and rental rate growth. We'll continue to focus on controlling the costs and looking to put a lot more new innovative ideas out there in the market and test them and see what works. So I don't think anything has changed from that perspective.

Okay. And then just on the total occupancy, I think you're sitting at about 93%. Maybe just expanding on one of the earlier questions, is that portfolio something you think you can get to in terms of like the 95% threshold this year? Or will that take a little bit longer?

Well, we'll see. We might. There are some homes in that growth bucket that just -- Karen gave an example of Edgewater in Nanaimo that just opened in December. So it has 30 -- maybe plus 7, 37 people, 130 units. So for that home, it may be way too aggressive to assume, although I'm looking at Karen, she's not nodding her head. Yes, too aggressive to assume that, that will hit 95% this year. So we have a few homes like that. The rest of that portfolio should be at 95% or higher.

Okay. And then maybe just coming back to the same property portfolio. Again, lots of good detail in terms of what you're thinking from an occupancy and margin standpoint. I mean, should we ultimately expect that in terms of organic growth, you'll be tracking close to, call it, the high single digits, low double-digit range based on all the sort of goalposts that you've provided?

I think it is reasonable. So the rental rate growth over 4%, expenses 4% or lower. And then we still have some occupancy to get to 95% average that we expect to achieve this year or higher. So if you do that math, then it looks like your estimates will be about right.

Okay. And then just lastly, on the dispositions, you've done one deal so far this year. What does the sort of near-term pipeline look like? I'm not sure if you have stuff on the market currently. And I'm just curious if there's portfolios in there at all and what sort of NOI impact that may have if you do move forward on some additional deals?

Yes. At this point, Pammi, we can't really talk about. These are all very preliminary transactions that are in progress. There are a few of them that we're working on, but you never know whether they're going to be completed or not. So as soon as we can talk about it, we will. But the target remains for the next 3 years to dispose of the noncore portfolio. We value it at over $1 billion today.

Your last and final question comes from Tal Woolley from CIBC Capital Markets.

Obviously, a big year, unannounced acquisitions. I think it was $1.7 billion of stuff that you've closed and is yet to be closed. Can you just talk a little bit about any signs of integration strain either at the corporate level or on the ground?

Well, we -- frankly, I was surprised of how well our teams were able to integrate these acquisitions, pleasantly surprised because it's not an easy task to take on properties and transition it from one operator to another, especially because we were transitioning many properties from different types of operators. There are some that were managed by smaller companies, some that were managed by larger companies.

And it's really been a great experience, hard work, but a great experience for residents and employees of these homes and the feedback that we've been receiving, we were just recently together with the general managers from all of our homes. And those who joined us more recently couldn't have been more complimentary about the process that they and their teams and the residents went through to join the Chartwell family. So it's been a great experience, and we have not experienced any strain.

We are very cognizant about the impact that the large volume of these acquisitions has on the support teams in the corporate office and the operations teams in the field, and we're making sure that there's good processes, enough resources dedicated to these transitions. And there's definitely risk associated with it, and we're trying to manage this risk to the best of our ability. The good news is all acquisitions or the vast majority of the acquisitions that we've done over the course of the last 2 years have exceeded our expectations in terms of the financial performance.

Okay. And then when you take on like that kind of volume in a year, I'm just wondering like can you start to go back and like leverage your buying power more effectively, whether it's like for food or medical supplies, that kind of stuff? Like is there -- like can you get better operating synergies out of this? And is that part of the reason why we're sort of seeing your direct operating expenses per suite start to fall?

Tal, we do that regardless of the level of acquisition activity. So just given the scale of the company, we're very focused on buying power and leveraging the number of properties we have across the country. So we think that does help in our underwriting of acquisitions and should help to some effect on the overall buy, but wouldn't materially drive our operating expenses.

Okay. And so when I'm looking at that direct operating expense per occupied suite figure, if it's down year-over-year, is it down mostly because the occupancy is up so high? Or are you actually seeing some operating expenses...

They grew on an absolute basis, but because occupancy grew faster than the operating expenses, you're seeing the decline in the operating expense per occupied suite.

Got it. And then as demand continues to pick up here, how do you feel -- like are you finding you've got the right suite mix for now? Or are you finding it like you need more supportive-living suites or assisted-living suites? How are you matching demand at this point in time?

Tal, most of our properties are in the independent supportive living category, which basically means that we can provide a significant amount of support and care to the residents in their suites, and that's the Care Assist Program that we have with the technology that was recently implemented across the country. And so those properties can accommodate people from fully independent to people who require quite a bit of care. And so that's where the majority of our portfolio is, and we're very happy with that breakdown.

We have some neighborhoods or wings of the properties where -- that we designate as memory living or assisted living. Those are specifically designed areas where packages are more all-encompassing, and we have higher staffing levels to accommodate people with higher needs or specific needs like in memory care. But generally, we're pretty happy with the breakdown that we have. And as I said, the -- my expectation is that demand will continue to grow on both sides of the spectrum where people will look for more independent type of accommodation for socialization purposes and will continue to grow a part of our business where we provide services for people with more care needs.

Okay. And then just lastly, I think the last big deal you've got to close, I think, is the Sifton portfolio. Will you -- like for this year, would you look at completing the balance of that with your credit facilities? Or do you expect it to be through some dispositions by then or perhaps using the ATM?

Yes. So we have a combination of some dispositions and also approximately $170 million of CMHC financings underway. So between those and cash on hand, we'll be able to fund that portfolio acquisition.

There are no further questions at this time. I will now turn the call back to Vlad Volodarski, Chief Executive Officer of Chartwell, for closing remarks.

Thank you again, everybody, for joining us. If you have any further questions, please do not hesitate to give any one of us a call. Goodbye.

This concludes today's call. Thank you for attending, and you may now disconnect.

The magic is really happening at our residences. People who work here support those who deliver services and care to our residents in these residences. We are very proud of this building, and I'm even prouder of the people who work here. I hope you will feel the vibe as you spend some time with us today.

Tomorrow, Chartwell will turn 22 years old. So the IPO was closed on November 14, 2003. I know because I was there. We raised back then -- or I guess they raised, because I didn't work for them at that time, but they raised $250 million. That was the size of the company at that time, and now we are $6 billion market cap. So obviously, a lot has changed, a lot of time passed and a lot has changed.

So here's the agenda for today. Today, you hear from several Chartwell leaders, those who shape and execute strategies in various core areas of our business. I hope these presentations will help you appreciate not only the strength and depth of our leadership team, but even more importantly, their dedication to our company and true love for what they do. We will not talk nonstop, I promise you that. We will have a short break, somewhere halfway, and then we will have a Q&A session at the end. And then an informal reception after in our Bistro 77 over there, where you will have a chance to informally chat with all of us and some of our Board members.

We will talk about future in our presentation today and use non-GAAP measures. Future is always difficult, and it's subject to risks, uncertainties and assumptions that we made. Sometimes these do not tend to be true. Details of these risks, uncertainties, assumptions and non-GAAP measures, you can find in our regulatory filings.

In addition to the folks that you're normally used to hearing from, which is myself, Karen, Jonathan and Jeff, today, you'll hear from Colleen Laing, who will talk to us about innovative work in customer experience that her team is doing. Gordon Chiu will talk about our technology and innovation efforts. Dave Pielas will talk about Chartwell people and culture. Shari Lafontaine will talk about financial management. Sharon Ranalli will talk about innovative amazing marketing strategies. Stef Biasi and Amanda Richards will talk to you about how we will solidify our occupancy lead through continuous innovations in sales and business development. And Adam Moy will talk to you about our approach to property capital investments and risk management.

Before we take you through our 2028 strategy, I'd like to reflect on our recent past and the current business environment, both of which influenced our strategic thinking. In 2018, we developed what we then thought was a 5-year strategy, summarizing the strategy statement on the slide. We knew back then in 2018 that the targets were ambitious, but then we got interrupted by that little pandemic that we had. And so that caused us to extend the shelf life of that strategy by another 2 years. And the targets looked even more ambitious after the impact that the pandemic had on our business.

I'm tremendously proud of our teams who overcame this adversity and delivered on these aspirational targets that we set for ourselves back in 2018. Not many believed that we could achieve them, especially after the pandemic, and I have to admit there were times where we were not certain ourselves. Yet, we delivered. Our employee engagement score increased from 49% in 2018 to 57% in 2025. Our resident satisfaction scores were 58% back in 2018. They are 67% now. And I want to remind everybody, when we talk about these scores, we only measure top box scores, so strongly agreed. Here include both strongly agreed and agreed statements and the scores are in high 80s, low 90s realm, but we only focus on highly engaged employees for very satisfied residents.

And then on the occupancy, in 2018, we were at 90.1%. For those of you who followed us, you remember that during the pandemic, we dropped to 76% occupancy. And we are on our path to achieve 95% occupancy by the end of this year. The achievements of these targets, combined with a significant renewal and optimization of our portfolio executed in the last 3 years, resulted in Chartwell outperforming both the Standard & Poor's TSX Composite Index and S&P/TSX Capped REIT Index in each of 5-, 3- and 1-year periods, and some of them by a large margin.

The key ingredients of any company's success are culture and strategy. And it would be a mistake to talk about strategy without talking about culture. For well over a decade, in this company, we used to talk about our culture using this "What's your Why wheel". It's a pictorial that summarizes our vision, mission, values and beliefs. And these concepts have taken a very strong hold with our employees across the country. We see it firsthand when we visit our residences. We hear it in our people's stories. And certainly, it is reflected in the employee engagement surveys that we do every year.

But as part of developing our 2028 strategy, we considered whether a refresh of our, what we call, cultural elements is required. And as we thought about it, we drew our inspiration from an Erin Meyer article in Harvard Business Review titled Build a Corporate Culture that Works. Erin Meyer is a professor at INSEAD Business School and an author of several books, including No Rules Rules: Netflix and the Culture of Reinvention, which she co-authored with Reed Hastings.

One of the things discussed in the article were the errors that the companies usually make when they describe their culture or talk about their values. A common error is that people use often what Erin calls abstract absolute positives as companies' values. These, while as inspirational, are not very helpful for people to make choices and make day-to-day decisions, because they do not have plausible alternatives. So for example, many companies use integrity as one of their values. There is no plausible alternative to that because the alternative to that would be corruption. And with the exception of some drug cartels, I don't know many companies that would use that as their corporate value. So when we try to refresh our cultural elements, we try to make them actionable and vivid.

Now I will ask Karen to take us through those.

Thank you, Vlad, and good afternoon. Okay. So our vision, making people's lives better, remains unchanged. These 4 simple but really powerful words have really resonated with our teams for over 15 years. So we still feel that they're very relevant in terms of why we do what we do. First and foremost would be our residents. But this also includes their families and their loved ones, as well as our corporate -- our team members in our properties as well as, of course, our unitholders. They're all really critical to the ability of us meeting that vision of making people's lives better.

So our mission, we decided to leave the stakeholders the same, but really make these statements shorter, clearer and more memorable. So we create happy, healthy, meaningful lives for residents, peace of mind for loved ones, rewarding careers for caring people, and growing returns for unitholders. At times, the interest of these 4 stakeholders can sometimes be in conflict. So for example, residents might want to pay less for the services that they receive and employees might be advocating for higher wage rates and unitholders for higher financial returns. But our job is to keep the interest of all of these stakeholders in mind and the long-term benefits of that for the company. And we also must be able to really explain our choices to them with both clarity and confidence.

So the biggest change of our corporate culture, the components, was to combine the various elements in that wheel. The how, how we stand out from the competition. And instead, we've put them into a set of guiding principles. And our goal in coming up with these guiding principles was to make them really short and punchy, where every word matters. And I can tell you the 40 words that are up here were hotly debated by our team. We also want them to be actionable and really clear in what the desired behaviors are for people at Chartwell.

So our guiding principles are: Residents first. We serve with kindness, respect and empathy. We bring joy through wow moments. Own it. We take personal accountability and we fix what is broken. Be curious. Ask questions and seek feedback and share knowledge. We simplify and innovate. We actually fear inaction, not failure. We experiment, we learn and repeat. And then finally, we're stronger together, because we team up and we welcome differences.

So these 5 principles and the 10 bullet points that I just spoke about provide these clear actionable guidance for how we at Chartwell behave. And not unlike the What's our Why wheel that you saw, we created a graphic that we can use to express these along with our vision and our mission. And we call this visual representation, The Horizon, because it symbolizes the sun coming out of a skyline. And I've had the pleasure over the last number of weeks to roll this out to over 1,000 general managers and management teams across the country. And I can tell you that these are really resonating. And we were able to provide stories to support all of these various guiding principles. And we're about to roll this out to our frontline staff members in the next week or so. And we've created all kinds of collateral, not just to roll it out, but to really sustain it.

And so I'm just showing you one piece. This is a mirror that will be in every one of our staff rooms across the country in all 160 homes. And so our staff members can, as they're getting ready for their shift, have a look at themselves and be reminded of those 5 guiding principles.

The other thing we did is we created a video as part of the rollout.

[Presentation]

Being a publicly traded company, we know that good governance is critical to our ability to deliver on our promises to our stakeholders, to our operational and financial success. Our team and me personally are blessed to be guided by, and challenged, then supported by the great group of directors. Their success is evidenced in numerous recognitions that the company received for good governance.

We have consistently been named one of the top real estate and health care companies in the Globe and Mail Board Games publication. We've been recognized consistently for women diversity in Globe and Mail's Women Lead Here report. And this year, our Chair, Huw Thomas, and our Board has been recognized as Top Gun Board by Brendan Wood International. Some of our directors are here today, and I'd like you to just wave to everybody. Huw, Gary, Alka and Ann. They are here with us. Thanks for coming. Appreciate it.

Now on to our 2028 strategy. First, things that are no secret for those who follow us, the senior living sector in Canada currently enjoying exceptional fundamentals, with growing demand and at least in the medium term very much muted supply. It's been estimated that over the next 10 years, 200,000 suites will be required to be built just to maintain the balance in the supply and demand. And this compares to only 73,000 suites that were built 10 years prior.

Just as important, today, we are at an inflection point of generational transition of our customer. See, up until now, we served the depression-era generation. People who have accumulated some wealth during their lifetime, but who never thought of themselves as wealthy. Shaped by the depression and wars, they are savers, driven to pass on their savings to their kids.

We are now beginning to serve the boomer generation. And everything that we hear about it and research indicates that this generation is probably more wealthier than the one before, and also willing to spend some of that wealth on the things that they need and want. And this creates huge opportunities for senior living operators, but only if they deliver the services and environments that these people want. And today, you will hear from our leaders about the initiatives to deliver just that.

The pillars of our strategies probably remain unchanged if you think about it really hard. First and foremost, we will be continually focused on service excellence. So that for us means exceptional resident experiences in all of our properties. That those could only be delivered by highly engaged employees. That will continue to be our focus. And we will continue our investments in our management platform, making it even more agile and scalable, so that we can integrate growth that we believe we will achieve over the next several years profitably and efficiently.

We will continue to focus on optimizing our property portfolio, optimizing it for growth, efficiency and diversification. And we will continue to be prudent stewards of your capital. We will diversify capital sources, maintain prudent debt leverage, and continue returning some capital back to you in the form of growing distributions.

So here's our 2028 strategy statement. We will continue delivering robust FFO per unit growth in 2026-2028 through exceptional resident experiences and power teams, a well-established agile management platform, and prominent Chartwell brand, driving market-leading occupancies in a growing and renewing portfolio of community tailored residences. We very much hotly debated all the culture elements that Karen spoke about. We very much hotly debated every word that you see on this slide. It will require some unpacking for all of you, and this is exactly what we're going to do next.

So first, I'll ask Jeff to start talking about financial targets.

Great. Thank you, Vlad. Our 2028 strategy is anchored on robust FFO per unit growth, which we believe will continue to lead the real estate sector over the next 3 years. We will accomplish this with market-leading NOI growth and capital deployment, all while maintaining a prudent balance sheet. Our key same-property operating levers include occupancy, where we expect to maintain average occupancy at or above 95%.

Rent and services rates, where we will maintain our current approach for existing residents of increases tied to inflation and will pursue faster market rate growth of mid- to high single-digit, and in some markets, double-digit rate increases. This will combine to a blended rent and service rate increase of above 4%. And with our continued focus on costs, we expect direct operating expenses to grow below our revenue growth at a sub-4% level. This will support further gains in our operating margins.

On capital, we expect to continue the significant pace of activity on acquisitions and developments that we have achieved in the last 2 years, and are targeting to deploy over $2 billion between 2026 and 2028. This will, in part, be funded by $1 billion of noncore asset sales during this period. We're also targeting to resume annual distribution increases at a moderate pace once we achieve an FFO payout ratio of below 60%. Our balance sheet targets of net debt-to-EBITDA of below 7.5x, and interest coverage of above 3x will ensure we have the balance sheet strength to support our growth strategy and will position Chartwell to weather any storms should they arise in the future. All combined, achieving these targets will ensure we can deliver on another 3 years of sector-leading and very robust FFO per unit growth.

With that, I'll turn it back to Karen.

Thank you, Jeff. Okay. So we will continue to remain focused on providing residents with exceptional resident experiences that are personalized, memorable, feel like home, where friends and family feel welcome and respected. And we know that by doing that, that residents will not hesitate to recommend their Chartwell home as a place to live to their friends.

So to assess our performance, beginning in 2026, we're moving to a new, more widely used measurement, known as the Net Promoter Score. So we'll be asking our residents, on a scale of 0 to 10, how likely they are to recommend Chartwell as a place to live. We're also going to continue to ask specific qualitative and quantitative questions of our residents about the services that they receive, so that we can continue to get feedback to make improvements. In addition to the annual survey, we also get feedback from our residents on a regular basis through comment cards. We have comment cards for dining services and housekeeping. We have input meetings. We have food for thought meetings on a regular basis, and resident town halls. And we also do post move-in surveys for residents who move in within the first 90 days.

We're also really focused on ensuring that our general managers and their management teams, that they truly take ownership of the strategies and execution of those, while also benefiting from the amazing support and expertise that they get from our corporate subject matter experts. And this is something I would say just isn't available in smaller retirement companies or for independent operators. So we also, though, have an expectation that they build on these strong industry fundamentals and they innovate, they experiment, and they lead highly engaged teams in their residents to exceed resident expectations and to achieve market-leading occupancies.

We're also moving in 2026 to use the employee Net Promoter Score as our measure. And we'll be asking our team members how likely they are to recommend their Chartwell home as a place to work. And in addition to the annual survey, we also measure a whole host of employee KPIs, such as employee turnover rate, staffing agency and overtime utilization as well as qualitative feedback that we get through, for example, we do stay interviews. Not just exit interviews, we do stay interviews with people who are working for us, as well as holding labor management meetings, employee town halls and other ongoing opportunities to get continuous feedback from our employees.

The next part of our strategy statement speaks to the 2 really complementary parts of our platform that I believe stand out from the competition. First, I would tell you, after 22 years, we have what I'm so proud of, which is a defined, well-established and sector-leading culture as well as a wealth of expertise to support our homes. So we also have really leading-edge standards and processes that give us this really solid foundation. And they've taken us years to put in place. And these help our teams drive results and manage risks, so that our homes can truly run smoothly. And research in our sector demonstrates that homes that run smoothly, that's what drives exceptional resident experience or satisfaction, and that drives referrals.

So the other thing I would tell you, though, that that's not enough. With that solid footing under them, we expect our management teams to be innovative, because every residence is unique, and we want them to always be open to learning and improving. And we really believe that the combination of the solid foundation and a bend towards innovation is the key to scaling our growth in the future.

I also know that a well-known and trusted brand is a competitive advantage. So we challenged ourselves to develop a brand promise, something we haven't had before. And we came up with this simple but powerful statement. Joy is ageless, or in French, [Foreign Language]. We're confident that this will resonate with the boomer generation that is just beginning to take advantage of our services, and you're going to see this promise incorporated into our marketing strategies going forward.

And of course, our strategy is very much focused on driving market-leading occupancy levels in our homes, something that we've demonstrated this year as we project our December occupancy to be 95%. Every Chartwell residence competes within its own local marketplace. And our GMs, our sales consultants and our management teams have the best insights into and knowledge of their competition. To that end, each of our homes has developed their own very specific unique selling feature, which demonstrates how they stand out from their community.

We also have really deep community connections and we invite community partners to come into our properties, and we show off life in our homes through a purposeful social media strategy. You will also hear shortly from Amanda Richards, who will talk to you about our business development strategies, which are a unique differentiator at Chartwell.

I'll now turn it back to Vlad.

Thanks, Karen. So we'll continue to grow our portfolio. That's probably not a secret to anybody. And we'll continue our focus on optimizing our portfolio, adding newer, more efficient, larger properties in attractive markets, and reinvesting capital in our core properties. Adam Moy will speak to you very soon about some examples of what we've already accomplished and continue to do in this.

We'll continue to grow our portfolio through acquisitions. But also, we are looking to partner with reputable developers across the country to build our own pipeline of future acquisitions, because we know that we've been very successful for great efforts of our investment team. We're also somewhat lucky in that over the last couple of years, we had access to very high-quality assets at very attractive prices. That is probably not going to last forever, so we're trying to create our own future by building this development pipeline, and Jonathan will speak a lot more about that in his part of the presentation. And we will also execute disposition of noncore assets that do not fit that vision of Chartwell portfolio of the future.

And I think I said it many times before, all the hard work that we had to do, where we had to reposition properties for alternative use, we had to close some of the properties shortly after the pandemic, all that hard work is done. What remains and what we call noncore properties in our portfolio, they're well performing properties. They, in many cases, run at very high occupancies. They just do not fit that vision that we have for our portfolio. There may be smaller properties, a little older, in some tertiary and secondary markets, and that's why they are in this noncore bucket for us.

And then the last part of the strategy is the focus on community-tailored residences. And so if you've been to one Chartwell home, you've been to one Chartwell home. They're all different in the way they are built, in the way they operate, although there is a common foundation in how they operate, and the focus on resident experience everywhere is the same. They really are part of the communities where they are located. And we want to preserve that uniqueness of each one of these homes, and Karen talked about unique selling features of individual homes. They're all unique and all different for every one of the homes in the country, because every community is different.

An interesting part that when I started and probably for the first 15 years since I've been in this business or maybe even more, there was a lot of discussion about certain communities do not participate in the congregate living, in retirement living. So if you're of a certain ethnicity or a certain group, these people do not go to retirement homes. And it was probably true only because there were no culturally appropriate residences with services that are culturally appropriate for certain group of people.

Some of the not-for-profit organizations have proven that to be not correct. We have very strong Chinese and Korean homes and all other ethnicities as well. And Chartwell started doing these things on a private pay scale as well. So we have some examples here on this screen. Chartwell Rouge Valley serves Asian community in Markham now, Chartwell Valley Vista serves predominantly Italian community in Vaughan, and Chartwell Thornhill serves Jewish community in Thornhill. And we are focused on doing more of that.

So when we talk about ethnically-appropriate homes, we also want to talk about homes that are inclusive. So all walks of life are welcome in these homes. They are not exclusive to that particular community. It's just the services are culturally appropriate for the community as well. So that's what we are meaning when we talk about community-tailored residences.

So here's our strategy statement back on the screen again. Hopefully, it makes a little bit more sense to you now. And next, our leaders will unpack the how. Specific initiatives and strategies that they are developing to deliver on this 2028 strategy. And we will start with, by far, the most important part, which is customer experience. So I'll ask Colleen Laing to take us through that.

Thank you, Vlad. I'm Colleen Laing, and I have been at Chartwell for 18 years, currently as the Senior Vice President of Customer Experience. The customer experience team's strategic focus is to create exceptional resident experiences at every touch point, leading to market-leading occupancies and growing revenue in innovative ways. In 2025, just over 30% of our new residents chose Chartwell because they had been referred by family, friends or business partners.

We know that very satisfied residents, residents who provide a top box 5 out of 5 score are 4x more likely to refer their own contacts. Our resident experience, care, culinary and learning and development teams work collaboratively with the operations teams to bring our brand promise, joy is ageless, to life for current, future and near future residents.

More than ever, there's a tremendous interest in elevating health and wellness as people age. And our goal is to create a culture of well-being and thriving in every residence through our newly created active living program, community-tailored residences, or through supportive care and services that allow residents to focus on things that bring them joy, new friendships, vibrant experiences and time well spent on things that truly matter.

Our residents' lives are made better through experiencing the wonderful food, amenities, wellness program support, and ambience that we offer. Our unique value proposition is the Chartwell experience, which is all about how we make them feel. And our goal is to provide a warm welcome at every touch point through our Welcome to Chartwell program, which begins during the sales process and continues throughout the resident's first 90 days.

We know that moving to a retirement residence is a pivotal life change for older adults. Club Chartwell, our resident, family and staff referral program, provide opportunities to invite families and friends to share in these experiences. And our seasonal tasting experience is an example of an exclusive event for residents and their invited guests. Our chefs showcase their vibrant, delicious, made-from-scratch recipes, and guests enjoy a sampling of upcoming seasonal menus and a taste of life in our residences. And we have a team of our chefs from our properties here today, and you too will have an opportunity to sample some of their delicious food later this afternoon.

Life in our residences is about thriving and not aging in place. We know that today's older adults have high expectations. Retirement living has moved beyond providing services to creating upsized living experiences. Picture a beach party with more than 400 Chartwell residents enjoying yoga, Latina dancing, and margaritas on the beach, or dinner in white, an elegant outdoor picnic, where guests dress entirely in white. And this beautiful dinner, which originated in Paris, has since spread to many cities around the world as a kind of pop-up social event, including at secret locations like our home, L'Unique, last summer.

Our residences do feel like home, providing curated and tailored experiences that reflects life in the broader community. 44% of residents choose to live in a residence due to location, and 30% are referred by family or friends. As an example, Rouge Valley in Markham provides a cultural experience, where personalized support meets rich cultural traditions, authentic Asian cuisine, cultural celebrations and activities. At this residence, we recognize that the menus, staff and amenities of yesterday did not resonate with the community. And as a result, the operations team has created a cultural experience that has resulted in 100% occupancy.

We also have Edgewater independent senior living by Chartwell. Life begins at Chartwell at Edgewater, one of the latest additions to 2 Chartwells scheduled to open in December. Edgewater offers an all-exclusive (sic) [ all-inclusive ], independent, resort-inspired living, with suites overlooking Long Lake. At Edgewater, our resident experience is rooted in the principles of West Coast wellness, holistic approach that embraces the natural beauty of the lakeside setting.

Increasingly, residents will not choose retirement living simply because they've reached a milestone birthday. They are looking for both active living and an opportunity to access supportive care in the future. We are excited to announce our new active living program with Dr. Greg Wells, a well-known human physiologist and best-selling author, who translates the complex science of wellness into practical strategies that extend both health span and lifespan. The foundation of this program is sleep, eat, move and think better.

And this is a picture of Carmen, who is a resident in Victoria Harbor. She came to us at a very difficult time in her life where she had fallen and fractured her pelvis and she had such limited mobility after a fall, but she was determined to regain her strength. And through her work with our kinesiologist there, she can now complete 20 consecutive push-ups. And at 88 years old, she's a genuine advocate for strength training and an ambassador for our wellness programs.

Many current and future residents will continue to look for care and services that keep them feeling their best and enable them to stay at a residence longer. Care revenues continue to grow through our Care Assist program, which provides a comprehensive menu of care services behind the door in the resident suite. This is supported by the implementation of Yardi Electronic Health Records care planning system, which was completed in all of our residences this past year.

We continue to work on new packages, such as our everyday comfort package, to introduce new residents to a bundle of daily services designed to help them settle in smoothly and start living their best lives from the moment they arrive. Or our peace of mind package that provides a bundle of services for thoughtful support for a confident return home from hospital, which is also a pivotal time in the life of a senior.

In addition, with approximately 25% of seniors over the age of 85 experiencing some form of dementia, our memory living program offers a person-centered approach with higher staff ratios -- staff-to-resident ratios and safe, secure and thoughtfully designed environments to help residents navigate more confidently and independently.

Our annual resident satisfaction survey results demonstrate that our customer experience strategy is netting results. 67% of residents are very satisfied, providing that 5 out of 5 top box score. This score is based on 3 questions: satisfaction with the residents as a place to live, intent to stay, and if the resident would recommend Chartwell to family and friends. Our total score is 90%, with a very high 82% survey participation rate.

A new McKinsey Health Institute survey of more than 21,000 older adults across 21 countries finds that respondents are focused on the importance of having purpose, mental wellness, and enjoying meaningful connections with others in addition to preserving independence. We will continue to focus on these priorities, making a meaningful difference in the lives of our residents.

Now I'll pass the mic to Sharon Ranalli.

Thank you, Colleen. Hi, there. Good afternoon. I'm Sharon Ranalli, Vice President of Marketing and Communications. I've been with the company now for 16 years. And that's been long enough to see the incredible change in how people think about senior living and how our brand continues to evolve right alongside them. Today, I'm going to take you through how our marketing strategies are driving occupancy, revenue and long-term growth, all through the lens of brand leadership.

Chartwell's marketing organization has transformed from a traditional communications format and traditional media into data-informed and brand-led growth engine. Our 2026 strategic pillars are built to move us from stability to leadership. We're elevating the Chartwell brand, accelerating property performance, launching and positioning new market segments, sustaining high-quality lead generation and modernizing attribution. In short, we're combining creativity and analytics to drive measurable results, while keeping our purpose at the center, and that is making people's lives better.

As you may know, in senior living, trust drives decisions, often made with the support of family, and that's why brand leadership matters. A strong, trusted brand gives us top-of-mind awareness, social credibility and loyal advocates who refer us. In successive brand awareness surveys conducted by Ipsos since 2015, Chartwell ranks #1 in English Canada and #2 in Quebec for brand awareness, proof that consistency and clarity in who we are pays off.

But let's talk about this big shift that's redefining everything, the arrival of the boomers. As we've said earlier, this generation is unlike anyone before them. They're digital first, they're informed, they're independent. They expect opinions, transparency and choice. They're also values driven. They were shaped by an era of activism, cultural revolution. For them, senior living isn't about slowing down. It's about living well, as Colleen said, and with purpose. And that's exactly what we're building towards. And unlike generations before, who preserved their wealth or inheritances, as Vlad spoke to, research on boomers suggests that they have the money and are willing to spend it on the things they need and they want, and they are open to premium pricing.

Our customers are more digital and self-directed than ever. By the time families contact us, or residents directly, they've already done their research through Google, through reviews and increasingly, AI assistants like ChatGPT or Google Gemini. And that means they come to us informed and with good questions. So every touch point has to reflect trust and transparency from our website directly to our sales teams. What we're seeing is that lifestyle, well-being and belonging now matter in decision-making just as much as care and support and transparent pricing. And that's where differentiation happens at individual residences, and where we can highlight, at each site, unique and localized sales features and what really helps our homes stand out on micro moments.

What's really exciting is -- and I was talking about these micro moments when someone might download a guide or visit our website. And if you are visiting one of our property websites, you can now link over to a property Facebook page. These are actually operated. Content is posted from our residences. These are the experiences that tell our future prospects or future residents what it's like to live in Chartwell. And from there and to follow and watch that content, they can then read a review and soon, book a tour.

So families are expecting that frictionless, intuitive, personalized experience. And every moment and interaction with our brand matters. It matters to us, it matters to them. And that's why our focus is really truly on optimizing for AI discovery. I'm sure we're all using it daily, so are our prospects and their families. And this helps build visibility in emerging search tools, create seamless journeys, and in time, make that connection with our future residents.

So before jumping forward to our new exciting brand initiative, I just want to talk about brand differentiation. Sorry, before I talk about brand differentiation, I want to talk about something important, and that is about senior living itself. It is a choice for people, typically over 80. But we know the truth is, today's 80-year olds aren't old the way we used to think of it. They're active, connected and vibrant, and they're redefining what aging looks like.

A 2017 Harvard study found that the strongest predictor of health and happiness at age 80 isn't exercise or diet or sleep, it's relationships. And so people who maintain strong social connections live longer and happier lives. And this insight really hits home for us, because at Chartwell, we've always believed that senior living isn't just about care and services and convenience, it's about belonging. And that belief has guided us as we've evolved our brand.

Earlier this year, we worked on a foundational piece for Chartwell that's been referenced a couple of times, and that's our brand promise. And it's not a tagline, it's not a campaign. It's about reflecting the emotional core of who we are. In working with our agency, we were very clear. We wanted to put our residents at the center of our positioning as the protagonists of joy. We wanted to break out of the sea of sameness that is seen across our category, where people talk about functional services and needs and decline. This is not the message we want to convey.

And from that came our new brand positioning, joy is ageless. It reflects our belief that joy and belonging are timeless across our lives, and that senior living should celebrate both. This is more, as I said, than a marketing message. It's a promise to our residents and their families that we see them, we understand them, and we deliver an experience that feels human, connected and genuine. So let me give you a small sneak peek of what is coming. This is not even production. This is just done in-house as a glimpse.

[Presentation]

So we're very excited to put that into market in the coming year and see production take place in one of our homes, and it's super exciting.

Along with this very important brand work, we're also modernizing every part of our marketing engine. Over the past 18 months, we've invested in foundational digital transformation, connecting the dots between insight, creativity and performance. That includes a full CRM integration, giving us visibility across the entire lead journey, from first click to signed lease. We've implemented marketing automation, tailoring message and the digital journey based on where someone is in their decision-making process, from awareness to tour booking. We've rebuilt our website for mobile-first experiences, improved accessibility and optimized for SEO to meet the expectations of today's digital-first seniors and their families.

And we've also introduced our own in-house AI chatbot, which provides 24/7 support, answering inquiries, guiding families through community options, and capturing high-intent leads even outside business hours. It's become an integral part of our lead generation ecosystem, ensuring that no moment of interest is missed. The results speak for themselves. You can see our growing database in this image with over 10,000 new qualified prospects added every year. That nurturing is very critical in the future ecosystem as well of Chartwell's marketing. Our digital leads are stronger, our conversion rates are up, and marketing now drives approximately 50% of all personal tours at Chartwell.

Our strong brand translates into tangible results, as I said, higher occupancy, pricing power, efficient lead acquisition, and it's also being demonstrated with efficiency as our marketing spend is declining as a percentage of our revenue. As we continue to align marketing with the next generation of residents, we're driving not only near-term results, but long-term enterprise value.

And with that, I'll pass over to Stef Biasi.

Thank you, Sharon. My name is Stef Biasi. I am the VP of Sales Strategy at Chartwell, and I've been in this role for almost 10 years. So the sales strategy team is not only responsible for driving our sales strategies and programs, but we also do all of our own in-house sales training for our 200 salespeople, including developing all content and delivering that content. We also have a contact center, I'm going to mention in just a few moments, that we operate, a full business development team that supports the field, along with managing sales communications and structuring our sales compensation strategies.

So I can't start a conversation about sales without showing this wonderful graph on our performance over the last several years. I think the graph kind of speaks for itself. And all I can say is that I'm very, very grateful to be working for this organization at this time. What I want to share with you today, and we've done a lot of strategies over the years to help support this growth. But today, I want to share with you 4 of those strategies, 2 of which are very new to meet with changing market conditions, and 2 which have been with us for a long time, but they are core strategies that are true competitive differentiators for us.

The first strategy is a new strategy, and it's called the Chartwell Insiders program, and this is our waitlist strategy. You can imagine now we have a majority of our homes over 90% occupancy, and most of them have waitlists for some suites or, if not, all of their suites. And we needed to devise a national strategy to create continuity with the main goal really to reduce those lost revenue days. And lost revenue days are those days that a suite sits vacant between the time a resident moves out and the next resident moves in.

So we came up with this program we launched this year and it has 3 pillars. The first is, of course, around communication. You can see from some of these images, it's a branded program. We treat Chartwell insiders like a VIP. We've got welcome packages. We give them key chains that they can use when they move in to put their key on. All the collateral is branded around this program. And we keep in constant communication with people on the waitlist to let them know what's going on at the properties, so they stay excited about the property.

And that leads into the next pillar, which is engagement. To keep them waiting and excited, we invite them to the property on a regular basis to attend events, VIP events, bus tours. We want them to be integrated into the community before they even move in. And that's a very important part of this strategy, so that they won't start to look elsewhere.

And the last part of the strategy, of course, is a defined priority system. We actually migrated from paper-based priority lists to using our Yardi CRM tool. This is our customer relations management software. And so we can manage all of our prospects there, and we can make the best decisions for who should be moving in when a suite becomes available. And a subset of that strategy is that we encourage prospects that are joining the Chartwell Insiders program joining the waitlist to move into an adjacent suite or maybe even a sister property with, of course, the promise that they'll be bumped up the priority list when their suite becomes available.

This has become a really effective strategy. The properties have really embraced this, this year. And the best part of this strategy is that because these seniors are coming into the property on a regular basis, they're getting to know the property, they're participating in events, they get to know the staff, the cadence of the home, they make some friends. And so when they move in, the transition is so much smoother for them. That's one of the challenges for seniors moving from a long-time home into a retirement residence, but the Chartwell Insiders program, attending these events makes that transition very easy for them. So we're excited about this program and excited to see what it can continue to do in 2026.

The next strategy is a small change in what we're doing, and that's around sales compensation. And so we've had to adapt with the changing market times. And I just want to take a quick step back and explain how we got here with this new compensation structure we're going to launch in early 2026. So prior to the pandemic, we were very focused on value-based selling. We rarely discounted. We offer discounts on occasion, but very rarely. And then, of course, the pandemic hit, all of our occupancies dropped, all operators' occupancies dropped. And so that was a challenging time.

Coming out of COVID, as the prospect funnel started to fill again and people started to look at congregate living, you can imagine all of us operators were fighting for all those prospects. And the marketplace got incredibly aggressive. Where our salespeople were kind of used to value-based selling, they weren't big discounters. So we actually had to train our salespeople on how to offer incentives and to be aggressive in the marketplace. And we successfully did that. And you can see from the chart that we showed just a few moments ago, we had great success in growing our occupancy back up during those first few years after COVID.

But now we're at a point where we're at stabilized occupancy. And now that we're at that point, we're really going to be focusing on maintaining that market rent and really declining the use of those incentives. And to help influence our sales people's behaviors, we're introducing in January 2026, a new compensation structure where we're going to reward our salespeople with a premium commission if they preserve those market rates that we've created in our budgets. And when they do that, they'll receive a premium commission. When they're forced to discount, their commissions will also be discounted.

So this is a perfect alignment with what we're trying to achieve. We're trying to protect our market rates and make a sustainable growth, and it's a win-win for the salespeople who can earn more when they preserve that rate. So we're excited about the program. We also know it's going to be very successful in helping us to retain our best salespeople as well as attract salespeople that are looking at senior living.

Third strategy I want to talk about is our contact center. And this is one of the core strategies that I spoke about at the beginning. This is a huge competitive differentiator for us. And we established the contact center about a little over 10 years ago. And the reason we did that was we saw that most of the industry studies showed that speed to lead and senior living is absolutely critical. And you can imagine, I mean, many of you might have gone through this, when an adult child finally decides to reach out on behalf of their parent to make a call and explore retirement living, they don't want to leave a voice mail, they want to talk to someone live, because they're in that state. And so we established the call center back about 11 years ago. It's now grown to 15 people. We answer 60,000 calls per year, and most importantly, 90% of those calls are answered within 10 seconds. So speed to lead, again, being critical.

More than 50% of our leads originate through our call center. And they're trained very similarly to our salespeople. It's not just a transactional conversation they have with prospects on the phone. They're trained to build connection and trust with that prospect, to demonstrate empathy and provide a strong solution for their next steps. We improved that customer experience several years ago by establishing agents in the provinces that we operate. So we've got agents in BC, Alberta, Quebec and here in Mississauga. And the reason we did that is because we know that prospects want to talk to someone local. Local agents understand the geography. They understand the health care system. They understand the buildings that they're talking about that much better. And so the customer experience was vastly improved when we did that.

On top of all that training, of course, we've made great investments in our technology. We moved to Cisco call center a few years ago, which is an incredibly stable and flexible program. It has got a great quality management program that helps us to coach and train our agents. And we're now exploring the AI tools, of course, and one of the great AI tools has a full customer transcription process that transcribes and summarizes all the conversations, which leaves our agents to focus their time on having those quality conversations and building that trust and connection with our prospects.

So the contact center, again, is a huge competitive advantage for us, but I just have to leave you with the most rewarding thing about the contact center. And that's that the people who work in the contact center absolutely love their jobs. They truly feel like they are helping people to advance to that next stage in their life. The average tenure of our contact center agents is over 5 years. Many of them have worked with us 7, 8, 9 years. And I have to tell you, most interestingly, the very first person we hired into the contact center 11 years ago is still working with us today. This gentleman never misses a shift. He's 74 years old, and does not want to retire because he loves his job so much. He loves helping people. In fact, at the end of every single month, he scans through all the names of the people that moved in to identify the people he's helped to make that next transition in his life.

So the contact center -- I've been to conferences all over North America. No one runs a call center in this industry the way we do. We have a unique call center experience, and it's a huge competitive advantage and differentiator for us. So that's the third strategy we want to talk about.

The fourth strategy is around business development. And I'd like to invite Amanda Richards up here, who started this program from the ground up and has grown it to be incredibly successful in supporting our teams in the field. Amanda?

Thank you, Stef. Good afternoon, everyone. I'm Amanda Richards, I'm the Senior Director of Sales Strategy. I'm actually going to be celebrating 15 years with Chartwell in January. So I'm really excited to talk to you a little bit this afternoon about our business development, our referral strategy.

This is a purpose built and differentiated approach that really sets the company apart in the senior living industry. We know that referrals that come from professionals such as doctors or financial advisers or real estate agents, they actually tend to convert at a higher ratio than traditional marketing leads. These people are in senior prospects' inner circle of trust. And so when they make a recommendation to Chartwell, it goes a long way to instilling that trust and that prospect and that family.

So I want to share just a little bit about the 4 pillars of our program. At the core of this strategy are our dedicated business development managers who focus exclusively on generating referrals across the defined portfolio of homes. So this really helps us to ensure consistency in our execution and our accountability. And then at the community level, Chartwell deploys tailored strategies that span health care engagement, B2C outreach, and the preferred partners program. So this is really unique for us.

We actually have a curated list of professionals who can help every senior in that local marketplace make the move into 1 of our residences. So they have a list of real estate agents or financial professionals, downsizers, movers, social workers, all people that our residences know, like and trust who are at the forefront to help people who are looking to transition into retirement living do so successfully. We're proactively addressing concerns families might not even know that they had.

Nationally, Chartwell is now recognized as a leading educator in the senior living space, offering continuing education for professionals in finance, real estate, human resources and health care sectors. We design and curate content to present at national conferences where attendees earn continuing education credits for listening to me talk for an hour.

Year-after-year, we continue to grow our presence within these sectors and further differentiate Chartwell as a leader in senior living. These initiatives, combined with our strategic sponsorships, help position Chartwell as a trusted authority and extend its influence across Canada. And these pillars, these components, they really culminate in high-trust partnerships with respected brands that we've now created. Brands like Scotia Wealth Management or MD Financial, the Canadian Real Estate Association. We have a new partnership with the Alberta Retired Teachers' Association, further reinforcing our credibility and our ability to build confidence and instill that confidence amongst families and prospective residents.

This integrated referral model, so combining that dedicated leadership, localized execution, national influence and these grassroots initiatives in terms of our local communities is very, very difficult for our competitors to replicate. They don't have a dedicated resource or a group of dedicated resources as we do. And so this is a real competitive differentiator for us and strengthens our market leadership while also ensuring sustainable growth.

And with that, I'm going to turn things over to my friend, Dave Pielas.

Thanks, Amanda. Good afternoon, everyone. My name is Dave Pielas. I'm the VP of Human Resources and Labor Relations. So I've been with Chartwell for just over 7 years, and every day is a new and exciting day for us. I'm here to kind of share today how our HR strategies, fuel resident satisfaction and care quality, operational excellence as well as investor value. Our culture is more than a feel-good story. It's a measurable strategic asset driving our financial performance.

At Chartwell, culture drives engagement, engagement drives satisfaction, satisfaction drives occupancy, and that leads directly to revenue growth. For you, this means you're investing in a people model that delivers both human and financial growth. Our people are at the core of delivering exceptional service and quality care every day. They are a foundation of everything we do. We're an organization of approximately 11,000 individuals serving 25,000 people across Canada. 500 of our people roughly make up our support teams, while 10,500 work directly with our residences.

We're a highly unionized industry, and 80% of our frontline employees are unionized. We take a constructive and proactive approach with our unions, and that ensures fiscal responsibility and supports our operational continuity. Our strategy not only strengthens trust with our employees and our workforce, but also safeguards our business. And we demonstrate that by our record of no work stoppages and pragmatic collective bargaining outcomes across 3 provinces that have the right to strike, and past years of significant inflationary pressures.

By balancing our employees' needs with our organizational priorities, we are fostering a resilient, sustainable future for Chartwell and its investors. Our size and structure give us both scale, agility, as well as stability and that ensures consistent resident experiences while allowing us to manage our labor relations risks.

Now Vlad kind of still a little bit of the thunder on this one, but we'll continue. So one of the clearest indicators of operational excellence is employee engagement. Like Vlad mentioned, we only measure top box or 5 out of 5, meaning we only count those employees who strongly agree that they are highly engaged. As you can see, we've maintained high engagement scores over time, surpassing our 2025 target with 57 (sic) [ 57% ] of our employees being highly engaged. Overall, 85% of our employees either agree or strongly agree that they are highly engaged. We're proud to outperform our industry and employee engagement by 11 points.

Why does this matter? It matters because engagement reduces the cost of turnover. It improves resident satisfaction, which, in turn, protects our margins and our reputation. At Chartwell, we've continued to improve our engagement scores, and we're driving that through people strategies and programs and a strong focus on employee well-being. We call this the talent multiplier effect. It shows how great people are amplifying our success.

Our data today shows steady improvement in turnover, tenure as well as internal promotions. We aren't just hiring people at Chartwell, we're really building careers. Every additional year of tenure increases our service quality and reduces our replacement costs. That creates a measurable ROI from our human capital strategy.

We continue to increase investment in employee learning as well as opportunity, and that goes across our whole organization from enhanced frontline training to current and future leadership development. This strengthens our performance and also ensures compliance, safety and consistency across all of our close to 160 residences. That's essential in a highly regulated and a high trust sector like senior living space.

And finally, the number that I'm sure some of you are keen to see, which is our agency spend. Since the end of the pandemic, we've been focused on reducing our agency costs through a combination of both human resources strategies as well as new operational approaches. Overall, we're proud to have successfully reduced our agency spend by 79% from 2023 through 2025.

We drive all success -- all that success through our culture, and we leverage recognition as a foundational element of that. We celebrate contributions, both large and small. Many of the programs you see on the screen highlight these big and small contributions, but I want to talk about a couple. The first one, and it's a big one for us. It's our leadership awards. These awards transform our business goals into measurable objectives that our residents and support teams strive to obtain. Once a year, we gather together to celebrate only the best of the best. As an added bonus, it helps us drive our performance. Everyone really wants to be up on that stage being celebrated by their peers.

On the smaller end, we share our stories of how we make people's lives better, highlighting moments of how service and employee excellence is achieved every day through our [ meetings ]. We call these the wow moments. It allows us to highlight even those small things that make a big difference in our residents' lives and drive resident satisfaction.

All of these efforts help shape our culture and feed our leadership development programs and succession planning pipelines. That allows us to recognize our talent and help it grow.

This slide also demonstrates some of the many programs that we have at Chartwell that help us attract and retain the best talent in the industry. And we're operating in an industry where competition for talent is high and service excellence really depends on high morale as well as pride.

One of the strengths at Chartwell is that our teams reflect the communities we serve. We foster inclusion not only as a social value, but as a business imperative and the numbers on the screen speak for themselves. We're proud of our efforts in D&I and people both inside our organization as well as outside are noticing. Internally, our employee sentiment regarding our commitment as an organization to D&I is up by 10 points year-over-year.

Externally, as Vlad mentioned before, we're proud to be a Globe and Mail Women Lead Here, 5-year award winner for 2025. We know diverse teams innovate faster, communicate better with residents and families and strengthen our ties with our communities. All these are important to our growth.

As an employer, we understand that caring for others starts with caring for our people. As part of our wellness strategy, we're excited to launch a new expanded wellness platform in 2026. This platform will offer not just the standard EFAP, but a virtual EFAP as well as a fulsome health and wellness program. In partnership with Dialogue, we're going to be adopting this holistic approach that provides 24/7 virtual care, including unlimited video based, same-day medical consultations and coordinated access to medical practitioners at convenient times and locations for all of our employees.

Our EFAP being virtual and using an integrated platform will help our employees access mental health care when they need it. We know that about 70% to 80% of non-urgent medical issues can be safely treated quickly with real-time access to multi-disciplinary care teams. This program will save our people from having to wait at clinics in long lines or even have to travel to those clinics.

Getting access to care quickly means a quicker start to the road to recovery and ultimately means less lost time away from work. Our people care for our residents, and they really want to spend their time doing the work that they do every day and not the time at the clinic waiting for their doctors.

Our culture. Our people-first culture is our operative advantage. It's proven in our ability to deliver strong operational and financial results. Many of the stories you've been hearing today, even the videos you've seen, they all show our people hard at work supporting our residences. Chartwell offers a sustainable high ROI model for long-term investors through a purpose-built environment where people feel valued, supported and motivated to do their best work delivering on the promise of making people's lives better.

To conclude, I wanted to share a brief story that illustrate just how our people live our promise every day.

[Presentation]

Thanks, Dave. Just another note, the person that you saw on the screen, Heather Dyck, she is today running a region with 6 homes that operate each 1 of them at 100% occupancy, and they have not 1 day of revenue loss now for almost 6 months, all 6 homes. So tremendous success for Heather.

Before we -- well, we were supposed to take a short break right after this point, but I think we'll count our fire alarm as a break. If people need some breaks they can maybe exit at the back and then come back. So we'll just keep going. But I want to share something else close to all of our hearts, which is Chartwell Wish of a Lifetime. Our national charity, that grants meaningful wishes to Canadian seniors helping them rediscover joy, purpose and connection. And the short video shows some of the successes that this organization has. And if you want to learn more or make donation, you can use the QR code on the posters outside of the doors, on the screen, and around the bistro.

[Presentation]

Hi. My name is Gordon Chiu. I am the Senior Vice President of Information Technology Services. I've been with Chartwell for almost 10 years, and I'm going to talk a little bit about technology and AI.

First of all, I want to talk about my team. My ITS team has consisted of 4 key areas. One is Information Systems that take care of our 75-plus systems that we have ranging from dining systems within our homes, the electronic health records that Colleen talked about also in our homes, all to the financial systems that we operate in our corporate environment.

In addition to that, this team is responsible for all the hundreds of terabytes of data that we have that are collected amongst all these systems, the ability to analyze these, create dashboards and report on them as well.

In addition, I also have a technology operations team that takes care of all the networks, the hardware, all the endpoint devices within our systems in order for us to connect everything together and operate in an effective manner. This group also responsible for the electronic -- all the electronic systems that are in the homes, including our nurse call systems that are there as well. And all these systems that we have, the networks that we have connected together have to be done in a secure way.

So the information security team takes care of that. They ensure a safe environment for our systems to be able to operate effectively. And in addition to that, educate all of our staff around the different threats that are currently out there today. The solution delivery team takes all these different projects that we have to implement on an annual basis is a group of project managers that implement these projects on time and on budget on an annual basis.

So this is the team that puts it together. However, we couldn't operate effectively without our key partners that we deal with. Some of the ones that you've already heard about. Yardi is one of our key partners that takes care of some of our financial systems. But in addition to that, they take care of our electronic health record systems in our home, our customer relationship management system that Stef talked about, that takes care of our prospects. We continue to grow that particular environment as we see different opportunities with this software, and we'll see more to come in years ahead.

Oracle is our key employee system. It takes care of our HCM or Human Capital Management system, that actually takes care of our benefits, the key HR functions on their own, along with our recruiting platform and our benefits and our payroll. This environment is our key environment for our employees. But in addition to that, Microsoft is our key productivity tool. And that's, of course, the Excel, Word, PowerPoint, our e-mail systems. This system is across our board that also allows us to share files with our SharePoint system as well.

And through that, as new innovations continue to occur, like Copilot that takes care of AI and generative AI, we're continuing to grow that environment. OneStream is our new system that we have, it's being implemented as we speak today. It's going to soon replace our Hyperion system for financial consolidation. The system is going to be implemented next year. So more to come on that.

Cisco is our key hardware provider for all of our network systems and all our -- and that connects all the different devices that are in our homes, in our data centers, within our corporate environment as well that allows us to connect the entire world together, not only to our cloud systems, but all our different residences as well.

And then we need to protect all these systems. CrowdStrike is our key vendor that actually secures our endpoint devices to ensure that those points are safe. So our team ensures that the operational success of our overall strategy, and these are our vendors and our partners to help us do that.

But what about the future? What does that look like? And something that we've tried to do is to create a continuous culture of innovation. I think you've heard the concept of innovation through the previous presentations. And before I go forward, I have to kind of go backwards in time to 2019.

When we talk about innovation, it's a really interesting thing. You can't just go forth and innovate. That doesn't really mean much, and it's very difficult to do. You have to create an area. You have to create the environment in order for you to be successful at innovation. In order for you to be able to be curious and look at problems in a slightly different way, it's one of our principles that we have.

So back in 2019, I created something called ITS Innovation Challenge. And it was largely for my team where I divided up the group into smaller teams to tackle actual problems. And what this did was it allowed people to understand the problem, come up with a solution, come up with how to go about solving that problem and then actually present that. And that overall exercise, created a great collaboration opportunity for the team and also the ability to tackle these types of problems.

Fast forward to 2025, we expanded this out to be more of a corporate-wide event, where we had actual 6 different operational -- real operational problems, and we assign different teams to try to solve these particular challenges that we had. But what was incredible that came out of it was not only did we come up with some incredible solutions that we will leverage as we go forward.

But the overwhelming feedback I got was, it was incredible how much work we were able to get done in such a short period of time. And what that allowed is for me to understand that if you are focused on a particular problem, getting a dedicated team to be able to focus on just that problem, it's incredible how much work you're able to get done.

So hopefully, what we've done with this event is that people will go back to their different departments and take that to heart, the ability to solve problems with dedicated teams, it's incredible how much we can get done.

But that being said, I don't think I'm allowed to talk about innovation, and I think this is probably an actual rule without actually talking about AI as well. And I'm going to talk about this overall height that we have. And I think a lot of people may know about this, in some degree, going forward. But back in 2022, ChatGPT 3.5 came out and everybody kind of lost their minds. It was an incredible thing. I included when I saw this thing, it was amazing in terms of some of the things that it could do and the hype kept on growing.

In 2023, Microsoft released Copilot. There were billions of dollars being invested in AI. There was continuous amounts of new companies being sprouted, entrepreneurs going towards this. It was an amazing type of hype. And then come down to 2024, we started hearing a lot of other things. Is AI real? Is this a bubble? And I think I have to pause and say is that the hype that was happening in 2023 at its peak. I don't think it was even possible for you to be able to meet that expectation. It was insane in terms of the things that they were talking about, the capabilities of the particular product.

But now we're in 2025, and I truly see real value coming out of AI and the different software. We are actually implementing some of these ourselves, as you heard in the past. So in order for us to do that, we have to have an AI strategy. This strategy aligns perfectly with our overall business strategy, and that is key. But with any new emerging technology, we have to ensure that we have a proper governance process and policy to be able to support that, so we can implement these types of solutions in a safe and responsible way.

In order to do that, we have to ensure we educate not only our senior leadership, but our staff around the different benefits but also the different challenges around AI. And we leveraged something called the [ FASTER-P ] process. And these are principles that we leverage in order for us to evaluate not only the output that comes out of AI, but also the different tools and solutions that we use. And we have started to implement solutions with this, not only the ones that you've already heard about, but we implemented something PredictAP. This solution is largely an automation solution, but also leverages AI.

To set the stage, currently right now, we process about 26,000 different invoices on a monthly basis. And what this solution do -- will do is the invoice comes in through e-mail, we take -- we have optical character recognition, OCR that will read that particular invoice, take that information and put it into our system, eliminating a lot of the manual activity that currently occurs.

Some of you are probably thinking, Gord, that is so 2010. Like this is not brand-new technology. I've implemented these types of technologies in the past. The biggest challenge around any of these types of solutions, it takes months and months and sometimes even longer for you to be able to understand each one of the different invoices because every invoice is different. So in order for you to do that in the traditional way, you would have to automate your own -- automate yourself to how to go about doing this in order to take the information that's currently on an invoice and just put it into a financial system.

What's unique about this solution is the AI portion of it. We are providing it 2 years of data so that it can learn, the engine can learn about all the different invoices that we have in order for us to be able to start off right out of the gate with 2 years of learned data into their systems.

So instead of months and months and potentially years of a solution being put in place, we implemented this literally a couple of weeks ago. The whole process took about 10 weeks. So this is the value proposition around it. It's not so much the solution itself, but it's more so the speed of which we can get to value, and that's what AI does provide. But all the solutions that we talk about with AI, emerging technologies, we have to ensure we do things in a safe and responsible way.

We have a cybersecurity program that we have that is based on 6 different pillars, but I'm going to focus on 1 of them. One of the key ones is around risk. One of the metrics that we measure on a monthly, quarterly basis is we have 6 different buckets of area that we focus on, and we continuously monitor. These dials change depending on the risk in terms of understanding the threat levels that are currently out in the marketplace today. But in addition to that, as we add new defenses, programs and software continuously improve these dials will also adjust. It allows us to understand where we need to invest, where we need to not invest and understand where our risk lies.

But that being said, unfortunately, the softest part of any cybersecurity program is us, the human element of it. So we have to continually educate our staff about all the different challenges and threats that are out there. Cybersecurity month, October cybersecurity month, if you didn't know, October is cybersecurity month. And we released a bunch of educational fun videos that we had in order for cybersecurity to be front and center. So people can continuously learn and be reminded of the different challenges that are out there.

So just to conclude, we have a great, talented, focused team that we leverage multiple partners in order for us to be successful and deliver our overall strategic objectives. We have been driving a culture of innovation as best we can in order for us to leverage those particular skills so that we can deal with new emerging technologies such as AI. And all of that, that we have with the systems, the networks, the emerging technology, all has to be done in a safe and secure way.

Thank you. And I will hand it over to Adam Moy.

Thanks, Gord. And thanks, everyone, for coming out here and spending a little bit of time with Chartwell to learn a little bit about our business. My name is Adam Moy. I'm the VP of Property Management here at Chartwell. I've been in the industry since about 2009 in various roles. So both on operational side as well as the capital management and asset management side.

So I first want to take you through a little bit about my team. What we do a little bit unique here at Chartwell is, I oversee not only the operational side of preventative maintenance, risk and insurance and emergency management, but I also support the project management team, and really, when we think of project management on the property management level, we're thinking about offensive investment at the property level as well as defensive capital investment. And then the very important suite renovation program that we run here at Chartwell.

When we think about offensive capital investment, for better context, these are kind of numbers from our 2025 budget. But really, what that equates to you on an offensive investment side is we run anywhere between 8 to 12 accretive or growth or refresh projects within our properties on an annual basis. Some of these property -- or some of these projects will be multiyear and some of them were able to wrap up within a 12-month period. From a defensive capital investment side, we run anywhere from 300 to 400 strategic defensive projects on an annual basis. So really important. These are things like roofs, mechanical system investments and these sorts of things. So very, very important to make sure that we're maintaining a clean, safe environment for our residents.

When we think about suites, it's a big number, right? There's lots of investment that has occurred over the last 3 to 4 years within that space. And that really has been designed to support the occupancy growth here at Chartwell. As we come out of 2025 and transition into 2026, we're anticipating about a 20% decrease in investment in our suites with a shift into common area offensive projects. So while we see approximately a 20% decrease in suite renovation, we're actually seeing about a 50% increase in that common area accretive investment. So really important to think about those things.

When we think about that project management side, also important to note, we have our own internal interior design team. So we're not outsourcing to different design firms. We have our own group within Chartwell that drives some of these renovations. So pretty exciting stuff to be sure.

When we think about preventative maintenance supporting some of the investments we make on the property management side, it really fits hand in glove. So we think about best practices at the site level, so maintenance routines, those sorts of things for frontline staff. We also think about standard terms and conditions and scopes for our third-party service providers. So a very, very important focus there.

From a risk and insurance perspective, some great work happening there as well. You can see about a $5.6 million -- or sorry, $5 million to $6 million per year in claims. That equates to about 950 incidents that our team manages on an annual basis. And then emergency management, we know by this afternoon, these things come up, and it's important that we train our teams, both at the regional level and the site level to be ready and able to respond in an emergency.

So I want to spend a little bit of time taking you through how we invest in our properties from a renewal perspective. So when we think about investing into a property, it typically starts about 12 months before we actually get boots on the ground and start investing. We work with our operational partners. So some of the work that Colleen does. Do we have the right food programs? Do we have the right technology in place? Do we have the right programs? And how can we structure the renovation to support the living environment, think about ambience of the space. That's where our design team comes in, and then think about strategic investment in building systems that supports the resident experience.

And why that's so important is we want to -- when we finish a renovation, we're investing millions of dollars into properties, we want to be able to step away from that property for 3 to 5 years to let it operate, increase revenue and increase NOI. So really important, and this has served us extremely well in the last 3 to 5 years.

The approach is truly collaborative, as I spoke before. We take that interdisciplinary approach and really think about how do we build collateral within that community to get people excited about the renovation. So we talked about food programs. We did talk about resident experience as well, but also marketing comes in here as well to build that excitement as we're starting to renovate a property.

The really important component of this is we do this while we're occupied. So we do not decant our properties as we renovate them. So we work to maintain occupancy throughout the renovation, which allows us to continue to generate revenue as we move forward. So that top-down approach roof can't have that leaking envelope, systems and aesthetics, and we just work our way down from there. So very, very important, and it served us well in the previous years.

I want to talk -- take you guys through -- spend a little bit of time talking about investment philosophy here at Chartwell. So we think of capital investment at the property level through 2 lenses. So the first lens is a bit of a longer view. We operate off of a 15-year capital strategy. And what that allows us to do is look at not only building components like roofs, chillers, other components from a life cycle perspective and be able to map cash flow out. But it also allows us to go into renovations as you see on this top box here and inject the right amount of capital at the right times to make sure that we're keeping that renovation fresh.

So we strive to get anywhere depending on market conditions, anywhere from 10 to 15 years out of our renovation. You can imagine, if you walk away from that renovation and don't go back within a period of time and refresh the core, provide paints and do these types of upgrades, you start to lose that aesthetic. So really, really important that we're managing that and forecasting that capital.

More in the short-term view of capital investment. So this lower section here, it's a simple risk metric, so we apply to a 5-year outlook. So we simply look at probability of something occurring or failing and then we map that back to impact. So we focus on things that are going to have -- that are likely to fail as well as have a significant negative effect on operations. And this is really how we select that 300 to 400 projects on an annual basis. It really drives consistent investment, risk managed or risk-adjusted approach across the country. So again, serving us very well and really making sure that, that defensive capital is going to the right places on an annual basis.

This is the exciting part for me. This is some of the results that we see during our renovations. So Oak Ridges here is a great little property that we have here in Richmond Hill, 6 story, about 130 suites, built in 2012. As you can see, it's not in bad shape. Pretty good condition, doesn't require a huge uplift, but it was just time to give it a bit of a facelift and clean it up. So you can see by the results. These are some of the results of the internal design team just going there and injecting the right amount of capital into the right places.

So again, not tearing down walls and reinventing the wheel, but focusing on areas like the entrance way, lounges, elevator lobbies to really create that new fresh environment and the result pre- and post-renovation really speak for themselves. So going from 75% to 91% occupied with an increase in NOI of 17% post renovation. So great, great results on this renovation.

This one, Valley Vista actually is interesting. I think Vlad spoke about it as one of our special communities from a culture perspective. Again, 6-story property in -- located in Vaughan, built in 2009, about 140 suites, a little more vintage. I think we can agree on the carpet and the cafe. So definitely was time to do some modernization work here. The unique thing here is we executed on defensive capital at the same time. So we invested about $650,000 in a roof project, HVAC replacements and upgrades as well as a full kitchen renovation to make sure that we were supporting the food program.

Where that landed us post-renovation, again, 81% to 97% and a significant growth in NOI post-renovation. Happy to share at the end of this year, we're just about at 99% stabilized occupancy here with the NOI -- or an anticipated NOI at about 30% lift by the end of the year. So really, really great results at this property.

The next thing I want to take you through, I spoke a little bit about risk management and how we manage our insurance claims and how we try to target investment in strategies around reducing that insurance spend year-over-year. We operate -- we use live data to be able to track that. So we look at month-over-month, quarter-over-quarter where we're having losses within the organization, both from a site perspective, but a geography perspective, and we tailor our strategies around those losses. So that we can anticipate capital investment in those areas to reduce risks in specific areas as well as target training programs and preventative maintenance programs across the portfolio to support that.

So, how we maintain something in, say, Northern Alberta or in a cooler market is different than what we do in Windsor. So important to kind of think through those things. And this really -- this approach allows us to do that.

And last, but definitely not least, is around sustainability and environmental responsibility. This is a core value for Chartwell, very, very important to what we do. We're really happy to announce that in 2026 we've engaged in a new strategy when it comes to environmental responsibility. And there's really 3 core components of this strategy. The first is really a continuation capital investment at the site level. We look to improve efficiency over time, so buying the right HVAC equipment, putting in the right rooms and envelope systems to increase efficiency of the properties, while leveraging local and national rebate programs.

The second pillar around energy management. This focuses around benchmarking, not only within our own properties, so against similar archetypes, but industries as well. So this -- leading into 2026, we're really excited. We're going to be able to benchmark against other retirement operators and start to understand how we're performing in the market and start to target strategies to reduce energy on a per suite basis. So some great work happening there.

Last but not least, in this strategy is waste management. So something that is -- has a bit of an ick factor, but is really, really important, there is no away in waste management. All of this goes somewhere. So our waste management strategy focuses on reducing diversion as well as processes and the way that we move waste to our properties. So again, looking forward to seeing some of the results as we cycle through 2026 on that.

And with that, I'll pass it over to Jonathan.

Hi, everyone. I'm Jonathan Boulakia, I'm Chief Investment Officer and Chief Legal Officer here at Chartwell. And I've been here for 18 fabulous years. When I started, I was a very young General Counsel hired in here. And the title sounds way more impressive than it actually was at the time because I was a department of one. But I am here now to talk about our growth strategy. So let's talk about it.

So our growth strategy here at Chartwell is centered on 3 pillars. So the first pillar is acquisitions. We've traded on the buy side and sell side. We've traded approximately $3 billion of assets in the last 2 years. And we focused on the growth side, we focused our growth on our core markets and on urban markets within that core. We've acquired newer, larger, more efficient properties. And we generally like when we're buying or developing properties, we generally like continuum of care properties. So a continuum residence would be a residence that has options for fully independent seniors and for seniors who require light or heavier care.

As Karen mentioned earlier, our vision is making people's lives better, and we really believe that giving our residents options is important for them. So for the past 2 years, we've been buying many properties. We've been very acquisitive. And we've generally been buying newer properties well below replacement cost.

Our second pillar is development. So although we've been buying, we know that we're at a point in the real estate cycle where we have many acquisition opportunities. But that -- those conditions won't last forever. So we're laying foundations for an important pipeline of new properties so that our portfolio remains current and relevant for many years to come. Certain developments are penciling out now, and we've actually commenced construction on those and they're generally on properties for which we have excess land.

At the same time, we're entering into strategic partnerships across the country for off-balance sheet development. So we have case specific variations of that off-balance sheet development. and of those development partnerships. So for some, we will put in a little equity and for others, we won't. For some, we might be a mezz lender and others we won't. They will vary from deal-to-deal, but the one common element is that they are there to provide us with a pipeline of new state-of-the-art assets. That's the goal.

These partnerships are generally with vertically integrated developers and who have some skin in the game. What we've learned is that it's pretty important for us to be perfectly aligned with those developers. So we like to have equity partners on these development projects.

Our third pillar is optimization, which we've talked a little bit about, we're equally focused on future protecting our portfolio. Non-core assets have been and will continue to be repositioned or sold. So Adam just spoke about some of our successful repositionings, and those are going to continue. We're continuously reviewing our portfolio. Non-core assets have been identified for a variety of factors, including local market conditions, location, local competition, inbound development, their size, future CapEx requirements and general efficiency.

As I mentioned, in the past 2 years, we've grown in all of our core markets. We've acquired 38 properties or announced the acquisition of 38 properties, representing over 9,000 suites. And as I mentioned, we have close to $3 billion of acquisitions, dispositions and announced developments. The average cost per suite acquired is just under $300,000. This map also includes 4 development projects already in construction, 1 in Alberta funded by a mezzanine loan and 3 in the Greater Montreal area. We expect our acquisitive trend to continue.

Let's contrast our existing portfolio with our recent acquisitions. We're making a concerted effort to refresh our portfolio with newer, larger and more efficient properties. The average age of our 2024 and '25 acquisitions is 7 years. As I mentioned, we also have 4 developments that have commenced construction and that will come online in the next 2 years. Continuation of our development pipeline and strategic acquisitions, coupled with our optimization efforts will continue to bring the average age of our portfolio down. Average size of our residence is up and it will help maintain our high occupancy levels and ensure relevance for our portfolio for the mid and long-term.

As I mentioned, we have an important pipeline of off-balance sheet development with over 6,000 suites currently contemplated and at various stages of negotiation and readiness. This map highlights our purposeful approach to building this pipeline. Some of these projects on the map are ready to go or actually in construction. Some are still being negotiated. And some of these represent excess land with identified potential. All of these projects though are real, meaning the land is there, the partners are lined up or are being lined up and the plans are in place or in the works. We expect 2026 to be a pivotal year for commencing a meaningful number of development projects.

On screen, you'll see some pictures of some of the fabulous properties we acquired in 2024, and I'll just highlight just a few of them. So Chartwell Le Prescott, which is in the top row, was acquired from our partner, Batimo, in Quebec. We were involved in the site selection, design and oversight of the build. We've now commenced construction of Phase 2, which includes more retirement suites and senior apartments.

Chartwell Jules Verne, the third row on the left, we own this property 50-50 with the vendors, but we expect to buy them out of this and 4 other properties in the next 3 or 4 years. This new complex also includes senior apartments. Chartwell Edgewater, which we expect to open in the next couple of weeks, you can see on the bottom row. This was a forward purchase and is adjacent to a memory care building, which we acquired at the same time, creating a campus of care.

This high-end independent living residence is waterfront and boasts incredible views of Long Lake in Nanaimo. Chartwell Edgewater and Chartwell Vista, which also boasts incredible views of the harbor in Esquimalt are our first entry into Vancouver Island after a multiyear absence.

And here are 2025 acquisitions. Some of these will likely close in 2026. And there are a few more that I'd like to highlight. Chartwell Rosemont in the top left corner, is a large complex with various amenity and service levels located centralized in Montreal. Chartwell Angrignon in the top right corner, is a large older complex, also in Montreal that we believe has maintained its shine and with some CapEx dollars, will be very well positioned for growth well into the future.

Chartwell Victoria Harbour represents further expansion on Vancouver Island in a centralized location, just steps from the Fairmont Empress hotel. Riverstone in London, which we expect to close in 2026 is a cutting-edge sustainable complex that features solar panels to create a mini grid for the surrounding community. So this is a really great ESG initiative for Chartwell. And finally, Chartwell Panorama and Azalis, in the bottom right corner, which we just announced, are also located in the Greater Montreal area. And these are the tallest buildings in our portfolio at 31 and 30 stories, respectively.

So we clearly see a unique opportunity for growth in our markets. We're buying at attractive pricing. Debt and equity markets have been available to fuel that growth and the cost of construction and interest rates are more conducive to development. Market rate growth also helps. But we want to ensure that this growth is done responsibly and without straying from our strategy. So we introduced parameters for that growth. These aren't rules. There might be some exceptions for the right deal, but these are the guidelines we're going to live by.

We won't dilute our FFO by more than 5% in any given year for the aggregate of our acquisitions of non-stabilized properties and on balance sheet development. We won't commit more than $200 million in any given year to the on-balance sheet development. Our maximum annual exposure to forward purchases of assets is $500 million. Our maximum total aggregate exposure to forward purchases of assets is $1.5 billion.

We won't expose more than 10% of our balance sheet to a single partner. Our maximum mezzanine loan volume, as a lender, is $75 million, with half of that as a single borrower limit. And we will not pursue more than $500 million of development with a single developer at any given time. And we think that these parameters will allow for our continued fueled growth but at a responsible pace.

Thank you. I'll turn it over to Shari, I think, to wrap it up.

Thank you, Jonathan. Good afternoon. I'm Shari Lafontaine, SVP of Finance. I've been with Chartwell for 18 years now, holding various responsibilities within the finance team, but the majority of my time has been focused on financial planning and analysis.

Today, I'll be sharing details on how we think about capital at Chartwell, including how we evaluate our capital requirements and how we assess various capital sources to meet those requirements. The last couple of years have been extremely active for Chartwell, the busiest in the company's history, both on the capital market side and on the acquisition and development side. Over this period, we've increased our exposure in the debenture market by $550 million. We now have $800 million outstanding, which represents 27% of our debt stock. We've also been leveraging the ATM tool to support property acquisitions and have raised $500 million through this program.

In 2024, we did the largest spot deal for any real estate company and this capital supported two portfolio acquisitions. In addition, we have increased our mortgage financing by $1.2 billion. Overall, we've raised $2.6 billion of capital over the last 2 years. We've used this capital to purchase $2.4 billion of properties, and that's our share, including both completed and announced transactions. We have funded our development pipeline to the tune of $190 million and have supported the sustainment of our portfolio through CapEx investment of $180 million.

So how do we think about deploying capital and how do we evaluate capital allocation choices? What guidelines are we assessing when we evaluate projects? Jonathan discussed the guidelines for growth on external capital deployment. In addition to those guidelines, what is really important to us from a financial perspective when we're making decisions about deploying capital at individual -- for individual projects is, number one, is it accretive to FFO per unit on a stabilized basis. And number two, does the unlevered IRR of the investment exceed our weighted average cost of capital. We believe that if we can meet these 2 critical financial measures, we will continue to be able to invest capital externally to support our robust FFO growth targets.

Okay. So how do we think about capital deployment for internal growth? We spend over $100 million of total CapEx annually. It's not always easy to distinguish what is maintenance CapEx that sustains our portfolio and what is accretive CapEx that enhances the property's ability to generate NOI. When we're looking at suite upgrade programs or accretive projects in our properties and evaluating which properties will get the capital, we look at business cases and compare the ROI. Generally, we're looking at whether the forecasted rent differential generated by the investment is higher than the net present value of the investment.

The final pillar of capital deployment is our unitholders. After our cash flow from operations covers our capital needs for internal growth and sustainment, what we have left over is available for distribution. For many years, pre-pandemic, we sustained distribution growth program with steady annual increases, and that is something we strive to return to. We have pegged a 60% payout ratio as a distribution level that will yield sufficient cash flow to support our ongoing growth, while covering both our CapEx requirements and distributions to our unitholders.

So what capital sources do we have access to? And what criteria do we use to assess which ones to utilize? We have several different levers we can pull to access capital. We have equity, cash flow generated from operations, cash proceeds from non-core property sales and equity capital markets. Then there's debt. We've got term loans, credit facilities, mortgages and the debenture market. And we also consider other sources of capital, including our development and joint venture partnerships.

As we forecast and model out our capital requirements, the decision criteria we're looking at when marrying up the sources with our needs, our cost, and this includes both issuance costs and dilution.

Leverage. While we don't typically look at leverage on a deal-by-deal basis, how we finance each acquisition or capital requirement does impact how we're trending towards our 7.5x debt-to-EBITDA ratio targets. And there's flexibility. And when we say flexibility, we're really thinking about how restrictive the form of capital is. For example, it could be on covenants or terms or future amendments. And lastly, we're looking at availability. Current and future availability of capital is a big consideration. As we know, our ability to access different capital markets can open and close often with little notice.

When it comes to our debt alternatives, there are benefits and drawbacks of each. Term loans for us are mainly used for short-term bridge financing. Conventional mortgages are only typically used where properties are not stable enough to have CMHC financing or when there's a partnership or a strata in place. The CMHC financing and debentures. These are Chartwell's main sources of debt financing and where CMHC financing is favorable on cost and availability. Debenture financing is favorable on timing and flexibility. It's a matter of balancing these criteria based on the environment we find ourselves in.

So cost, we know it's a big determinant in our choice of debt alternatives, and it does vary considerably. For example, with debentures, our pricing has come down significantly over the last 2 years. Our spreads have reduced by over 100 basis points. And given they don't amortize, it can be a very cost-attractive option on a net present value basis. Historically, CMHC financing is our lowest cost debt financing even after you include the added cost of the insurance premium.

Then we look at flexibility and debentures are our most flexible source of debt financing as they're not secured by a specific property. This gives Chartwell flexibility when it comes to supporting our portfolio optimization strategy.

Timing, that is also a consideration. When the debenture market is available to Chartwell, the time to fund this capital is relatively quick. Whereas CMHC financing can take 3 to 6 months, depending on the underwriting process and the request backlogs.

Finally, we're looking at availability and through all the cycles that Chartwell has been through, including the pandemic, CMHC financing has always been open to us, whereas other access to other forms of debt can change with market conditions. We continually evaluate these 4 criteria as markets change, but do expect that CMHC financing will continue to be the most favorable debt financing source for Chartwell, and we'll continue to make up the majority of our debt stack.

So last but not least, I think we've all said that on our slides, equity alternatives. Firstly, we're utilizing free cash flow. We have it on hand. There is no need to fund it from anywhere. There's no incremental cost associated with it. The more we can generate free cash flow, the more profitably, we can generate growth. After free cash flow, we'll look to fund growth through our portfolio optimization strategy where we're selling non-core properties and reinvesting those proceeds in newer, larger, more efficient properties in core markets.

Our third and fourth options are the ATM program and bought deals. We would always love to use the ATM program over a bought deal, just given the differential in the cost between the 2, but that decision is actually probably more of a function of the size of our capital need. So ATMs are great for individual property acquisitions and a bought deal is more appropriate for larger portfolio acquisitions, and that's precisely how we've been using the equity markets over the last 2 years.

And with that, I will hand things over to Vlad.

Thank you, Shari. Well, that concludes our prepared remarks. I want to thank all our presenters today. Great job, guys. Really appreciate it. Thank you.

Hello, and welcome to the Chartwell Third Quarter 2025 Results Conference Call. My name is Regina, and I will be your conference operator today. [Operator Instructions]

I'd now like to turn the conference over to Vlad Volodarski, CEO. Please go ahead.

Thank you, Regina. Good morning, and thank you for joining us today. There is a slide presentation to accompany this conference call available on our website at chartwell.com under the Investor Relations tab. Joining me are Karen Sullivan, President and Chief Operating Officer; Jeffrey Brown, Chief Financial Officer; and Jonathan Boulakia, Chief Investment Officer and Chief Legal Officer.

Before we begin, I direct you to the cautionary statements on Slide 2 because during this call, we will make statements containing forward-looking information and non-GAAP and other financial measures. Our MD&A and other securities filings contain information about the assumptions, risks and uncertainties inherent in such forward-looking statements and details of such non-GAAP and other financial measures. More specifically, I direct you to the disclosures in our Q3 2025 MD&A under the heading, Risks and Uncertainties and Forward-Looking Information for a discussion of risks and uncertainties. These documents can be found on our website or on the SEDAR+ website.

Turning to Slide 3. Q3 2025 marked our ninth consecutive quarter of double-digit growth in same-property adjusted NOI and FFO per unit. These outstanding results reflect our team's unwavering focus on delivering exceptional resident experiences, driving operational efficiencies and expanding our portfolio with high-quality assets in strong markets. I am extremely proud of their accomplishments and confident in their continued successes.

Looking ahead, we expect continued growth in occupancy and cash flows in 2026 and beyond, supported by robust demand and limited new supply in our markets. More importantly, this growth will be fueled by our innovative operational sales and marketing strategies. We remain committed to enhancing our portfolio through strategic acquisitions, building a future growth pipeline via development partnerships and divesting noncore assets. We're also committed to continuous improvements in how we support our residences teams, regularly reviewing our processes, implementing new technologies and automation, including a responsible use of artificial intelligence tools.

We are looking forward to sharing with you more details on our 3-year strategy, Chartwell 2028, at the upcoming Investor Day next week. Today, my partners will provide you with more color on various aspects of our business. Karen will do an operating update, Jeff will dive deeper on our Q3 financial results, and Jonathan will discuss our portfolio optimization and growth activities.

Karen, over to you.

Thanks, Vlad. Moving on to Slide 4. We had another strong quarter of leasing activity with a positive net permanent move-in to permanent move-out of plus 104 units with an increase in both leases and permanent move-ins compared to Q3 2024 and continued growth in occupancy in all four provinces.

We held our fourth and final 2025 open house event in September with over 1,400 new prospects visiting our homes, creating a strong pipeline to support continued growth in Q4. We continue to implement property-specific marketing strategies, including focusing on each home's unique selling feature that makes them stand out in their local community. During the quarter, our marketing contact database grew by another 10,000 people with the total reaching over 175,000.

We garnered a significant amount of earned media attention in Q3 based on positive local community stories and Chartwell's Wish of a Lifetime national fundraising events held this past summer. The collective efforts of our homes helped raise over $160,000, which will allow us to continue to grant wishes to seniors across the country. With an increasing number of our homes reaching 100% occupancy, we also recently introduced a waitlist strategy to keep prospects interested while they wait for a suite or a specific type of suite to become available.

Turning to Slide 5. We reduced our staffing agency costs by 66% in Q3 2025 compared to Q3 2024 through our continued focus on recruitment and retention activities.

I'm also very proud to say that we reached our goal of 67% very satisfied residents, according to our most recent survey results, which are conducted by Sensight, a U.S.-based company that specializes in seniors housing. This means that over 2/3 of our residents have -- gave us a score of 5 out of 5 on their overall satisfaction with their home as well as the likelihood that they will recommend their Chartwell home to others. Our combined satisfied and very satisfied score is 88%. Sensight administers surveys annually to over 77,000 residents in -- sorry, 881 homes across 21 companies. The average score in 2025 of very satisfied residents in these residences was 51% compared to our score of 67%.

Finally, I want to share examples of our ongoing efforts to develop property-specific strategies in two of our Toronto homes. First, Chartwell Grenadier, which is a large 257-unit residence in Toronto's High Park neighborhood, is in the final stages of a renovation project for their 73-unit assisted-living and memory care tower. The occupancy in these units has now reached 96%. We have plans to continue to renovate the rest of the building in 2026 and 2027, to increase overall occupancy and offer a variety of service levels to meet the evolving needs of residents in this busy urban community.

Chartwell Lansing, a smaller 90-unit home in North York, started the year at 75% occupancy and in September reached 100%. We have also made investments in interior upgrades to the common areas in this property, and the management team continues to focus on providing services for residents in this multicultural Toronto neighborhood.

I will now turn it over to Jeff to take you through our financial results.

Thank you, Karen. As shown on Slide 6, in Q3 2025, net loss was $5.2 million compared to net income of $23.6 million in Q3 2024. FFO grew to $73.1 million in Q3 2025, an increase of 30.8% compared to Q3 2024. Our reported FFO does not include $1.7 million or [ $0.005 ] per unit of income guarantees related to recently acquired properties. Q3 2025 FFO growth benefited from higher adjusted NOI of $22.1 million, higher adjusted interest income of $1.5 million and higher other lease revenue of $0.8 million, partially offset by higher adjusted finance costs of $3 million, lower management fees of $1.9 million, lower other income of $1.4 million and higher G&A expenses of $0.9 million.

In Q3 2025, our same-property occupancy increased 470 basis points to 93.1%, and our same-property adjusted NOI increased $10.2 million or 15.8%.

Slide 7 summarizes our same-property operating results for each platform. All of our platforms posted occupancy gains in Q3 2025 compared to Q3 2024, and all are now operating above 90% occupancy, which positively impacted our results.

Our Western Canada platform same-property adjusted NOI increased $2.7 million or 13%, our Ontario platform same-property adjusted NOI increased $5.3 million or 14.8% and our Quebec platform same-property adjusted NOI increased $2.2 million or 28%.

Turning to Slide 8. At November 6, 2025, liquidity amounted to approximately $508 million, which included $113 million of cash and cash equivalents and $395 million of borrowing capacity on our credit facilities. During the 9 months ended September 30, 2025, we raised $480.5 million of equity through our ATM program at an average price of $17.86, which helped support our transaction activity. And we continue to improve our leverage metrics with interest coverage ratio growing to 3.2x, and our net debt-to-adjusted EBITDA ratio declined to 6.9x.

For the remainder of 2025, our debt maturities include $151.1 million of mortgages with a weighted average interest rate of 4.39%. As of November 6, 2025, we estimate the 10-year CMHC-insured mortgage rate to be approximately 3.89% and the 5-year unsecured debenture rate to be approximately 3.87%.

I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Thank you, Jeff. Turning to Slide 9. We continue to execute on our portfolio strategy of enhancing our asset base to generate increased quality NOI. On October 1, 2025, we acquired a 100% interest in the 449-suite Les Tours Angrignon in Montreal, Quebec for $88.5 million. The three-tower complex, rebranded Chartwell Les Tours Angrignon, offers a mix of independent and assisted-living accommodations. The purchase price was partially settled through the assumption of the CMHC-insured mortgage of $68.7 million, with the remainder of the purchase price subject to normal working capital and other adjustments paid in cash.

On November 1, 2025, we acquired a 100% interest in the 376-suite Residence L'Aubier in Levis, Quebec from Batimo for a total purchase price of $128.2 million. Located in proximity to numerous local amenities, the residence boasts state-of-the-art indoor and outdoor amenities for its residents. It opened in June 2024, enjoyed a rapid lease-up and is currently 82% occupied. Chartwell has managed operations at this residence since its opening. The purchase price was settled in cash and the repayment of a $10 million loan extended by Chartwell to Batimo. A portion of the purchase price is being held back to support vendor NOI guarantee obligations to Chartwell.

On November 3, 2025, we acquired a 100% interest in Residence Panorama in Laval, Quebec for a purchase price of $76 million. Residence Panorama, now rebranded Chartwell Panorama, includes 206 IL and 32 AL suites as well as 49 individually-owned condominium suites in a 31-story tower overlooking the Riviere-des-Prairies. Built in 2018, the residence offers exceptional views, state-of-the-art amenities and well-designed spacious suites. The residence is currently 98% occupied.

We expect to acquire Residence Azalis located in Repentigny, Quebec before year-end. Residence Azalis, to be renamed Chartwell Azalis, includes 304 IL and 30 AL suites in a 30-story tower, overlooking the St. Lawrence River. Built in 2021, the residence offers exceptional views, state-of-the-art amenities and well-designed spacious suites. The residence is currently 97% occupied. The purchase price of $111 million, before closing costs and working capital adjustments, will be settled in cash.

In addition, the previously announced acquisition of a portfolio of six senior housing communities in Ontario is expected to close once third-party approvals are in place, likely in Q1 2026.

To date, in 2025, we have completed over $1 billion of acquisitions with further committed investments of $700 million for completion in 2025 and early 2026 on the heels of approximately $1 billion of acquisitions in 2024. We are also actively engaged in discussions with local and national developers across the country to restart our development program and create a meaningful pipeline of state-of-the-art assets to bring into our portfolio. We will pursue such developments in a prudent manner with a preference for off-balance sheet development, similar to our arrangement in Quebec.

Further to this initiative, Chartwell announced the development of the 111-suite Chartwell Kingsview Retirement Residence in Calgary with an advance of $4.5 million of the total committed $6.5 million mezzanine financing to local developers. Chartwell will be the operations manager of the project and will have a call option to acquire the residence on stabilization. The project is in an affluent residential area of Calgary in proximity to various neighborhood amenities and will feature self-contained IL apartments and an attractive amenity package.

As I've noted, we have invested significant financial and management capital pursuing acquisitions in line with our strategy and have initiated new development projects to support a strong pipeline of future property growth. We have also identified properties within our portfolio that no longer fit our core strategic focus due to their location, size, age and our service offering. These noncore properties represent approximately 5,700 suites. We intend to pursue dispositions of some or all of these properties as market conditions allow, with proceeds expected to be used to support future development and acquisition activity that's in line with Chartwell's current strategy.

I'll turn the call back to Vlad to wrap it up.

Thank you, Jonathan. Slide 10 highlights the strong fundamentals driving our industry. We believe we are at the front end of what is going to be a multiyear period of growth in retirement living in Canada.

Demand for our services should continue to grow for decades driven by the senior population growth. Forecasts show that to maintain supply-demand balance, the sector would need to build 200,000 suites in the next 10 years, which is almost 3x the number of suites built in the previous 10 years. With high construction costs and aging inventory, supply shortages are likely to persist, supporting higher occupancies, rental and services rates and profitability of the existing operators. As one of the largest participants in the senior living sector, Chartwell stands to benefit from these dynamics.

Turning to Slide 11. We are not just waiting for the rising tides to lift our boat with others, we are taking decisive steps to pursue operating excellence, future-proof and grow our portfolio and prudently manage unitholders' capital. Some of the examples you heard today from Karen, Jeff and Jonathan, there are many others that we hope to share with you over time.

We are looking forward to sharing our Chartwell 2028 strategy, financial objectives and risk management guidelines as well as the details of our key operating investment capital and risk management initiatives at our upcoming Investor Day on Thursday, November 13, 2025, at 1:00 p.m., which will take place at our beautiful Chartwell Hub. At this event, you will have an opportunity to hear from several Chartwell leaders, participate in a Q&A session and interact with Chartwell directors -- executives and directors over a beverage of your choice. If you have not done so, please register for the event. Details are on our website at investors.chartwell.com under Press & Market Information tab.

I will now close our prepared remarks with a story from one of our residences as pictured on Slide 12. At Chartwell Heritage Valley, one small act of kindness grew into something extraordinary. A resident visiting his wife in memory care asked if he could paint a few walls, wanting to help and contribute. That simple gesture sparked a wave of engagement throughout the residents. Soon, residents were volunteering across the community, helping with bingo, newsletters and events.

The team created a Resident Volunteer of the Month program, and from there, two resident-led clubs were created, a choir and a drama club. Their first original play, Old MacDonald's Farm, written and performed by the residents, brought laughter, pride and connection. So much so that they took the event on the road to another Chartwell home. Moments like these remind us what Chartwell is truly about, people finding purpose, joy and belonging to a community.

Thank you for your attention this morning. We would now be pleased to answer your questions.

[Operator Instructions] Our first question will come from the line of Lorne Kalmar with Desjardins.

I'm just looking at the drama club rehearsal picture here, and it looks awesome. On -- just maybe on the rent growth side of things. Now you're going to get to -- slated to get to 95%. I think you're still kind of high 3s on the rent growth side, when do you see that starting to pick up? And sort of what do you see the cadence of the rent growth looking like over the next couple of years?

Thanks, Lorne. So items that impacted a bit the rental rate growth this quarter, in particular, was the annualization of the incentives that were put in place over the last couple of years or last year in particular and this year to help with the occupancy growth as we continue to have more and more homes reaching that 95% occupancy. Our expectation is that these incentives will be pulled out. And in fact, when we look at the new incentives granted this year, they've actually already started coming down compared to last year, and we expect that trend to continue.

In terms of the kind of more longer-term rental rate growth, our expectation is that in the environment where there's demand growing and supply is not, we will have an opportunity to increase market rents at a faster pace. We will certainly limit the increases to the existing residents at a more historical level, which is inflation plus a little bit, to compensate for the increase in the labor cost that we're experiencing across the sector, but market rate, we expect them to grow faster.

Okay. And can you maybe just give us a little bit more color in terms of what the incentives are that are kind of rolling off and where you see them going, I guess, next year?

So today, the overall incentives are about 5% of revenue. And so as we continue to remove those incentives in the homes that are achieving higher occupancy levels, that overall number will start coming down, and that will contribute to the overall rental rate growth over time.

Okay. Perfect. That's very helpful. And then maybe just one last one for me. Obviously, you guys had some pretty meteoric earnings growth. Has the Board talked about a potential distribution bump here?

The -- our intent is to begin distribution increases and then maintain those increases over the year, similar to what we've been doing pre-pandemic. If you recall, I think we started our distribution increases back in 2014, and we continued growing them every year all the way up to 2020. And then during the pandemic, we chose to maintain the level of distributions. We feel like we are getting to a point where our cash flow fully covers distributions and capital investments that we need to make in our properties, and our expectation is that we will start growing distribution increases. I can't tell you exactly the timing of it just yet, but that's certainly the intent.

Our next question will come from the line of Jonathan Kelcher with TD Cowen.

First question, just on the acquisition, you guys obviously very active this year, and you're just recharging the ATM now. How would you say the pipeline looks over the next few quarters?

We're actively working on that pipeline. As I mentioned, we have two kind of pipelines going. One is on the development side where across the country, we're active -- in active discussions with local and national developers, so that we can address that pipeline for maybe when the real estate cycle isn't as robust on the acquisition side. And on the acquisition side, we are seeing a number of deals, and we think we have a decent pipeline going both on the 1s and 2s type deals and also on the portfolio side.

Okay. And by across the country, you mean in your existing geographies, correct? Or you are looking at new stuff?

Correct.

Okay. And then secondly, you talked a little bit about renovations, given the Grenadier as an example. How do you pick homes for that? And what type of returns do you target on those investments?

I'll take that one. So there's different levels of renovations and the ways we look at them. In some cases, we renovate properties that have been operating for a period of time and now due for renovations. And our approach to that is instead of doing sort of a little bit here, a little bit there, to renovate the whole property at the same time, sometimes it can take more than 1 year just because of the size of the undertaking, and we are trying to do it in a way that minimizes as much as possible the disruption to the existing operations and the residents. So that would be one approach.

The other approach would be when we holistically look at the properties that may not need to be fully renovated just yet and looking at the potential of repositioning those properties in the marketplace. So Grenadier would be a good example of that. Over the years, we've been investing in this property. It looks wonderful already. We just feel that given its location and the potential, that property is being now under significant review for significant renovation and repositioning. Renovation of the assisted-living neighborhood that Karen talked about is completed, and there will be potentially or likely other phases of renovations for these properties, which will take quite a few years. And we will be targeting pretty good returns on these through the increase in market rates over time. And those renovations also will make the operations of the buildings more efficient, so there may be some opportunities on the expense savings over time as well.

Okay. So do you sort of -- it sounds like the first bucket is sort of almost a maintenance CapEx, just given the property's age, and the second one is more of a push NOI on an existing basis. Is that a good way to think about it?

Not necessarily because when the property is completely renovated, even just because it was due to be renovated, there are still opportunities to drive higher market rate increases over time because it becomes just so much more attractive to the potential customers. It's just the timing of the execution of these projects coincided with the timing, effectively the existing sort of aesthetics getting to the end of their useful life. In some cases, we would renovate buildings even before that is the case.

Our next question will come from the line of Himanshu Gupta with Scotiabank.

On your same property occupancy, I mean, it looks like you have reached that 95% target for December. What is the next goalpost from here? I mean how do you keep the sales team hungry or motivated from there?

Yes, it's a great question. So just to remind you, our turnover is about 30% across portfolio. So they have their work cut out for them even without the occupancy growth, there is quite a bit of units to be leased every year. Anyway, the conversations that we're having with our teams in the field and our sales teams corporately that supports them, is that the target for each individual property should be 100% occupancy with a healthy waitlist. Now we are under no illusion that this possible to be achieved across 160, 170 residences across the country. So I wouldn't want you to start putting that in your models. But certainly, everybody is motivated to drive to that number.

And so we've -- and again, we'll talk about it at the Investor Day even more, but we're putting changes in place, both in the compensation side of things and the training side of things, Karen mentioned about waitlist, management strategies. So there are a number of strategies that are being put in place to help people to continue to focus on replacing units that are turning over every year and continue to grow occupancy as much as possible.

Got it. And just to follow up there. Do you have a sense what is the occupancy for your immediate competition in your same-property portfolio? I mean, what I'm getting at is that is there still opportunity to take the market share from your competitor from here? Or do you think they are also at very similar levels or kind of...

It's very hard to answer that question, Himanshu, because it's so local and case specific. With the current environment where there is -- demand is growing, and supply has not been, I think there's enough for everybody to run high occupancy. What we're trying to do with our portfolio through all these portfolio optimization and growth initiatives is to position it in such a way that we can continue to maintain market-leading occupancies in everywhere where we operate. And so that would be our target.

Okay. Fair enough. Switching gears to same-property expenses here. I think it was kind of up like 4% on a year-over-year basis in Q3. Agency staffing is obviously down. I mean, good progress there. How should we think about same-property expenses into next year, like a similar 4% range or more like 3% to 4%?

Himanshu, we think, we do have still some occupancy-related increases in our DOE this year. So we'll have some of that next year as we have the sort of annualization growth of 95%, but less so. So we think we should be able to have a lower growth level in DOE next year.

I would mention on that, Himanshu, there continues to be some pressure on compensation costs for our employees pretty much in all of our markets. The intervention by the government during the pandemic years continues to impact or sort of lagging effect of that continues to impact wage rates across the country. So our expectation is the 2026 compensation cost will be higher than what we've got used to historically, where historically, these costs increased by 2% to 3% a year. Now we've seen several years of 4% or 5% increases, and we're probably going to see at least another year of that given the dynamics in the labor market.

Got it. Fair enough. Last question is on the recent acquisitions. I look at Panorama and Azalis, I think both in Quebec, fully stabilized occupancy. So what kind of NOI growth do you expect on these acquisitions? Or like what kind of IRRs did you underwrite for like these stabilized acquisitions here?

We think that these properties improve the overall quality of our portfolio. And even though they do not have a lot of room to run on occupancy growth, our ability to increase market rates over time, we think is going to be better in these homes than in some of the existing homes that we operate that are older in the similar markets, and we certainly feel and see some accretion to our cost of capital from the IRR perspective on a 10-year basis from these acquisitions. Otherwise, we would not be doing them.

Yes. No, fair enough. And is it like more of a value angle here? Like I see all these two, three acquisitions are around $300,000 per suite or per unit. I mean, what's your estimate of replacement cost for these units? Is that the biggest rationale to go for these acquisitions?

Yes. They're still done at significant discount to replacement costs. Jonathan mentioned that we started two development projects in Montreal -- in Quebec -- well, yes, both of them are in Montreal, Greater Montreal area, where we're building additions to the existing residences. And even though you are not building a lot of common areas, these are just unit additions. So the construction is a bit more efficient than on a greenfield development, the cost of these additions are significantly higher than $300,000 a door.

Our next question will come from the line of Giuliano Thornhill with National Bank Capital Markets.

I'm just wondering on the waitlist that you mentioned at the beginning, kind of like how long is the waitlist there and what markets that's in? And what's kind of the gap to in-place to market rent that you're seeing for those properties?

So again, it varies location by location. There may be more properties that have waitlist for a certain number of -- for certain type of units, they may not be having 100% occupancy everywhere, but people waiting for specific types of units, and there are some properties that have waitlist for all kinds of units.

A lot of these properties located in, for example, in British Columbia, that market has been underbuilt for a period of time. And so many of our homes in that market have robust waitlists. And in those homes, market rates go up by at least high single digits, more often than not in low double digits. So that's to give you a sense of the gap between the in-place rents and market rents.

Okay. And is there any like cadence for the number of homes that you could provide or -- that are kind of in that -- in, I guess, fully occupied waitlist area?

Well, in the same-property portfolio, it's close to 10 homes that are now at 100% occupancy, and there's probably another 30 homes that are between 95% and 100% occupancy.

Okay. And then just turning to the disposition candidates. I think last call, you kind of provided a rough estimate of 3,500. Now it's gone up to -- 3,500 to now 5,700. I'm just wondering what's the delta attributed to there?

We continue to review our portfolio and sort of the types and the qualities of properties that we own and reevaluate our approach to determine what we consider to be noncore is also driven by the acquisition opportunity, both completed and what we're seeing out there that are potential. And so as a result of these ongoing exercises, we've increased the size of this noncore portfolio.

Now it will take some time to sell these properties. It's not going to be -- unlikely to be sold all in one time. And so also, I would mention that these properties are performing properties. They're not struggling in any sense of the word. The reason that they ended up being as part of noncore portfolio is just they do not fit necessarily in our view and aspirations of what we want Chartwell portfolio to look like in, say, a couple of years' time from now.

Okay. So it's kind of a mix of the repositioning and whichever ones do you want to, I guess, optimize your same-property portfolio?

The 5,700 suites that Jonathan mentioned would be eventually sold. That's noncore portfolio that we identified that we unlikely to reposition and remain in the Chartwell portfolio over the long period of time.

Is there a lot of properties in that bucket, which have some conversion potential into like apartments or something else?

No. I think the hard work that we had to do when we repositioned some properties for alternative use or sold them for maybe a little lower valuations, all that work has been done. By now, we do not have even -- I cannot think of one property that's left that would be in that kind of bucket. This noncore property portfolio are well-performing properties, They just don't fit our view of Chartwell portfolio going forward because mainly of their size, their locations, their vintage, their capital requirements, things like that.

Okay. And then just kind of last question on that is just was there any kind of time line you can provide on a Ballycliffe quite yet?

There's no update on Ballycliffe at this point of time. The building is open, the residents are moved in into their new environment and it's operating, and we continue to evaluate our options. It's certainly not something that we intend to hold for a long period of time. But right now, there's no impact on that.

Our next question will come from the line of Pammi Bir with RBC Capital Markets.

Just on the development side, you are pursuing some new projects. But are you starting to see perhaps more developers kick-start some new developments and maybe which markets are more active than others?

Sorry, you're asking whether we're seeing more?

Yes. Yes. Are you seeing more development?

Yes. And I think as our asset class is becoming more and more attractive to people and people are looking for alternative uses for the land that they are looking to develop, that is becoming more of a trend. So we are getting approached frequently by local developers and more national institutional developers who are figuring out master plans in communities. And so we have a number of those that we're looking at and it's becoming more and more active.

I guess if you step back and just think about the broader market, and new projects starting by others as well. In terms of deliveries, how do you -- at what point do you start to expect them to pick up? Is that perhaps more 2028? '27? Or -- just trying to get a sense of the cadence.

We expect to see a pickup in starts in 2026. So probably a pickup in deliveries, yes, you're probably right, '28, '29. Some of these master planned communities might take a bit longer, but '28 and thereafter.

And I just wanted to reconcile some of the comments around rent growth. I think if you're putting up, let's say, overall, an average of roughly 4%, I think, this year, just given the momentum that we've all seen across occupancy in the broader market, does that look something more like 5% on a blended overall average for the portfolio in '26? Or is it still kind of hovering in that, call it, 3% to 4% range?

Yes. For '26, it's -- we'll target something higher than 4%, somewhere probably between 4% and 5% on a blended basis, depending on turnover, it depends on a lot of other things. Also remember, part of what's included in these numbers is some government-funded beds that we have in Alberta, for example, and they would drive down overall rent increases because the government increases are not as high as what we're passing on a private basis.

Got it. Okay. And then just last one for me. The leverage has obviously come down pretty nicely. The ATM has been quite effective. But as you think about the next year or 2, I think you've previously cited 7.5x debt-to-EBITDA as sort of your target, is that the right figure? I mean, is there perhaps any consideration of taking that lower just to really sort of solidify the balance sheet and insulate it from any sort of future shocks even more? Or is that sort of the level that you're comfortable with?

Yes. Pammi, we did end the quarter at 6.9x. So that was more timing based on some of the acquisitions closing in October and November. So we are still targeting 7.5x, and it's the number we do review, but still think it's the right leverage level for the company. It does provide some good balance sheet flexibility for us for the future.

Our next question will come from the line of Tal Woolley with CIBC.

Just wanted to start on talking a little bit about turnover. I think, Vlad, you mentioned earlier on the call that 3 years is still typically around the average stay. I'm just wondering if you expect that to shift at all going forward? Just now that the LTC system is sort of full again, there's maybe not quite as many options. And so do you expect to see turnover increase? And then also wondering if you can sort of provide a -- what is an average rent lift you would typically see on turnover?

On the first question, Tal, I think turnover changes will be a function of renewal of our portfolio. If we focus on more independent type of residents. So for example, the turnover in Quebec portfolio for us is about 25% and turnover in the rest of the country is between 35% and 40%. And so as we focus more on independent residents, some of the acquisitions that you saw us announcing in Ontario and BC are in that independent space then turnover will probably come down a little bit. But again, the portfolio size is such that some additions of these homes may not necessarily change that dynamic significantly.

In terms of the rent gap between in-place and market, it is very building-specific. So I can't tell you what the gap is other than that our expectation is that with the declining incentives that we're required to provide to continue to maintain and drive occupancy and the properties achieving high occupancy levels more broadly, our expectation that we will be able to increase market rates significantly higher than what we would do in terms of increases to our existing residents.

Okay. And then in your noncore portfolio sales, who are the typical buyers do you expect to see at the table when you put these on the market?

I guess we'll have to see. We haven't had things in the market recently, but there are a number of private equity groups that are focused on this asset class now, interested in a more value-add play. And to the extent that they come to the table, I think those will be the more natural purchasers of these assets.

Okay. And when you segment your portfolio, the repositioning portfolio, when I look forward, I appreciate it's sort of like the -- it's the least same-property like of the group -- of the segments. But should we be expecting that occupancy to materially improve? Or is that going to be a bucket that's sort of constantly changing going forward?

Well, our expectation is that the occupancy will continue to improve in all properties in our portfolio, whether they are noncore or core. The there is no reason why it shouldn't be the case. Dynamics are similar across the board in pretty much every market where the demand is growing and supply is not. So every home should operate at high occupancy levels.

The bucket itself or that portfolio composition will change. I mean we will change that on January 1, 2026, like we always do, where some of the properties that were acquired in the last couple of years will move into the same-property portfolio when they have full 12 months comparative. And some of the properties will move to a different bucket. So hold on for that, on January 1st or before, we will let you know what the composition of same-property portfolio, growth portfolio and repositioning portfolio would look like going forward.

Okay. And then just lastly, I think in your MD&A, you sort of referenced that effectively like your 10-year CMHC-insured borrowing costs are pretty much the same as 5-year unsecured right now. Are you tempted to use the unsecured market more going forward? I know it's -- administratively, it's a lot easier to work with. Just curious about financing options on the debt side.

Yes, Tal. I mean there are different tenors. So they're not exactly apples-to-apples, but we have been more active in the debenture market over the last 18 months. And so as we look and have a need for debt financing, we do look at both of those options and are picking the lower cost of the two.

[Operator Instructions] And our next question will come from the line of Tom Callaghan with BMO Capital Markets.

Maybe just going back to Pammi's line of questioning on the development side. Obviously, you guys have had lots of ongoing discussion with different developers and looking at these yourselves. But just curious, looking to get a sense, cost-wise, what are you seeing? Are you starting to see some deflation trickle in on the cost side of things? And if so, is there a way to think about that deflation, say, if you were looking at that same project 12 months ago?

We are seeing some deflation on costs. It really depends on where, like in which jurisdiction and what buckets, but certainly on some materials and some trades, we see more availability on the trade side, and that results in some deflation on costs. And these developments, frankly, also become more feasible as rate catches up, which it has done in the last couple of years, and that's helping also with the equation.

Okay. Okay. And then on the project there that you announced with the partner in Calgary, Kingsview, I think, is there a cost per suite that we could kind of think of for that type of development?

Well, this development is off balance sheet for us. So we would be buying it at fair market value at the back end. Cost per suite, I'd have to get back to you on it.

Okay. No, no, yes. I understand it's off balance sheet, just more trying to get a broader sense or picture of costs for new development. Maybe switching gears just housekeeping one for me. I think earlier in the year, you had mentioned some potential for CMHC up financing proceeds. Is that still to come? And if so, how much should we be thinking about there?

You're asking about what's left to do this year in terms of CMHC?

Yes. I think, Jeff, you mentioned maybe potentially some up-financing opportunity on CMHC like incremental...

We still have some financings to close for the balance of the year. And sort of as we look out over the next 12 months, just close to $300 million of total CMHC financings, but the bulk of that would be refinancings of conventional mortgages on some properties. It's -- probably less than half of that is incremental new financing.

Okay. Okay. So less than half of $300 million.

Yes.

And that will conclude our question-and-answer session. And I will now turn the call back over to Vlad for any closing comments.

Thanks, everybody, for joining us today. Just another reminder, if you have not already done so to register for our Investor Day event taking place at Chartwell Hub on November 13 at 1:00 p.m. We're looking forward to seeing you then. In the meantime, if you have any further questions, please do not hesitate to give any one of us a call. Goodbye.

This will conclude our call today. Thank you all for joining. You may now disconnect.