Chartwell Seniors Housing REIT
TSX : CSH.UN

Chartwell Seniors Housing REIT

May 15, 2008 08:07 ET

Chartwell REIT Updates Guidance for 2008

MISSISSAUGA, ONTARIO--(Marketwire - May 15, 2008) - Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN)("Chartwell REIT") today updated its guidance for the year ended December 31, 2008.

Based on current market conditions and certain assumptions discussed below, management believes that pre-tax Adjusted Funds from Operations ("AFFO") per Unit will increase between 4% and 6% compared to pre-tax AFFO per Unit realized in 2007. The guidance for AFFO per Unit for 2008 is based on the following assumptions:

- Development management fees and operations management fees in line with 2007.

- Approximately $350 million in acquisitions to be completed during the year, primarily from Chartwell's third-party development partners.

- Acquisition funding to be principally derived from cash on hand and available operating credit lines, mortgage re-financings and top-ups, the repayment of mezzanine loans related to such acquisitions, and the issuance of Class B Chartwell Master Care Units. Management does not anticipate issuing equity or debt through the public capital markets in 2008.

- Foreign exchange rates and interest rates remaining at their current levels.

- General and administrative expenses, excluding advisory services and other costs related to the Board of Trustee's Special Committee, at approximately 3% of revenues for the year.

This guidance also involves numerous assumptions such as rental income, corporate expenses, the timing of acquisitions, the number of shares outstanding, and many other factors. Not all factors which may affect our guidance are determinable at this time and actual results may vary from the guidance in a material respect. The range of guidance disclosed above represents management's estimate of results based upon the assumptions discussed as of the date of this press release.

Chartwell is an investment trust focused on generating sustainable, stable and growing cash distributions from owning and managing a complete spectrum of seniors housing communities. It is the largest participant in the Canadian seniors housing business and the third largest in North America. Chartwell will capitalize on the strong demographic trends present in its markets to maximize the value of its existing portfolio of seniors housing facilities, and prudently avail itself of opportunities to grow internally and through accretive acquisitions. Chartwell also has an exclusive option to purchase stabilized communities from Spectrum, Canada's largest and fastest growing seniors housing development company.

Chartwell's Distribution Reinvestment Plan (DRIP) allows Unitholders to have their monthly cash distributions used to purchase units without incurring commission or brokerage fees, and receive bonus units equal to 3% of their monthly cash distributions. More information can be obtained at www.chartwellreit.ca.

This press release contains forward-looking information that reflects the current expectations of management about the future results, performance, achievements, prospects or opportunities for Chartwell and the seniors housing industry. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", "believe", "project", "should" or "continue" or the negative thereof or similar variations. 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 Chartwell's control, which 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 have an intention 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 press release 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 estimated 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 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.

Adjusted Funds from Operations and Net Operating Income are not measures recognized under GAAP and do not have a standardized meaning prescribed by GAAP. They are presented because management believes these non-GAAP measures are a relevant measure of Chartwell's performance. Adjusted Funds from Operations and Net Operating Income as computed by Chartwell may differ from similar computations as reported by other organizations and, accordingly, may not be comparable to those reported by such organizations. Detailed descriptions of these terms are contained in Chartwell's Management Discussion and Analysis, available at www.sedar.com.

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