Investment Thesis
Chartwell Retirement Residences (OTC:CWSRF) (TSX:CSH.UN) reported its Q2 2018 earnings with elevated G&A expenses. We believe investors should not be concerned as the increase expenses will help support its projects in development and grow its revenue. The company has a development pipeline (including current and future projects) that will grow its portfolio by about 14.5%. The company should be able to grow its top and bottom lines thanks to favourable demographic trend in Canada. The company is currently trading at a premium valuation to its peers. We believe this is warranted