Chartwell Retirement Residences' funds from operations rose 38% in the third quarter as stronger property income and occupancy lifted operating results, with the company pointing to further occupancy gains by year-end.
For the three months ended Sept. 30, 2026, Chartwell reported C$100.8 million in FFO, up C$27.8 million, or 38%, year over year. FFO per unit was C$0.30, compared with C$0.24 in the same period of 2025, a C$0.06 increase and 25% growth. The total and per-unit figures rose at different rates. All figures are in Canadian dollars.
Property revenue rose C$45.9 million, or 16.7%, to C$321.1 million. Direct property operating expenses increased 10.8% to C$183.2 million, a slower rate of growth than revenue. Chartwell separately identified a C$34.9 million increase in adjusted net operating income as the main FFO driver. That NOI increase is distinct from the C$45.9 million revenue gain.
Lower general and administrative expenses and higher other income also helped FFO. The increase was partly offset by C$6.5 million in additional finance costs, lower management fees and lower interest income. Chartwell reported that management fees declined C$1.9 million and interest income fell C$1.2 million.
Weighted average occupancy in the same-property portfolio reached 94.8%, up from 92.5% a year earlier. The adjusted operating margin also rose 2.3 percentage points, to 43.4% from 41.1%. Chartwell expects occupancy in the same-property portfolio to reach 96% in December 2026.
Reported FFO excluded C$1.4 million in income guarantees tied to recently acquired properties, equal to C$0.01 per unit. Chartwell uses FFO to assess performance, but said International Financial Reporting Standards do not set a standardized definition for the measure. It cautioned that similarly named figures from other issuers may not be comparable.
