Q1 2026 Chartwell Retirement Residences Earnings Call

May 8, 2026

Operator 2: Hello, everyone. Thank you for joining us, and welcome to the Chartwell Q1 2026 Results Conference Call. This call is being recorded. After today's prepared remarks, we will hold a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Mr. Vlad Volodarski, Chief Executive Officer of Chartwell Retirement Residences. Please go ahead.

Operator: Hello, everyone. Thank you for joining us, and welcome to the Chartwell Q1 2026 Results Conference Call. This call is being recorded. After today's prepared remarks, we will hold a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Mr. Vlad Volodarski, Chief Executive Officer of Chartwell Retirement Residences. Please go ahead.

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

Speaker #1: Please go ahead. Thank you, Lucas. Good morning, and thank you for joining us today. There is a slide presentation to accompany this conference call, available on our website at chartwell.com under the Investor Relations tab.

Vlad Volodarski: Thank you, Lucas. Good morning, and thank you for joining us today. There is a slide presentation to accompany this conference call available on our website at Chartwell.com under the investor relations tab. Joining me are Karen Sullivan, President and Chief Operating Officer; Jeffrey Brown, Chief Financial Officer; Jonathan Boulakia, Chief Investment Officer and Chief Legal Officer; and Gordon Chiu, Chief Technology Officer. Before we begin, I direct you to the cautionary statement on slide 2 because during this call, we will make statements containing forward-looking information and non-GAAP and other financial measures. Our MD&A and other securities filings contain information about assumptions, risks, and uncertainties inherent in such forward-looking statements and details of such non-GAAP and other financial measures. More specifically, I direct you to the disclosures in our Q1 2026 MD&A under the headings Risks and Uncertainties and Forward-Looking Information for a discussion of risks and uncertainties.

Speaker #1: 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 #1: Before we begin, I direct you to the questionary statements on slides two because during this call, we will make statements containing forward-looking information and known gaps and other financial measures.

Vlad Volodarski: Before we begin, I direct you to the cautionary statement on Slide 2 because during this call, we will make statements containing forward-looking information and non-GAAP and other financial measures. Our MD&A and other securities filings contain information about assumptions, risks, and uncertainties inherent in such forward-looking statements and details of such non-GAAP and other financial measures.

Speaker #1: Our MDNA and other security filings contain informations about assumptions, risks, and uncertainties inherent in such forward-looking statements and details of such known gaps and other financial measures.

Speaker #1: More specifically, I direct you to the disclosures in our Q1 2026 MDNA under the headings risks and uncertainties and forward-looking information. For a discussion of risks and uncertainties, these documents can be found on our website or on the Peter Plus website.

Vlad Volodarski: More specifically, I direct you to the disclosures in our Q1 2026 MD&A under the headings Risks and Uncertainties and Forward-Looking Information for a discussion of risks and uncertainties. These documents can be found on our website or on the SEDAR+ website. Turning to Slide 3. On the heels of a record year, 2025, Chartwell delivered exceptionally strong operating and financial results in Q1 2026.

Vlad Volodarski: These documents can be found on our website or on the SEDAR+ website. Turning to slide 3. On the heels of a record year, 2025, Chartwell delivered exceptionally strong operating and financial results in Q1 2026. This performance is a direct result of the great work of our residences teams who serve residents every day and of their corporate support teams who enable that work behind the scenes. Together, they continue to execute with dedication and with the mindset of innovation and continuous improvement. Far this year, I toured 35 retirement living communities, including visits to over 12 Chartwell residences across the country. What stands out immediately is the energy in our homes, driven by the teams that are proud of their achievements, optimistic about what's ahead, and constantly focused on improving the experience for residents.

Speaker #1: Turning to slide three. On the heels of a record year 2025, Chartwell delivered exceptionally strong operating and financial results in the first quarter in 2026.

Speaker #1: This performance is a direct result of the great work of our residents' teams who serve residents every day and of their corporate support teams who enabled that work behind the scenes.

Vlad Volodarski: This performance is a direct result of the great work of our residences teams who serve residents every day and of their corporate support teams who enable that work behind the scenes. Together, they continue to execute with dedication and with the mindset of innovation and continuous improvement. Far this year, I toured 35 retirement living communities, including visits to over 12 Chartwell residences across the country.

Speaker #1: Together, they continue to execute with dedication and with the mindset of innovation and continuous improvement. So far, this year, I have toured 35 retirement living communities, including visits to over a dozen Chartwell residences across the country.

Speaker #1: What stands out immediately is the energy in our homes, driven by the teams that are proud of their achievements, optimistic about what's ahead, and constantly focused on improving the experience for residents.

Vlad Volodarski: What stands out immediately is the energy in our homes, driven by the teams that are proud of their achievements, optimistic about what's ahead, and constantly focused on improving the experience for residents. In virtually every interaction I have with our residents, they express their gratitude to the people who serve them and their appreciation of the environment of kindness, care, and engagement that our teams create.

Speaker #1: In virtually every interaction I had with our residents, they expressed their gratitude to the people who serve them and their appreciation of the environment of kindness, care, and engagement that our teams create.

Vlad Volodarski: In virtually every interaction I have with our residents, they express their gratitude to the people who serve them and their appreciation of the environment of kindness, care, and engagement that our teams create. Our residents are special people, bringing with them tremendous life stories and memories, and the desire to create new stories and memories with Chartwell. Their positivity and determination to live life fully is genuinely inspiring. Our Q1 results reflect continuing strong operating momentum. Weighted average same-property occupancy increased 400 basis points to 94.7%. That drove solid financial performance with the same property adjusted NOI up 15.6% and FFO per unit increasing 35% compared to Q1 last year. Q1 2026 marked the first period of our new 3-year strategy. In addition to the solid operating results, we made strong progress in our investment and portfolio optimization strategy.

Speaker #1: Our residents are special people, bringing with them tremendous life stories and memories. And the desire to create new stories and memories with Chartwell. Their positivity and determination to live life fully is genuinely inspiring.

Vlad Volodarski: Our residents are special people, bringing with them tremendous life stories and memories, and the desire to create new stories and memories with Chartwell. Their positivity and determination to live life fully is genuinely inspiring. Our Q1 results reflect continuing strong operating momentum. Weighted average same-property occupancy increased 400 basis points to 94.7%.

Speaker #1: Our Q1 results reflect continuing strong operating momentum. Average same property occupancy increased 400 basis points to 94.7%. That drove solid financial performance, with same property adjusted NOI up 15.6% and FFO per unit increasing 35% compared to Q1 last year.

Vlad Volodarski: That drove solid financial performance with the same property adjusted NOI up 15.6% and FFO per unit increasing 35% compared to Q1 last year. Q1 2026 marked the first period of our new three-year strategy. In addition to the solid operating results, we made strong progress in our investment and portfolio optimization strategy.

Speaker #1: Q1 2026 marked the first period of our new three-year strategy. In addition to the solid operating results, we made strong progress in our investments and portfolio optimization strategy.

Speaker #1: We invested 435 million in high-quality acquisitions and announced 425 million in future acquisitions, including a new strategic partnership with San Gate Asset Management, a leading investment management and real estate developer.

Vlad Volodarski: We invested CAD 435 million in high-quality acquisitions and announced CAD 425 million in future acquisitions, including a new strategic partnership with Fengate Asset Management, a leading investment management and real estate developer. The partnership which we expect to grow in the future, including through joint development opportunities. We also closed on a CAD 49 million disposition of a non-core property and announced dispositions of 10 other non-core properties for approximately CAD 186 million. These results reflect consistent execution in all aspects of our business and many thoughtful decisions made every day. More importantly, they reflect the dedication and professionalism of our people. Their successes make me proud, and I'm deeply grateful to them for their exceptional work. With that, I'll pass the mic to my partners. Karen will walk you through the operational initiatives.

Speaker #1: Our partnership, which we expect to grow in the future, including through joint development opportunities. We also closed on a 49 million disposition of a non-core property and announced dispositions of 10 other non-core properties for approximately 186 million.

Vlad Volodarski: We also closed on a CAD 49 million disposition of a non-core property and announced dispositions of 10 other non-core properties for approximately CAD 186 million. These results reflect consistent execution in all aspects of our business and many thoughtful decisions made every day. More importantly, they reflect the dedication and professionalism of our people.

Speaker #1: These results reflect consistent execution in all aspects of our business and many of thoughtful decisions made every day. More importantly, they reflect the dedication and professionalism of our people, their successes making me proud and I'm deeply grateful to them for their exceptional work.

Vlad Volodarski: Their successes make me proud, and I'm deeply grateful to them for their exceptional work. With that, I'll pass the mic to my partners. Karen will walk you through the operational initiatives. Jeff will cover our financial performance, and Jonathan will update you on our growth and portfolio optimization initiatives. Karen?

Speaker #1: With that, I'll pass the mic to my partners, Karen will walk you through the operational initiatives, Jeff will cover our financial performance, and Jonathan will update you on our growth and portfolio optimization initiatives.

Vlad Volodarski: Jeff will cover our financial performance, and Jonathan will update you on our growth and portfolio optimization initiatives. Karen?

Speaker #1: Karen? Thanks, Vlad. Moving on to slide four, we had another strong quarter of leasing activity with a positive net permanent move into permanent move-out of 110 units.

Karen Sullivan: Thanks, Vlad. Moving on to slide 4. We had another strong quarter of leasing activity with a positive net permanent move-in to permanent move-out of 110 units, led by Quebec and Western Canada, with a slight winter dip in Ontario. Our marketing strategies continue to be very effective, with a 6% increase in personalized tours from marketing sources in Q1 compared to the same period in 2025. The website generated a 15% increase in personalized tours compared to last year. In April, we held a very successful 2-day open house, which generated close to 1,500 initial contacts. With occupancy at an all-time high, we are also focused on effectively managing our waitlists through Chartwell's Insiders program, which includes opportunities to keep prospects engaged while they wait for a suite to become available.

Karen Sullivan: Thanks, Vlad. Moving on to Slide 4. We had another strong quarter of leasing activity with a positive net permanent move-in to permanent move-out of 110 units, led by Quebec and Western Canada, with a slight winter dip in Ontario. Our marketing strategies continue to be very effective, with a 6% increase in personalized tours from marketing sources in Q1 compared to the same period in 2025.

Speaker #1: Led by Quebec and Western Canada with a slight winter dip in Ontario. Our marketing strategies continue to be very effective with a 6% increase in personalized tours from marketing sources in Q1 compared to the same period in 2025.

Speaker #1: The website generated a 15% increase in personalized tours compared to last year. In April, we held a very successful two-day open house which generated close to 1,500 initial contacts.

Karen Sullivan: The website generated a 15% increase in personalized tours compared to last year. In April, we held a very successful two-day open house, which generated close to 1,500 initial contacts. With occupancy at an all-time high, we are also focused on effectively managing our waitlists through Chartwell's Insiders program, which includes opportunities to keep prospects engaged while they wait for a suite to become available.

Speaker #1: With occupancy at an all-time high, we are also focused on effectively managing our waitlist through Chartwell's insider's program, which includes opportunities to keep prospects engaged while they wait for a suite to become available.

Speaker #1: We have also made improvements to add KPIs and functionality to our CRM that allows our retirement living consultants to view internal and external waitlist for improved inventory management as part of our high occupancy strategy.

Karen Sullivan: We've also made improvements to add KPIs and functionality to our CRM that allows our retirement living consultants to view internal and external waitlists for improved inventory management as part of our high occupancy strategy. Also in Q1, we introduced a new sales commission structure to incentivize our sales team to maintain budgeted market rates, reinforcing a focus on value-based selling. We also introduced a brand experience assessment, which evaluates the RLCs overall compliance with our sales program, processes, and performance expectations. During our leadership conference in January, we recognized our general managers and RLCs who delivered exceptional results in 2025 by presenting Circle of Excellence and President's Club awards to our top performers. Turning to slide 5. In terms of expense control, we reduced our staffing agency costs by 59% in Q1 2026 compared to Q1 2025 through our continued focus on recruitment and retention activities.

Speaker #1: Also in Q1, we introduced a new sales commission structure to incentivize our sales team to maintain budgeted market rates, reinforcing a focus on value-based selling.

Speaker #1: We also introduced a brand experience assessment which evaluates the ROC's overall compliance with our sales program, processes, and performance expectations. During our leadership conference in January, we recognized our general managers and ROCs who delivered exceptional results in 2025 by presenting circle of excellence and president's club awards to our top performers.

Karen Sullivan: We also introduced a brand experience assessment, which evaluates the RLCs overall compliance with our sales program, processes, and performance expectations. During our leadership conference in January, we recognized our general managers and RLCs who delivered exceptional results in 2025 by presenting Circle of Excellence and President's Club awards to our top performers. Turning to slide 5. In terms of expense control, we reduced our staffing agency costs by 59% in Q1 2026 compared to Q1 2025 through our continued focus on recruitment and retention activities.

Speaker #1: Turning to slide five, in terms of expense control, we reduced our staffing agency costs by 59% in Q1 2026 compared to Q1 2025. Through our continued focus on recruitment and retention activities, this quarter we also started the rollout of our Oracle Time and Labor and Workforce Scheduling project in five pilot homes.

Karen Sullivan: This quarter, we also started the rollout of our Oracle Time and Labor and Workforce Scheduling project in 5 pilot homes. This project is centered on automating complex scheduling and payroll processes to reduce administrative workload, improve accuracy, and ensure compliance with our numerous collective bargaining agreements. The pilot has gone very well, and we're in the process of configuring the next group of properties to come onto this new system. The system will be rolled out in phases in all of our residences over the next 18 months. As we continue to execute on our acquisition and development strategy, my team has very clearly defined the processes necessary to effectively integrate new properties, including a set of day 1 non-negotiables and then milestones at 30, 60, 90, and 120 days post-closing.

Speaker #1: This project is centered on automating complex scheduling and payroll processes to reduce administrative workload, improve accuracy, and ensure compliance with our numerous collective bargaining agreements.

Speaker #1: The pilot has gone very well and we're in the process of configuring the next group of properties to come onto this new system. The system will be rolled out in phases in all of our residents' residences over the next 18 months.

Karen Sullivan: The pilot has gone very well, and we're in the process of configuring the next group of properties to come onto this new system. The system will be rolled out in phases in all of our residences over the next 18 months. As we continue to execute on our acquisition and development strategy, my team has very clearly defined the processes necessary to effectively integrate new properties, including a set of day 1 non-negotiables and then milestones at 30, 60, 90, and 120 days post-closing.

Speaker #1: As we continue to execute on our acquisition and development strategies, my team has very clearly defined the processes necessary to effectively integrate new properties.

Speaker #1: Including a set of day-one non-negotiables and then milestones at 30, 60, 90, and 120 days post-closing. This approach is already serving us well with the integration of the home's previously owned by Siftin and will be used as we plan for the integration of the season's homes that Jonathan will be speaking about shortly.

Karen Sullivan: This approach is already serving us well with the integration of the homes previously owned by Sifton and will be used as we plan for the integration of the Seasons homes that Jonathan will be speaking about shortly. I want to take a moment to commend the team from Chartwell Carrington House in Mission, BC, as well as the local first responders who all worked heroically together on 9 March to ensure that all 142 residents were safely evacuated when a fire broke out. Feedback from the local fire department with respect to the preparedness of the Carrington House team and their actions that evening was extremely positive.

Speaker #1: Finally, I want to take a moment to commend the team from Chartwell Carrington House in Mission, DC as well as the local first responders who all worked heroically together on March 9th to ensure that all 142 residents were safely evacuated when a fire broke out.

Speaker #1: Feedback from the local fire department with respect to the preparedness of the Carrington House team and their actions that evening was extremely positive. Within a week, we had welcomed 54 residents back to the adjacent building that was not damaged by the fire and within weeks we were able to find places for the remaining residents including 25 who are living in other Chartwell retirement residences in the area.

Karen Sullivan: Within a week, we had welcomed 54 residents back to the adjacent building that was not damaged by the fire, and within weeks, we were able to find places for the remaining residents, including 25 who are living in other Chartwell Retirement Residences in the area. We are working with our insurance adjusters on site security, demolition, and rebuilding. I'll now turn it over to Jeff to take you through our financial results.

Speaker #1: We are working with our insurance adjusters on site security demolition and rebuilding. I'll now turn it over to Jeff to take you through our financial results.

Speaker #1: Great, thank you, Karen. As shown on slide six, in Q1 2026, net income was $8 million, compared to $33.2 million in Q1 2025. That included the gain on sale of $60.3 million due to the completed Welltower transaction.

Jeffrey Brown: Great. Thank you, Karen. As shown on slide 6, in Q1 2026, net income was CAD 8 million, compared to CAD 33.2 million in Q1 2025. That included the gain on sale of CAD 60.3 million due to the completed Welltower transaction. FFO grew to CAD 85.6 million in Q1 2026, an increase of 52.4% compared to Q1 2025. Our FFO per unit grew CAD 0.07 or 35% to CAD 0.27 in Q1 2026 compared to Q1 2025. Our reported FFO does not include CAD 3.3 million or CAD 0.01 per unit of income guarantees related to recently acquired properties. Q1 2026 FFO growth benefited from higher adjusted NOI of CAD 27.8 million and lower G&A expenses of CAD 2.4 million, partially offset by lower management fees of CAD 1 million.

Speaker #1: FFO grew to 85.6 million in Q1 2026, an increase of 52.4% compared to Q1 2025, and our FFO per unit grew 7 cents or 35% to 27 cents in Q1 2026 compared to Q1 2025.

Speaker #1: Our reported FFO does not include 3.3 million or 1 cent per unit of income guarantees related to recently acquired properties. Q1 2026 FFO growth benefited from higher adjusted NOI of 27.8 million and lower G&A expenses of 2.4 million.

Jeffrey Brown: Our reported FFO does not include CAD 3.3 million or CAD 0.01 per unit of income guarantees related to recently acquired properties. Q1 2026 FFO growth benefited from higher adjusted NOI of CAD 27.8 million and lower G&A expenses of CAD 2.4 million, partially offset by lower management fees of CAD 1 million.

Speaker #1: Partially offset by lower management fees of $1 million. In Q1 2026, our same property occupancy increased 400 basis points to 94.7%, and our same property adjusted NOI increased $11.6 million, or 15.6%.

Jeffrey Brown: In Q1 2026, our same property occupancy increased 400 basis points to 94.7%, and our same property adjusted NOI increased CAD 11.6 million or 15.6%. We also had a 10.7% increase in our NOI per occupied suite. Slide 7 summarizes our same property operating results for each platform. All of our platforms posted occupancy gains in Q1 2026 compared to Q1 2025, and all are operating above 90% occupancy, which positively impacted our results. Our Western Canada platform same property adjusted NOI increased CAD 4.9 million or 22.7%. Our Ontario platform same property adjusted NOI increased CAD 4.1 million or 10.7%. Our Quebec platform same property adjusted NOI increased CAD 2.6 million or 18.1%. Turning to slide 8.

Speaker #1: We also had a 10.7% increase in our NOI per occupied suite. Slide seven summarizes our same property operating results for each platform. All of our platforms posted occupancy gains in Q1 2026 compared to Q1 2025 and all our operating above 90% occupancy which positively impacted our results.

Jeffrey Brown: All of our platforms posted occupancy gains in Q1 2026 compared to Q1 2025, and all are operating above 90% occupancy, which positively impacted our results. Our Western Canada platform same property adjusted NOI increased CAD 4.9 million or 22.7%. Our Ontario platform same property adjusted NOI increased CAD 4.1 million or 10.7%. Our Quebec platform same property adjusted NOI increased CAD 2.6 million or 18.1%. Turning to slide 8.

Speaker #1: Our Western Canada platform same property adjusted NOI increased 4.9 million or 22.7%. Our Ontario platform same property adjusted NOI increased 4.1 million or 10.7% and our Quebec platform same property adjusted NOI increased 2.6 million or 18.1%.

Speaker #1: Turning to slide eight, at May 7th, 2026, liquidity amounted to approximately $581.6 million. Which included $186.7 million of cash and cash equivalents and $394.9 million of borrowing capacity on our credit facilities.

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

Speaker #1: During the three months ended March 31st, 2026, we raised total gross proceeds of $142.4 million of equity through our ATM program at an average price of $21.08.

Speaker #1: And on May 7th, 2026, we filed a new base shelf prospectus and a new prospectus supplement for our ATM program to allow us to issue up to an additional $500 million of trust units which will further support our transaction activity.

Jeffrey Brown: On 7 May 2026, we filed a new base shelf prospectus and a new prospectus supplement for our ATM program to allow us to issue up to an additional 500 million of trust units, which will further support our transaction activity. The ATM proceeds, along with CAD 91 million of CMHC insured mortgage financing closed since quarter end, and CAD 86 million of CMHC insured mortgage financings planned for May, supported the acquisition of the recently closed Sifton portfolio to provide the financing required for both the Seasons portfolio acquisition and for Palermo that are both expected to close later this quarter.

Speaker #1: The ATM proceeds along with $91 million of CMHC insured mortgage financing closed since quarter end and $86 million of CMHC insured mortgage financings planned for May supported the acquisition of the recently closed Siftin portfolio and provide the financing required for both the season's portfolio acquisition and for Palermo that are both expected to close later this quarter.

Jeffrey Brown: The ATM proceeds, along with CAD 91 million of CMHC insured mortgage financing closed since quarter end, and CAD 86 million of CMHC insured mortgage financings planned for May, supported the acquisition of the recently closed Sifton portfolio to provide the financing required for both the Seasons portfolio acquisition and for Palermo that are both expected to close later this quarter. We also continue to improve our leverage metrics, with interest coverage ratio growing to 3.7 times and our net debt to adjusted EBITDA ratio declining to 6.3 times. We continue to improve our financing flexibility, having grown our unencumbered asset base to CAD 2.2 billion. As a reflection of the strengthening balance sheet, we are upgraded today by Morningstar DBRS to triple B with a stable outlook.

Speaker #1: We also continue to improve our leverage metrics with interest coverage ratio growing to 3.7 times and our net debt to adjusted EBITDA ratio declining to 6.3 times.

Jeffrey Brown: We also continue to improve our leverage metrics, with interest coverage ratio growing to 3.7 times and our net debt to adjusted EBITDA ratio declining to 6.3 times. We continue to improve our financing flexibility, having grown our unencumbered asset base to CAD 2.2 billion. As a reflection of the strengthening balance sheet, we are upgraded today by Morningstar DBRS to triple B with a stable outlook.

Speaker #1: And we continue to improve our financing flexibility having grown our unencumbered asset base to 2.2 billion. As a reflection of the strengthening balance sheet, we are upgraded today by Morningstar DBRS to BBB with a stable outlook.

Speaker #1: For the remainder of 2026, our debt maturities include $209.6 million of mortgages with a weighted average interest rate of 2.99% and $250 million debenture with a 6% coupon.

Jeffrey Brown: For the remainder of 2026, our debt maturities include CAD 209.6 million of mortgages with a weighted average interest rate of 2.99% and CAD 250 million debenture with a 6% coupon. As of 7 May 2026, we estimate the 10-year CMHC insured mortgage rate to be approximately 4.13% and the 5-year unsecured debenture rate to be approximately 4.44%. I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities.

Speaker #1: As of May 7th, 2026, we estimate the 10-year CMHC insured mortgage rate to be approximately 4.13% and the 5-year unsecured debenture rate to be approximately 4.44%.

Speaker #1: I will now turn the call to Jonathan to discuss our recent acquisitions and portfolio optimization activities. Thank you, Jeff. We continue to execute on our portfolio strategy of enhancing our asset base to generate increased quality NOI.

Jonathan Boulakia: Thank you, Jeffrey Brown. 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 subsequent to Q1 2026, as pictured on slide 9. On 2 March 2026, we acquired the remaining 15% ownership interest in Chartwell Unik, a 421 suite retirement residence located in the Saint-Eustache suburb of Montreal, Quebec from Batimo for CAD 18.8 million before working capital adjustments and closing costs. The purchase price was partially settled through the proportionate assumption of the CAD 6.5 million mortgage in place, with the balance settled in cash. We now have a 100% ownership interest in this residence. On 24 March 2026, we completed the sale of 1 non-core property in Ottawa, Ontario for CAD 49 million.

Speaker #1: I'll highlight some of the deals that we completed in and subsequent to Q1 2026 as pictured on slide nine. On March 2, 2026, we acquired the remaining 15% ownership interest in Chartwell Unique, a $421 suite retirement residence located in the Santa Stash suburb of Montreal, Quebec from Batimo, for $18.8 million.

Speaker #1: Before working capital adjustments and closing costs. The purchase price was partially settled through the proportionate assumption of the 6.5 million mortgage in place, with the balance settled in cash.

Jonathan Boulakia: The purchase price was partially settled through the proportionate assumption of the CAD 6.5 million mortgage in place, with the balance settled in cash. We now have a 100% ownership interest in this residence. On 24 March 2026, we completed the sale of 1 non-core property in Ottawa, Ontario for CAD 49 million.

Speaker #1: We now have a 100% ownership interest in this residence. On March 24th, 2026, we completed the sale of one non-core property in Ottawa, Ontario, for $49 million.

Speaker #1: On April 2, 2026, we completed the acquisition of six seniors housing communities comprising 1,024 suites, located in London, Waterloo, and Mississauga, for a total purchase price of $416.2 million.

Jonathan Boulakia: On 2 April 2026, we completed the acquisition of 6 senior housing communities comprising 1,024 suites located in London, Waterloo, and Mississauga for a total purchase price of CAD 416.2 million. The purchase price at closing was partially settled through the assumption of CAD 229.2 million of mortgages, the majority of which are CMHC insured, with a weighted average interest rate of 4.5% and weighted average remaining term of 18.9 years. The remainder of the purchase price, subject to normal working capital and other closing adjustments, was settled in cash. In addition, we entered into a forward purchase agreement to acquire 29 townhomes currently under development in London, Ontario, for a purchase price of CAD 15.8 million, subject to normal working capital adjustments.

Speaker #1: The purchase price of closing was partially settled through the assumption of $229.2 million of mortgages. The majority of which are CMHC insured, with the weighted average interest rate of 4.5% and weighted average remaining term of 18.9 years.

Speaker #1: The remainder of the purchase price subject to normal working capital and other closing adjustments was settled in cash. In addition, we entered into a forward purchase agreement to acquire 29 townhomes currently under development in London, Ontario for a purchase price of $15.8 million.

Jonathan Boulakia: The remainder of the purchase price, subject to normal working capital and other closing adjustments, was settled in cash. In addition, we entered into a forward purchase agreement to acquire 29 townhomes currently under development in London, Ontario, for a purchase price of CAD 15.8 million, subject to normal working capital adjustments.

Speaker #1: Subject to normal working capital adjustments. These townhomes will be acquired upon construction completion expected in Q1 2027. On April 15th, 2026, we entered into a definitive agreement to acquire 100% ownership interest in Palermo Village, a $116 suite retirement residence in Oakville, Ontario for $43 million.

Jonathan Boulakia: These townhomes will be acquired upon construction completion expected in Q1 2027. On 15 April 2026, we entered into a definitive agreement to acquire 100% ownership interest in Palermo Village, a 116 suite retirement residence in Oakville, Ontario, for CAD 43 million. This transaction is expected to close in Q2 2026. On 25 April 2026, we entered into a definitive agreement to sell 9 non-core properties with 635 suites in Ontario for CAD 117.9 million. Net proceeds after debt repayment of CAD 33.7 million in transaction costs are expected to be CAD 82.1 million. The transaction is expected to close in Q2 2026.

Speaker #1: This transaction is expected to close in Q2 2026. On April 25th, 2026, we entered into a definitive agreement to sell nine non-core properties with $635 suites in Ontario for $117.9 million.

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

Speaker #1: Net proceeds after debt repayment of $33.7 million and transaction costs are expected to be $82.1 million. The transaction is expected to close in Q2 2026.

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

Jonathan Boulakia: On 1 May 2026, we entered into a definitive agreement to sell a long-term care residence in Ontario for CAD 68.3 million. The transaction is subject to regulatory and other required approvals and is expected to close in Q4 2026. On 7 May 2026, we entered into a definitive agreement to acquire a 30% ownership interest in the Seasons Retirement Communities portfolio through a joint arrangement with Fengate Asset Management, a leading alternative investment manager and real estate developer. The portfolio includes 23 seniors housing communities comprising 2,943 suites in Ontario, British Columbia, and Alberta. Current occupancy standing at approximately 85%. Chartwell will manage the operations of these residences.

Speaker #1: On May 7th, 2026, we entered into a definitive agreement to acquire a 30% ownership interest in the Seasons Retirement Communities portfolio through a joint arrangement with Bentley Asset Management, a leading alternative investment manager and real estate developer.

Speaker #1: The portfolio includes 23 seniors housing communities comprising 2,943 suites in Ontario Bridge, Columbia, and Alberta. Current occupancy stands at approximately 85%. Chartwell will manage the operations of these residences.

Jonathan Boulakia: The portfolio includes 23 seniors housing communities comprising 2,943 suites in Ontario, British Columbia, and Alberta. Current occupancy standing at approximately 85%. Chartwell will manage the operations of these residences. The purchase price for Chartwell's interest is CAD 382.5 million and will be partially satisfied by the proportionate assumption of approximately CAD 195.8 million of in-place mortgages, with the remainder to be settled in cash.

Speaker #1: The purchase price for Chartwell's interest is $382.5 million. And we'll partially we'll be partially satisfied by the proportionate assumption of approximately $195.8 million of in-place mortgages, with the remainder to be settled in cash.

Jonathan Boulakia: The purchase price for Chartwell's interest is CAD 382.5 million and will be partially satisfied by the proportionate assumption of approximately CAD 195.8 million of in-place mortgages, with the remainder to be settled in cash. The transaction is expected to close in Q2 2026. Chartwell will have the ability to acquire another 20% interest in the portfolio 12 months after closing this transaction. Fengate will continue its role as a long-term owner and asset manager. This transaction represents a significant milestone in Chartwell's strategy to grow its platform with high-quality assets through partnerships with institutional capital. As part of the ongoing strategic partnership, Chartwell will have the option to participate in funding future developments of retirement residences in Ontario.

Speaker #1: The transaction is expected to close in Q2 2026. Chartwell will have the ability to acquire another 20% interest in the portfolio of 12 months after closing this transaction.

Jonathan Boulakia: The transaction is expected to close in Q2 2026. Chartwell will have the ability to acquire another 20% interest in the portfolio 12 months after closing this transaction. Fengate will continue its role as a long-term owner and asset manager. This transaction represents a significant milestone in Chartwell's strategy to grow its platform with high-quality assets through partnerships with institutional capital. As part of the ongoing strategic partnership, Chartwell will have the option to participate in funding future developments of retirement residences in Ontario.

Speaker #1: Bengate will continue its role as a long-term owner and asset manager. This transaction represents a significant milestone in Chartwell's strategy to grow its platform with high-quality assets through partnerships with institutional capital.

Speaker #1: As part of the ongoing strategic partnership, Chartwell will have the option to participate in Bengate's future developments of retirement residences in Ontario. Should Chartwell elect to participate in any such development, Chartwell will provide operations management services and the parties will have certain put-and-call rights once the residence is stabilized.

Jonathan Boulakia: Should Chartwell elect to participate in any such development, Chartwell will provide operations management services, and the parties will have certain put and call rights once the residence is stabilized. The partnership brings together two experienced organizations with a shared commitment to high-quality seniors' housing and long-term stewardship of retirement residences. In 2026, we continued to grow our portfolio with over CAD 860 million of completed and announced acquisitions. We're doing so prudently, shifting capital from non-core assets to strategic core residences while taking advantage of our strong access to capital. We continue to evaluate several interesting opportunities to grow and enhance the quality of our real estate portfolio. We remain disciplined in how we approach underwriting, diligence, and integration of our new acquisitions to deliver enhanced services to residents, mitigate disruption to operations, and achieve our required investment returns.

Speaker #1: The partnership brings together two experienced organizations with a shared commitment to high-quality seniors housing and long-term stewardship of retirement residences. In 2026, we continue to grow our portfolio with over 860 million of completed and announced acquisitions.

Speaker #1: We're doing so prudently, shifting capital from non-core assets to strategic core residences. While taking advantage of our strong access to capital, we continue to evaluate several interesting opportunities to grow and enhance the quality of our real estate portfolio.

Jonathan Boulakia: We're doing so prudently, shifting capital from non-core assets to strategic core residences while taking advantage of our strong access to capital. We continue to evaluate several interesting opportunities to grow and enhance the quality of our real estate portfolio. We remain disciplined in how we approach underwriting, diligence, and integration of our new acquisitions to deliver enhanced services to residents, mitigate disruption to operations, and achieve our required investment returns.

Speaker #1: We remain disciplined in how we approach underwriting, diligence, and integration of our new acquisitions to deliver enhanced services to residents, mitigate disruption to operations, and achieve our required investment returns.

Speaker #1: We are also engaged in discussions with local and national developers across the country and have restarted our development program with a meaningful pipeline of state-of-the-art assets to bring into our portfolio.

Jonathan Boulakia: We are also engaged in discussions with local and national developers across the country and have restarted our development program with a meaningful pipeline of state-of-the-art assets to bring into our portfolio. We pursue such developments in a prudent manner with a preference for off-balance-sheet development similar to our arrangements in Quebec. We intend to continue on this path of optimizing our portfolio through strategic acquisitions, prudent off-balance-sheet developments with sophisticated partners, the diversification of our sources of capital, and the divestiture of non-core assets. I'll turn the call back to Vlad to wrap up.

Speaker #1: We pursue such developments in a prudent manner, with a preference for off-balance sheet development similar to our arrangements in Quebec. We intend to continue on this path of optimizing our portfolio through strategic acquisitions, prudent off-balance sheet development with sophisticated partners, the diversification of our sources of capital, and the divestiture of non-core assets.

Jonathan Boulakia: We intend to continue on this path of optimizing our portfolio through strategic acquisitions, prudent off-balance-sheet developments with sophisticated partners, the diversification of our sources of capital, and the divestiture of non-core assets. I'll turn the call back to Vlad to wrap up.

Speaker #1: I'll turn the call back to Vlad to wrap up. Thank you, Jonathan. Turning to slide 10, I remain confident in the strong positive momentum in our business.

Vlad Volodarski: Thank you, Jonathan. Turning to slide 10, I remain confident in the strong positive momentum in our business. Demand continues to grow, new supply remains limited, which should continue to support medium-term occupancy, NOI, and AFFO growth. Our investment team, led by Jonathan, continues to pursue numerous acquisition opportunities across the country. We have been making solid strides in building out our development pipeline with various partners and moving a number of projects through design and entitlement processes. We expect to start several of these later this year. Our board continues to be proactive in its succession planning and renewal process. At our upcoming annual general meeting, two new directors, Rael Diamond, who was appointed to the board on 1 January 2026 and Douglas MacLatchy, will be standing for their first election.

Speaker #1: Demand continues to grow, new supply remains limited. We should continue to support medium-term occupancy and align earnings growth. Our investment team, led by Jonathan, continues to pursue numerous acquisition opportunities across the country and we have been making solid strides in building out our development of projects through design and entitlement processes.

Vlad Volodarski: We have been making solid strides in building out our development pipeline with various partners and moving a number of projects through design and entitlement processes. We expect to start several of these later this year. Our board continues to be proactive in its succession planning and renewal process. At our upcoming annual general meeting, two new directors, Rael Diamond, who was appointed to the board on 1 January 2026 and Douglas MacLatchy, will be standing for their first election.

Speaker #1: We expect to start several of these later this year. Our board continues to be proactive in its succession planning and renewal process. At our upcoming annual general meeting, two new directors, Rael Diamond, who was appointed to the board on January 1st, 2026, and Douglas McClatchy, will be standing for their first election.

Speaker #1: Doug brings more than 30 years of leadership experience across senior living, real estate, and financial services. He has built in the last several seniors housing platforms most recently, he co-founded and acted as the CEO and vice chair of the board of Amica.

Vlad Volodarski: Doug brings more than 30 years of leadership experience across senior living, real estate, and financial services. He has built and led several senior housing platforms. Most recently, he co-founded and acted as the CEO and vice chair of the board of Amica. Doug understands operations, development, and capital allocation deeply and knows our sector exceptionally well. Our board and executive team are excited to have Doug joining us. His addition to the board is especially important now as we execute our strategic objectives, grow and optimize our property portfolio, and continue exploring ways to innovate and enhance services we deliver to our residents. What gives me the most confidence isn't just the results. It is what's happening inside our residences every day. Engaged and dedicated teams who see it as a privilege to be able to serve those who choose to live at Chartwell.

Speaker #1: Doug understands operations, development, and capital allocation deeply and knows our sector exceptionally well. Our boards and executive team are excited to have Doug joining us.

Vlad Volodarski: Our board and executive team are excited to have Doug joining us. His addition to the board is especially important now as we execute our strategic objectives, grow and optimize our property portfolio, and continue exploring ways to innovate and enhance services we deliver to our residents. What gives me the most confidence isn't just the results. It is what's happening inside our residences every day. Engaged and dedicated teams who see it as a privilege to be able to serve those who choose to live at Chartwell.

Speaker #1: His addition to the board is especially important now as we execute our strategic objectives to grow and optimize our property portfolio and continue exploring ways to innovate and enhance services we deliver to our residents.

Speaker #1: What gives me the most confidence isn't just the results. It is what's happening inside our residences every day. Engaged and dedicated teams who see it as a privilege to be able to serve those who choose to live at Chartwell.

Speaker #1: Teams who, despite their successes, do not rest on their laurels. They thrive to innovate and improve, enhancing experiences for our residents, making their services even more personalized and memorable.

Vlad Volodarski: Teams who, despite their successes, do not rest on their laurels. They strive to innovate and improve, enhancing experiences for our residents, making their services even more personalized and memorable. That's the foundation we're building on. I will now close our prepared remarks with a story from one of our residences pictured on slide 11. This story speaks to how we build our organization through a people-first approach. Karen Kim, one of our general managers, came to Canada in 2018 as a nurse and joined Chartwell West Square while working towards her Canadian license. Like many newcomers, she was starting over, taking on a frontline role, getting to know residents, and understanding day-to-day realities of senior living.

Speaker #1: That's the foundation we're building on. I will now close our prepared remarks with a story from one of our residences pictured on slide 11.

Speaker #1: This story speaks to how we build our organization through a people-first approach. Karen Kim, one of our general managers, came to Canada in 2018 as a nurse, and joined Chartwell New Edinburgh Square while working towards her Canadian license.

Vlad Volodarski: Karen Kim, one of our general managers, came to Canada in 2018 as a nurse and joined Chartwell West Square while working towards her Canadian license. Like many newcomers, she was starting over, taking on a frontline role, getting to know residents, and understanding day-to-day realities of senior living.

Speaker #1: Like many newcomers, she was starting over, taking on a frontline role, getting to know residents, and understanding day-to-day realities of senior living. She was so passionate about her work at Chartwell that she helped to recruit several of her friends to join Chartwell in Ottawa, where she was working at the time.

Vlad Volodarski: She was so passionate about her work at Chartwell that she helped to recruit several of her friends to join Chartwell in Ottawa, where she was working at the time. Over time, with the support of leaders who recognized her potential, she progressed into various leadership roles and today leads Chartwell Rockcliffe in Ottawa, a premium residence in the market. What stands out is not just her individual journey, but what it represents. Our ability to develop talent from within, to create pathways for growth, and to foster a culture where people are empowered to contribute and lead with purpose. This is how we build strength in the organization over the long term, by investing in people, and in doing so, strengthening the experience we deliver to our residents. Thank you for your attention this morning. We will now be pleased to answer your questions.

Speaker #1: Over time, with the support of leaders who recognized her potential, she progressed into various leadership roles and today leads Chartwell Rocklift in Ottawa, a premium residence in the market.

Speaker #1: What stands out is not just her individual journey, but what it represents: our ability to develop talent from within to create pathways for growth and to foster a culture where people are empowered to contribute and lead with purpose.

Vlad Volodarski: Our ability to develop talent from within, to create pathways for growth, and to foster a culture where people are empowered to contribute and lead with purpose. This is how we build strength in the organization over the long term, by investing in people, and in doing so, strengthening the experience we deliver to our residents. Thank you for your attention this morning. We will now be pleased to answer your questions.

Speaker #1: This is how we build strength in the organization over the long term, by investing in people and in doing so strengthening the experience we deliver to our residents.

Speaker #1: Thank you for your attention this morning. We would now be pleased to answer your questions.

Speaker #2: 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.

Operator 2: 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, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Lorne Kalmar from Desjardins.

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, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Lorne Kalmar from Desjardins. Lorne, go ahead.

Speaker #2: To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device.

Speaker #2: Please stand by while we compile the Q&A roster. Your first question comes from the line of Lauren Kalmar. From Desjardins.

Lorne Kalmar: Congrats on.

Speaker #3: Congrats on.

Operator 2: Lorne, go ahead.

Speaker #2: Lauren, go ahead.

Lorne Kalmar: Oh, no. Sorry. Thanks. Good morning. Congrats on all of the acquisition activity. Sticking with that theme, I just wanted to get an idea, you know, given the challenges with the Competition Bureau and the Sifton portfolio closing, the end of quarter.

Speaker #3: Sorry. Thanks. Good morning and congrats on all of the acquisition activity. Sticking with that theme, I just wanted to get an idea. Given the challenges of the competition bureau and the sift in portfolio closing, the end-of-quarter closing timeline feels a little ambitious.

Lorne Kalmar: Closing a timeline feels a little ambitious. I was just wondering if based on, you know, what you know of the updated, or the Competition Bureau's updated criteria, are there any residences that might be at risk or is that being mitigated by the fact that you're only acquiring a 30% interest?

Speaker #3: I was just wondering if, based on what you know of the updated or the competition bureau's updated criteria, are there any residences that might be at risk or is that being mitigated by the fact that you're only acquiring a 30% interest?

Speaker #4: Yeah, so thanks for the question. We're aware of the Accomplishment Bureau's evolving approach and focused on market share by property type in each local market.

Jonathan Boulakia: Yeah. Thanks for the question. We're aware of the Competition Bureau's evolving approach and focus on market share by property type in each local market. This transaction is only subject to retirement regulatory approval, so, and lender consent. We're confident in the end of Q2 closing date.

Speaker #4: But this transaction is only subject to retirement regulatory approval. And lender consent. So we're confident in the end of Q2 closing date.

Speaker #3: Sorry. So just to confirm, the Competition Bureau is not going to be evaluating this?

Lorne Kalmar: Sorry. Just to confirm, the Competition Bureau is not going to be evaluating this?

Jonathan Boulakia: That would be our expectation.

Speaker #4: That would be our expectation.

Jonathan Boulakia: That would be our expectation.

Speaker #3: Okay. And then you mentioned that the 20%, the additional 20%, you can acquire, I think, within 12 months. Could you maybe give us an idea of what milestones need to be achieved, how do you really what is the timing expected timing on acquiring this and how would you determine pricing?

Lorne Kalmar: Okay. Then you mentioned that the 20%, the additional 20%, you can acquire, I think, within 12 months. Could you maybe give us an idea of what milestones need to be achieved? How, you know, what is the timing, expected timing on acquiring this, and how would you determine pricing?

Speaker #4: Yeah. The pricing will be consistent with the pricing that we went in at on the 30%. The milestone is the 12-month the passing of the 12 months and then the acquisition will be contingent on either party's desire to proceed.

Jonathan Boulakia: Yeah. The pricing will be consistent with the pricing that we went in at on the 30%. The milestone is the 12 months, the passing of the 12 months, and then the acquisition would be contingent on either party's desire to proceed.

Speaker #3: Okay, and then maybe just the last one, because I think you guys are going to get management fees on the portfolio. Can you maybe help us understand, maybe from a modeling perspective, how to think about that?

Lorne Kalmar: Okay. Maybe just the last one, 'cause you, I think you guys are gonna have management fees on the portfolio. Could you maybe help us understand, maybe from a modeling perspective, how to think about that?

Speaker #4: How to think about the management of the portfolio?

Jonathan Boulakia: How to think about the management of the portfolio?

Speaker #3: The management fees that you'll earn on the portfolio.

Lorne Kalmar: The management fees that you'll earn on the portfolio.

Speaker #1: We will be earning 5% management revenue, 5% of revenue as management fee as operations manager for this portfolio. A standard market management fee.

Vlad Volodarski: We will be earning 5% management revenue. 5% of revenue as management fee as operations manager for this portfolio. A standard market management fee.

Speaker #3: Okay. Thank you so much. I'll turn it back.

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

Speaker #2: Your next question comes from the line of Brad Sturges. Raymond James. Oh, no. Sorry. Jonathan Kelcher from TD Cohen. Jonathan, please go ahead.

Operator 2: Your next question comes from the line of Brad Sturges, Raymond James. No, sorry. Jonathan Kelcher from TD Cowen. Jonathan, please go ahead.

Operator: Your next question comes from the line of Brad Sturges, Raymond James. No, sorry. Jonathan Kelcher from TD Cowen. Jonathan, please go ahead.

Speaker #5: Thanks, nice to butt on, Brad. Just sticking with the joint venture, what's the going-in yield on the 30%?

Jonathan Kelcher: Thanks. It was nice to butt on Brad. Just sticking with the joint venture, what's the going-in yield on the 30%?

Jonathan Boulakia: It would be in the high fives.

Speaker #4: It would be in the high fives.

Jonathan Boulakia: It would be in the high fives.

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

Jonathan Kelcher: High fives? Okay. That's with the 85% occupancy. On that occupancy, is that a function of some of the assets still being in lease up?

Speaker #1: Yes, there are assets that are still in lease-up in the portfolio.

Vlad Volodarski: Yes. There are assets that are still in lease up in the portfolio.

Speaker #5: Okay. And how long do you think it'll take how long do you think it'll take to get the portfolio up to a stabilized level?

Jonathan Kelcher: Okay. How long do you think it'll take to get the portfolio up to a, to a stabilized level?

Vlad Volodarski: We think we can get there within 12 months period. There is 1 residence that are still in lease up that was recently opened, so that 1 may take longer. On average, we should get to stabilized occupancy levels within 12 months.

Speaker #1: We're thinking we can get there within 12 months period. There is one residence that are still in lease-up that was recently opened. So that one may take longer, but on average, we should get to a stabilized occupancy level within 12 months.

Speaker #3: And Jonathan, there's also a few assets going through accretive capital projects. It should help support the lease-up.

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

Speaker #5: Okay. That's helpful. And then just, I guess, looking ahead on acquisitions, you talked about several interesting opportunities. Are you looking at all at markets that are outside of ones where you currently own assets?

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

Jonathan Boulakia: Not aggressively. We do see some opportunities in some Canadian markets outside of our current markets. We look at opportunities when they are presented, but right now our focus is on our core markets.

Speaker #4: Not aggressively. We do see some opportunities in some Canadian markets outside of our current markets, and so we look at opportunities when they are presented.

Speaker #4: But right now, our focus is on our core markets.

Speaker #5: Okay, thanks. I'll turn it back.

Jonathan Kelcher: Okay. Thanks. I'll turn it back.

Speaker #2: Your next question comes from the line of Vlad Sturges from Raymond James. Vlad, please go ahead.

Operator 2: Your next question comes from the line of Brad Sturges from Raymond James. Brad, please go ahead.

Operator: Your next question comes from the line of Brad Sturges from Raymond James. Brad, please go ahead.

Speaker #3: Looks like Jonathan took all my questions. Just on the I guess on the lease-up aspect of going in high-five percent yield, I guess, how should we think about as occupancy reaches stabilization?

Brad Sturges: Looks like Jonathan took all my questions. Just on the, I guess on the lease-up aspect of going in, high 5% yield, I guess how should we think about as occupancy reaches stabilization, I guess margins stabilize, what that stabilized yield could look like, you know, in the next 12 to 24 months?

Speaker #3: I guess margins stabilize, what that stabilized yield could look like in the next 12 to 24 months?

Speaker #6: Yeah. Hey, good morning, Brad. That will go into the low six range. That's stabilized.

Jonathan Boulakia: Yeah. Hey, good morning, Brad. That will go into the low six range at stabilized.

Speaker #3: And I guess you have the opportunity to participate in future development with Fengate, how should we think about that opportunity set today and whether you can kind of comment on what the could be in the pipeline from an existing opportunity perspective?

Brad Sturges: I guess you have the opportunity to participate in future development with Fengate. You know, how should we think about that opportunity set today? Whether the, you know, you can kinda comment on what could be in the pipeline from an existing opportunity perspective.

Speaker #4: Yeah. So Fengate is an established developer of mature and sophisticated developers. So we're very excited to have this partnership with them. We would expect it to be similar to the partnership we have with Massimo in Quebec in terms of structure and our ability to opt in or out of their developments.

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

Speaker #4: And our opt-in would give us, as I mentioned, those rights to acquire on-stabilization in our obligation to manage the property. I would expect it to be a modest amount in the province of Ontario.

Speaker #4: So probably 1 to 2 developments at any given time.

Speaker #3: Okay. That's helpful. I'll turn it back. Thank you.

Brad Sturges: Okay. That's helpful. I'll turn it back. Thank you.

Speaker #2: Your next question comes from the line of Amanchu Gupta. From Scotiabank, Amanchu, please go ahead.

Operator 2: Your next question comes from the line of Himanshu Gupta from Scotiabank.

Operator: Your next question comes from the line of Himanshu Gupta from Scotiabank. Himanshu, please go ahead.

Himanshu Gupta [Director, Equity Research Analyst: Thank you.

Operator 2: Himanshu, please go ahead.

Speaker #7: Thank you, and good morning, everyone. So on the Seasons portfolio, will there be a rebranding of these assets to Chartwell, or are you going to stick to the Seasons brand?

Himanshu Gupta [Director, Equity Research Analyst: Thank you and good morning, everyone. On the Seasons portfolio, will there be a rebranding of these assets to Chartwell or you're gonna stick to Seasons brand? The next question is, can you spell out the upside on margins here as you move up the occupancy?

Himanshu Gupta: Thank you and good morning, everyone. On the Seasons portfolio, will there be a rebranding of these assets to Chartwell or you're gonna stick to Seasons brand? The next question is, can you spell out the upside on margins here as you move up the occupancy?

Speaker #7: And then the next question is, can you spell out the upside on margins here as you move up the occupancy?

Speaker #1: We will rebrand the portfolio as Charwell. In due course, of course. And the margin opportunity will be similar to what we would normally describe to as margin opportunity as the occupancies grow from 86% today to hopefully 95% in the future.

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

Speaker #1: A lot of the additional revenue that will be generated will fall down to the bottom line and will continue to improve margins in this portfolio.

Speaker #7: Thank you. The I mean, if I look at the Alberta portion of the season's portfolio, it's a heavier mix of AL, is that the continuum care part there?

Himanshu Gupta [Director, Equity Research Analyst: Thank you. I mean, if I look at the Alberta portion of the, you know, Seasons portfolio, it's a heavier mix of AL. Is that like the continuum care part there? Then, you know, there was a recent government funding increase in Alberta. Do you benefit from that?

Himanshu Gupta: Thank you. I mean, if I look at the Alberta portion of the, you know, Seasons portfolio, it's a heavier mix of AL. Is that like the continuum care part there? Then, you know, there was a recent government funding increase in Alberta. Do you benefit from that?

Speaker #7: And then there was a recent government funding increase in Alberta. Do you benefit from that?

Speaker #1: Yes. A portion of the portfolio, six properties, out of seven have government funding in them. And the funding increases will help with the revenue in that portfolio as well.

Vlad Volodarski: Yes. A portion of the portfolio of 6 properties out of 7 have government funding in them. The funding increases will help with the revenue in that portfolio as well.

Speaker #7: Okay. Thank you. Okay. Moving on to the dispositions, the nine properties you kind of disclosed. Have they been sold to one buyer, or is it collection of them?

Himanshu Gupta [Director, Equity Research Analyst: Okay. Thank you. Okay, moving on to the dispositions, the 9 properties you kind of disclosed. Have they been sold to 1 buyer or is it collection of them? I mean, just trying to get a sense of is the capital available for these, you know, kind of older non-core assets?

Himanshu Gupta: Okay. Thank you. Okay, moving on to the dispositions, the 9 properties you kind of disclosed. Have they been sold to 1 buyer or is it collection of them? I mean, just trying to get a sense of is the capital available for these, you know, kind of older non-core assets?

Speaker #7: I mean, just trying to get a sense of, is there capital available for these kind of older non-core assets?

Speaker #4: They're being sold to one buyer.

Jeffrey Brown: They're being sold to 1 buyer.

Speaker #7: Okay. They're being sold to one buyer. Okay. Okay. Good to know. Okay. Moving on, maybe a couple of housekeeping here. On income guarantees, how's the Vista and Edgewater ramping up?

Himanshu Gupta [Director, Equity Research Analyst: Okay, they're being sold to one buyer. Okay. Good to know that. Moving on, maybe a couple of housekeeping here. On income guarantees, how's the Chartwell Vista and Chartwell Edgewater ramping up? I mean, do you see this income guarantees burning off? When do we see that burning? I see that, you know, no AFFO was disclosed this quarter.

Himanshu Gupta: Okay, they're being sold to one buyer. Okay. Good to know that. Moving on, maybe a couple of housekeeping here. On income guarantees, how's the Chartwell Vista and Chartwell Edgewater ramping up? I mean, do you see this income guarantees burning off? When do we see that burning? I see that, you know, no AFFO was disclosed this quarter.

Speaker #7: I mean, do you see this income guarantees burning off, or when do you see that burning off? I see that no IFFO was disclosed this quarter.

Jeffrey Brown: Hi, Himanshu. Yes, we did have CAD 3.3 million of income guarantees in the quarter, those do burn off and convert to NOI as we successfully lease up the properties. We're seeing, I think Did you ask about Vista? If you did, I think we're seeing good lease-up activity there. We, you know, those will tail off during the balance of this year and may continue a bit into 2027. Subject to us doing, you know, potentially new acquisitions that may involve income guarantees in the future.

Speaker #6: Yeah. Hi, Amanchu. Yeah. We did have 3.3 million of income guarantees in the quarter. And those do burn off and convert to NOI. As we successfully lease up the properties and we're seeing, I think you did you ask about Vista?

Speaker #6: If you did, I think we're seeing good lease-up activity there. So those will tail off during the balance of this year and may continue a bit into 2027 and then subject to us doing potentially new acquisitions that may involve income guarantees in the future.

Speaker #7: Got it. Okay. Thank you. And maybe just one last question here. On the balance sheet, so Sifton is already closed now. You spoke about some CMSE debt financing post-quarter.

Himanshu Gupta [Director, Equity Research Analyst: Got it. Okay. Thank you. Maybe just one last question here on the balance sheet. Sifton is already closed now. You spoke about some CMHC debt financing post-quarter. How much cash do we have here for the Seasons portfolio?

Himanshu Gupta: Got it. Okay. Thank you. Maybe just one last question here on the balance sheet. Sifton is already closed now. You spoke about some CMHC debt financing post-quarter. How much cash do we have here for the Seasons portfolio?

Speaker #7: How much cash do we have here for this season's portfolio?

Speaker #6: So, Sifton closed on April 2nd, so it wasn't captured in the March 31st balance sheet. But we are carrying $187 million of cash on hand now.

Jeffrey Brown: Sifton closed on 2 April, so it wasn't captured in the 31 March balance sheet. We are carrying CAD 187 million of cash on hand now. That included CAD 91 million of CMHC financing that we did over the last week. In addition, we have another CAD 86 million of financing that should close in the next two to three weeks. That would more than cover the Seasons acquisition re-requirements, and then that in addition to, you know, future CMHC financings and asset sale proceeds that supports, you know, future acquisition activity, including potentially the additional 20% if that is exercised.

Speaker #6: So that included $91 million of CMHC financing that we did over the last week. In addition, we have another $86 million of financing that should close in the next two to three weeks.

Speaker #6: So that would more than cover the season's acquisition requirements. And then that, in addition to future CMHC financings and asset sale proceeds, supports future acquisition activity, including potentially the additional 20% if that is exercised.

Speaker #7: Got it. And you will receive that nine asset property sale in Q2 itself. So that funding is coming through. And then Ballicliff is coming as well.

Himanshu Gupta [Director, Equity Research Analyst: Got it. You will receive that nine asset property sale in Q2 itself. That funding is coming through, and then Ballycliffe is coming as well.

Himanshu Gupta: Got it. You will receive that nine asset property sale in Q2 itself. That funding is coming through, and then Ballycliffe is coming as well.

Speaker #6: Yeah. Ballicliff later in the year, likely because it requires some regulatory approvals. But the Ontario nine portfolio sale will be this quarter as well, or is expected to be this quarter.

Jeffrey Brown: Yeah. Ballycliffe, later in the year likely 'cause it requires some regulatory approvals, but the Ontario 9 portfolio sale will be this Q as well, or is expected to be this Q.

Speaker #7: Okay. Thank you so much. And I'll turn it back. Thank you, guys.

Himanshu Gupta [Director, Equity Research Analyst: Okay. Thank you so much. I'm done at the back. Thank you, guys.

Himanshu Gupta: Okay. Thank you so much. I'm done at the back. Thank you, guys.

Speaker #2: Your next question comes from the line of Pal Woolley. From CIBC Capital Markets, Pal, please go ahead.

Operator 2: Your next question comes from the line of Tal Woolley from CIBC Capital Markets. Tal, please go ahead.

Operator: Your next question comes from the line of Tal Woolley from CIBC Capital Markets. Tal, please go ahead.

Speaker #8: Hi. Good morning, everyone. Just on the Fengate joint venture, is there a natural size that this would grow to? I think you'd measured it at 1.3 billion.

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

Speaker #8: And you'll be adding developments over time. Is there a sort of land bank in there already that you kind of have an idea of exactly how many assets this could be in the future?

Speaker #8: And then, would this JV ever look at acquiring existing properties too?

Vlad Volodarski: Our expectation, as Jonathan pointed out, is there hopefully will be one to two developments a year that could be added to this joint venture arrangement. We just negotiated the deal to acquire 30% interest in that. We may acquire properties in this joint venture or may not. This is not decided at this point in time.

Speaker #1: Our expectation, as Jonathan pointed out, is there'll hopefully be one to two developments a year that could be added to this joint venture arrangement.

Speaker #1: We just negotiated the deal to acquire 30% interest in that. So we may acquire properties in this joint venture or may not. This is not decided at this point in time.

Speaker #8: Okay. And then, what are your peers mentioning on quarterly conference calls? They had sort of talked about the evolution of their care platform, and that not surprisingly, during COVID and in the immediate years following COVID, there was barely any profitability from delivering care, if not meaningful losses in that.

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

Speaker #8: This is sort of the first year where they're sort of seeing meaningful profit per care hour. Does that track with what your experience has been?

Speaker #8: And how do you guys measure sort of the profitability of that going forward? And is margin growth really a function of that care profitability improving?

Vlad Volodarski: Some of it is. If you look at our additional care services, they have been growing by double digits now for 3 or 4 years in a row. We expect that trend to continue because there continues to be additional need in the people who are staying with us. We expect that that line item will continue to grow. You should realize the care services obviously come with cost. Our target is to get 25% to 30% margin on those services. We think we're achieving those margins on the services. Overall, if you look at our overall margins being in low 40s, the more services that we provide, the margins can go lower, but the profitability of the business will go higher. It's a trade-off in that sense.

Speaker #1: Some of it is. So if you look at our additional care services, they have been growing by double digits now for three or four years in a row.

Speaker #1: We expect that trend to continue because there continues to be additional need in the people who are staying with us. So we expect that that line item will continue to grow. Usually, we realize the care services obviously come with cost.

Speaker #1: Our target is to get 25 to 30 percent margin on those services. And so we think we're achieving those margins on the services. But overall, if you look at our overall margins being in low 40s, the more services that we provide, the margins can go lower.

Vlad Volodarski: Our target is to get 25% to 30% margin on those services. We think we're achieving those margins on the services. Overall, if you look at our overall margins being in low 40s, the more services that we provide, the margins can go lower, but the profitability of the business will go higher. It's a trade-off in that sense.

Speaker #1: But the profitability of the business will go higher. So it's a trade-off in that sense. But there is certainly an opportunity to continue to improve and deliver more and better services to the customers and generate additional profitability.

Vlad Volodarski: There is certainly an opportunity to continue to improve and deliver more and better services to the customers and generate additional profitability. Overall, just in terms of the scale for Chartwell of this opportunity, our additional care services are about 50%, CAD 50 million on a CAD 1 billion of revenue. It is not a huge opportunity, but it is an important opportunity for us to make sure that we are set to deliver services that are required by our residents.

Speaker #1: And overall, just in terms of the scale for Charwell of this opportunity, our care services, additional care services are about 50%, 50 million on a billion dollars of revenue.

Speaker #1: So it's not a huge opportunity, but it is an important opportunity for us to make sure that we are set to deliver services that are required by our residents.

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

Speaker #8: And then just finally staying on this topic, you're growing in scale pretty rapidly here. Are you able to extract better pricing from vendors in recent years as you guys have grown?

Speaker #8: Whether it’s food distribution or supplies, that kind of stuff—is it those vendor contracts that come up for renewal, and do you expect to see more gains there?

Speaker #6: Yeah. Pal, I mean, the short answer is yes. We are seeing good scale. But if it's including on food and repair and maintenance. So it is helping drive some margin improvement.

Jeffrey Brown: Yeah. I mean, the short answer is yes. We are seeing good scale benefits, including on food, and repair and maintenance. It is helping drive some margin improvement.

Tal Woolley: Okay.

Speaker #1: And our supply chain team has been doing phenomenal work for many, many years now. And this is an ongoing process. This is not just a function of, we've grown, so let's go and talk to our vendors.

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

Speaker #1: They do this on an ongoing basis every time the contract come up for renewals. And we treat our vendors as partners. And so we want to make sure that there's fair distribution of profits and risk and deliver quality products to Charwell so that always comes into consideration as well.

Speaker #8: Okay. And then finally, Jeff, just on congratulations on the credit rating upgrade. Any material interest rate savings you expect to see from the upgrade?

Tal Woolley: Okay. Finally, Geoff, just on, you know, congratulations on the credit rating upgrade. Any material interest rate savings you expect to see from the upgrade?

Jeffrey Brown: Nothing imminent. We're not using our credit facility right now, so there would be a benefit in pricing there. You know, we may ultimately come back to the unsecured market later in the year, but that's still to be determined. If we do, we would expect to see, again, some benefit from that market.

Speaker #6: Nothing imminent. We're not using our credit facility right now, so there would be a benefit in pricing there. And we may ultimately come back to the unsecured market later in the year.

Speaker #6: But that's still to be determined. But if we do, we would expect to see, again, some benefit from that market.

Speaker #8: Okay. That's perfect. Thanks very much, Ellen.

Tal Woolley: Okay. That's perfect. Thanks very much, gentlemen.

Speaker #6: Thanks, Pal.

Jeffrey Brown: Thanks, Tal.

Speaker #2: Your next question comes from the line of Giuliano Thornhill from National Bank. Giuliano, please go ahead.

Operator 2: Your next question comes from the line of Giuliano Thornhill from National Bank. Giuliano, please go ahead.

Operator: Your next question comes from the line of Giuliano Thornhill from National Bank. Giuliano, please go ahead.

Speaker #8: Hey, guys. Good morning, everyone. I would just turn it back to the seasoned portfolio. I'm wondering if you just kind of explain the geographic exposure and why you think that fits with the chart well.

Giuliano Thornhill: Hey, guys. Good morning, everyone. I was just turning it back to the Seasons portfolio. I'm wondering if you just kinda explain the geographic exposure and why you think that fits with Chartwell, just as well as the kind of long-term rental growth rate in that portfolio?

Speaker #8: Just as well as the kind of long-term rental growth rate in that portfolio.

Speaker #1: The majority of the portfolio is in Ontario. There are two properties in British Columbia and seven in Alberta. The rest of them are in Ontario, mostly Southwestern Ontario.

Vlad Volodarski: The majority of portfolio is in Ontario. There's 2 properties in British Columbia and 7 in Alberta. The rest of them are in Ontario, mostly southwestern Ontario. Your second question was on rental rates growth opportunities. We see them being similar to what they are in the Chartwell overall portfolio. Our expectation is that as demand continues to grow, there's an opportunity to increase market rates as we're asking our new residents to pay. The philosophy on the rent increases for the existing residents will be consistent with our philosophy, which will be similar to kind of inflation plus 1% or 2% to address cost escalations in the business.

Speaker #1: And your second question was on rental rate growth opportunities. We see them being similar to what they are in the Charwell overall portfolio. Our expectation is that as demand continues to grow, there's an opportunity to increase market rates that we're asking our new residents to pay.

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

Speaker #1: And the philosophy on the rent increases for the existing residents will be consistent with our philosophy, which will be similar to the kind of inflation plus 1 or 2 percent to address cost escalations in the business.

Speaker #8: And I'm just wondering, would it be right to view the kind of low occupancy in the portfolio as kind of the reason why you guys were brought in because your sales are a better operators here and that you can possibly operate the portfolio better than before and keep it fully more longer?

Giuliano Thornhill: I'm just wondering, would it be right to view the kinda low occupancy in the portfolio as kind of the reason why you guys were brought in because yourselves are better operators here, and that you can possibly operate the portfolio better than before and keep it, you know, fully, more longer?

Speaker #1: Absolutely not. Seasons is a great operator, and they've done a very good job running this portfolio. There are a few properties that are in lease-up that are leasing out over time and will drive overall average occupancy up.

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

Speaker #1: We certainly think that we can improve on certain things. As operators, and operators at scale, we certainly will put these processes in place to drive those improvements.

Speaker #1: But this is seasons been doing a very good job building and operating this portfolio for many years.

Speaker #8: And then, just in terms of the management fee there, will that be proportionally offset by kind of associated G&A, or do you think you can scale the platform going forward?

Giuliano Thornhill: Just in terms of the management fee there, will that be proportionally offset by kind of associated G&A, or do you think you can scale the platform going forward?

Speaker #1: We think we are certainly at a scale where every time we add more properties to our portfolio, the management fees that these properties generate, or notional management fees that we look at for our 100% owned properties, are higher than the cost that we need to incur to support these properties.

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

Speaker #1: That's certainly the benefit of scale, and a lot of the technology implementations that we put in place and process improvements that we put in place over the last number of years now help us to grow and scale the business profitably.

Speaker #8: Right. Okay. And then just lastly, on the disposition of the non-core, the nine-home portfolio, were you guys able to disclose the cap rate for that?

Giuliano Thornhill: Right. Okay. Just lastly on the disposition of the non-core, the 9-home portfolio. Were you guys able to disclose the cap rate for that?

Speaker #9: Yeah. We're actually seeing strengthening cap rates for this asset class. And a deeper buyer pool. So the cap rate is about 100 to 150 basis points higher than what we're buying Class A assets for.

Jonathan Boulakia: Yeah. We're actually seeing strengthening cap rates for this asset class and a deeper buyer pool. The cap rate is about 100 to 150 basis points higher than what we're buying class A assets for. You know, it's in the mid-sevens.

Speaker #9: So it's in the mid-sevens.

Speaker #8: Okay. Thank you, guys.

Giuliano Thornhill: Okay. Thank you, guys.

Speaker #2: 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 2: 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: 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 #1: Thank you, Lucas. That wraps up our today's conference call. A reminder that our AGM will be held in a hybrid format on Thursday, June 18th at 4:30 PM.

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

Speaker #1: Details will be posted on our website next week. We're looking forward to you joining us then. Thanks again to everybody for joining us. If you have any further questions, please do not hesitate to give us a call.

Speaker #1: Goodbye.

Operator 2: This concludes today's call. Thank you for attending. You may now disconnect.

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