TSX Commentary » Chartwell Seniors Housing REIT http://www.tsxcommentary.com Canadian Market Commentary Fri, 26 Feb 2010 15:46:00 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Chartwell Seniors Housing REIT CSH.UN Two Great Deals With Regency & Meridian Portfolios Target Increased to 7.50 http://www.tsxcommentary.com/2010/chartwell-seniors-housing-reit/chartwell-seniors-housing-reit-csh-un-two-great-deals-with-regency-meridian-portfolios-target-increased-to-7-50/ http://www.tsxcommentary.com/2010/chartwell-seniors-housing-reit/chartwell-seniors-housing-reit-csh-un-two-great-deals-with-regency-meridian-portfolios-target-increased-to-7-50/#comments Tue, 12 Jan 2010 21:43:25 +0000 admin http://www.tsxcommentary.com/?p=454 Chartwell Seniors Housing REIT (CSH.UN) – $7.34 – Two Great Deals With Regency & Meridian Portfolios; Target Increased to $7.50
Sector Perform, Above Average Risk, Price Target: $7.50 (prev $6.25)
In early Dec-09, Chartwell agreed to acquire its partner’s 50% interests in the Regency Care and Meridian portfolios. The purchase prices ($79.5MM, less $68.9MM of assumed debt for the Regency stake; and, US$110.5MM, less US$75.2MM of assumed debt for Meridian) appear favourable. RBC CM estimates going in NOI yields of 10.5%-11% on Regency and 9.6% on Meridian. Chartwell issued 13MM units priced at $6.20/unit to raise gross proceeds of $80.6MM in Dec-09. The equity represents ~40% of the combined transaction value of ~$200MM. Thus, the pro-forma balance sheet will be modestly de-levered vis-a-vis the Q3/09 D/GBV ratio of 62% and RBC CM’ LTV estimate of ~70%. RBC CM’ 2009-2011 FFO/unit and AFFO/unit estimates have been trimmed slightly. RBC CM has increased its target price to $7.50 From $6.25; RBC CM reiterates its Sector Perform, Above Average Risk Rating.

]]> http://www.tsxcommentary.com/2010/chartwell-seniors-housing-reit/chartwell-seniors-housing-reit-csh-un-two-great-deals-with-regency-meridian-portfolios-target-increased-to-7-50/feed/ 0 Chartwell Seniors Housing REIT Distribution Reduction http://www.tsxcommentary.com/2009/chartwell-seniors-housing-reit/chartwell-seniors-housing-reit-distribution-reduction/ http://www.tsxcommentary.com/2009/chartwell-seniors-housing-reit/chartwell-seniors-housing-reit-distribution-reduction/#comments Thu, 20 Aug 2009 04:14:22 +0000 admin http://www.tsxcommentary.com/?p=97 Q2/09 FD FFO was $0.19 (excl. straight-line lease expense) vs. $0.18 in
Q2/08. reflecting largely stable operating performance
overall and a higher US$. Same-property NOI: Cdn retirement: +0.2%,
U.S. retirement: +14.6% in Cdn$ or -1.0% in US$; Cdn LT care: +0.2%.

CSH has written down its mezz loans to development partners Spectrum
and Melior and indicated that these entities, which contributed interest and
fees of nearly $0.04 to FFO in Q2/09, will contribute significantly less in the
future. Distributions have been cut to $0.54 from $0.74.

Our 2009E FFO & AFFO are reduced by close to $0.04 per quarter mainly to
reflect a conservative assumption of minimal income from mezz loans and
related management fees and a lower US$. Our NAV is reduced to $5.20 to
conservatively ascribe no value to mezz loans to Spectrum and Melior.

CSH is trading at 7.5x our 2009E FD FFO and yields 9.7% (estimated to be
well-covered by 2009E AFFO of $0.63).

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