Q4 2025 Chartwell Retirement Residences Earnings Call

Speaker #1: 2025 results conference call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Speaker #1: To withdraw your question, please press star 1 again. I will now hand the call over to Vlad Volodarski, Chief Executive Officer of Chartwell. Vlad, please go ahead.

Speaker #2: Thank you, Hilary. 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.

Speaker #2: 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 Chu, Chief Technology Officer.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: More specifically, I direct you to the disclosures in our 2025 MD&A under the heading Risks and Uncertainties in Forward-Looking Information, for a discussion of risks and uncertainties.

Speaker #2: These documents can be found on our website or on the Cedar Plus website. Turning to slide 3, 2025 marked the successful completion of our five-year strategy.

Speaker #2: 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 of our team's across the country.

Speaker #2: 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%.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Vlad Volodarsky: 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 continued 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?

Vlad Volodarski: 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 continued 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?

Speaker #1: Are a powerful reflection of the dedication, care, and professionalism of our people. Across all aspects of our business, our teams introduce new programs, tested ideas, shared learnings, and scaled what worked.

Speaker #2: Karen.

Speaker #3: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #3: Our closing ratios in Q4 were significantly higher at 22% initial contacts for 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.

Speaker #1: We're 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #1: Karen.

Speaker #2: 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.

[Company Representative] (Chartwell Retirement Residences): 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. 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.

Karen Sullivan: 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. 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.

Speaker #3: 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 catbot on our website, representing the first of its kind application in Canadian seniors' housing at the individual property level.

Speaker #2: 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.

Speaker #3: The chatbot provides prospects with a new, always-on channel to engage, receive property-specific information, and convert into book tours. In Q4, we held training sessions across the country for over 200 of our sales personnel.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

[Company Representative] (Chartwell Retirement Residences): In addition to this event, we continued 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 book 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.

Karen Sullivan: In addition to this event, we continued 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 book 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.

Speaker #2: The chatbot provides prospects with a new, always-on channel to engage, receive property-specific information, and convert into book tours. In Q4, we held training sessions across the country for over 200 of our sales personnel.

Speaker #3: 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.

Speaker #2: The focus was on building proactive sales behaviors, strengthening personal brand, and digital presence, increasing confidence with care-related conversations, and understanding how AI influence the prospect journey.

Speaker #3: 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.

Speaker #3: 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 Azales and Chartwell Panorama, both of which are large 30 and 31-story residences in beautiful locations in the greater Montreal area.

Speaker #2: 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.

[Company Representative] (Chartwell Retirement Residences): 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 six, Chartwell's Wish of a Lifetime continued to contribute positively to earned media, 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.

Karen Sullivan: 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 six, Chartwell's Wish of a Lifetime continued to contribute positively to earned media, 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.

Speaker #3: 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 seven due to move-in shortly.

Speaker #2: Turning to slide 6, Chartwell's Wish of a Lifetime continued to contribute positively to earned media this quarter through human interest storytelling that highlighted residents' experiences and acts of kindness.

Speaker #3: I'll now turn it over to Jeff to take you through our financial results.

Speaker #2: 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.

Speaker #2: Great. Thank you, Karen. As shown on slide 7, in Q4 of 2025, net income was $7.2 million, compared to net income of $3.5 million.

Speaker #2: 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 Azales 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.

Speaker #2: In Q4 of 2024, FFO grew to 81.2 million in Q4 of 2025, an increase of 40.9% compared to Q4 of 2024. Our reported FFO does not include $2.5 million or $0.8 cents per unit of income guarantees related to recently acquired properties.

[Company Representative] (Chartwell Retirement Residences): 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 seven due to move in shortly. I'll now turn it over to Jeff to take you through our financial results.

Karen Sullivan: 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 seven due to move in shortly. I'll now turn it over to Jeff to take you through our financial results.

Speaker #2: Q4 of 2025 FFO growth benefited from higher adjusted NOI of 28.8 million, higher adjusted interest income of 1.5 million, and higher other leased revenue of $1.2 million.

Speaker #2: 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.

Speaker #2: 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 of 2025, our same property occupancy increased 430 basis points, to 94.7%, and our same property adjusted NOI increased 11 million, or 16.9%.

Speaker #2: I'll now turn it over to Jeff to take you through our financial results.

Speaker #1: Great. Thank you, Karen. As shown on slide 7, in Q4 of 2025, net income was $7.2 million, compared to net income of $3.5 million.

Jeff: Great. Thank you, Karen. As shown on slide 7, in Q4 2025, net income was CAD 7.2 million, compared to net income of CAD 3.5 million in Q4 2024. FFO grew to CAD 81.2 million in Q4 2025, an increase of 40.9% compared to Q4 2024. Our reported FFO does not include CAD two and a half million or CAD 0.8 cents per unit of income guarantees related to recently acquired properties. Q4 2025 FFO growth benefited from higher adjusted NOI of CAD 28.8 million, higher adjusted interest income of CAD one and a half million, and higher other lease revenue of CAD 1.2 million, partially offset by higher adjusted finance costs of CAD 3.3 million, higher G&A expenses of CAD 2.4 million, and lower management fees of CAD 2.2 million.

Jeffrey Brown: Great. Thank you, Karen. As shown on slide 7, in Q4 2025, net income was CAD 7.2 million, compared to net income of CAD 3.5 million in Q4 2024. FFO grew to CAD 81.2 million in Q4 2025, an increase of 40.9% compared to Q4 2024. Our reported FFO does not include CAD two and a half million or CAD 0.8 cents per unit of income guarantees related to recently acquired properties. Q4 2025 FFO growth benefited from higher adjusted NOI of CAD 28.8 million, higher adjusted interest income of CAD one and a half million, and higher other lease revenue of CAD 1.2 million, partially offset by higher adjusted finance costs of CAD 3.3 million, higher G&A expenses of CAD 2.4 million, and lower management fees of CAD 2.2 million.

Speaker #1: 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 0.8 cents per unit of income guarantees, related to recently acquired properties.

Speaker #2: 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.

Speaker #1: Q4 2025 FFO growth benefited from higher adjusted NOI of $28.8 million, higher adjusted interest income of $1.5 million, and higher other leased revenue of $1.2 million.

Speaker #2: FFO grew to $278 million, an increase of 40.8% compared to 2024. Our reported FFO does not include $8.2 million or $2.8 cents per unit of income guarantees related to recently acquired properties.

Speaker #1: 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%.

Speaker #2: 2025 FFO growth benefited from higher adjusted NOI of 109.8 million, higher adjusted interest income of $3.7 million, higher other leased revenue of $2.2 million, and lower depreciation of VP&E in amortization of intangible assets used for administrative purposes of $0.5 million.

Jeff: In Q4 2025, our same property occupancy increased 430 basis points to 94.7%, our same property adjusted NOI increased CAD 11 million or 16.9%. We also had an 11.6% increase in our NOI per occupied suite. In 2025, net income was CAD 29.5 million, compared to CAD 22.4 million in 2024. FFO grew to CAD 278 million, an increase of 40.8% compared to 2024. Our reported FFO does not include CAD 8.2 million or CAD 0.028 per unit of income guarantees related to recently acquired properties. 2025 FFO growth benefited from higher adjusted NOI of CAD 109.8 million, higher adjusted interest income of CAD 3.7 million...

Jeffrey Brown: In Q4 2025, our same property occupancy increased 430 basis points to 94.7%, our same property adjusted NOI increased CAD 11 million or 16.9%. We also had an 11.6% increase in our NOI per occupied suite. In 2025, net income was CAD 29.5 million, compared to CAD 22.4 million in 2024. FFO grew to CAD 278 million, an increase of 40.8% compared to 2024. Our reported FFO does not include CAD 8.2 million or CAD 0.028 per unit of income guarantees related to recently acquired properties. 2025 FFO growth benefited from higher adjusted NOI of CAD 109.8 million, higher adjusted interest income of CAD 3.7 million...

Speaker #1: 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.

Speaker #2: 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.

Speaker #1: FFO grew to $278 million, an increase of 40.8% compared to 2024. Our reported FFO does not include $8.2 million, or 2.8 cents per unit, of income guarantees related to recently acquired properties.

Speaker #2: 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 per occupied suite increased by 12.2% during the year.

Speaker #1: 2025 FFO growth benefited from higher adjusted NOI of $109.8 million, higher adjusted interest income of $3.7 million, higher other leased revenue of $2.2 million, and lower depreciation of PV&E and amortization of intangible assets used for administrative purposes of $0.5 million.

Speaker #2: Slide 8 summarizes our same property operating results for each platform. All of our platforms posted occupancy gains in Q4 of 2025 compared to Q4 of 2024, and all are operating above 90% occupancy, which is positively impacted our results.

Jeff: higher other lease revenue of CAD 2.2 million, lower depreciation of PP&E, and amortization of intangible assets used for administrative purposes of CAD 0.5 million. Partially offset by higher adjusted finance costs of CAD 20 million, lower management fees of CAD 7.6 million, higher G&A expenses of CAD 7.1 million, and lower other income of CAD 0.9 million. For 2025, our same property occupancy increased 480 basis points to 92.8%, and our same property adjusted NOI increased CAD 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.

Jeffrey Brown: higher other lease revenue of CAD 2.2 million, lower depreciation of PP&E, and amortization of intangible assets used for administrative purposes of CAD 0.5 million. Partially offset by higher adjusted finance costs of CAD 20 million, lower management fees of CAD 7.6 million, higher G&A expenses of CAD 7.1 million, and lower other income of CAD 0.9 million. For 2025, our same property occupancy increased 480 basis points to 92.8%, and our same property adjusted NOI increased CAD 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.

Speaker #1: 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.

Speaker #2: 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%.

Speaker #1: 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 per occupied suite increased by 12.2% during the year.

Speaker #2: Turning to slide 9, at February 26, 2026, liquidity amounted to $483.8 million, which included $88.9 million of cash and cash withholdings, and $394.9 million of borrowing capacity on our credit facilities.

Speaker #1: 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 is positively impacted our results.

Jeff: 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 CAD 3 million, or 14.4%. Our Ontario platform, same property adjusted NOI increased CAD 6.2 million, or 17.1%. Our Quebec platform, same property NOI, adjusted NOI increased CAD 1.8 million or 22.8%. Turning to slide 9. At 26 February 2026, liquidity amounted to CAD 483.8 million, which included CAD 88.9 million of cash and cash equivalents, and CAD 394.9 million of borrowing capacity on our credit facilities.

Jeffrey Brown: 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 CAD 3 million, or 14.4%. Our Ontario platform, same property adjusted NOI increased CAD 6.2 million, or 17.1%. Our Quebec platform, same property NOI, adjusted NOI increased CAD 1.8 million or 22.8%. Turning to slide 9. At 26 February 2026, liquidity amounted to CAD 483.8 million, which included CAD 88.9 million of cash and cash equivalents, and CAD 394.9 million of borrowing capacity on our credit facilities.

Speaker #2: 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.

Speaker #1: 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 adjusted NOI increased $1.8 million, or 22.8%.

Speaker #2: Which helps support our transaction activity. And we continue to improve our leverage metrics with interest coverage ratio growing to 3.5 times, and our net debt to adjusted EBITDA ratio declining to 6.9 times.

Speaker #2: We also continue to improve our financing flexibility, and have grown our unencumbered asset base to 2.1 billion dollars. For the remainder of 2026, our debt maturities include $209.6 million of mortgages, with a weighted average interest rate of 2.99%.

Speaker #1: Turning to slide 9, as of 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.

Speaker #2: 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%.

Speaker #1: 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.

Jeff: During the year ended 31 December 2025, we raised total gross proceeds of CAD 720.5 million of equity through our ATM programs at an average price of CAD 18.52, which helps support our transaction activity. 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 CAD 2.1 billion. For the remainder of 2026, our debt maturities include CAD 209.6 million of mortgages, with a weighted average interest rate of 2.99%.

Jeffrey Brown: During the year ended 31 December 2025, we raised total gross proceeds of CAD 720.5 million of equity through our ATM programs at an average price of CAD 18.52, which helps support our transaction activity. 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 CAD 2.1 billion. For the remainder of 2026, our debt maturities include CAD 209.6 million of mortgages, with a weighted average interest rate of 2.99%.

Speaker #2: Yesterday, our board approved a 2% increase in our monthly distributions, from 5.1 cents per unit to 5.2 cents per unit. The increase will be effective for the March 31, 2026 distribution, which is payable on April 15, 2026.

Speaker #1: And we continue to improve our leverage metrics, with our interest coverage ratio growing to 3.5 times and our net debt to adjusted EBITDA ratio declining to 6.9 times.

Speaker #1: 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%.

Speaker #2: I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Speaker #3: Thanks, Jeff. We continue to execute on our portfolio strategy of enhancing our asset-based to generate increased quality NOI, while highlighting some of the deals that we completed in Q4 2025 as pictured on slide 10.

Speaker #1: 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%.

Jeff: As of 26 February 2026, we estimate the 10-year CMHC insured mortgage rate to be approximately 3.85%, and the five-year unsecured debenture rate to be approximately 3.88%. Yesterday, our board approved a 2% increase in our monthly distributions from CAD 0.051 per unit to CAD 0.052 per unit. The increase will be effective for the 31 March 2026 distribution, which is payable on 15 April 2026. I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Jeffrey Brown: As of 26 February 2026, we estimate the 10-year CMHC insured mortgage rate to be approximately 3.85%, and the five-year unsecured debenture rate to be approximately 3.88%. Yesterday, our board approved a 2% increase in our monthly distributions from CAD 0.051 per unit to CAD 0.052 per unit. The increase will be effective for the 31 March 2026 distribution, which is payable on 15 April 2026. I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Speaker #3: On October 1, 2025, we acquired a $449 suite retirement residence, Les Tours-en-Grignon, in Montreal, Quebec, for $88.5 million. On November 3, we acquired Residence Laubier in Quebec, which was developed by our development partner in Quebec, Batimo, for $128.2 million.

Speaker #1: Yesterday, our board approved a 2% increase in our monthly distributions from 5.1 cents per unit to 5.2 cents per unit. The increase will be effective for the March 31, 2026, distribution which is payable on April 15, 2026.

Speaker #3: 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.

Speaker #1: I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Speaker #2: Thanks, Jeff. We continue to execute on our portfolio strategy of enhancing our asset-based to generate increased quality NOI. I'll highlight some of the deals that we completed in Q4 2025 as pictured on slide 10.

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

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

Speaker #3: 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.

Speaker #2: On October 1, 2025, we acquired a 449-suite retirement residence, Les Tours-en-Grignon, in Montreal, Quebec, for $88.5 million. On November 3, we acquired Residence Laubier in Quebec, which was developed by our development partner in Quebec, Batimo, for $128.2 million.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: And finally, on December 18, we acquired the remaining 15% ownership interest in Residence Les Gendres in Greenfield Park, Quebec, from Batimo for $17.9 million.

Speaker #3: As you can see, in 2025, we continue 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.

Speaker #2: 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.

Jonathan Kelcher: On 1 December, we acquired Residence Azalis, a 334-suite, 30-story waterfront residence in Repentigny, Quebec, for a purchase price of $111 million. On 2 December, 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 15 December 2025, we acquired a 90-suite boutique residence, The Edward, in Calgary, Alberta, for a purchase price of $53 million. Finally, on 18 December, we acquired the remaining 15% ownership interest in Résidence Légende 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.

Jonathan Boulakia: On 1 December, we acquired Residence Azalis, a 334-suite, 30-story waterfront residence in Repentigny, Quebec, for a purchase price of $111 million. On 2 December, 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 15 December 2025, we acquired a 90-suite boutique residence, The Edward, in Calgary, Alberta, for a purchase price of $53 million. Finally, on 18 December, we acquired the remaining 15% ownership interest in Résidence Légende 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: And finally, on December 18, we acquired the remaining 15% ownership interest in Residence Les Gendres in Greenfield Park, Quebec, from Batimo for $17.9 million.

Speaker #3: 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.

Speaker #2: As you can see, in 2025 we continue 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.

Jonathan Kelcher: 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.

Jonathan Boulakia: 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.

Speaker #2: 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.

Speaker #3: 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 aisle apartments and an attractive amenity package.

Speaker #2: 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 purchase such developments in a prudent manner, with a preference for off-balance sheet development similar to our arrangement in Quebec.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: We entered into a definitive agreement to sell one of these non-core 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 developments and acquisition activity that is in line with Chartwell's current strategy.

Speaker #2: 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.

Jonathan Kelcher: 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 aisle 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 non-core properties in Ottawa for CAD 49 million.

Jonathan Boulakia: 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 aisle 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 non-core properties in Ottawa for CAD 49 million.

Speaker #3: I'll turn it back to Vlad to wrap up.

Speaker #2: 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 a prominent Chartwell brand.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: We entered into a definitive agreement to sell one of these non-core 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 developments and acquisition activity that is in line with Chartwell's current strategy.

Jonathan Kelcher: 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 developments and acquisition activity that is in line with Chartwell's current strategy. I'll turn it back to Vlad to wrap up.

Jonathan Boulakia: 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 developments and acquisition activity that is in line with Chartwell's current strategy. I'll turn it back to Vlad to wrap up.

Speaker #2: I'll turn it back to Vlad to wrap up.

Speaker #1: 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 a prominent Chartwell brand.

Vlad Volodarsky: 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 a 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 core company culture, and most importantly, our people.

Vlad Volodarski: 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 a 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 core company culture, and most importantly, our people.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #2: 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 residents as pictured on slide 12.

Speaker #1: 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.

Speaker #2: 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.

Vlad Volodarsky: 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.

Vlad Volodarski: 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.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: When Kathy's condition stabilized enough for her to leave the hospital briefly, the team looked for a way to help her reconnect with life beyond treatment.

Speaker #1: 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.

Speaker #2: Knowing how meaningful music was to Kathy, they worked with a local community to arrange for her to attend the Christmas concert by Juno Award-winning Canadian singer-songwriter, Johnny Reid.

Speaker #1: 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.

Speaker #2: It was Kathy's first outing since being hospitalized. The evening included not only the performance but a personal moment with the artists and a dedication made especially for her.

Speaker #1: 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.

Vlad Volodarsky: 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 condition 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 a 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.

Vlad Volodarski: 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 condition 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 a 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.

Speaker #2: 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.

Speaker #2: These are the moments that build trust, reinforce why our work matters, and quietly bring our responsibility to life. Thank you for your attention this morning.

Speaker #1: When Kathy's condition stabilized enough for her to leave the hospital briefly, the team looked for a way to help her reconnect with life beyond treatment.

Speaker #1: Knowing how meaningful music was to Kathy, they worked with a local community to arrange for her to attend the Christmas concert by Juno Award-winning Canadian singer-songwriter Johnny Reid.

Speaker #2: We would now be pleased to answer your questions.

Speaker #3: We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again.

Speaker #1: It was Kathy's first outing since being hospitalized. The evening included not only the performance, but a personal moment with the artists and a dedication made especially for her.

Speaker #3: Please pick up your handset when asking a question, and if you're a muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster.

Speaker #1: 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.

Speaker #3: Your first question comes from Lorne Kalmar from Desjardins. Lorne, your line is now open.

Vlad Volodarsky: 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 builds 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.

Vlad Volodarski: 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 builds 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.

Speaker #1: These are the moments that build trust, reinforce why our work matters, and quietly bring our responsibility to life. Thank you for your attention this morning.

Speaker #4: 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.

Speaker #1: We would now be pleased to answer your questions.

Speaker #4: 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 two years, what do you expect if you can give us a range?

Speaker #3: We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again.

Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again. Please pick up your handset when asking a question, and if you're muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Lorne Kalmar from Desjardins. Loren, your line is now open.

Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again. Please pick up your handset when asking a question, and if you're muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Lorne Kalmar from Desjardins. Loren, your line is now open.

Speaker #4: 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.

Speaker #3: Please pick up your handset when asking a question, and if you're muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster.

Speaker #2: 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.

Speaker #3: Your first question comes from Lauren Calmer from Desjardins. Lauren, your line is now open.

Speaker #2: 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.

Lorne Kalmar [Vice President Equity Research: Congrats on a great finish to a great year. Just on the development side, 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, you know, 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, you know, where your heads are at in this regard.

Lorne Kalmar: Congrats on a great finish to a great year. Just on the development side, 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, you know, 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, you know, where your heads are at in this regard.

Speaker #4: 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.

Speaker #4: Obviously, a lot of talk about development ramping up here in the next little—broadly, I was just wondering, over maybe the next two years, what do you expect, if you can give us a range?

Speaker #2: 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.

Speaker #4: 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.

Speaker #4: Okay. That's a really good color. Thank you. 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?

Speaker #1: Thanks, Lauren. 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.

Vlad Volodarsky: Thanks, Lorne. We have a couple of projects that are ongoing already, and those are on our balance sheet. 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.

Vlad Volodarski: Thanks, Lorne. We have a couple of projects that are ongoing already, and those are on our balance sheet. 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.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #4: Okay. That's a really good color, thank you. 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?

Lorne Kalmar [Vice President Equity Research: Okay, that's a really good color. Thank you. Maybe just sticking on the development side with the, with the ramp up. Is that a reflection of just a great opportunity to develop, or is it also a reflection of declining acquisition opportunity set?

Lorne Kalmar: Okay, that's a really good color. Thank you. Maybe just sticking on the development side with the, with the ramp up. Is that a reflection of just a great opportunity to develop, or is it also a reflection of declining acquisition opportunity set?

Speaker #2: 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 on the availability of somebody else's product in the market.

Speaker #1: 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.

Vlad Volodarsky: 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. We're working through a few right now. With those, we never know whether we're gonna be the ultimate purchaser of the properties or not. There is some competition always for high-quality properties. Also, Canadian market is not very large. Especially when people focus on properties types that we're focusing on, you know, newer, larger, more efficient, and larger urban markets, it becomes even smaller. 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.

Vlad Volodarski: 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. We're working through a few right now. With those, we never know whether we're gonna be the ultimate purchaser of the properties or not. There is some competition always for high-quality properties. Also, Canadian market is not very large. Especially when people focus on properties types that we're focusing on, you know, newer, larger, more efficient, and larger urban markets, it becomes even smaller. 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.

Speaker #4: 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?

Speaker #1: 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.

Speaker #4: In terms of this project's that are sitting at the early stages of development or permits?

Speaker #1: And also, the Canadian market is not very large, and especially when people focus on the property types that we're focusing on—newer, larger, more efficient, and in larger urban markets—it becomes even smaller.

Speaker #2: At this point, no. It's hard to tell. As you know, it takes at least two years to build a building, from the time you put the shovel in the ground.

Speaker #2: 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.

Speaker #1: 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 on the availability of somebody else's product in the market.

Speaker #2: But I also want to remind everybody that demand's been growing by four, four and a half percent per year for the last four years, and will continue at that pace for the next 20 years.

Speaker #4: 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 a oversupply or an overbuild?

Lorne Kalmar [Vice President Equity Research: Okay. 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 a, you know, an oversupply or an overbuild, you know, in terms of just projects that are sitting at the early stages of development or permits?

Lorne Kalmar: Okay. 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 a, you know, an oversupply or an overbuild, you know, in terms of just projects that are sitting at the early stages of development or permits?

Speaker #2: 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.

Speaker #2: Some markets probably could be disrupted for short periods of time, but at this point, it's hard to tell which ones they're going to be.

Speaker #4: In terms of those projects that are sitting at the early stages of development or permits?

Speaker #1: At this point, no. It's hard to tell. As you know, it takes at least two years to build a building, from the time you put the shovel in the ground.

Vlad Volodarsky: At this point, no, it's hard to tell. As you know, it takes at least two 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. I also wanna remind everybody that demand's been growing by 4.5% per year for the last four 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.

Vlad Volodarski: At this point, no, it's hard to tell. As you know, it takes at least two 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. I also wanna remind everybody that demand's been growing by 4.5% per year for the last four 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.

Speaker #4: Okay. Thank you so much. I'll turn it back.

Speaker #3: Thank you for your question. Your next question comes from Jonathan Kelcher from TD Cohen. Jonathan, your line is now open.

Speaker #1: 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.

Speaker #4: Thanks, good morning. 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?

Speaker #1: But I also want to remind everybody that demand's been growing by four, four and a half percent per year for the last four years, and will continue at that pace for the next 20 years.

Speaker #1: It's hard to imagine that the industry will be able to build that much product to really catch up and exceed that demand, which continues to grow.

Speaker #5: 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.

Speaker #1: 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.

Vlad Volodarsky: 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.

Vlad Volodarski: 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.

Speaker #4: Okay. So you guys are just being a little conservative on that?

Speaker #4: Okay. Thank you so much. I'll turn it back.

Lorne Kalmar [Vice President Equity Research: Okay. Thank you so much. I'll turn it back.

Lorne Kalmar: Okay. Thank you so much. I'll turn it back.

Speaker #3: Thank you for your question. Your next question comes from Jonathan Kelter from TD Cowen. Jonathan, your line is now open.

Operator: Thank you for your question. Your next question comes from Jonathan Kelcher from TD Cowen. Jonathan, your line is now open.

Operator: Thank you for your question. Your next question comes from Jonathan Kelcher from TD Cowen. Jonathan, your line is now open.

Speaker #2: 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 this not just Charwell, the industry-wide, never been at these high levels of occupancy.

Speaker #4: Thanks, good morning. 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?

Jonathan Kelcher: Thanks. Good morning. First question, just on the outlook for 2026. Same property occupancy, just 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?

Jonathan Kelcher: Thanks. Good morning. First question, just on the outlook for 2026. Same property occupancy, just 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?

Speaker #2: So it's not like we can point to five 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.

Jeff: 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.

Jonathan Boulakia: 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.

Speaker #5: There are some LTC openings that could have some impact, but we're not seeing a lot of new retirement residence competition opening up.

Speaker #2: But we will see by how much.

Speaker #5: 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.

Speaker #4: Okay. So you guys are just being a little conservative on that?

Jonathan Kelcher: Okay, you guys are just being a little conservative on that?

Jonathan Kelcher: Okay, you guys are just being a little conservative on that?

Speaker #1: 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 this—not just Chartwell, the industry-wide—never been at these high levels of occupancy.

Vlad Volodarsky: Well, you know...

Vlad Volodarski: Well, you know...

Speaker #4: Yep. Fair enough. I just try to get if there's anything out there that you're seeing that might stop just this sort of general increase for the industry.

Jonathan Kelcher: Fair to say?

Jonathan Kelcher: Fair to say?

Vlad Volodarsky: Jonathan, we are in this uncharted territory, right? Where it is...

Vlad Volodarski: Jonathan, we are in this uncharted territory, right? Where it is...

Jonathan Kelcher: Yep

Jonathan Kelcher: Yep

Vlad Volodarsky: hard to predict, the potential for occupancy growth because we've never been at this, not just Chartwell, the industry-wide, never been at these high levels of occupancy. It's not like we can point to, you know, five years ago, everybody was at 98%, so that's achievable. 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.

Vlad Volodarski: hard to predict, the potential for occupancy growth because we've never been at this, not just Chartwell, the industry-wide, never been at these high levels of occupancy. It's not like we can point to, you know, five years ago, everybody was at 98%, so that's achievable. 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.

Speaker #4: 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?

Speaker #1: So it's not like we can point to five 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.

Speaker #5: So our renewal pricing strategy has and can use to be inflation plus 1% or or 2%. So we're matching the cost increases in the properties with the rate increase.

Speaker #1: But we will see by how much.

Speaker #5: And we still watch, obviously, have our move-ins exceed our move-outs, with just given the higher turnover in the senior sector compared to other housing sectors.

Jeff: we still

Jeffrey Brown: we still

Jonathan Kelcher: Right

Jonathan Kelcher: Right

Speaker #5: 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 rate increases, sorry.

Jeff: 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.

Jeffrey Brown: 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.

Speaker #4: Yep. Fair enough. I'm just trying to see if there's anything out there that you're seeing that might stop this sort of general increase for the industry.

Jonathan Kelcher: Yep, 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? 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?

Jonathan Kelcher: Yep, 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? 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?

Speaker #4: Okay. So shouldn't that work out to higher than 4% then overall? If you're getting a third at 8% or 9%, then the other two-thirds at 3% to 4%?

Speaker #4: 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?

Speaker #2: It might. We continue seeing the impact of the incentives that have 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.

Jeff: Our renewal pricing strategy has and continues to be inflation plus 1 or 2%. We're matching the cost increases in the properties with the rate increase. On turnover, we're seeing mid to high single-digits, and in some markets, even low single-digits rate increases.

Speaker #5: So our renewal pricing strategy has and continues to be inflation plus 1 or 2 percent. So we're matching the cost increases in the properties with the rate increase.

Jeffrey Brown: Our renewal pricing strategy has and continues to be inflation plus 1 or 2%. We're matching the cost increases in the properties with the rate increase. On turnover, we're seeing mid to high single-digits, and in some markets, even low single-digits rate increases.

Speaker #2: 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.

Speaker #5: And then on turnover, we're seeing mid- to high-single-digit rates, and in some markets, even low-single-digit rate increases.

Speaker #4: Okay. Fair enough. And then just lastly, Valley Cliff, haven't talked about that one in a while. It's up running complete. Would that be something you'd expect to sell this year?

Speaker #1: Or double digits.

Vlad Volodarsky: Double digits.

Vlad Volodarski: Double digits.

Jeff: Low double digits rate increases, sorry.

Jeffrey Brown: Low double digits rate increases, sorry.

Speaker #5: Low double digit rate increases, sorry.

Speaker #4: Okay. So shouldn't that work out to higher than 4% then overall? If you're getting a third at 8 or 9 percent and the other two-thirds at 3 to 4?

Jonathan Kelcher: Okay. shouldn't that work out to higher than 4% then overall? If you're getting a third at 8% or 9%, and the other two thirds at 3 to 4.

Jonathan Kelcher: Okay. shouldn't that work out to higher than 4% then overall? If you're getting a third at 8% or 9%, and the other two thirds at 3 to 4.

Speaker #2: Yes.

Speaker #5: Yes.

Speaker #4: And the ballpark pricing?

Speaker #2: We're not yet ready to announce.

Speaker #4: Okay. I think it's still in progress. So as soon as we can talk about it, we will. Okay. Thanks. I'll turn it back.

Speaker #1: It might. We continue seeing the impact of the incentives that have 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.

Vlad Volodarsky: It might. We continue seeing the impact of the incentives that's been granted throughout 2025. You'll see our occupancies increase significantly in 2025. 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. That will suppress a little bit the overall blended rate growth.

Vlad Volodarski: It might. We continue seeing the impact of the incentives that's been granted throughout 2025. You'll see our occupancies increase significantly in 2025. 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. That will suppress a little bit the overall blended rate growth.

Speaker #3: Thank you very much for your question. Your next question comes from Tom Callaghan from BMO. Tom, your line is now open.

Speaker #1: 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.

Speaker #6: Thanks. Morning. Maybe to start on the acquisition side and building off some of Lauren's questions there, can you just talk about what you're seeing in terms of pricing and competition?

Speaker #4: Okay, fair enough. And then just lastly, Valley Cliff—we haven't talked about that one in a while. It's up, running, complete. Would that be something you'd expect to sell this year?

Jonathan Kelcher: Okay, fair enough. Then, just lastly, like Ballycliffe, haven't talked about that one in a while. It's up running complete. Would that be something you'd expect to sell this year?

Jonathan Boulakia: Okay, fair enough. Then, just lastly, like Ballycliffe, haven't talked about that one in a while. It's up running complete. Would that be something you'd expect to sell this year?

Speaker #6: 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, 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?

Speaker #1: Yes.

Vlad Volodarsky: Yes.

Vlad Volodarski: Yes.

Jeff: Yes.

Jeffrey Brown: Yes.

Speaker #4: And ballpark pricing? Okay. I think it's still in progress, so as soon as we can talk about it, we will. Okay, thanks. I'll turn it back.

Jonathan Kelcher: The ballpark pricing?

Jonathan Kelcher: The ballpark pricing?

Vlad Volodarsky: We're not yet ready to announce.

Vlad Volodarski: We're not yet ready to announce.

Jonathan Kelcher: Okay, thank you.

Jonathan Kelcher: Okay, thank you.

Vlad Volodarsky: We-

Vlad Volodarski: We-

Jonathan Kelcher: Okay.

Jonathan Boulakia: Okay.

Vlad Volodarsky: Well, it's still in progress. As soon as we can talk about it, we will.

Vlad Volodarski: Well, it's still in progress. As soon as we can talk about it, we will.

Speaker #5: 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.

Jonathan Kelcher: Okay, thanks. I'll turn it back.

Jonathan Boulakia: Okay, thanks. I'll turn it back.

Speaker #3: Thank you very much for your question. Your next question comes from Tom Callahan from BMO. Tom, your line is now open.

Operator: Thank you very much for your question. Your next question comes from Tom Callaghan from BMO. Tom, your line is now open.

Operator: Thank you very much for your question. Your next question comes from Tom Callaghan from BMO. Tom, your line is now open.

Speaker #5: 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.

Speaker #6: Thanks. Morning. Maybe to start on the acquisition side and building off some of Lauren's questions there, can you just talk about what you're seeing in terms of pricing and competition?

Tom Callaghan: Thanks. Good morning. Maybe 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, you know, maybe relative to 12 months ago? I think over the course of 2025, 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 2026, or do you think it's kind of more stabilized?

Tom Callaghan: Thanks. Good morning. Maybe 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, you know, maybe relative to 12 months ago? I think over the course of 2025, 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 2026, or do you think it's kind of more stabilized?

Speaker #5: 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.

Speaker #6: Maybe relative to 12 months ago, I think over the course of '25 we've always seen some cap rate compression. Just given the outlook and underlying supply-demand fundamentals, would you expect to continue to see tightening on pricing with the balance of '26, or do you think it's kind of more stabilized?

Speaker #5: 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.

Speaker #5: 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.

Jonathan Kelcher: We have seen 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. 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. 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.

Speaker #5: We have seen some cap rate compression, but I think it's probably stabilizing now. We're still seeing a lot of opportunities in the market, both one-offs and at the portfolio level.

Jonathan Boulakia: We have seen 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. 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. 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.

Speaker #6: Got it. That's helpful, Jonathan. And maybe I think you referenced some interesting opportunities in prepared marks. Would some of those encompass kind of more of the portfolio-type deals, or is it mostly one-off buildings?

Speaker #5: 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.

Speaker #5: We're seeing both.

Speaker #6: Got it.

Speaker #5: 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.

Speaker #5: One-off.

Speaker #6: Maybe last one. Sorry.

Speaker #5: No, go ahead.

Speaker #6: 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.

Speaker #5: 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.

Speaker #6: Can you just maybe talk about some goalposts in terms of the quantum of that expansion?

Speaker #5: 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.

Speaker #5: Yeah. We do think that we should have margin expansion again in 2026. And it'd 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.

Jonathan Kelcher: That kind of gives us, we feel, a competitive advantage, but it is a competitive process.

Jonathan Boulakia: That kind of gives us, we feel, a competitive advantage, but it is a competitive process.

Speaker #6: Got it. That's helpful, Jonathan. And maybe—I think you referenced some interesting opportunities in prepared remarks. Would some of those encompass more of the portfolio-type deals, or is it mostly one-off buildings?

Tom Callaghan: Got it. That's helpful, Jonathan. Maybe, I think you referenced some interesting opportunities in prepared marks. Would some of those encompass kind of more of the portfolio-type deals, or is it mostly one-off buildings?

Tom Callaghan: Got it. That's helpful, Jonathan. Maybe, I think you referenced some interesting opportunities in prepared marks. Would some of those encompass kind of more of the portfolio-type deals, or is it mostly one-off buildings?

Speaker #6: Perfect. Thanks, Jeff. I'll turn it back.

Speaker #3: Thank you for your question. Our next question comes from the line of Himanshu Gupta. From Scotiabank, Himanshu, your line is now open.

Speaker #5: We're seeing both. One-off.

Jonathan Kelcher: We're seeing both.

Jonathan Boulakia: We're seeing both.

Speaker #6: Got it. Maybe last one—sorry. 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.

Tom Callaghan: Got it.

Tom Callaghan: Got it.

Jonathan Kelcher: One off.

Jonathan Boulakia: One off.

Tom Callaghan: Maybe the last one. Sorry.

Tom Callaghan: Maybe the last one. Sorry.

Speaker #7: Thank you. And good morning. On expected rent growth of 4%, do you think there was a view that once we get to that 95% occupancy across the bridge to get there, that blended rent growth could become like 5%?

Jonathan Kelcher: No, go ahead.

Jonathan Boulakia: No, go ahead.

Tom Callaghan: Yeah, maybe the last one for me is just you did note in your 2026 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?

Tom Callaghan: Yeah, maybe the last one for me is just you did note in your 2026 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?

Speaker #6: Can you just maybe talk about some goalposts in terms of the quantum of that expansion?

Speaker #5: Yeah, we do think that we should have margin expansion again in 2026. And it’d 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.

Vlad Volodarsky: Yeah. We do think that we should have margin expansion again in 2026, and it'll 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.

Jeffrey Brown: Yeah. We do think that we should have margin expansion again in 2026, and it'll 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.

Speaker #7: And maybe now 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.

Speaker #7: You can achieve. Fair to say that?

Speaker #6: Perfect. Thanks, Jeff. I'll turn it back.

Tom Callaghan: Perfect. Thanks, Jeff. I'll turn it back.

Tom Callaghan: Perfect. Thanks, Jeff. I'll turn it back.

Speaker #2: 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 three years.

Speaker #3: Thank you for your question. Our next question comes from the line of Himanshu Gupta from Scotiabank. Himanshu, your line is now open.

Operator: Thank you for your question. Our next question comes from the line of Himanshu Gupta from Scotiabank. Himanshu, your line is now open.

Operator: Thank you for your question. Our next question comes from the line of Himanshu Gupta from Scotiabank. Himanshu, your line is now open.

Speaker #7: Thank you, and good morning. On expected rent growth of 4%, do you think there was a view that once we get to that 95% occupancy—across a bridge to get there—that blended rent growth could become, like, 5%?

Himanshu Gupta [Director, Equity Research Analyst: Thank you, and good morning. On expected rent growth of 4%, do you think there was a view that once we get to that 95% occupancy, you know, cross a bridge to get there, that blended rent growth could become, like, 5%? Maybe now, you know, like, the affordability angle is coming up, so it's not just about full capacity, but there's an affordability as well. That's why, you know, 4 is the right number and not the 5 you can achieve. Fair to say that?

Himanshu Gupta: Thank you, and good morning. On expected rent growth of 4%, do you think there was a view that once we get to that 95% occupancy, you know, cross a bridge to get there, that blended rent growth could become, like, 5%? Maybe now, you know, like, the affordability angle is coming up, so it's not just about full capacity, but there's an affordability as well. That's why, you know, 4 is the right number and not the 5 you can achieve. Fair to say that?

Speaker #2: 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 and our cost.

Speaker #2: Labor, food, and others. And then market rents, we do think can grow by high single digits. In the next three years, given the supply-demand dynamics.

Speaker #7: And maybe now the affordability angle is coming up. So it's not just about full capacity, but there's an affordability aspect as well. So that's why four is the right number and not five.

Speaker #7: You can achieve. Fair to say that?

Speaker #7: Okay. Thank you. And then talking about incentives, you did mention that incentive coming down. Can you elaborate? What does it now and where it can go?

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

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

Speaker #1: Well, the strategy statement that we put out and the metrics around it say above 4% growth. So 4% marks, in our minds, at least the bottom of what is possible for the next three years.

Speaker #5: Yeah. Hi, Matthew. It's approximately 5% of revenue right now. And they come down there's a number of recurring incentives that were used over the last 2024 and 2025.

Speaker #1: 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 and our costs.

Speaker #5: And those roll off or burn off with turnover. So it's hard to predict resident exact resident turnover but we expect them to grow this year as we have the full-year impact of the 2025 incentives.

Speaker #1: Labor, food, and others. And then market rents, we do think, can grow by high single digits in the next three years, given the supply-demand dynamics.

Speaker #5: And then start really burning off in 2027, 2028.

Speaker #7: Okay, thank you. And then talking about incentives, you did mention that incentive coming down. Can you elaborate? What is it now and where can it go?

Himanshu Gupta [Director, Equity Research Analyst: Okay, thank you. You know, talking about incentives, you did mention that incentive coming down. Can you elaborate, what is it now and where it can go?

Himanshu Gupta: Okay, thank you. You know, talking about incentives, you did mention that incentive coming down. Can you elaborate, what is it now and where it can go?

Speaker #7: Okay. Okay. Thank you. That's helpful. And then turning attention towards the acquisition activity, the Edward Calgary acquisition. What kind of cap rate are you expecting there?

Speaker #5: Yeah. Hi, I'm Andrew. It's approximately 5% of revenue right now, and they come down. There's a number of recurring incentives that were used over 2024 and 2025.

Vlad Volodarsky: Yeah. Hi, Himanshu. It's approximately 5% of revenue right now. They come down. There's a number of recurring incentives that were used over the last 2024 and 2025, those roll off or burn off with turnover, so it's hard to predict exact resident turnover. We expect them to grow this year as we have the full year impact of the 2025 incentives, then start really burning off in 2027, 2028.

Vlad Volodarski: Yeah. Hi, Himanshu. It's approximately 5% of revenue right now. They come down. There's a number of recurring incentives that were used over the last 2024 and 2025, those roll off or burn off with turnover, so it's hard to predict exact resident turnover. We expect them to grow this year as we have the full year impact of the 2025 incentives, then start really burning off in 2027, 2028.

Speaker #7: And don't remember you guys doing anything in Albert in the last couple of years. So is that like a focus market now?

Speaker #5: Sorry. Is Calgary a focus market?

Speaker #5: 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.

Speaker #7: 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.

Speaker #7: Is Alberta screening very well now?

Speaker #5: For sure. We consider Alberta and Calgary specifically and Alberta to be core markets. And areas of focus. For future growth, both on the acquisition side and on the development side.

Speaker #5: And then start really burning off in 2027, 2028.

Speaker #7: Okay, okay. Thank you, that's helpful. And then, turning attention towards the acquisition activity—the Edward Calgary acquisition—what kind of cap rate are you expecting there?

Himanshu Gupta [Director, Equity Research Analyst: Okay, okay. Thank you. That's helpful. 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 know, you guys doing anything in Alberta in the last couple of years, is that like a focus market now?

Himanshu Gupta: Okay, okay. Thank you. That's helpful. 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 know, you guys doing anything in Alberta in the last couple of years, is that like a focus market now?

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

Speaker #7: And don’t remember you guys doing anything in Alberta in the last couple of years. So is that, like, a focus market now?

Speaker #7: Okay. And would you say is there a spread between Alberta versus Ontario, or is it quite comparable?

Speaker #5: Sorry. Is Calgary a focus market?

Jonathan Kelcher: Sorry, is Calgary a focus market?

Jonathan Boulakia: Sorry, is Calgary a focus market?

Speaker #7: 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.

Himanshu Gupta [Director, Equity Research Analyst: 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.

Himanshu Gupta: 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.

Speaker #5: Alberta and Ontario, I think, would be relatively similar in terms of cap rates.

Speaker #7: Okay. Okay. Thank you. And maybe just last question since I have you, Jonathan, here. You did mention about some cap rate compression. You have seen.

Speaker #5: Yeah. We do.

Jonathan Kelcher: Yeah, we do-.

Jonathan Boulakia: Yeah, we do-.

Himanshu Gupta [Director, Equity Research Analyst: Is Alberta fitting very well now?

Speaker #7: Is Alberta screening very well now?

Himanshu Gupta: Is Alberta fitting very well now?

Speaker #5: 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.

Jonathan Kelcher: 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. The cap rate would be, you know, consistent with, you know, published guideline cap rates that we see in publications. We don't normally disclose the actual cap rate that we pay, but it would be in the high 5s, low 6s cap rate.

Jonathan Boulakia: 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. The cap rate would be, you know, consistent with, you know, published guideline cap rates that we see in publications. We don't normally disclose the actual cap rate that we pay, but it would be in the high 5s, low 6s cap rate.

Speaker #7: 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?

Speaker #5: 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's, low 6's cap rate.

Speaker #5: 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.

Speaker #7: Okay. And would you say there is a spread between Alberta versus Ontario, or is it quite comparable?

Himanshu Gupta [Director, Equity Research Analyst: Okay. Would you say, is there like a spread between Alberta versus Ontario, or is it quite complex?

Himanshu Gupta: Okay. Would you say, is there like a spread between Alberta versus Ontario, or is it quite complex?

Speaker #5: 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.

Speaker #5: Alberta and Ontario, I think, would be relatively similar in terms of cap rates.

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

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

Speaker #7: Okay. Okay. Thank you. And maybe just last question, since I have you, Jonathan, here. You did mention about some cap rate compression you have seen.

Himanshu Gupta [Director, Equity Research Analyst: Okay. Okay, thank you. Maybe just last question, since I have you, Jonathan, here. You did mention about some capital compression you have seen. For this development cycle to continue, do you need to see more capital compression from here, or whatever you have achieved is enough to bring on more supply?

Himanshu Gupta: Okay. Okay, thank you. Maybe just last question, since I have you, Jonathan, here. You did mention about some capital compression you have seen. For this development cycle to continue, do you need to see more capital compression from here, or whatever you have achieved is enough to bring on more supply?

Speaker #7: Okay. Okay. Fair enough. And just one last one. That Ontario portfolio acquisition, when are you expecting to close? Is it the CMC approval which is taking forever?

Speaker #7: 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?

Speaker #5: Well, we are still waiting for third-party approvals, yes. And we would expect to close in Q2.

Speaker #7: Q2. Okay. Okay. Thank you. And I'll turn it back.

Jonathan Kelcher: Well, we're seeing some developments pencil out now, with the current cap rates and current expectations on rates. As Vlad mentioned, most of our development is what we call balance sheet. We're gonna be buying these at prevailing cap rates and fair market value when they're stabilized or on construction completion. If and when that happens, we'll be paying whatever the appropriate price is.

Speaker #5: Well, we're seeing some developments pencil out now with the current cap rates and current expectations on rates. But as Vlad mentioned, most of our development is what we call off-balance sheet.

Jonathan Boulakia: Well, we're seeing some developments pencil out now, with the current cap rates and current expectations on rates. As Vlad mentioned, most of our development is what we call balance sheet. We're gonna be buying these at prevailing cap rates and fair market value when they're stabilized or on construction completion. If and when that happens, we'll be paying whatever the appropriate price is.

Speaker #3: Thank you for your question. Your next question comes from Sairam Srinivas. From ATB, Cormac Capital Markets. Your line is now open.

Speaker #5: 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.

Speaker #8: Thank you, Alberta. Good morning, Jonathan. Just looking at the quarter and I might have missed this, but do you guys guide for the acquisition or disposition number for '26?

Speaker #5: I'm sorry. Can you repeat that?

Speaker #7: Okay. Okay. Fair enough. And just one last one. That Ontario, that portfolio acquisition—when are you expecting to close? Is it the CMC approval which is taking forever?

Himanshu Gupta [Director, Equity Research Analyst: Okay. Okay, fair enough. Just one last one. That Ontario, in that portfolio acquisition, when are you expecting to close? Is it the CMHC approval which is taking forever?

Himanshu Gupta: Okay. Okay, fair enough. Just one last one. That Ontario, in that portfolio acquisition, when are you expecting to close? Is it the CMHC approval which is taking forever?

Speaker #8: Just looking at your commentary on acquisitions and dispositions, I'm not sure if I missed it, but do you have a number for '26 in terms of your goal?

Speaker #5: Three years. No. We provided a strategic plan for the next three years. A target of $2 billion of acquisitions and $1 billion of dispositions of non-core properties.

Jonathan Kelcher: Well, we are still waiting for third-party approvals, yes. We would expect to close in Q2.

Speaker #5: Well, we are still waiting for third-party approvals, yes. And we would expect to close in Q2.

Jonathan Boulakia: Well, we are still waiting for third-party approvals, yes. We would expect to close in Q2.

Speaker #7: Q2. Okay. Okay. Thank you. And I'll turn it back.

Himanshu Gupta [Director, Equity Research Analyst: Q2. Okay. Okay. Thank you, and I'll done back.

Himanshu Gupta: Q2. Okay. Okay. Thank you, and I'll done back.

Speaker #5: 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.

Speaker #3: Thank you for your question. Your next question comes from Siren Srinivas from ATB Cormac Capital Markets. Your line is now open.

Operator: Thank you for your question. Your next question comes from Sairam Srinivas from ATB Cormark Capital Markets. Your line is now open.

Operator: Thank you for your question. Your next question comes from Sairam Srinivas from ATB Cormark Capital Markets. Your line is now open.

Speaker #8: Got that. And Jonathan, maybe going back to your comments on the competition you're seeing in the acquisition market, can you use a color in terms of the kind of firms you're seeing competing over there?

Speaker #8: Thank you, Alberta. Good morning, Jonathan. Just looking at the quarter—and I might have missed this—but do you guys budget for the acquisition or disposition number for '26?

Sairam Srinivas: Thank you, operator. Good morning, guys. Just looking to the quarter, and I might have missed this, but do you guys guide for the acquisition and disposition number for 26?

Sairam Srinivas: Thank you, operator. Good morning, guys. Just looking to the quarter, and I might have missed this, but do you guys guide for the acquisition and disposition number for 26?

Speaker #8: Is it more I mean, more funds competing or more operators as well?

Jonathan Kelcher: I'm sorry, can you repeat that?

Jonathan Boulakia: I'm sorry, can you repeat that?

Speaker #5: I'm sorry. Can you repeat that?

Sairam Srinivas: Just looking at your commentary on acquisitions and dispositions, I'm not sure if I missed it, but do you have a number for 2026 in terms of end goal?

Speaker #8: Just looking at your commentary on acquisitions and dispositions, I'm not sure if I missed it, but do you have a number for '26 in terms of your goal?

Sairam Srinivas: Just looking at your commentary on acquisitions and dispositions, I'm not sure if I missed it, but do you have a number for 2026 in terms of end goal?

Speaker #5: We're seeing the typical competition for assets. We're seeing competition from domestic owners and operators like us. And we're also seeing US capital coming into Canada, as it has been doing so for the last decade.

Speaker #5: No. We provided a strategic plan for the next three years: a target of $2 billion of acquisitions and $1 billion of dispositions of non-core properties.

Jonathan Kelcher: No, we provided a strategic plan for the next three years of a target of CAD 2 billion of acquisitions and CAD 1 billion of dispositions of non-core properties. We don't set an annual goal or plan. It says market conditions allow, we will sell and buy as we see opportunities to do so.

Jonathan Boulakia: No, we provided a strategic plan for the next three years of a target of CAD 2 billion of acquisitions and CAD 1 billion of dispositions of non-core properties. We don't set an annual goal or plan. It says market conditions allow, we will sell and buy as we see opportunities to do so.

Speaker #5: But we don't set an annual goal or plan. It says market conditions allow, and so we will sell and buy as we see opportunities to do so.

Speaker #5: So we just see more of that, but nothing particularly new.

Speaker #8: That's good. And maybe if you're looking at developments, Vlad, I know you mentioned thinking about off-balance sheet versus the option and developments. When you historically look at acquiring a new project, a 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've probably acquired to the market?

Sairam Srinivas: Okay. Maybe going back to your comments on, you know, the competition you're seeing in the acquisition market, can you give the color in terms of the kind of firms you're seeing competing over there? Is more, you know, like, more funds competing or more operators as well?

Sairam Srinivas: Okay. Maybe going back to your comments on, you know, the competition you're seeing in the acquisition market, can you give the color in terms of the kind of firms you're seeing competing over there? Is more, you know, like, more funds competing or more operators as well?

Speaker #8: That's fair. And Jonathan, maybe going back to your comments on the competition you're seeing in the acquisition market, can you give us some color in terms of the kind of firms you're seeing competing over there?

Speaker #8: Is it more—I mean, more funds competing, or more operators as well?

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

Speaker #5: We're seeing the typical competition for assets. We're seeing competition from domestic owners and operators like us, and we're also seeing US capital coming into Canada, as it has been doing for the last decade.

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

Speaker #5: 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.

Speaker #5: So, we just see more of that, but nothing particularly new.

Speaker #5: 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.

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

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

Speaker #8: That's good. And maybe a little bit on developments. Vlad, I know you mentioned thinking about off-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've probably acquired from the market?

Speaker #5: So there is certainly a difference. Now, we've been very fortunate in our last two years of acquisitions where we have been buying new properties and they are great state-of-the-art properties by and large.

Speaker #5: 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.

Speaker #5: 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.

Jonathan Kelcher: Definitely. 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. We play an oversight role on the construction quality. We know exactly what we're getting, and what we're getting at the end is exactly what we want. There is certainly a difference. Now, we've been very fortunate in our last two 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.

Jonathan Boulakia: Definitely. 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. We play an oversight role on the construction quality. We know exactly what we're getting, and what we're getting at the end is exactly what we want. There is certainly a difference. Now, we've been very fortunate in our last two 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.

Speaker #5: 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.

Speaker #5: And yes, when we create them for ourselves, we're we have I guess more of a say in what we're ultimately going to buy.

Speaker #5: 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.

Speaker #8: That is great. Thanks, Jonathan, for the color. I'll turn it back.

Speaker #5: So there is certainly a difference. Now, we've been very fortunate in our last two years of acquisitions where we have been buying new properties, and they are great, state-of-the-art properties by and large.

Speaker #3: Thank you very much for your question. Your next question comes from Giuliano Thornhill. From National Bank. Your line is now open.

Speaker #6: Hey, guys. Good morning, everyone. 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 bips, the margins were up in that 300 bips.

Speaker #5: 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.

Jonathan Kelcher: 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. 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. Yes, when we create them for ourselves, we have, I guess, more of a say in what we're ultimately going to buy.

Jonathan Boulakia: 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. 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. Yes, when we create them for ourselves, we have, I guess, more of a say in what we're ultimately going to buy.

Speaker #5: 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.

Speaker #6: Going forward, do you see that margin increase accelerating as we get into these higher occupancy levels?

Speaker #5: And yes, when we create them for ourselves, we have, I guess, more of a say in what we're ultimately going to buy.

Speaker #5: Yeah. Good morning. I would say they would accelerate or already operating at the high occupancy levels. But we do expect them to increase with the increase in occupancy.

Sairam Srinivas: That is great. Thanks, Jonathan, for the color. I'll go back.

Sairam Srinivas: That is great. Thanks, Jonathan, for the color. I'll go back.

Speaker #8: That is great. Thanks, Jonathan, for the color. I'll turn it back.

Speaker #3: Thank you very much for your question. Your next question comes from Juliana Thornhill from National Bank. Your line is now open.

Operator: Thank you very much for your question. Your next question comes from Giuliano Thornhill from National Bank. Your line is now open.

Operator: Thank you very much for your question. Your next question comes from Giuliano Thornhill from National Bank. Your line is now open.

Speaker #6: 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?

Speaker #9: Hey, guys. Good morning, everyone. 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.

Giuliano Thornhill: Hey, guys. Good morning, everyone. I just kind of wanted to start on the margins. You know, the low 40, 95% occupancy looks pretty achievable. Given that occupancy last year for the same property pool was up by 480 basis points. The margins were up about 300 basis points. Going forward, do you see that margin increase accelerating as we get into these higher occupancy levels?

Giuliano Thornhill: Hey, guys. Good morning, everyone. I just kind of wanted to start on the margins. You know, the low 40, 95% occupancy looks pretty achievable. Given that occupancy last year for the same property pool was up by 480 basis points. The margins were up about 300 basis points. Going forward, do you see that margin increase accelerating as we get into these higher occupancy levels?

Speaker #6: At those levels?

Speaker #5: 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 for clarity.

Speaker #9: Going forward, do you see that margin increase accelerating as we get into these higher occupancy levels?

Speaker #5: But we do think that portfolio as well can get into that low to mid-40% range.

Speaker #10: Yeah, good morning. I would say they would accelerate or are already operating at high occupancy levels. But we do expect them to increase with the increase in occupancy.

Himanshu Gupta [Director, Equity Research Analyst: Good morning. 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.

Himanshu Gupta: Good morning. 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.

Speaker #6: Okay. And just going back to the transaction volumes that you said you guys commented on earlier, how much of that is charitable actually interested in?

Speaker #6: What's the, I guess, dollar volume? And what would charitable be interested in and what's out there?

Giuliano Thornhill: Right. Okay. Moving to the growth portfolio, I know that's, you know, higher quality, recently built. Where does something of that quality stable out to at those levels?

Speaker #9: Right. Okay. And then, moving to the growth portfolio—I know that's higher quality, recently built. Where does something of that quality stabilize out to at those levels?

Giuliano Thornhill: Right. Okay. Moving to the growth portfolio, I know that's, you know, higher quality, recently built. Where does something of that quality stable out to at those levels?

Speaker #5: Sorry. Are you asking what's the dollar value of potential acquisitions that we see?

Speaker #6: Yeah. Yeah. Exactly.

Speaker #5: Yeah. 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.

Vlad Volodarsky: That just because that portfolio includes properties where we've had a change in ownership. There's a number of properties that were part of the Welltower joint venture that are included in there as well, just for clarity. We do think that portfolio as well can get into that low to mid 40% range.

Speaker #10: And that's just because 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 there as well, for clarity.

Vlad Volodarski: That just because that portfolio includes properties where we've had a change in ownership. There's a number of properties that were part of the Welltower joint venture that are included in there as well, just for clarity. We do think that portfolio as well can get into that low to mid 40% range.

Speaker #6: And is it still going to be focusing that kind of care light product type that you've been acquiring?

Speaker #10: But we do think that portfolio as well can get into that low- to mid-40% range.

Speaker #5: Yeah. By and large, yes. But we do like continuum of care type properties. looking at all the whole spectrum of care. On the private side, but yeah, our spot would be the more independent side with preferably some care component in the building.

Speaker #9: Okay. And just going back to the transaction volumes that you guys commented on earlier, how much of that is Chartwell actually interested in? What's the, I guess, dollar volume?

Giuliano Thornhill: Okay. 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?

Giuliano Thornhill: Okay. 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?

Speaker #9: And what would charitable be interested in, and what's out there?

Speaker #5: Sorry. Are you asking what’s the dollar value of potential acquisitions that we see?

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

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

Giuliano Thornhill: Mm-hmm. Yeah. Yeah, exactly.

Giuliano Thornhill: Mm-hmm. Yeah. Yeah, exactly.

Speaker #9: Yeah. Yeah. Exactly.

Speaker #6: Yeah. 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 three to five years out, just as more and more people come in with other issues?

Speaker #5: Yeah, 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.

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

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

Speaker #9: And is it still going to be focusing on that kind of care-light product type that you've been acquiring?

Giuliano Thornhill: Is it still going to be focusing on that kind of care-lite product type that you've been acquiring?

Giuliano Thornhill: Is it still going to be focusing on that kind of care-lite product type that you've been acquiring?

Speaker #7: We think that the demand is growing 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.

Speaker #5: Yeah, by and large, yes. But we do like continuum-of-care type properties. So we are focused— we are looking at the whole spectrum of care on the private-funded, on the private side.

Jonathan Kelcher: Yeah, By and large, yes, but we do like continuum of care type properties. You know, we are looking at all the whole spectrum of care on the private refunds, on the private side. Yeah, our spot would be the more independent side with preferably some care component in the building.

Jonathan Boulakia: Yeah, By and large, yes, but we do like continuum of care type properties. You know, we are looking at all the whole spectrum of care on the private refunds, on the private side. Yeah, our spot would be the more independent side with preferably some care component in the building.

Speaker #7: And there's definitely always going to be demand for care. And so our team's been putting in place programs care assist program in particular that is charitable proprietary program on care.

Speaker #5: But yeah, our thought would be the more independent side, with preferably some care component in the building.

Speaker #7: 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.

Speaker #9: Yeah. 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 35 years out, just as more and more people come in with other issues?

Giuliano Thornhill: Yeah. I guess the follow-up I'd ask is just kind of, do you think with the LTC wait lists growing and obviously higher acuity patients coming in, do you think that could impact the demand later on, even, like, three to five years out, just, as more and more people come in with, other issues?

Giuliano Thornhill: Yeah. I guess the follow-up I'd ask is just kind of, do you think with the LTC wait lists growing and obviously higher acuity patients coming in, do you think that could impact the demand later on, even, like, three to five years out, just, as more and more people come in with, other issues?

Speaker #7: 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.

Vlad Volodarsky: We think that the demand is going to grow on all sides of the continuum of care spectrum. We think there's gonna be continuing strong demand for more independent senior apartment type of developments. There's definitely always going to be demand for care. Our team's been putting in place programs, Care Assist program in particular. That is Chartwell proprietary program on care. We have technology that helps people to deliver care, assess clients, deliver care, and bill for it.

Speaker #10: 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 developments.

Vlad Volodarski: We think that the demand is going to grow on all sides of the continuum of care spectrum. We think there's gonna be continuing strong demand for more independent senior apartment type of developments. There's definitely always going to be demand for care. Our team's been putting in place programs, Care Assist program in particular. That is Chartwell proprietary program on care. We have technology that helps people to deliver care, assess clients, deliver care, and bill for it.

Speaker #7: And help them to stay with us as long as they choose to.

Speaker #6: All right. Okay. Thanks, guys.

Speaker #3: Thank you very much for your question. Your next question comes from Pammi Bir from RBC Capital Markets. Your line is now open.

Speaker #10: And there's definitely always going to be demand for care. And so our team's been putting in place programs—Care Assist Program in particular—that is a charitable, proprietary program on care.

Speaker #8: Thanks. Good morning. 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 had a few months past, has your view changed at all either perhaps better or maybe even moderating a bit in terms of how you think about 2026?

Speaker #10: 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.

Vlad Volodarsky: You'll see our care revenue's 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.

Vlad Volodarski: You'll see our care revenue's 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.

Speaker #8: 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.

Speaker #10: 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.

Speaker #10: And help them to stay with us as long as they choose to.

Speaker #7: I don't think anything's changed from a couple of months ago. We're very optimistic about our ability to continue to deliver great services to our residents.

Speaker #9: All right. Okay. Thanks, guys.

Giuliano Thornhill: Great. Okay. Thanks, guys.

Giuliano Thornhill: Great. Okay. Thanks, guys.

Speaker #3: Thank you very much for your question. Your next question comes from Pammy Beer from RBC Capital Markets. Your line is now open.

Operator: Thank you very much for your question. Your next question comes from Pammi Bir, from RBC Capital Markets. Your line is now open.

Operator: Thank you very much for your question. Your next question comes from Pammi Bir, from RBC Capital Markets. Your line is now open.

Speaker #7: And continue to grow profitability through occupancy. And rental rate growth will 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.

Speaker #11: Thanks. Good morning. Just coming back to maybe the investor day and the outlook that you presented there. As you look now at 2026, and we've had a few months pass, has your view changed at all—either perhaps better, or maybe even moderating a bit—in terms of how you think about 2026?

Pammi Bir: Thanks. Good morning. Just coming back to maybe the Investor Day, and the outlook that you presented there, you know, as you kind of look now, 2026, and we've a few months passed, you know, 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. Just trying to get a pulse on how you're thinking about the year relative to a few months ago.

Pammi Bir: Thanks. Good morning. Just coming back to maybe the Investor Day, and the outlook that you presented there, you know, as you kind of look now, 2026, and we've a few months passed, you know, 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. Just trying to get a pulse on how you're thinking about the year relative to a few months ago.

Speaker #7: So I don't think anything's changed from that perspective.

Speaker #6: 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 the 95% threshold this year?

Speaker #11: I mean, the commentary seems optimistic, but also at the same time, it seems perhaps conservative. So just trying to get a pulse on how you're thinking about the year relative to a few months ago.

Speaker #6: Or will that take a little bit longer?

Vlad Volodarsky: I don't think anything's 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. I don't think anything's changed from that perspective.

Speaker #10: I don't think anything's changed from a couple of months ago. We're very optimistic about our ability to continue to deliver great services to our residents.

Vlad Volodarski: I don't think anything's 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. I don't think anything's changed from that perspective.

Speaker #7: 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.

Speaker #10: And continue to grow profitability through occupancy, and rental rate growth will continue. We'll 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.

Speaker #7: 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.

Speaker #7: She's not nodding her head. Yeah. Too aggressive to assume that that will hit 95% this year. So we have a few homes like that.

Speaker #10: So, I don't think anything's changed from that perspective.

Speaker #9: 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 something you think you can get the portfolio to—in terms of the 95% threshold—this year?

Pammi Bir: Okay. 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?

Pammi Bir: Okay. 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?

Speaker #7: The rest of that portfolio should be at 95% or higher.

Speaker #6: 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.

Speaker #9: Or will that take a little bit longer?

Speaker #6: 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?

Speaker #10: Well, we'll see. We might. There are some homes in that growth bucket that—just as Karen gave an example of—Edgewater in Nanaimo that just opened in December.

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

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

Speaker #6: Based on all these sort of goalposts that you've provided?

Speaker #10: 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.

Speaker #7: I mean, 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.

Speaker #10: She's not nodding her head. Yeah. Too aggressive to assume that that will hit 95% this year. So we have a few homes like that.

Speaker #7: That we expect to achieve this year or higher. So if you do that math, then it looks like you're estimates will be about right.

Speaker #10: The rest of that portfolio should be at 95% or higher.

Speaker #9: 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.

Pammi Bir: Okay. Maybe just coming back to the same property portfolio, you know, 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, you know, in terms of organic growth, you'll be tracking close to call it the high single digits, low double-digit range, based on, you know, all these sort of goalposts that you've provided?

Pammi Bir: Okay. Maybe just coming back to the same property portfolio, you know, 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, you know, in terms of organic growth, you'll be tracking close to call it the high single digits, low double-digit range, based on, you know, all these sort of goalposts that you've provided?

Speaker #6: 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?

Speaker #9: I mean, should we ultimately expect that, in terms of organic growth, you'll be tracking close to, call it, the high single digits to low double-digit range?

Speaker #6: I'm not sure if you have stuff on the market currently. And I'm just curious if there's a portfolio in there at all and what sort of NOI impact that may have if you do move forward on some additional deals.

Speaker #9: Based on all these sort of goal posts that you've provided.

Speaker #7: Yeah. At this point, Pommi, 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.

Speaker #10: I mean, it is reasonable. So the rental rate growth is over 4%, expenses are 4% or lower. And then we still have some occupancy to get to a 95% average.

Vlad Volodarsky: I think it is reasonable. 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. You know, if you do that math, then looks like your estimates will be about right.

Vlad Volodarski: I think it is reasonable. 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. You know, if you do that math, then looks like your estimates will be about right.

Speaker #7: 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 three years to dispose of the non-core portfolio.

Speaker #10: That we expect to achieve this year or higher. So, if you do the math, then it looks like your estimates will be about right.

Speaker #9: 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?

Pammi Bir: Okay. Then just lastly, on the dispositions, you know, 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.

Speaker #7: We value it at over a billion dollars today.

Pammi Bir: Okay. Then just lastly, on the dispositions, you know, 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.

Speaker #6: Okay. Thanks very much. I will turn it back.

Speaker #3: Thank you very much for your question. Your last and final question comes from Tal Woolley from CIBC Capital Markets. Your line is now open.

Speaker #9: I'm not sure if you have stuff on the market currently, and I'm just curious if there's a portfolio in there at all, and what sort of NOI impact that may have if you do move forward on some additional deals.

Speaker #8: Hi. Good morning. Obviously, a big year unannounced acquisitions. I think it was $1.7 billion of stuff that you've closed since you had to be closed.

Vlad Volodarsky: Yeah, at this point, Tommy, we can't really talk about these. 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 gonna be completed or not. As soon as we can talk about it, we will. The target remains for the next 3 years to dispose of the non-core portfolio. We value it at over CAD 1 billion today.

Speaker #10: Yeah. At this point, Pammy, we can't really talk about these. These are all very preliminary transactions that are in progress. There are a few of them that we're working on.

Vlad Volodarski: Yeah, at this point, Tommy, we can't really talk about these. 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 gonna be completed or not. As soon as we can talk about it, we will. The target remains for the next 3 years to dispose of the non-core portfolio. We value it at over CAD 1 billion today.

Speaker #8: Can you just talk a little bit about any signs of integration strain either at the corporate level or on the ground?

Speaker #10: 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 three years, to dispose of the non-core portfolio.

Speaker #7: 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.

Speaker #10: We value it at over $1 billion today.

Speaker #9: Okay, thanks very much. I will turn it back.

Pammi Bir: Okay, thanks very much. I'll turn it back.

Pammi Bir: Okay, thanks very much. I'll turn it back.

Speaker #7: To take on properties and transition 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.

Speaker #3: Thank you very much for your question. Your last and final question comes from Tal Woolley from CIBC Capital Markets. Your line is now open.

Operator: Thank you very much for your question. Your last and final question comes from Tal Woolley from CIBC Capital Markets. Your line is now open.

Operator: Thank you very much for your question. Your last and final question comes from Tal Woolley from CIBC Capital Markets. Your line is now open.

Speaker #12: Hi. Good morning. Obviously, a big year—unannounced acquisitions. I think it was $1.7 billion of stuff that you've closed, and yet to be closed.

Tal Woolley: Hi, good morning. Obviously, a big year on announced acquisitions. I think it was CAD 1.7 billion of stuff that you've closed and seems yet to be closed. Can you just talk a little bit about any signs of integration strain, you know, either at the corporate level or on the ground?

Tal Woolley: Hi, good morning. Obviously, a big year on announced acquisitions. I think it was CAD 1.7 billion of stuff that you've closed and seems yet to be closed. Can you just talk a little bit about any signs of integration strain, you know, either at the corporate level or on the ground?

Speaker #7: And it's really been a great experience hard work, but a great experience for residents and employees. So these homes and the feedback that we've been receiving, we were just recently together with the general managers from all of our homes.

Speaker #12: Can you just talk a little bit about any signs of integration strain, either at the corporate level or on the ground?

Speaker #7: 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 charitable family.

Speaker #10: Well, frankly, I was surprised at how well our teams were able to integrate these acquisitions—pleasantly surprised. Because it's not an easy task.

Vlad Volodarsky: Well, frankly, I was surprised of how well our teams were able to integrate these acquisitions. Pleasantly surprised, because it is not an easy task to take on properties and transition 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. It has really been a great experience. Hard work, but a great experience for residents and employees of these homes. The feedback that we have 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.

Vlad Volodarski: Well, frankly, I was surprised of how well our teams were able to integrate these acquisitions. Pleasantly surprised, because it is not an easy task to take on properties and transition 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. It has really been a great experience. Hard work, but a great experience for residents and employees of these homes. The feedback that we have 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.

Speaker #7: 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.

Speaker #10: To take on properties and transition 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, and some that were managed by larger companies.

Speaker #7: 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.

Speaker #10: 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.

Speaker #7: The good news is all acquisitions or the vast majority of the acquisitions that we've done over the course of the last two years have exceeded our expectations in terms of the financial performance.

Speaker #10: 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.

Speaker #8: Okay. And then when you take on that kind of volume in a year, I'm just wondering can you start to go back and leverage your buying power more effectively, whether it's for food or medical supplies, that kind of stuff?

Speaker #10: 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.

Vlad Volodarsky: 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. We're making sure that there's good processes, enough resources dedicated to these transitions, and that there's definitely risk associated with it. 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 two years, have exceeded our expectations in terms of the financial performance.

Vlad Volodarski: 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. We're making sure that there's good processes, enough resources dedicated to these transitions, and that there's definitely risk associated with it. 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 two years, have exceeded our expectations in terms of the financial performance.

Speaker #8: Is there 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 proceed start to fall?

Speaker #10: And we're making sure that there are good processes and 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.

Speaker #7: Hey, Tal. We do that irregardless 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.

Speaker #10: The good news is, all acquisitions, or the vast majority of the acquisitions that we've done over the course of the last two years, have exceeded our expectations in terms of the financial performance.

Speaker #12: Okay. And then, when you take on that kind of volume in a year, I'm just wondering, can you start to go back and leverage your buying power more effectively, whether it's for food or medical supplies, that kind of stuff?

Tal Woolley: Okay. Then when you take on, like, you know, 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 for like, for food or medical supplies, that kind of stuff? Like, can you get better operating synergies out of this? Is that part of the reason why, you know, we're sort of seeing your direct operating expenses per suite start to fall?

Tal Woolley: Okay. Then when you take on, like, you know, 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 for like, for food or medical supplies, that kind of stuff? Like, can you get better operating synergies out of this? Is that part of the reason why, you know, we're sort of seeing your direct operating expenses per suite start to fall?

Speaker #7: 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.

Speaker #8: Okay. And so what 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?

Speaker #12: Is there—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?

Speaker #7: 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.

Jeff: Hey, Tal. we do that, irregardless of the level of acquisition activity. 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. 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.

Speaker #10: Hey, Tal. We do that irregardless 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.

Karen Sullivan: Hey, Tal. we do that, irregardless of the level of acquisition activity. 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. 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.

Speaker #8: Got it. And then as demand continues to pick up here, how are you feeling? Are you finding you've got the right suite mix? For now?

Speaker #10: 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.

Speaker #8: Or are you finding it you need more support? Supportive living suites or assisted living suites? How are you matching demand at this point in time?

Speaker #12: 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 come down?

Tal Woolley: Okay. 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 fall?

Tal Woolley: Okay. 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 fall?

Speaker #7: 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.

Jeff: No, 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.

Karen Sullivan: No, 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.

Speaker #10: They grew on an absolute basis, but because occupancy grew faster, you're seeing a decline in the operating expense per occupied suite.

Speaker #7: 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.

Speaker #12: Got it. And then as demand continues to pick up here, how are you feeling? Are you finding you've got the right suite mix for now?

Tal Woolley: Got it. You know, as demand continues to pick up here, how are you finding you've got the right suite mix for now? Are you finding it like, you know, you need more support, you know, supportive living suites or assisted living suites? How are you know, matching demand at this point in time?

Tal Woolley: Got it. You know, as demand continues to pick up here, how are you finding you've got the right suite mix for now? Are you finding it like, you know, you need more support, you know, supportive living suites or assisted living suites? How are you know, matching demand at this point in time?

Speaker #7: And so that's where the majority of our portfolios 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.

Speaker #12: Or are you finding that you need more support or supportive living suites, or assisted living suites? How are you matching demand at this point in time?

Speaker #7: 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.

Vlad Volodarsky: 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. Those properties can accommodate people from fully independent to people who require quite a bit of care. 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. Generally, we're pretty happy with the breakdown that we have.

Vlad Volodarski: 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. Those properties can accommodate people from fully independent to people who require quite a bit of care. 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. Generally, we're pretty happy with the breakdown that we have.

Speaker #10: 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.

Speaker #7: But generally, we're pretty happy with the breakdown that we have. And as I said, the my expectation is the demand will continue to grow in both sides of the spectrum where people will look for more independent type of accommodation for socialization purposes and will business where we provide services for people with more care needs.

Speaker #10: 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.

Speaker #8: Okay. And then just lastly, I think the last big deal you've got to close, I think, is the system portfolio. Will you 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?

Speaker #10: And so that's where the majority of our portfolios are, and we're very happy with that breakdown. We have some neighborhoods or wings of the properties that we designate as memory living or assisted living.

Speaker #10: 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.

Speaker #8: Or perhaps using the ATM?

Speaker #7: Yeah. So we have a combination of some dispositions and also approximately 170 million of CMAC financings underway. So between those and cash on hand, we'll be able to fund the portfolio acquisition.

Speaker #10: But generally, we're pretty happy with the breakdown that we have. And as I said, my expectation is the demand will continue to grow in both sides of the spectrum, where people will look for more independent-type accommodation for socialization purposes.

Vlad Volodarsky: As I said, 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-

Vlad Volodarski: As I said, 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-

Speaker #10: And we'll continue to grow a part of our business where we provide services for people with more care needs.

Jeff: Where we provide services for people with more care needs.

Karen Sullivan: Where we provide services for people with more care needs.

Speaker #8: Okay. That's great. Thanks very much, John.

Speaker #12: Okay. And then just lastly, I think the last big deal you've got to close, I think, is the system portfolio. 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?

Tal Woolley: Okay. Just lastly, I think, you know, the last big deal you've got to close, I think, is the system portfolio. Like, for this year, would you look at completing the balance of that with the, you know, your credit facilities, or, you know, do you expect it to be through some dispositions by then, or, perhaps, using the ATM?

Tal Woolley: Okay. Just lastly, I think, you know, the last big deal you've got to close, I think, is the system portfolio. Like, for this year, would you look at completing the balance of that with the, you know, your credit facilities, or, you know, do you expect it to be through some dispositions by then, or, perhaps, using the ATM?

Speaker #1: Thank you for your questions. 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.

Speaker #7: Thank you again, everybody, for joining us. If you have any further questions, please do not hesitate

Speaker #1: Date to give any one of us a call . Goodbye

Speaker #12: Or perhaps using the ATM?

Speaker #10: Yes. We have a combination of some dispositions and also approximately $170 million of CMAC financings underway. So between those and cash on hand, we'll be able to fund the portfolio acquisition.

Jeff: Yes, we have a combination of some dispositions and also approximately CAD 170 million of CMHC financings underway. Between those and cash on hand, we'll be able to fund the that portfolio acquisition.

Karen Sullivan: Yes, we have a combination of some dispositions and also approximately CAD 170 million of CMHC financings underway. Between those and cash on hand, we'll be able to fund the that portfolio acquisition.

Speaker #12: Okay, that's great. Thanks very much, gentlemen.

Tal Woolley: Okay, that's great. Thanks very much, Dylan.

Tal Woolley: Okay, that's great. Thanks very much, Dylan.

Speaker #1: Thank you for your questions. 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.

Operator: Thank you for your questions. There are no further questions at this time. I will now turn the call back to Vlad Volodarsky, Chief Executive Officer of Chartwell, for closing remarks.

Operator: Thank you for your questions. There are no further questions at this time. I will now turn the call back to Vlad Volodarsky, Chief Executive Officer of Chartwell, for closing remarks.

Speaker #10: 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.

Vlad Volodarsky: 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.

Vlad Volodarski: 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.

Speaker #10: Goodbye.

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

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