Investor Presentation

Q4 2014
 Cautionary Statements
This presentation contains forward-looking information that reflects the current expectations,
estimates and projections of management about the future results, performance, achievements,
prospects or opportunities for Chartwell and the seniors housing industry. The words “plans”,
“expects”, “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “intends”, “anticipates”,
“does not anticipate”, “projects”, “believes” or variations of such words and phrases or statements to
the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be
achieved” or “continue” and 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, as actual results and future
events could differ materially from those expected or estimated in such statements. Accordingly,
readers should not place undue reliance on forward-looking information. These factors are not
intended to represent a complete list of the factors that could affect us. See "Risks and Uncertainties"
in our 2014 MD&A and risk factors highlighted 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.
Non-GAAP Measures
In this document we use a number of performance measures that are not defined in generally
accepted accounting principles (“GAAP”) such as Funds from Operations (“FFO”), Adjusted Funds
from Operations (“AFFO”), Net Operating Income (“NOI”), “Same Property NOI,” “Same Property
Revenue,” “Same Property Direct Operating Expenses,” “G&A Expenses as a percentage of
Revenue,” “Interest Coverage Ratio,” “Indebtedness Ratio,” “Net Debt to Adjusted EBITDA Ratio,”
“Chartwell’s Interest”, “Distributions as a percentage of AFFO”, “Adjusted EBITDA” and any related
per unit amounts to measure, compare and explain the operating results and financial performance of
the Trust (collectively, the “Non-GAAP Measures”). These Non-GAAP Measures do not have any
standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and,
therefore, may not be comparable to similar measures presented by other publicly-traded entities.
Please refer to the “Non-GAAP Measures” section of our 2014 MD&A for details.

making people’s lives BETTER® 2

Why Chartwell?

making people’s lives BETTER® 3

Why Chartwell?

1. Unmatched national operating platform

2. Well-located and well-maintained real estate portfolio
3. Significant long-term growth potential
Demographic trends = more demand
Government fiscal constraints = more private pay demand
Fragmented industry = consolidation opportunities

4. Strong earnings growth potential

1% growth in occupancy or rate = 3 cents growth in AFFO
2% increase in distributions effective March 31, 2015

5. Improving financial position and lower interest

costs on refinancing = reduced portfolio risk

making people’s lives BETTER® 4

Profile
# of # of Suites # of Trust Market Cap Revenue Adjusted
Employees Owned, Units ($ billions) ($ millions) EBITDA
Leased and (000s) ($ millions)
Managed

As at December 31, 2014 12 months ended December 31, 2014

13,350 (1) 30,008 177,460 (2) $2.1 (3) $944.0 (4) $260.1 (4)

(1) Canadian employees only

(2) Includes Trust Units, Class B Units, Deferred Trust Units, Trust Units issued under LTIP
(3) December 31, 2014 closing price was $11.91
(4) Non-GAAP; reported at Chartwell’s Interest

Geographically Diversified Serving Full Continuum of Care

Total Canada – 80%

Total U.S. – 20%

Focus on growth in Canada

making people’s lives BETTER® 5

Industry Fundamentals

Individuals Aged 75 and Older

Population Projection

2014 2015 2016 2021 2026 2031 2036

Projected 75+ Population 2,439,700 2,495,700 2,563,400 3,024,000 3,766,200 4,614,900 5,457,400
Cumulative 75+ Growth
56,000 123,700 584,300 1,326,500 2,175,200 3,017,700
from 2014
Average Annual Increase 56,000 67,700 92,120 148,440 169,740 168,500

Source: Statistics Canada, Population Projections for Canada, Provinces, and Territories, 2009 to 2036,
Catalogue no. 91-520-X, 2010

making people’s lives BETTER® 6

Industry Fundamentals

Significant Future Demand in Canada

Total Supply New Supply

1,200,000 35,000

30,000
1,000,000

25,000
800,000

20,000
600,000
15,000

400,000
10,000

200,000
5,000

0 0
2015 2016 2021 2026 2031 2036

Long Term Care Retirement Annual projection for required new supply

Current supply is approximately 400,000 suites

~ 600,000 new suites are expected to be required by
2036 to meet growing demand

Retirement demand is estimated by applying the current national capture rate of 8.0% (CMHC Seniors Housing
Report Canada Highlights, 2014) to 75+ population as reported by Statistics Canada.
LTC demand is estimated based on 97.8 beds per 1,000 people aged 75 and over. This estimate represents the
2005-2010 average LTC Beds/Population ratios reported by Statistics Canada in their Residential Care Facilities
reports.

making people’s lives BETTER® 7

Building Sustainable Value
Strategic Priorities

Grow core Maintain

property a strong
portfolio financial
contribution position

Exceptional
services and
quality care

Improve
quality and Build value
efficiency of of our
our corporate real estate
support portfolio
services

making people’s lives BETTER® 8

Building Sustainable Value

Grow Core Property

Portfolio Contribution

Maintain and
Grow revenue Control costs
grow occupancy
Quality resident care Occupancy Labour relations
and services
Ancillary services Centralized
program purchasing
Branding
making people’s lives BETTER®
Rate management Energy management
and suite turnover
Sales
Improved training programs
Performance-based
compensation

2.5% 3.0%
in 2014* in 2014*

NOI 1.3% in 2014*

* Same property for twelve months ended December 31,
2014 compared to the same period of 2013

making people’s lives BETTER® 9

Building Sustainable Value

Improve Quality and Efficiency of

our Corporate Support Services

2011 - Budgeting and forecasting system

Continuing 2012 - Consolidation and reporting system
2013 - Core financial system
investments - Prospect management system
in IT - Standardized IT infrastructure rollout
- Capital budget system
initiatives
2014 - Procurement and payment system
- Fixed assets management and reporting system

Blog
Online Website
presence Social Media
strategy Search Engine Optimization and Marketing
Chartwell Contact Centre

making people’s lives BETTER® 10

Building Sustainable Value
Improving Interest Coverage ratios
2.5 2.16 2.26
2.03
Interest Coverage Ratio

1.93
2.0 1.77
1.5

1.0

0.5

-
2010 2011 2012 2013 2014
Note: Non-GAAP; reported at Chartwell’s Interest

Gradually reducing debt levels

Net Debt to Adjusted EBITDA Ratio
9.0
8.7 8.6
Net Debt to Adjusted

8.4
8.5
EBITDA

8.0

7.5

7.0
2012 2013 2014

Note: Commenced reporting Net Debt to Adjusted EBITDA in 2012

Non-GAAP; reported at Chartwell’s Interest
Indebtedness Ratio

60.0% 59.3%
59.0%
57.7% 57.9%
58.0%
Debt to GBV

56.6%
57.0%
56.0% 55.4%
55.0%
54.0%
53.0%
2010 2011 2012 2013 2014

Note: Non-GAAP; reported at Chartwell’s Interest

making people’s lives BETTER® 11

Building Sustainable Value

Debt Maturities

Target *

* 10% of total Canadian mortgage debt = $143.7 million * 10% of total U.S. mortgage debt = U.S.$44.3 million

At December
At December 31, 2014 31, 2013

Canadian Debt U.S. Debt Combined Combined

Fixed Rate Variable Rate Fixed Rate Variable Rate

Amount ($millions) 1,295.4 141.4 513.9 - 1,950.7 2,034.3

Weighted average rate 4.53% 4.23% 5.85% - 4.85% 5.02%
Average term to maturity (years) 9.4 1.5 1.5 - 6.7 6.7

Early refinancing of some 2014 and 2015 maturities with long-

term debt generates interest savings and reduces refinancing risks
U.S. mortgage refinancing strategy is underway

making people’s lives BETTER® 12

Building Sustainable Value

Build Value of our Real Estate Portfolio

Portfolio
and Asset Acquisitions Development
Management

Market and Risk

Industry Management
Research

2014
Reinvested $60.8 million in improvements to our existing assets
Invested $87.4 million in acquisitions
Completed $36.8 million of development projects
with three other projects in progress

making people’s lives BETTER® 13

Building Sustainable Value
Development Case Studies
Chartwell Deerview
Retirement Residence – ISL/MC
• 119 suites
• $32.3 million development costs
• Opened February 2014
• Expected stabilization Q2 2015
• Expected unlevered cash yield 9.0%

Redevelopment of 3 LTC
Communities in Ontario
• 224 beds
• $32.5 million development costs
• Opened Q1 2013 – Q1 2014
• Actual unlevered cash yield 9.5%

Chartwell L'Unique Phase II - ISL

• 90 suites
• $1.4 million mezzanine loan at 10%
• Expected completion Q2 2015
• Expected stabilization in Q2 2016
• Expected to acquire at appraised value on
stabilization

making people’s lives BETTER® 14

Financial Performance

2014 Highlights

• AFFO of 72 cents per unit diluted

• Same property NOI increased 1.3%
• Same property portfolio occupancy remained consistent at 89.8%
• Distributions increase of 2.0%

Increase/
2014 2013
(Decrease)

Average occupancy – same property 89.8% 89.8% -

NOI – same property ($ millions) $243.8 $240.7 $3.1

AFFO ($ millions) $128.5 $119.1 $9.4

AFFO per unit diluted $0.72 $0.68 $0.04

Distributions declared as a
74.2% 78.9% (4.7pp)
percentage of AFFO

making people’s lives BETTER® 15

Financial Performance

Q4 2014 Highlights

• AFFO of 18 cents per unit diluted

• Same property NOI increased 1.3%
• Same property portfolio occupancy increased 0.6pp

Increase/
Q4 2014 Q4 2013
(Decrease)

Average occupancy – same property 90.7% 90.1% 0.6pp

NOI – same property ($ millions) $62.5 $61.8 $0.7

AFFO ($ millions) $32.7 $26.6 $6.1

AFFO per unit diluted $0.18 $0.15 $0.03

Distributions declared as a
73.1% 88.6% (15.5pp)
percentage of AFFO

making people’s lives BETTER® 16

Financial Performance

Ontario Retirement Platform

2014 2013 Increase/(Decrease)
$ %
Same property statistics:

NOI ($ millions) $71.1 $71.4 ($0.3) (0.3%)

Occupancy 87.2% 88.4% N/A (1.2pp)

Q4 2014 Q4 2013 Increase/(Decrease)

$ %
Same property statistics:

NOI ($ millions) $17.6 $17.3 $0.3 2.3%

Occupancy 87.5% 88.3% N/A (0.8pp)

• Slower pace of new supply and stronger leasing activity expected

to support improving occupancy and NOI growth

100%
Occupancy
95%

89.8%
90% 88.0% 87.6% 88.3% 87.7% 87.0% 87.5%
86.4%
85%

80%

75%

70%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14

making people’s lives BETTER® 17

Financial Performance

Western Canada Platform

2014 2013 Increase/(Decrease)
$ %
Same property statistics:

NOI ($ millions) $37.0 $35.5 $1.5 4.2%

Occupancy 92.9% 91.8% N/A 1.1pp

Q4 2014 Q4 2013 Increase/(Decrease)

$ %
Same property statistics:

NOI ($ millions) $9.5 $8.9 $0.6 7.0%

Occupancy 94.4% 92.3% N/A 2.1pp

• Continuing occupancy and rental rate growth contributed to the

strong results
• Positive conditions in most of our markets

100% Occupancy
94.4%
95% 93.5%
92.0% 92.3% 92.4%
91.5% 91.4% 91.2%
90%

85%

80%

75%

70%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14

making people’s lives BETTER® 18

Financial Performance

Quebec Platform
2014 2013 Increase/(Decrease)
$ %
Same property statistics:

NOI ($ millions) $52.6 $51.1 $1.5 3.0%

Occupancy 88.2% 87.3% N/A 0.9pp

Q4 2014 Q4 2013 Increase/(Decrease)

$ %
Same property statistics:

NOI ($ millions) $13.0 $13.4 ($0.4) (3.2%)

Occupancy 89.7% 87.9% N/A 1.8pp

• Strong occupancy growth

• Leasing activity remains strong in most of our Quebec markets

100% Occupancy
95%

89.7%
90% 87.9% 88.5%
87.0% 86.9% 87.2% 87.5% 87.0%

85%

80%

75%

70%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14

making people’s lives BETTER® 19

Financial Performance

Ontario LTC Platform

2014 2013 Increase/(Decrease)
$ %
Same property statistics:

NOI ($ millions) $28.8 $28.2 $0.6 2.2%

Occupancy 98.6% 98.4% N/A 0.2pp

Q4 2014 Q4 2013 Increase/(Decrease)

$ %
Same property statistics:

NOI ($ millions) $7.7 $7.5 $0.2 2.0%

Occupancy 98.7% 98.6% N/A 0.1pp

• Increased funding and preferred accommodation rates

• Disciplined expense management

Occupancy
100% 98.5% 98.7% 98.6% 98.4% 98.5% 98.8% 98.7%
97.7%

95%

90%

85%

80%

75%

70%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14

making people’s lives BETTER® 20

Financial Performance

U.S. Platform
2014 2013 Increase/(Decrease)
$ %
Same property statistics:

NOI (U.S.$ millions) $54.3 $54.6 ($0.3) (0.5%)

Occupancy 88.3% 88.5% N/A (0.2pp)

Q4 2014 Q4 2013 Increase/(Decrease)

$ %
Same property statistics:

NOI (U.S.$ millions) $14.7 $14.7 - 0.3%

Occupancy 89.0% 88.6% N/A 0.4pp

• Increased capital investments expect to further improve

competitiveness of our portfolio

100%
Occupancy
95%

89.6% 88.8% 89.0%

90% 88.5% 88.6% 88.0%
87.3% 87.3%

85%

80%

75%

70%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14

making people’s lives BETTER® 21

Financial Performance

Managing G&A Expenses

Total G&A
Expenses Percentage
($ millions) of Revenue

$15 5.0%

4.2%

4.0%
3.6% 3.5%
$10
$9.9 2.8% 2.9%
3.0%
$8.5 $8.3

$7.0
$6.4 2.0%
$5

1.0%

$0 0.0%
Q4 13 Q1 14 Q2 14 Q3 14 Q4 14

Lower legal fees and timing of other expenses contributed to a

reduction of G&A

making people’s lives BETTER® 22