North of the border, Canada-based Chartwell Retirement Residences has seen a small uptick in its weighted average occupancy rate for its retirement residences, but nothing like what we have seen in the U.S.
For Chartwell’s same-community portfolio, occupancy ended July at 76.3%, gained 30 basis points in August and 10 basis points in September, to end the third quarter at 76.7%. But October saw just a 10-basis point increase again to 76.8%, and they are forecasting occupancy to remain there through the end of the year. We have not heard any U.S. companies believing they would remain flat for the rest of the year.
Management claims that move-ins have substantially rebounded compared to 2020, and that move-outs remain slightly below pre-pandemic levels. Nevertheless, total move-ins were less than move-outs, which resulted in a slight decline in overall occupancy for the total portfolio. As we head into the winter season, this is not good news for one of Canada’s largest retirement community companies.
The company also entered into an agreement to sell four non-core retirement centers with 302 units located in Ontario for an aggregate price of C$71.5 million, or about U.S.$57.2 million, which comes to $189,400 per unit. The transaction is expected to close by December 31.
