Chartwell Reit Announces 4% Increase in Monthly Cash Distributions.

MISSISSAUGA, Ontario -- Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it would be increasing its monthly cash distribution to $0.0888 per Unit from $0.0854 per Unit, effective with the March 2005 distribution. Annualizing this monthly increase, cash distributions will rise four cents to $1.065 from $1.025.

"Our top priority remains to deliver stable and growing cash distributions to our Unitholders, and we are very pleased to be announcing our first increase since our Initial Public Offering in November 2003," commented Stephen Suske, Vice Chair and President.

Mr. Suske continued: "Our strong financial performance in the last half of 2004 reflected the considerable growth we generated during the year, and as we look ahead, we are confident this growth will continue. The North American seniors housing market remains highly fragmented and we have demonstrated our ability to accretively acquire and integrate new facilities into our portfolio. Our relationship with Spectrum Seniors Housing Development also provides us with an exclusive pipeline of brand new, fully stabilized homes to further build and enhance the quality of our portfolio. We are also accelerating our programs to add suites to existing homes while updating and renovating others."

"These growth initiatives, combined with our priority to deliver the highest standards of care and service to our residents, are quickly establishing the Chartwell brand as Canada's most trusted name in seniors housing," concluded Robert Ezer, Chief Executive Officer.

Chartwell REIT is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing properties in selected centres across Canada. Focused solely on the Canadian marketplace, Chartwell REIT is currently the second largest participant in the Canadian seniors housing business. Chartwell REIT will capitalize on the strong demographic trends present in its markets to grow internally and through accretive acquisitions. Chartwell REIT also has an exclusive option to purchase stabilized facilities from Spectrum Seniors Housing Development LP, 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

Certain statements contained in this news release may include forward-looking information with respect to Chartwell Seniors Housing Real Estate Investment Trust's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity and regulatory requirements. Further information can be found in the disclosure documents filed by Chartwell Seniors Housing Real Estate Investment Trust with the securities regulatory authorities, available at www.sedar.com.

Chartwell Seniors Housing REIT (TSX:CSH.UN)