The Canadian real estate sector has changed a lot in recent years, but some things remain the same. For example, seniors housing continues to be one of the most resilient segments in the sector, with its long-term demand expected to grow even more. A continued shift in demographics is creating strong tailwinds for a few well-positioned real estate investment trusts (REITs) in the country that know how to balance growth and stability.
One such real estate firm, Chartwell Retirement Residences (TSX:CSH.UN), is consistently investing in high-quality assets, boosting occupancy, and posting strong financial results quarter after quarter. At the same time, this top Canadian REIT continues to return cash to shareholders while maintaining a solid balance sheet.
In this article, I’ll explain why Chartwell Retirement Residences might deserve a permanent spot in your portfolio if you’re looking for a monthly-paying dividend stock to buy and hold for the long term.
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A top Canadian REIT to buy and hold forever
As one of Canada’s largest seniors housing providers, Chartwell has a presence across four provinces with a focus on independent living, assisted living, and long-term care segments.
After jumping more than 30% so far this year, its shares are currently trading at $19.57 apiece with a market cap of $5.9 billion. What makes this REIT even more attractive is its monthly dividend payout, offering an annualized yield of around 3.1%. Its recent strong performance is hard to ignore, especially as it’s backed by a real business serving over 25,000 residents.
Riding strong financial momentum
Chartwell’s third-quarter results clearly show the underlying strength of its business model, despite the ongoing macroeconomic uncertainties. During the quarter, the company’s occupancy rates rose sharply, reaching 93.1% across the same properties — up 470 basis points from a year ago. That increase contributed to a 32% YoY (year-over-year) jump in its quarterly resident revenue, climbing to $275.2 million. Similarly, Chartwell also posted a 15.8% YoY rise in its same-property adjusted net operating income (NOI) with the help of stronger margins and improved operating efficiency.
Its quarterly funds from operations, a key financial metric for REITs, also climbed nearly 31% YoY due mainly to higher NOI, better interest income, and lease revenue.
A strong balance sheet and steady liquidity
In recent years, Chartwell has been taking steps to maintain flexibility while funding its expansion. As of early November, it reported $508 million in total liquidity, including over $113 million in cash and $395 million in credit facilities. More importantly, the company’s net debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio has improved significantly over the past year, coming down from 10.2 times in 2023 to 6.9 times.
This solid financial discipline is critical for a real estate firm, especially one pursuing development opportunities.
A look at its long-term growth strategy
Meanwhile, Chartwell is actively reshaping its portfolio through quality acquisitions, developments, and strategic asset disposals. So far in 2025 alone, the company has completed over $1 billion worth of acquisitions and announced a further $700 million in committed investments. These included several large seniors housing properties in Quebec, positioning this top Canadian REIT well in high-demand regions.
At the same time, it’s also focusing on boosting long-term returns by improving efficiency at the property level and deploying technology across its operations. All these positive factors make Chartwell a great buy-and-hold Canadian REIT for long-term investors.
