Chartwell Retirement Residences T.CSH.UN

RE: Fair Value for CSH.un

[gilbert3]

RBC upgrades Chartwell Seniors Leonard Zehr, 14/12/07 at 2:32 PM EST RBC Dominion Securities figures “considerable year-end tax-loss selling” has pushed Chartwell Seniors Housing REIT’s stock price to its lowest level in four years after takeover speculation evaporated this year. Saying the REIT is now in “value territory,” analyst Neil Downey upgraded Chartwell to “outperform” from “sector perform,” with a new price target of $13, down from $13.50. The units were changing hands at $10.48 at 2:30 p.m. EST on Friday, for a gain of 23 cents. “It’s no secret that Chartwell is significantly over-distributing,” he writes, but is quick to point out that the company has ample cash and financial flexibility, so a distribution cut is not imminent. As North America’s third-largest seniors housing owner/manager, with $2.6-billion in assets, Chartwell has a number of levers it can pull in order to increase its return on equity and enhance distribution coverage, he suggests, including a normal course issuer bid to buyback units.