MISSISSAUGA, ON, Aug. 10,
2023 /CNW/ - Chartwell Retirement Residences
("Chartwell") (TSX: CSH.UN) announced today its results for the
second quarter ended June 30,
2023.
Highlights
- Net loss was $7.5 million in Q2
2023 compared to net income of $1.1
million in Q2 2022. This net loss included $3.1 million of negative change in fair value of
financial instruments, primarily from the increase in trading
prices of our Trust Units, compared to a positive change in fair
value of financial instruments of $7.2
million in Q2 2022.
- Same property adjusted net operating income ("NOI")
(1) up 8.7% in Q2 2023 from Q2 2022.
- Weighted average same property occupancy was 79.2% in Q2 2023,
an increase of 1.8 percentage points compared to Q2 2022, with all
platforms achieving growth. Same property occupancy forecasted to
grow to 81.7% by September 2023.
- Received regulatory approval to sell our Ontario Long Term Care
platform, with the transaction expected to close in September 2023.
- 54% of employees in our retirement operations indicated their
high level of engagement in 2023, a five percentage points increase
from 2022 and within one percentage point of our aspirational 2025
target of 55%.
"Our Q2 2023 results reflect our continuing focus on
accelerating occupancy growth and reducing reliance on agency
staffing. Our commitment to deliver an exceptional resident
experience and our strong local reputation in the markets we serve
allow us to grow resident, family, and business referrals. Our
targeted marketing programs generate more qualified leads and
improve our sales closing ratios with lease signing activity this
year being 21% higher than in 2022. Our recruitment and retention
efforts have resulted in the continuing decline of our agency
spend. I am confident that our talented and dedicated operations
teams supported by new technology solutions will deliver strong
occupancy and cash flow growth in the second half of this year and
beyond," commented Vlad Volodarski,
CEO. "There is significant embedded potential value in our
portfolio. We are committed to realizing it through our operating
initiatives and numerous portfolio optimization strategies
underway."
Operating Performance Trends
- In Q2 2023 compared to Q2 2022, same property adjusted NOI
increased $4.5 million or 8.7% on
higher revenue from both rental and service rate increases, and
increased occupancy, partially offset by higher staffing costs no
longer offset by pandemic funding, higher repairs and maintenance,
property tax, and food expenses.
- In Q2 2023, weighted average occupancy in our same property
portfolio was 79.2% compared to 77.4% in Q2 2022, an increase of
1.8 percentage points. All platforms achieved occupancy gains in Q2
2023 compared to Q2 2022.
Financial Results
The following table summarizes select financial and operating
performance measures:
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
($000s, except per unit
amounts, number of units, and occupancy)
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Resident
revenue
|
168,171
|
164,136
|
4,035
|
333,995
|
321,804
|
12,191
|
Direct property
operating expense
|
113,290
|
112,434
|
856
|
231,164
|
226,221
|
4,943
|
Net
income/(loss)
|
(7,457)
|
1,106
|
(8,563)
|
(16,710)
|
(2,210)
|
(14,500)
|
Funds from operations
("FFO") (1)
|
|
|
|
|
|
|
Continuing
operations
|
25,900
|
25,719
|
181
|
46,818
|
45,979
|
839
|
Total
|
30,751
|
30,355
|
396
|
55,089
|
61,680
|
(6,591)
|
FFO per unit
(1)
|
|
|
|
|
|
|
Continuing
operations
|
0.11
|
0.11
|
-
|
0.20
|
0.19
|
0.01
|
Total
|
0.13
|
0.13
|
-
|
0.23
|
0.26
|
(0.03)
|
Weighted average number
of units outstanding (000s) (2)
|
241,240
|
236,859
|
4,381
|
240,598
|
236,456
|
4,142
|
Weighted average
occupancy rate - same property portfolio (3)
|
79.2 %
|
77.4 %
|
1.8pp
|
79.1 %
|
77.4 %
|
1.7pp
|
Same property adjusted
NOI (1)
|
55,981
|
51,521
|
4,460
|
105,987
|
97,683
|
8,304
|
G&A
expenses
|
17,163
|
15,264
|
1,899
|
32,592
|
29,092
|
3,500
|
For Q2 2023, net loss was $7.5 million compared to net income of
$1.1 million in Q2 2022
primarily due to:
- negative changes in fair values of financial instruments,
- higher finance costs,
- higher general, administrative and Trust ("G&A") expenses,
and
- higher direct operating expenses,
partially offset by:
- higher resident revenue,
- higher deferred tax benefit,
- lower net loss from joint ventures, and
- higher net income from LTC Discontinued Operations.
For Q2 2023, resident revenue increased $4.0 million, or 2.5%, primarily due to revenue
growth in our same property portfolio and contributions from our
acquisitions and development portfolio partially offset by our
dispositions and repositioning portfolio.
For Q2 2023, direct property operating expense increased
$0.9 million, or 0.8%, primarily due
to higher expenses in our same property portfolio and our
acquisitions and development portfolio partially offset by lower
expenses in our dispositions and repositioning portfolio.
For Q2 2023, FFO from continuing operations was $25.9 million, or $0.11 per unit, compared to $25.7 million, or $0.11 per unit, for Q2 2022. The change in FFO
from continuing operations was primarily due to:
- higher adjusted NOI from continuing operations of $4.0 million,
- higher management fee revenue of $0.7
million, and
- other items combined of $0.2
million,
partially offset by:
- higher finance costs of $2.8
million, and
- higher G&A expenses of $1.9
million.
FFO from continuing operations for Q2 2023 includes $0.3 million of Lease-up-Losses (1)
and Imputed Cost of Debt (1) related to our development
projects (Q2 2022 – $1.1
million).
Total FFO for Q2 2023 was $30.8
million, or $0.13 per unit,
compared to $30.4 million, or
$0.13 per unit, in Q2 2022.
Total FFO per unit for Q2 2023 includes $0.02 per unit compared to $0.02 per unit in Q2 2022 from the 16 long term
care homes and one retirement residence in Ontario which have been reclassified as
discontinued operations ("LTC Discontinued Operations") as we have
entered into definitive agreements to substantially exit our Long
Term Care operations in Ontario.
For 2023 YTD, net loss was $16.7
million compared to $2.2
million in 2022 YTD primarily due to:
- negative changes in fair values of financial instruments,
- higher finance costs,
- higher direct operating expenses,
- lower net income from LTC Discontinued Operations,
- higher G&A expenses,
- higher depreciation of property, plant and equipment
("PP&E"), and
- higher net loss from joint ventures,
partially offset by:
- higher resident revenue,
- higher deferred tax benefit, and
- higher gain on disposal of assets.
For 2023 YTD, resident revenue increased $12.2 million or 3.8% primarily due to revenue
growth in our same property portfolio and contributions from our
acquisitions and development portfolio partially offset by our
dispositions and repositioning portfolio.
For 2023 YTD, direct property operating expense increased
$4.9 million, or 2.2%, primarily due
to higher expenses in our same property portfolio and our
acquisitions and development portfolio partially offset by lower
expenses in our dispositions and repositioning portfolio.
For 2023 YTD, FFO from continuing operations was $46.8 million, or $0.20 per unit, compared to $46.0 million, or $0.19 per unit, for 2022 YTD. 2022 YTD
included recoveries of pandemic expenses for preceding years of
$2.2 million for which there was not
a comparable amount in 2023 YTD. The change in FFO from
continuing operations was primarily due to:
- higher adjusted NOI from continuing operations of $9.5 million,
- higher management fee revenue of $0.8
million, and
- lower depreciation of PP&E and amortization of intangibles
assets used for administrative purposes of $0.2 million,
partially offset by:
- higher finance costs of $6.3
million, and
- higher G&A expenses of $3.5
million.
FFO from continuing operations for 2023 YTD includes
$1.1 million of Lease-up-Losses
(1) and Imputed Cost of Debt (1) related to
our development projects (2022 YTD – $2.1
million).
Total FFO for 2023 YTD was $55.1
million, or $0.23 per unit,
compared to $61.7 million, or
$0.26 per unit, in 2022 YTD.
Total FFO per unit for 2023 YTD includes $0.03 per unit compared to $0.07 per unit in 2022 YTD, from the LTC
Discontinued Operations. 2022 YTD LTC Discontinued Operations
included recoveries of pandemic and other expenses for preceding
years of $7.2 million, or
$0.03 per unit, for which there was
not a comparable amount in 2023 YTD.
Financial Position
As at June 30, 2023 liquidity
(1) amounted to $155.3
million, which included $7.5
million of cash and cash equivalents and $147.8 million of available borrowing capacity on
our credit facilities.
The interest coverage ratio (4) on a rolling 12-month
basis was 2.3 at June 30, 2023,
compared to 2.7 at June 30,
2022. The net debt to adjusted EBITDA ratio (4) at
June 30, 2023 was 11.4 compared to
11.2 at June 30, 2022.
2023 Outlook
An updated discussion of our business outlook can be found in
the "2023 Outlook" section of our Management's Discussion and
Analysis for the three and six months ended June 30, 2023 (the "Q2 2023 MD&A"). The
following provides an update on our near-term outlook for our same
property occupancy and staffing costs.
Same Property Occupancy Update
The chart included provides an update in respect of our same
property retirement occupancy:
Due to seasonally lower move-in activity, we normally experience
declines in occupancy from December to April. The three year
average for 2017, 2018, 2019 ("pre-pandemic average") decline in
our same property portfolio occupancy from December to April was
180 basis points ("bps"). For the same four months in 2023,
the decline in occupancy was 40 bps, significantly lower than the
pre-pandemic average. Occupancy and leasing trends are also
outperforming the same months of 2022. Occupancy is expected
to increase by 260 bps from December
2022 to September 2023
compared to a decline of 10 bps for the comparable period in
2022. Leasing activity to date in 2023 is 21% higher than
2022.
As at July 31, 2023, our same
property weighted average occupancy is expected to increase 60 bps
in August 2023 and a further 70 bps
in September 2023.
Our marketing and sales initiatives produced improvements in
personalized tours, sales closing ratios, leasing, and permanent
move-ins. Leasing activity in 2023 to date is 15% higher than the
pre-pandemic average. We expect to see continued occupancy growth
in 2023 and beyond, supported by accelerating demographic growth,
shortages of long term care beds and fewer senior housing
construction starts.
Staffing costs increased in Q2 2023, due to higher compensation
offset by a decrease in agency staffing costs. We expect
agency staffing costs to continue to decline gradually through
2023.
Taxation
We estimate the taxable capital gain resulting from the LTC
Transactions will attract specified investment flow-through
("SIFT") taxes of approximately $32.5
million in 2023 and $1.5
million in 2024. In addition, the majority of our 2023
distributions are expected to be classified as eligible dividends
as a result of the taxable capital gain. We expect to have
sufficient deductions and losses carried forward to offset any
other SIFT taxes in 2023 and 2024.
Portfolio Optimization and Repositioning Activities
Update
We completed the operational closure of two retirement
residences (225 suites) in Q1 2023, and one retirement residence
(109 suites) on July 17, 2023.
The majority of the residents in these properties were relocated to
other Chartwell retirement residences in the area. We expect
to sell these first two properties for alternative uses and
have entered into a definitive agreement to sell the third property
for a sale price of $17.5
million. The transaction is expected to close in Q3
2023. During Q2 2023 and 2023 YTD, closure costs related to
repositioning activities were $1.2
million and $1.8 million,
respectively, with $0.8 million and
$1.4 million, respectively, included
in NOI.
During Q2 2023, Batimo Inc. ("Batimo") exercised its put right
to require Chartwell to acquire an 85% interest in the 361-suite
Chartwell Trait-Carré residence located in Quebec City. The property is currently 94.2%
occupied. As required under our agreements with Batimo, Chartwell
commissioned an appraisal of this property. The appraised value of
the property at 100% ownership was $85.3
million. Batimo exercised its right to commission a second
appraisal. Subject to the completion of the contractual appraisal
process, we expect to acquire this property in Q4 2023.
Liquidity and Financing Update
As at August 10,
2023, liquidity amounted to $193.5 million, which included $25.7 million of cash and cash equivalents
and $167.8 million of available
borrowing capacity on our Credit Facilities.
For the remainder of 2023, we have $121.5 million of mortgage debt maturing at
the weighted average interest rate of 3.68%, of which $39.6 million is CMHC insured and bears a
weighted average interest rate of 3.92%. At August 10, 2023, 10-year CMHC-insured mortgage
rates are estimated at approximately 4.5% and five-year
conventional mortgage financing is available at 5.9%.
The LTC Transactions are expected to generate net proceeds of
approximately $269.2 million,
which are expected to be used, subject to market conditions, to pay
down debt. On closing of the LTC Transactions, our
unencumbered asset pool and available capacity on our secured
Credit Facilities are expected to decline by approximately
$49.9 million and $27.1 million, respectively.
In December 2023, our senior
unsecured debentures with a face value of $200.0 million will mature. We expect to
refinance these debentures with new senior unsecured debentures,
other unsecured or secured debt instruments or equity financing,
subject to market conditions.
On August 4, 2023, we entered into
an unsecured delayed draw credit facility (the "Facility") with a
syndicate of Canadian financial institutions. The Facility
has a maximum capacity of $200.0
million with a maturity date of May
29, 2025. The Facility is available any time prior to
December 11, 2023 as required to
repay the unsecured debentures. The Facility is subject to
substantially the same covenants and pricing as our existing
unsecured credit facility.
Quarterly Investor Materials and Conference Call
We invite you to review our Q2 2023 investor materials on our
website at investors.chartwell.com
Q2 2023 Financial Statements
Q2 2023 Management's Discussion and
Analysis
Q2 2023 Investor Presentation
A conference call hosted by Chartwell's senior management team
will be held Friday August 11,
2023, at 10:00 AM ET.
The telephone numbers for the conference call are:
Local: (416) 340-2217 or Toll Free: 1-800-806-5484. The
passcode for the conference call is: 3803627#. A slide
presentation to accompany management's comments during the
conference call will be available on the website. The
conference call can also be heard over the Internet via webcast.
Visit Chartwell's website at investors.chartwell.com and
follow the link at the top of the page. Please log on at
least 15 minutes before the call commences.
The telephone numbers to listen to the call after it is
completed (Instant Replay) are: Local (905) 694-9451 or Toll-Free:
1-800-408-3053. The Passcode for the Instant Replay is 3422281#.
These numbers will be available for 30 days following the call. An
audio file recording of the call, along with the accompanying
slides, will also be archived on Chartwell's website at
investors.chartwell.com.
Footnotes
(1)
|
FFO, FFO for
continuing operations, Total FFO, including per unit amounts,
Adjusted Resident Revenue, Adjusted Direct Property Operating
Expense, Adjusted NOI, liquidity, interest coverage ratio, Lease-up
Losses, Imputed Cost of Debt, and net debt to adjusted EBITDA ratio
are non-GAAP measures. These measures do not have standardized
meanings prescribed by GAAP and, therefore, may not be comparable
to similar measures used by other issuers. These measures are used
by management in evaluating operating and financial
performance. Please refer to the heading "Non-GAAP
Financial Measures" on page 7 of this press release. Certain
information about non-GAAP financial measures, non-GAAP ratios,
capital management measures and supplementary measures found in
Chartwell's Q2 2023 MD&A, is incorporated by reference. Full
definitions of FFO & FFO per unit can be found on page 14, same
property adjusted NOI on page 15, adjusted NOI on page 15,
liquidity on page 26, interest coverage ratio on page 34 and net
debt to adjusted EBITDA ratio on page 50 of the Q2 2023
MD&A available on Chartwell's website and under
Chartwell's profile on the System for electronic Document and
Analysis Retrieval ("SEDAR+") website at sedarplus.ca. The
definition of these measures have been incorporated by
reference.
|
(2)
|
Includes Trust
Units, Class B Units of Chartwell Master Care LP, and Trust Units
issued under Executive Unit Purchase Plan and Deferred Trust Unit
Plan.
|
(3)
|
'pp' means
percentage points.
|
(4)
|
Non-GAAP; calculated
in accordance with the Trust indentures for Chartwell's 3.786%
Series A senior unsecured debentures and 4.211% Series B senior
unsecured debentures and may not be comparable to similar metrics
used by other issuers or to any GAAP measures.
|
(5)
|
Forecast includes
leases and notices as at July 31, 2023 and an estimate of
mid-month move-ins of 30 and 50 bps for August and September
respectively, based on the preceding 12-month average of such
activity.
|
(6)
|
Non-GAAP; Share of
resident revenue and direct property operating expense from joint
ventures represents Chartwell's proportionate share of the resident
revenue and direct property operating expense of our
Equity-Accounted JVs.
|
(7)
|
Resident revenue and
direct property operating expense reported in LTC Discontinued
Operations represents the resident revenue and direct property
operating expense related to LTC Discontinued
Operations.
|
|
|
Forward-Looking Information
This press release contains forward-looking information that
reflects the current expectations, estimates and projections of
management about the future results, performance, achievements,
prospects or opportunities for Chartwell and the seniors housing
industry. Forward-looking statements are based upon a number of
assumptions and are subject to a number of known and unknown risks
and uncertainties, many of which are beyond our control, and that
could cause actual results to differ materially from those that are
disclosed in or implied by such forward-looking statements.
Examples of forward-looking information in this document include,
but are not limited to, statements regarding our business
strategies, operational sales, marketing and optimization
strategies including targets, and the expected results of such
strategies, predictions and expectations with respect to industry
trends including growth in the senior population, a deficit of long
term care beds and the slow down of new construction starts,
expectations with respect to taxes that are expected to be payable
in the current and future years and statements regarding the tax
classification of distributions, and occupancy rate forecasts.
There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could
differ materially from those expected or estimated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking information. These factors are more fully described
in the "Risks and Uncertainties and Forward-Looking Information"
section in Chartwell's Q2 2023 MD&A, and in materials filed
with the securities regulatory authorities in Canada from time to time, including but not
limited to our most recent Annual Information Form the ("AIF"). A
copy of the Q2 2023 MD&A, the AIF, and Chartwell's other
publicly filed documents can be accessed under Chartwell's profile
on the SEDAR+ website at sedarplus.ca.
About Chartwell
Chartwell is in the business of serving and caring for
Canada's seniors, committed to its
vision of Making People's Lives BETTER and to providing a happier,
healthier, and more fulfilling life experience for its residents.
Chartwell is an unincorporated, open-ended real estate trust which
indirectly owns and operates a complete range of seniors housing
communities, from independent living through to assisted living and
long term care. Chartwell is the largest operator in
Canada, serving over 25,000
residents in four provinces across the
country. For more information visit
www.chartwell.com.
For more information, please contact:
Chartwell Retirement Residences
Vlad Volodarski, Chief Executive Officer
Tel: (905) 501-4709
Email: investorrelations@chartwell.com
Non-GAAP Financial Measures
Chartwell's condensed consolidated interim financial
statements are prepared in accordance with International Financial
Reporting Standards ("IFRS"). Management uses certain
financial measures to assess Chartwell's operating and financial
performance, which are measures not defined in generally accepted
accounting principles ("GAAP") under IFRS. The following
measures: FFO, FFO per unit, same property adjusted NOI,
adjusted NOI, liquidity, interest coverage ratio and net debt to
adjusted EBITDA ratio as well as other measures discussed elsewhere
in this release, do not have a standardized definition prescribed
by IFRS. They are presented because management believes these
non-GAAP measures are relevant and meaningful measures of
Chartwell's performance and as computed may differ from similar
computations as reported by other issuers and may not be comparable
to similarly titled measures reported by such issuers. For a full
definition of these measures, please refer to the Q2 2023 MD&A
available on Chartwell's website and on SEDAR+.
The following table reconciles resident revenue and direct
property operating expense from our financial statements to
adjusted resident revenue and adjusted direct property operating
expense and NOI to Adjusted NOI from continuing operations and
Adjusted NOI and identifies contributions from our same property
portfolio, our acquisitions and development portfolio, and our
dispositions and repositioning portfolio:
($000s, except
occupancy rates)
|
Q2
2023
|
Q2 2022
|
Change
|
2023
YTD
|
2022 YTD
|
Change
|
Resident
revenue
|
168,171
|
164,136
|
4,035
|
333,995
|
321,804
|
12,191
|
Add:
Share of resident
revenue from joint ventures (6)
|
31,074
|
28,584
|
2,490
|
61,502
|
56,664
|
4,838
|
Resident revenue from
LTC Discontinued Operations (7)
|
59,732
|
60,373
|
(641)
|
121,547
|
128,328
|
(6,781)
|
Adjusted resident
revenue
|
258,977
|
253,093
|
5,884
|
517,044
|
506,796
|
10,248
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
167,746
|
156,723
|
11,023
|
332,176
|
313,020
|
19,156
|
Acquisitions and
development
|
20,408
|
17,354
|
3,054
|
40,670
|
28,526
|
12,144
|
Dispositions and
repositioning
|
70,823
|
79,016
|
(8,193)
|
144,198
|
165,250
|
(21,052)
|
Adjusted resident
revenue
|
258,977
|
253,093
|
5,884
|
517,044
|
506,796
|
10,248
|
Direct property
operating expense
|
113,290
|
112,434
|
856
|
231,164
|
226,221
|
4,943
|
Add:
Share of direct
property operating expense from joint ventures
(6)
|
21,895
|
20,240
|
1,655
|
43,618
|
40,983
|
2,635
|
Direct property
operating expense from LTC Discontinued Operations
(7)
|
53,283
|
53,914
|
(631)
|
109,936
|
109,114
|
822
|
Adjusted direct
property operating expense
|
188,468
|
186,588
|
1,880
|
384,718
|
376,318
|
8,400
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
111,765
|
105,202
|
6,563
|
226,189
|
215,337
|
10,852
|
Acquisitions and
development
|
12,067
|
10,954
|
1,113
|
24,674
|
18,330
|
6,344
|
Dispositions and
repositioning
|
64,636
|
70,432
|
(5,796)
|
133,855
|
142,651
|
(8,796)
|
Adjusted direct
property operating expense
|
188,468
|
186,588
|
1,880
|
384,718
|
376,318
|
8,400
|
NOI
|
54,881
|
51,702
|
3,179
|
102,831
|
95,583
|
7,248
|
Add:
Share of NOI from joint ventures
|
9,179
|
8,344
|
835
|
17,884
|
15,681
|
2,203
|
Adjusted NOI from
continuing operations
|
64,060
|
60,046
|
4,014
|
120,715
|
111,264
|
9,451
|
Add:
NOI from LTC
Discontinued Operations
|
6,449
|
6,459
|
(10)
|
11,611
|
19,214
|
(7,603)
|
Adjusted
NOI
|
70,509
|
66,505
|
4,004
|
132,326
|
130,478
|
1,848
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
55,981
|
51,521
|
4,460
|
105,987
|
97,683
|
8,304
|
Acquisitions and
development
|
8,341
|
6,400
|
1,941
|
15,996
|
10,196
|
5,800
|
Dispositions and
repositioning
|
6,187
|
8,584
|
(2,397)
|
10,343
|
22,599
|
(12,256)
|
Adjusted
NOI
|
70,509
|
66,505
|
4,004
|
132,326
|
130,478
|
1,848
|
Weighted average
occupancy rate:
|
|
|
|
|
|
|
Same property
portfolio
|
79.2 %
|
77.4 %
|
1.8pp
|
79.1 %
|
77.4 %
|
1.7pp
|
Acquisitions and
development portfolio
|
76.9 %
|
68.5 %
|
8.4pp
|
76.3 %
|
67.6 %
|
8.7pp
|
Dispositions and
repositioning portfolio
|
92.0 %
|
82.8 %
|
9.2pp
|
91.3 %
|
82.2 %
|
9.1pp
|
Total
portfolio
|
80.9 %
|
77.6 %
|
3.3pp
|
80.6 %
|
77.5 %
|
3.1pp
|
The following table provides a reconciliation of net income/(loss)
to FFO for continuing operations:
($000s, except per unit
amounts and number of units)
|
Q2
2023
|
Q2 2022
|
Change
|
2023
YTD
|
2022 YTD
|
Change
|
|
Net
income/(loss)
|
(12,263)
|
(3,404)
|
(8,859)
|
(24,853)
|
(15,266)
|
(9,587)
|
|
Add
(Subtract):
|
|
|
|
|
|
|
B
|
Depreciation of
PP&E
|
37,786
|
37,927
|
(141)
|
77,023
|
74,548
|
2,475
|
D
|
Amortization of limited
life intangible assets
|
753
|
822
|
(69)
|
1,492
|
1,566
|
(74)
|
B
|
Depreciation of
PP&E and amortization of intangible assets used for
administrative purposes
included in depreciation of PP&E and amortization of intangible
assets above
|
(1,094)
|
(1,203)
|
109
|
(2,238)
|
(2,424)
|
186
|
E
|
Loss/(gain) on disposal
of assets
|
(709)
|
(425)
|
(284)
|
(3,421)
|
(970)
|
(2,451)
|
J
|
Transaction costs
arising on dispositions
|
104
|
23
|
81
|
506
|
78
|
428
|
G
|
Deferred income
tax
|
(2,340)
|
(1,111)
|
(1,229)
|
(9,817)
|
(470)
|
(9,347)
|
O
|
Distributions on Class
B Units recorded as interest expense
|
234
|
234
|
-
|
468
|
468
|
-
|
M
|
Changes in fair value
of financial instruments
|
3,081
|
(7,161)
|
10,242
|
5,590
|
(9,802)
|
15,392
|
Q
|
FFO adjustments for
Equity-Accounted JVs
|
348
|
17
|
331
|
2,068
|
(1,749)
|
3,817
|
|
FFO
(2)
|
25,900
|
25,719
|
181
|
46,818
|
45,979
|
839
|
|
Weighted average number
of units (000)
|
241,240
|
236,859
|
4,381
|
240,598
|
236,456
|
4,142
|
|
FFOPU
|
0.11
|
0.11
|
-
|
0.20
|
0.19
|
0.01
|
The following table provides a reconciliation of net income/(loss)
to FFO for total operations:
($000s, except per unit
amounts and number of units)
|
Q2
2023
|
Q2 2022
|
Change
|
2023
YTD
|
2022 YTD
|
Change
|
|
Net
income/(loss)
|
(7,457)
|
1,106
|
(8,563)
|
(16,710)
|
(2,210)
|
(14,500)
|
|
Add
(Subtract):
|
|
|
|
|
|
|
B
|
Depreciation of
PP&E
|
37,786
|
37,927
|
(141)
|
77,023
|
76,364
|
659
|
D
|
Amortization of limited
life intangible assets
|
753
|
822
|
(69)
|
1,492
|
1,768
|
(276)
|
B
|
Depreciation of
PP&E and amortization of intangible assets used for
administrative purposes included in depreciation of PP&E and
amortization of intangible assets above
|
(1,094)
|
(1,203)
|
109
|
(2,238)
|
(2,424)
|
186
|
E
|
Loss/(gain) on disposal
of assets
|
(714)
|
(423)
|
(291)
|
(3,415)
|
(968)
|
(2,447)
|
J
|
Transaction costs
arising on dispositions
|
154
|
147
|
7
|
628
|
703
|
(75)
|
G
|
Deferred income
tax
|
(2,340)
|
(1,111)
|
(1,229)
|
(9,817)
|
(470)
|
(9,347)
|
O
|
Distributions on Class
B Units recorded as interest expense
|
234
|
234
|
-
|
468
|
468
|
-
|
M
|
Changes in fair value
of financial instruments
|
3,081
|
(7,161)
|
10,242
|
5,590
|
(9,802)
|
15,392
|
Q
|
FFO adjustments for
Equity-Accounted JVs
|
348
|
17
|
331
|
2,068
|
(1,749)
|
3,817
|
|
FFO
|
30,751
|
30,355
|
396
|
55,089
|
61,680
|
(6,591)
|
|
Weighted average number
of units (000)
|
241,240
|
236,859
|
4,381
|
240,598
|
236,456
|
4,142
|
|
FFOPU
|
0.13
|
0.13
|
-
|
0.23
|
0.26
|
(0.03)
|
SOURCE Chartwell Retirement Residences