MISSISSAUGA, ON, March 7,
2024 /CNW/ - Chartwell Retirement Residences
("Chartwell") (TSX: CSH.UN) announced today its results for the
fourth quarter and year ended December 31,
2023.
Highlights
- Resident revenue increased by $9.5
million in Q4 2023 compared to Q4 2022.
- Net loss was $13.2 million in Q4
2023 compared to net income of $47.5
million in Q4 2022.
- Funds from Operations ("FFO")(1) for continuing
operations up 41.4% and Total FFO up 17.2% in
Q4 2023 from Q4 2022.
- Same property adjusted net operating income
("NOI")(1) up 21.5% in Q4 2023 from Q4 2022.
- Weighted average same property occupancy was 84.1% in Q4 2023,
compared to 79.5% in Q4 2022, and expected to grow to 85.7% by
April 2024.
"Our teams continued building the strong momentum of occupancy
growth in Q4 2023, finishing the year at 84.9% in our same property
portfolio. Importantly, we expect to reverse the historical
seasonal trends of occupancy declines in the winter months with a
projected occupancy of 85.7% in April
2024. As we build on execution of our innovative operating,
sales and marketing strategies, we expect continuing occupancy and
cash flow growth in 2024 and beyond," commented Vlad Volodarski, Chartwell's CEO. "We continue
to reimagine our corporate support processes and implementing
technology solutions to help us transition to an even more agile
and scalable organization. The completion of the sale of our
Ontario Long Term Care Platform, and the announcement of the
wind-up of our joint ventures with Welltower, combined with other
asset management projects underway, will reposition our property
portfolio toward high growth, well-located, and highly competitive
properties. These initiatives will help to set a solid foundation
for future profitable growth of our portfolio."
Operating Performance
Trends
- In Q4 2023 compared to Q4 2022, same property adjusted NOI
increased $9.0 million or 21.5%,
primarily due to higher revenue from rental and service rate
increases and higher occupancy.
- In Q4 2023, weighted average occupancy in our same property
portfolio was 84.1% compared to 79.5% in Q4 2022. All
platforms achieved occupancy gains in Q4 2023 compared to Q4
2022.
- Same property adjusted operating margin(1) was 35%
in Q4 2023 compared to 31% in Q4 2022.
Financial Results
The following table summarizes select financial and operating
performance measures:
|
Three Months Ended
December 31
|
Year Ended
December 31
|
($000s, except per unit
amounts, number of units, and occupancy)
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Resident
revenue
|
179,946
|
170,467
|
9,479
|
687,324
|
661,029
|
26,295
|
Direct property
operating expense
|
118,853
|
120,672
|
(1,819)
|
463,361
|
464,704
|
(1,343)
|
Net
income/(loss)
|
(13,173)
|
47,463
|
(60,636)
|
128,273
|
49,531
|
78,742
|
FFO(1)
|
|
|
|
|
|
|
Continuing
operations
|
39,246
|
27,744
|
11,502
|
122,151
|
102,013
|
20,138
|
Total
|
39,099
|
33,357
|
5,742
|
133,190
|
126,917
|
6,273
|
FFO per
unit(1)
|
|
|
|
|
|
|
Continuing
operations
|
0.16
|
0.12
|
0.04
|
0.51
|
0.43
|
0.08
|
Total
|
0.16
|
0.14
|
0.02
|
0.55
|
0.53
|
0.02
|
Weighted average number
of units outstanding (000s)(2)
|
243,262
|
238,831
|
4,431
|
241,688
|
237,402
|
4,286
|
Weighted average
occupancy rate - same property portfolio(3)
|
84.1 %
|
79.5 %
|
4.6pp
|
81.1 %
|
78.6 %
|
2.5pp
|
Same property adjusted
NOI(1)
|
50,864
|
41,880
|
8,984
|
189,012
|
165,384
|
23,628
|
G&A
expenses
|
13,455
|
9,334
|
4,121
|
60,450
|
49,641
|
10,809
|
Fourth Quarter Results
For Q4 2023, net loss was $13.2 million compared to net income of
$47.5 million in Q4 2022
primarily due to:
- lower gain on asset sales,
- negative changes in fair values of financial instruments,
primarily due to increases in trading prices of Chartwell Trust
Units,
- higher impairment losses,
- lower income from discontinued operations due to the sale of
the Ontario Long Term Care platform ("OLTC Platform")(4)
completed on September 6, 2023,
and
- higher general, administrative and Trust ("G&A")
expenses,
partially offset by:
- higher deferred tax benefit,
- higher resident revenue, and
- lower direct operating expenses.
For Q4 2023, FFO from continuing operations was $39.2 million or $0.16 per unit, compared to $27.7 million or $0.12 per unit for Q4 2022. The change in FFO
from continuing operations was primarily due to:
- higher adjusted NOI from continuing operations of $13.0 million,
- higher management fee revenue of $1.7
million,
- higher interest income of $0.6
million,
- lower finance costs of $0.3
million, and
- lower depreciation of PP&E and amortization of intangibles
assets used for administrative purposes of $0.1 million,
partially offset by:
- higher G&A expenses of $4.1
million, and
- other items combined of $0.1
million.
FFO from continuing operations for Q4 2023 included $0.6 million of Lease-up-Losses(1) and
Imputed Cost of Debt(1) related to our development
projects (Q4 2022 – $1.1
million).
Annual/Year End Results
For 2023, net income was $128.3 million compared to $49.5 million in 2022 primarily due to
- higher gains of $178.7 million on
asset sales from discontinued operations,
- higher deferred tax benefit, and
- higher resident revenue,
partially offset by:
- lower gain on disposal of assets included in continuing
operations,
- negative changes in fair values of financial instruments,
primarily due to increases in trading prices of Chartwell Trust
Units,
- current income tax expense of $27.2
million primarily due to the sale of the OLTC Platform,
- higher impairment losses,
- higher G&A expenses, and
- higher finance costs.
For 2023, FFO from continuing operations was $122.2 million or $0.51 per unit, compared to $102.0 million or $0.43 per unit for 2022. The change
in FFO from continuing operations was primarily due to:
- higher adjusted NOI from continuing operations of $33.9 million,
- higher management fee revenue of $3.1
million,
- higher interest income of $1.0
million,
- lower depreciation of PP&E and amortization of intangibles
assets used for administrative purposes of $0.3 million, and
- other items combined of $0.1
million,
partially offset by:
- higher G&A expenses of $10.8 million, and
- higher finance costs of $7.4 million.
FFO from continuing operations for 2023 included recoveries of
pandemic expenses for preceding years of $0.2 million (2022 - $2.4
million).
FFO from continuing operations for 2023 includes $2.3 million of Lease-up-Losses and Imputed Cost
of Debt related to our development projects (2022 – $4.4 million).
For 2023, Total FFO which includes results of LTC Discontinued
Operations was $133.2 million or
$0.55 per unit, compared to
$126.9 million or $0.53 per unit in 2022. LTC Discontinued
Operations results for 2022 included recoveries of pandemic and
other expenses for preceding years of $6.2
million or $0.03 per unit for
which there was not a comparable amount in 2023.
Financial Position
As at December 31, 2023
liquidity(1) amounted to $348.6
million, which included $24.6
million of cash and cash equivalents and $324.0 million of available borrowing capacity on
our credit facilities.
The interest coverage ratio(5) for the year ended was
2.3 at December 31, 2023, compared to
2.5 at December 31, 2022. The
net debt to adjusted EBITDA ratio(5) at December 31, 2023 was 10.2 compared to 11.1 at
December 31, 2022.
2024 Outlook
A discussion of our business outlook can be found in the "2024
Outlook" section of our Management's Discussion and Analysis for
the year ended December 31, 2023 (the
"2023 MD&A").
Retirement Operations
The chart included (Figure 1) provides an update in respect of
our same property retirement occupancy.
Due to seasonally lower move-in activity, we have historically
experienced declines in occupancy from December to April. The
three-year average for 2017, 2018, 2019 (the "pre-pandemic
average") decline in our same property occupancy from December to
April was 180 basis points ("bps") compared to a 60 bps decline in
2023.
February 2024 same property
occupancy was 85.5% and we expect April
2024 occupancy to be 85.7%, an increase of 80
bps from December 2023.
We increased our same property occupancy by 520 basis points in
2023. We anticipate continuing occupancy growth in 2024 supported
by the favourable market conditions and execution of our proven
sales and marketing strategies. We expect to achieve rent and
services rate increases of approximately 5% in 2024. As a result of
this expected occupancy and rate growth we expect our same property
operating margins to increase to approximately 38% in 2024 from 34%
in 2023.
Taxation
In 2023, 27.9% of our distributions were classified as return of
capital and 72.1% of our distributions were classified as eligible
dividends. The eligible dividends are primarily due to the taxable
capital gains on the sale of our OLTC Platform which resulted in
specified investment flow through ("SIFT") tax payable of
$27.2 million for the 2023 taxation
year.
Based on our current expectations, the Welltower Transaction (as
described below) will result in SIFT taxes payable of approximately
$6.8 million in 2024. Based on
current forecasts, Chartwell does not expect any other tax to be
payable under the SIFT Rules in 2024.
Portfolio Optimization and
Repositioning Activities
During Q4 2023, two properties that were previously
operationally closed were sold. One property was sold on
November 1, 2023 for a sale price of
$2.3 million. A vendor take-back
mortgage was extended to the purchaser in the amount of
$1.8 million, bearing an interest
rate of 6.0% per annum with a three-year term. The second property
was sold on December 11, 2023 for a
sale price of $13.9 million.
During 2023, closure costs related to these repositioning
activities were $1.6 million of which
$1.1 million was included in
NOI.
Chartwell Trait-Carré, Chartwell Le Montcalm, Chartwell Le
Prescott, and Chartwell L'Envol achieved the occupancy threshold
giving effect to the Batimo put rights. During Q2 2023,
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, currently
at 96.0% occupancy. Based on negotiations and appraisals
completed to date, Chartwell expects to pay approximately
$85 million for an 85% interest in
the property and expects to close on the acquisition in Q2
2024. During Q4 2023, Batimo exercised its put right to
require Chartwell to acquire an 85% interest in the 324-suite
Chartwell Le Prescott residence located in Vaudreuil, currently at 95.8% occupancy.
We estimate the current value of this residence at 100% ownership
interest to be approximately $85.0
million. Batimo has not exercised its put rights with
respect to the two other properties. We estimate the current
value of Chartwell Le Montcalm and Chartwell L'Envol at
approximately $150.0 million at 100%
ownership interest.
On November 9, 2023, we announced
that we have entered into a definitive agreement with Welltower
Inc. ("Welltower") to wind-up our existing joint ventures (the
"Welltower Transaction"). Under the terms of the agreement,
Chartwell will convey its ownership interest in 23 assets (the
"Welltower Assets") to Welltower for consideration of: (i)
Welltower's ownership interest in 16 assets (the "Chartwell
Assets") and (ii) $97.2 million in
cash. Net proceeds to Chartwell after estimated transaction
costs of $12.2 million and taxes of
$6.8 million are expected to be
approximately $78.2 million (the
"Cash Consideration"). Closing of the transaction, subject to
the required regulatory and lender approvals, is expected in Q2
2024 (the "Closing"). On Closing, Chartwell will assume
approximately $140.3 million in debt
on the Chartwell Assets, bearing a weighted average interest rate
of 2.8% and a weighted average term to maturity of 4.4 years.
The net change to total debt on Chartwell's balance sheet
will be a reduction of approximately $51.0
million, before any impact of the Cash Consideration.
In addition, two properties (314 suites) 100% owned by
Welltower will no longer be managed by Chartwell, and one remaining
co-owned property (332 suites) will continue to be operated by
Chartwell.
(See
https://investors.chartwell.com/november2023-transaction-with-welltower)
On February 1, 2024, we completed
the sale of Chartwell Bridlewood Retirement Residence (61 suites)
located in Ontario which was under
a definitive sale contract as of November
27, 2023, for a sale price of $3.8
million. A vendor take-back mortgage was extended to
the purchaser in the amount of $2.8
million, maturing in February
2027, and bearing an interest rate of 8% per annum for the
first two years and 10% per annum for the third year.
Liquidity and Financing
As at March 7,
2024, liquidity amounted to $368.4 million, which included $32.4 million of cash and cash equivalents
and $336.0 million of available
borrowing capacity on our Credit Facilities.
For 2024, we have $181.6 million
of mortgage debt maturing at the weighted average rate of 3.14%. At
March 7, 2024, 10-year CMHC-insured
mortgage rates are estimated at approximately 4.3% and five-year
conventional mortgage financing is available at 5.4%.
In May 2024, our $125.0 million unsecured term loan will be
maturing. We expect to refinance or repay this term loan using
proceeds of our non-core asset sales.
We expect to complete the sale of Ballycliffe LTC under the
forward sale contract upon completion of its redevelopment in the
first half of 2024. The contracted sale price is $64.5 million with net proceeds, after
transaction costs and taxes, and excluding working capital
adjustments to be determined on closing, estimated at $62.9 million. Either party may terminate the
forward purchase agreement if the development is not completed by
April 1, 2024. We do not expect to
complete construction by that date and as such, may sell on
different terms. We expect to use the proceeds, subject to
market conditions, to pay down debt.
Quarterly Investor Materials and Conference Call
We invite you to review our Q4 and Year End 2023 investor
materials on our website at investors.chartwell.com
2023 Financial Statements
2023 Management's Discussion and Analysis
Q4
2023 Investor Presentation
A conference call hosted by Chartwell's senior management will
be held Friday March 8, 2024, at
10:00 AM ET. The telephone
numbers to participate in the conference call are: Local: (416)
340-2217 or Toll Free: 1-800-806-5484. The passcode for the
conference call is: 8931311#. Please log on at least 15
minutes before the call commences to register for the
Q&A. A slide presentation to accompany management's
comments during the conference call will be available on the
website. A live webcast of the call will be available
at https://events.q4inc.com/attendee/547438182. Joining via
webcast is recommended for those who will not be participating in
the Q&A.
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 1404410#.
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, adjusted operating margin, 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 2023 MD&A, is incorporated by
reference. Full definitions of FFO & FFO per unit can be found
on page 19, same property adjusted NOI on page 20, adjusted NOI on
page 20, adjusted operating margin on page 10, liquidity on page
30, interest coverage ratio on page 38, and net debt to adjusted
EBITDA ratio on page 55 of the 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.com. 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)
|
Refer to the
"Significant Events – Portfolio Optimization" section on page 15 of
the 2023 MD&A.
|
(5)
|
Non-GAAP; calculated
in accordance with the Trust indentures for Chartwell's 4.211%
Series B senior unsecured debentures and 6.000% Series C senior
unsecured debentures and may not be comparable to similar metrics
used by other issuers or to any GAAP measures.
|
(6)
|
Forecast includes
leases and notices as at February 29, 2024 and an estimate of
mid-month move-ins of 30 bps for March and 50 bps for April, based
on the preceding 12-month average of such activity.
|
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 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 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.com.
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 one of the largest operators 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
Jeffrey Brown, Chief Financial Officer
Tel: (905) 501-6777
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, adjusted operating margin, 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 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 growth portfolio, and our repositioning
portfolio:
($000s, except
occupancy rates)
|
Q4
2023
|
Q4 2022
|
Change
|
2023
|
2022
|
Change
|
Resident
revenue
|
179,946
|
170,467
|
9,479
|
687,324
|
661,029
|
26,295
|
Add:
Share of resident
revenue from joint ventures (1)
|
33,159
|
30,008
|
3,151
|
126,765
|
115,864
|
10,901
|
Resident revenue from
LTC Discontinued Operations (2)
|
258
|
64,165
|
(63,907)
|
167,326
|
252,614
|
(85,288)
|
Adjusted resident
revenue
|
213,363
|
264,640
|
(51,277)
|
981,415
|
1,029,507
|
(48,092)
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
147,279
|
133,382
|
13,897
|
559,795
|
520,586
|
39,209
|
Growth
|
34,905
|
30,733
|
4,172
|
132,669
|
111,673
|
20,996
|
Repositioning
|
31,179
|
100,525
|
(69,346)
|
288,951
|
397,248
|
(108,297)
|
Adjusted resident
revenue
|
213,363
|
264,640
|
(51,277)
|
981,415
|
1,029,507
|
(48,092)
|
Direct property
operating expense
|
118,853
|
120,672
|
(1,819)
|
463,361
|
464,704
|
(1,343)
|
Add:
Share of direct
property operating expense from joint ventures
(1)
|
22,566
|
21,138
|
1,428
|
87,219
|
82,533
|
4,686
|
Direct property
operating expense from LTC Discontinued Operations
(2)
|
405
|
56,884
|
(56,479)
|
151,671
|
220,729
|
(69,058)
|
Adjusted direct
property operating expense
|
141,824
|
198,694
|
(56,870)
|
702,251
|
767,966
|
(65,715)
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
96,415
|
91,502
|
4,913
|
370,783
|
355,202
|
15,581
|
Growth
|
21,938
|
20,452
|
1,486
|
84,801
|
75,281
|
9,520
|
Repositioning
|
23,471
|
86,740
|
(63,269)
|
246,667
|
337,483
|
(90,816)
|
Adjusted direct
property operating expense
|
141,824
|
198,694
|
(56,870)
|
702,251
|
767,966
|
(65,715)
|
NOI
|
61,093
|
49,795
|
11,298
|
223,963
|
196,325
|
27,638
|
Add:
Share of NOI from joint ventures
|
10,593
|
8,870
|
1,723
|
39,546
|
33,331
|
6,215
|
Adjusted NOI from
continuing operations
|
71,686
|
58,665
|
13,021
|
263,509
|
229,656
|
33,853
|
Add:
NOI from LTC
Discontinued Operations
|
(147)
|
7,281
|
(7,428)
|
15,655
|
31,885
|
(16,230)
|
Adjusted
NOI
|
71,539
|
65,946
|
5,593
|
279,164
|
261,541
|
17,623
|
Comprised
of:
|
|
|
|
|
|
|
Same
property
|
50,864
|
41,880
|
8,984
|
189,012
|
165,384
|
23,628
|
Growth
|
12,967
|
10,281
|
2,686
|
47,868
|
36,392
|
11,476
|
Repositioning
|
7,708
|
13,785
|
(6,077)
|
42,284
|
59,765
|
(17,481)
|
Adjusted
NOI
|
71,539
|
65,946
|
5,593
|
279,164
|
261,541
|
17,623
|
Weighted average
occupancy rate:
|
|
|
|
|
|
|
Same property
portfolio
|
84.1 %
|
79.5 %
|
4.6pp
|
81.1 %
|
78.6 %
|
2.5pp
|
Growth
portfolio
|
79.8 %
|
74.6 %
|
5.2pp
|
76.5 %
|
72.4 %
|
4.1pp
|
Repositioning
portfolio
|
83.7 %
|
81.4 %
|
2.3pp
|
87.1 %
|
80.4 %
|
6.7pp
|
Total
portfolio
|
83.3 %
|
79.3 %
|
4.0pp
|
81.9 %
|
78.2 %
|
3.7pp
|
(1)
|
Non-GAAP; represents
Chartwell's proportionate share of the resident revenue and direct
property operating expense of our Equity-Accounted JVs,
respectively.
|
(2)
|
Represents the
resident revenue and direct property operating expense related to
LTC Discontinued Operations, respectively.
|
The following table provides a reconciliation of net
income/(loss) to FFO for continuing operations:
($000s, except per
unit amounts and number of units)
|
Q4
2023
|
Q4 2022
|
Change
|
2023
|
2022
|
Change
|
|
Net
income/(loss)
|
(12,758)
|
41,904
|
(54,662)
|
(60,941)
|
27,388
|
(88,329)
|
|
Add
(Subtract):
|
|
|
|
|
|
|
B
|
Depreciation of
PP&E
|
38,955
|
39,482
|
(527)
|
154,005
|
152,988
|
1,017
|
D
|
Amortization of limited
life intangible assets
|
632
|
773
|
(141)
|
2,690
|
3,148
|
(458)
|
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
|
(1,127)
|
(1,181)
|
54
|
(4,461)
|
(4,791)
|
330
|
E
|
Loss/(gain) on disposal
of assets
|
(5,770)
|
(70,125)
|
64,355
|
(12,074)
|
(71,751)
|
59,677
|
J
|
Transaction costs
arising on dispositions
|
192
|
1,792
|
(1,600)
|
1,167
|
1,992
|
(825)
|
H
|
Impairment
losses
|
10,273
|
-
|
10,273
|
10,898
|
-
|
10,898
|
F
|
Tax on gains or losses
on disposal of properties
|
(869)
|
-
|
(869)
|
27,231
|
-
|
27,231
|
G
|
Deferred income
tax
|
(3,419)
|
16,849
|
(20,268)
|
(24,510)
|
14,131
|
(38,641)
|
O
|
Distributions on Class
B Units recorded as interest expense
|
234
|
234
|
-
|
936
|
937
|
(1)
|
M
|
Changes in fair value
of financial instruments
|
10,752
|
(2,929)
|
13,681
|
21,964
|
(21,785)
|
43,749
|
Q
|
FFO adjustments for
Equity-Accounted JVs
|
2,151
|
945
|
1,206
|
5,246
|
(244)
|
5,490
|
|
FFO
|
39,246
|
27,744
|
11,502
|
122,151
|
102,013
|
20,138
|
|
Weighted average number
of units (000)
|
243,262
|
238,831
|
4,431
|
241,688
|
237,402
|
4,286
|
|
FFOPU
|
0.16
|
0.12
|
0.04
|
0.51
|
0.43
|
0.08
|
The following table provides a reconciliation of net
income/(loss) to Total FFO for total operations:
($000s, except per
unit amounts and number of units)
|
Q4
2023
|
Q4 2022
|
Change
|
2023
|
2022
|
Change
|
|
Net
income/(loss)
|
(13,173)
|
47,463
|
(60,636)
|
128,273
|
49,531
|
78,742
|
|
Add
(Subtract):
|
|
|
|
|
|
|
B
|
Depreciation of
PP&E
|
38,955
|
39,482
|
(527)
|
154,005
|
154,804
|
(799)
|
D
|
Amortization of limited
life intangible assets
|
632
|
773
|
(141)
|
2,690
|
3,350
|
(660)
|
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
|
(1,127)
|
(1,181)
|
54
|
(4,461)
|
(4,791)
|
330
|
E
|
Loss/(gain) on disposal
of assets
|
(5,539)
|
(70,122)
|
64,583
|
(190,747)
|
(71,743)
|
(119,004)
|
J
|
Transaction costs
arising on dispositions
|
229
|
1,843
|
(1,614)
|
1,665
|
2,727
|
(1,062)
|
H
|
Impairment
losses
|
10,273
|
-
|
10,273
|
10,898
|
-
|
10,898
|
F
|
Tax on gains or losses
on disposal of properties
|
(869)
|
-
|
(869)
|
27,231
|
-
|
27,231
|
G
|
Deferred income
tax
|
(3,419)
|
16,849
|
(20,268)
|
(24,510)
|
14,131
|
(38,641)
|
O
|
Distributions on Class
B Units recorded as interest expense
|
234
|
234
|
-
|
936
|
937
|
(1)
|
M
|
Changes in fair value
of financial instruments
|
10,752
|
(2,929)
|
13,681
|
21,964
|
(21,785)
|
43,749
|
Q
|
FFO adjustments for
Equity-Accounted JVs
|
2,151
|
945
|
1,206
|
5,246
|
(244)
|
5,490
|
|
FFO
|
39,099
|
33,357
|
5,742
|
133,190
|
126,917
|
6,273
|
|
Weighted average number
of units (000)
|
243,262
|
238,831
|
4,431
|
241,688
|
237,402
|
4,286
|
|
FFOPU
|
0.16
|
0.14
|
0.02
|
0.55
|
0.53
|
0.02
|
SOURCE Chartwell Retirement Residences (IR)