Chartwell Retirement Residences · TSX:CSH.UN
Chartwell Retirement Residences — Q2 2014 Earnings Presentation
16 slides from Chartwell Retirement Residences's earnings presentation, Aug 8, 2014
Slide 1: Q2 2014 Conference Call
Q2 2014 Conference Call August 8, 2014
Slide 2: Cautionary Statements
Cautionary Statements This presentation 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. The words “plan
Slide 3: Building Sustainable Value
Building Sustainable Value Strategic Priorities Grow core Maintain a property strong portfolio financial contribution position Improve quality and Build value of efficiency of our real our corporate estate support portfolio services Making People’s Lives Better 3
Slide 4: Occupancy
Occupancy Effectiveness of marketing and sales processes Strategies to increase leads: Website Call centre Phone system Sales Strategies to increase permanent move-ins: Sales training focused on purposeful follow-up DRS ability to listen to sales calls and coach Sales Consultants Enhance
Slide 5: Operations Initiatives
Operations Initiatives To provide a happier, healthier and more fulfilled life experience for seniors Driving Enhanced National New resident Final pieces of additional ancillary care purchasing satisfaction operational care revenue services contracts survey with reorganization comparative in place b
Slide 6: Financial Review
FINANCIAL REVIEW Financial Review
Slide 7: Solid Financial Performance
Solid Financial Performance Q2 2014 Highlights • AFFO of 18 cents per unit diluted • Same property NOI decreased 1.3% • Same property portfolio occupancy decreased 0.3pp • Expect improving performance in the second half of 2014 driven by stronger leasing activities and realization of the benefits of
Slide 8: Ontario Retirement Platform
Ontario Retirement Platform • Continued competitive pressures, utility and real estate taxes impacted results • Slower pace of new supply and stronger leasing activity expected to support improving occupancy and NOI growth Increase/(Decrease) Q2 2014 Q2 2013 $ % Same property statistics: NOI ($ mill
Slide 9: Western Canada Platform
Western Canada Platform • Continuing occupancy and rental rate growth contributed to the results • Positive conditions in most of our markets Increase/(Decrease) Q2 2014 Q2 2013 $ % Same property statistics: NOI ($ millions) $9.1 $8.8 $0.3 4.3% Occupancy 92.4% 91.4% N/A 1.0pp Occupancy Q2 14 92.4% Q
Slide 10: Quebec Platform
Quebec Platform • Higher utilities and real estate taxes impacted results • Strong leasing expected to support improving occupancy and NOI growth in the second half of 2014 Increase/(Decrease) Q2 2014 Q2 2013 $ % Same property statistics: NOI ($ millions) $12.9 $13.1 ($0.2) (1.4%) Occupancy 87.2% 87
Slide 11: Ontario LTC Platform
Ontario LTC Platform • Increased funding and preferred accommodation rates • High occupancy • Disciplined expense management Increase/(Decrease) Q2 2014 Q2 2013 $ % Same property statistics: NOI ($ millions) $7.3 $7.2 $0.1 1.3% Occupancy 98.5% 98.5% N/A - Occupancy Q2 14 98.5% Q1 14 98.4% Q4 13 98.6
Slide 12: U.S. Platform
U.S. Platform • Short-term move-in incentives, higher staffing costs and lower occupancies impacted results • Expect improving performance in the remainder of 2014 Increase/(Decrease) Q2 2014 Q2 2013 $ % Same property statistics: NOI (U.S. $ millions) $15.3 $15.5 ($0.2) (1.2%) Occupancy 88.1% 88.6%
Slide 13: Financial Performance
Financial Performance Managing G&A Expenses Total G&A Expenses Percentage of Revenue ($ millions) $15 5.0% 4.2% 4.0% 3.6% 3.5% 3.4% $10 2.9% $9.9 3.0% $8.5 $8.3 $7.8 $6.8 2.0% $5 1.0% $0 0.0% Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 • Higher legal fees related to the settled litigation in the U.S. added $0.4 m
Slide 14: Outlook
Outlook making people’s lives BETTER r .- cap cHARTwell retirement residences
Slide 15: Outlook
Outlook Strategic Priorities Growth in core property portfolio Maintaining a strong contribution financial position New brand rollout Prudent distributions policy Focus on occupancy, ancillary Reducing debt leverage over services and cost control time Broader assisted living options Extending mortga
Slide 16: Q2 2014 Conference Call
Q3 2012 Conference Call Q2 2014 Conference Call November 14, 2012 August 8, 2014
Chartwell Retirement Residences — Q2 2014 Earnings Presentation on 6ix