Top PickSecond stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/shows/market-call/2024/10/31/andrew-moffs-top-picks-first-capital-realty-chartwell-retirement-residences-and-empire-state-realty-trust/
Chartwell Retirement Residences (CSH.UN TSX)
Chartwell Retirement Residences (“Chartwell” or “the Trust”) is Canada’s largest seniors housing owner, with over 25,000 suites located across core markets in Ontario, Quebec, Alberta, and B.C. In 2024, Chartwell achieved substantial occupancy growth, reaching an occupancy rate of 88.9 per cent at the end of September, an increase of 300 basis points since the start of the year and over 500 basis points year over-year. This strong occupancy growth brings Chartwell closer to its 95 per cent occupancy target and directly enhances the Trust’s net operating income (NOI), as occupancy growth in the 85-95 per cent range carries a very high NOI margin as it requires very little additional staffing.
Chartwell’s unit price has appreciated as earnings have grown and the balance sheet metrics have improved and this allowed the Trust to successfully complete a $345 million unit offering in June the proceeds of which enabled the Trust to acquire five premium retirement residences in Quebec. This was followed by the purchase of three additional residences on Vancouver Island, a sought-after retirement market with high barriers to entry. These accretive acquisitions are set to improve Chartwell’s earnings growth rate further. Supported by favourable supply and demand fundamentals, growing cash flows from occupancy gains, and a strategic capital allocation plan, Chartwell remains a core holding in the Vision Fund.
TOP PICK
Chartwell Retirement Residences(CSH.UN-T)
31/10/2024
Tremendous job filling units since pandemic, occupancy back to near 90%. Leading edge of baby boomer population starting to access this type of product. Discount to NAV. Making great accretive acquisitions, so he expects NAV growth. Great product, high-margin business. Yield is 3.9%.
(Analysts’ price target is $16.96)
Property Mngmnt / Investment
Andrew Moffs
$15.700
Owned