- Chartwell Retirement Residences (TSX:CSH.UN) has reported a steady quarter ending March 31, 2020, despite the influence of COVID-19
- Total revenue increased 4.3 per cent from C$210 million last year to $219 million this year
- However, direct property operating expenses also jumped 4.5 per cent to $151 million
- Due to the nature of its business, the company has been forced to implement dramatic measures to maintain operations throughout the pandemic
- At the end of the quarter, Chartwell had a total of $340.9 million in liquidity, including $131.6 million in cash and cash equivalents
- Chartwell Retirement Residences (CSH.UN) is currently up 2.05 per cent to $8.47 per share, with a market cap of $1.81 billion
Chartwell Retirement Residences (TSX:CSH.UN) has reported a steady quarter ending March 31, 2020, despite the influence of COVID-19.
The company owns and operates a range of senior housing communities, from independent supportive living through to assisted living and long-term care facilities.
As such, it has been forced to implement sweeping management policies due to COVID-19’s significant potential complications for older demographics. These included infection control practices that exceeded those required for the general public, as well as the extensive use of personal protective equipment among employees.
Despite this, Chartwell reported a 4.3 per cent increase in revenue from C$210 million in the first quarter of 2019 to $219 million this year. This was largely due to the influence of various acquisitions, along with organic growth in its existing properties.
However, direct property operating expenses also increased by 4.5 per cent due to pre-leasing and initial operating costs, as well as increased expenses in its property portfolio.
Subsequently, net income fell from $15 million to $11 million. This was also as a result of finance costs, depreciation and amortisation expenses.
Vlad Volodarski, CEO of Chartwell Retirement Residences, said the company’s overriding priority was the safety and well-being of its residents and staff.
“In order to further augment support to our residents during this challenging time and to alleviate the increased workload of our staff resulting primarily from heightened safety measures, we have launched a new recruitment campaign.
“In addition, our strong corporate support has enabled new operational standards to support physical distancing across our residences while ensuring our residents receive the care and services they need,” he added.
At the end of the quarter, Chartwell had approximately $340.9 million in liquidity. This included $131.6 million in cash and cash equivalents, as well as $209.3 million on its credit facilities.
Chartwell Retirement Residences (CSH.UN) is currently up 2.05 per cent to $8.47 per share at 3:11pm EDT.