Q1 2020 CONFERENCE CALL May 8, 2020 Cautionary Statements This - PowerPoint PPT Presentation

Q1 2020 CONFERENCE CALL May 8, 2020

Cautionary Statements This presentation contains forward-looking information that reflects the current expectations, estimates and projections of management about the future performance and opportunities for Chartwell and the seniors housing industry. The words “plans,” “expects,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “believes” or variations of such words and phrases or statements to the effect that certain actions, events or results “may,” “will,” “could,” “might” occur and other similar expressions identify forward-looking statements. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. While we anticipate that subsequent events and developments may cause our views to change, we do not intend to update this forward-looking information, except as required by applicable securities laws. This forward-looking information represents our views as of the date of this presentation and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking information. These factors are more fully described in the “Forward -Looking Information and COVID-19 Risks” section in Chartwell’s Q1 2020 MD&A, the "Risks and Uncertainties" section in Chartwell's 2019 MD&A, and in materials filed with the securities regulatory authorities in Canada from time to time, including but not limited to our most recent Annual Information Form. In this document we use a number of performance measures that are not defined in generally accepted accounting principles (“GAAP”) such as Net Operating Income (“NOI”), Funds from Operations (“FFO”), Internal Funds from Operations (“IFFO”), “Adjusted Resident Revenue”, “Adjusted EBITDA”, “Net Debt to Adjusted EBITDA Ratio”, “Debt to Gross Book Value”, “Liquidity”, “Imputed Cost of Debt”, “Lease -up- Losses”, “Adjusted Development Costs”, “Unlevered Yield”, “Stabilized NOI” “Adjusted NOI”, and any related per unit amounts to measure, compare and explain the operating results and financial performance of the Trust (collectively, the “Non -GAAP Financial Measures”) . These Non-GAAP Financial Measures do not have standardized meanings prescribed by GAAP and, therefore, may not be comparable to similar measures used by other issuers. The Real Property Association of Canada (“REALPAC”) issued white papers with recommendations for calculations of FFO, Adjusted Funds from Operations (“AFFO”), and Adjusted Cash Flow from Operations (“ACFO”) (the “REALPAC Guidance”) . Our FFO definition is substantially consistent with the definition adopted by REALPAC. Please refer to the “Additional Information on Non-GAAP Financial Measures” section of our Q1 2020 MD&A for details. In this document we use various financial metrics and ratios in our disclosure of financial covenants such as “Interest Coverage Ratio ”, “ Unencumbered Property Asset Value” . These metrics are calculated in accordance with the definitions contained in our credit agreements and the trust indenture governing our outstanding debentures, and may be described using terms which differ from standardized meanings prescribed by GAAP. These metrics may not be comparable to similar metrics used by other issuers. Please refer to the “Liquidity and Capital Resources – Financial Covenants” section of our Q1 2020 MD&A for details. 2

#CHARTWELLSTRONG 3

Our Residents 4

Leveraging National Operating Platform • Critical Incident Command • Over 800 documents with direction and support • 24/7 Hotline providing support to our homes • National recruitment campaign >10,000 applications • Daily communications with homes • Weekly education/webinars for homes • Scenario and contingency planning and training • Media relations support • Personal protective equipment – sourced nearly 3 million pieces of PPE investing close to $4 million 5

Financial Position & Credit Metrics at March 31, 2020 • Liquidity (1) - $340.9 million Net Debt to Adjusted EBITDA (3) Interest Coverage Ratio (3) • Unencumbered Assets 8.3 8.4 3.5 7.8 6.9 Value (2) - $957.3 million 3.2 3.2 3.1 TED BY DBRS BBB(low) RA 2017 2018 2019 2020 Debt to Gross Book Value (4)(5) 2017 2018 2019 2020 52.3% 51.7% 49.3% 45.0% 2017 2018 2019 2020 Demonstrated ability to rationalize capital structure (1) Includes cash and available credit facilities. (2) Represents value of 38 properties. (3) Rolling 12 months ended March 31, 2020 for 2020 and 12 months ended December 31, for periods 2017-2019. (4) As at the end of March for 2020 and as at the end of December for, periods 2017-2019, includes proforma adjustments. (5) Previously used Debt to Capitalization, however in light of the current market conditions, this metric has been removed. 6

Q1 2020 Summary  Same property adjusted NOI up 0.3% in Q1 2020  FFO down 3.7% in Q1 2020 Increase/ Q1 2020 Q1 2019 (Decrease) Net Income ($ millions) $11.4 $15.0 ($3.6) FFO ($ millions) $45.3 $47.1 ($1.8) FFO per unit $0.21 $0.22 ($0.01) Average occupancy – same property 89.4% 90.7% (1.3pp) Adjusted NOI – same property ($ millions) $73.9 $73.7 $0.2 7

Q1 2020 Adjusted NOI and Occupancy Same Property Occupancy Trending ($M, except Occupancy) Same Property 98.8% 98.7% 98.4% Adjusted NOI Occupancy 98.4% 98.5% 98.5% 98.4% 98.5% Q1 Q1 Inc / (Dec) Q1 Q1 2020 2019 $ % 2020 2019 Change 96.2% 96.1% 96.0% 95.1% Retirement: 95.1% 95.1% 94.8% 94.6% Ontario 38.9 38.7 0.1 0.3% 84.1% 86.1% (2.0pp) 92.4% 92.3% 91.9% 91.7% 91.3% 91.2% 91.1% Western Canada 15.0 14.2 0.8 5.5% 94.6% 95.1% (0.5pp) 90.1% Quebec 12.9 13.9 (0.9) (6.8%) 90.1% 91.7% (1.6pp) Total Retirement 66.8 66.8 (0.0) (0.0%) 88.0% 89.5% (1.5pp) 86.7% 86.1% 85.7% 85.1% 84.9% Long term care 7.1 6.9 0.2 3.2% 98.5% 98.4% 0.1pp 84.4% 84.1% 83.9% Total Same Property 73.9 73.7 0.2 0.3% 89.4% 90.7% (1.3pp) Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Ontario Western Canada Quebec LTC • Ontario : Higher rent and services revenues, funding to defray COVID-19 related expenses and lower marketing expenses were partially impacted by lower occupancies, higher staffing, property tax and COVID-19 related expenses. • Western Canada : Higher rent and services revenues were partially impacted by lower occupancies, higher staffing, property tax expenses, utilities, insurance costs and COVID-19 related expenses. • Quebec : Lower occupancies, higher COVID-19 related expenses, staffing and food costs, partially offset by modest rental rate increases and lower utilities costs. • LTC : Increased preferred accommodation revenues and the timing of expenses. 8

April 2020 Occupancy and Rent Update One month ended One month ended One month ended One month ended January 31, 2020 February 29, 2020 March 31, 2020 April 30, 2020 Same property retirement occupancy 88.4% 88.0% 87.4% 85.7%  Implemented essential visitors only since March 18, 2020.  In the month ended April 30, 2020, same property occupancy declined by 1.7 percentage points compared to the month ended March 31, 2020, primarily due to reduced move-in activity partly offset by slightly lower move-out activity.  Our tenant credit quality remains strong given the typical investment profile of Canadian seniors in our target customer demographic.  Substantially all April and May rent and service charges have been collected, consistent with our past experience.  Our Ontario long term care residences are either above 97% occupancy, or if in outbreak, were above 97% occupancy prior. Funding is expected to be preserved at 100%. Recently announced further funding protection retroactive to March 23, 2020. 9

Government Funding Summary With the goal to preserve the health and wellbeing of residents, staff and their families, numerous funding announcements have been made:  Quebec: $410 million including funding for temporary pay increases to health care staff of $287 million.  Ontario:  Funding for temporary compensation increases for front-line workers in vulnerable settings.  LTC $268 million.  Retirement homes $20 million.  Alberta:  Funding for temporary compensation increases for front-line workers in vulnerable settings.  Retirement homes $24.5 million.  British Columbia: $10 million Al/LTC.  Rate reductions in energy costs, and deferrals of worker's compensation premiums and realty tax payments. 10