BOARDWALK REIT REPORTS STRONG RESULTS FOR Q2 2025
CALGARY, AB, July 29, 2025 /PRNewswire/ - Boardwalk Real Estate Investment Trust (TSX:BEI)
SUMMARY HIGHLIGHTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2025
STRONG FINANCIAL PERFORMANCEFOR THE 3 MONTH PERIOD ENDED JUNE 30, 2025
Funds From Operations ("FFO") of $1.16 per Unit(1)(2); an increase of 11.5% from Q2 2024
Profit of $76.3 million
Net Operating Income ("NOI") of $104.2 million; an increase of 9.0% from Q2 2024
Same Property(3) Net Operating Income ("Same Property NOI") of $104.4 million; an increase of 9.8% from Q2 2024
Operating Margin of 66.2%; an increase of 210 basis points ("bps") from Q2 2024FOR THE 6 MONTH PERIOD ENDED JUNE 30, 2025
Funds From Operations ("FFO") of $2.22 per Unit(1)(2); an increase of 11.6% from the same period a year ago
Profit of $210.1 million
Net Operating Income ("NOI") of $200.8 million; an increase of 9.6% from the same period a year ago
Same Property(3) Net Operating Income ("Same Property NOI") of $201.1 million; an increase of 10.0% from the same period a year ago
Operating Margin of 64.1%; an increase of 190 bps from the same period a year ago
SAME PROPERTY RENTAL REVENUE GROWTH IN Q2 2025
Q2 2025 same property sequential quarterly rental revenue growth of 1.0% from the prior quarter
Q2 2025 same property rental revenue growth of 6.2% from a year ago
Occupancy of 97.9% in Q2 2025
AFFORDABILITY AND ONGOING IMMIGRATION SUPPORTIVE OF REGIONAL OUTPERFORMANCE
Alberta has highest population growth on an absolute basis amongst Canadian provinces
Rents in Edmonton, the Trust's largest market, remain some of the most affordable amongst major cities in Canada
Under construction inventory scaled to recent population growth relatively favorable in Alberta, Saskatchewan, and Quebec
Amongst major Canadian cities, home ownership markets remain relatively strong in Edmonton, Calgary, and Montreal
The Trust has cumulatively re-invested in common area improvements representing 74% of its portfolio since 2017, improving portfolio quality and resilience across market conditions
STRONG AND FLEXIBLE BALANCE SHEET
Approximately $324.6 million of total available liquidity at the end of the quarter
96% of Boardwalk's mortgages carry CMHC-insurance
Unitholders' Equity of $5.0 billion
Fair value capitalization rate of 5.12%, consistent with Q4 2024
Net Asset Value increase to $97.32 per Unit(1)(2), primarily a result of higher rental rates in the Trust's more affordable markets
Debt to EBITDA(1) of 9.77x, compared to 10.08x for the year ended December 31, 2024
Debt to Total Assets(1) of 39.6%, compared to 40.6% as at December 31, 2024
UPDATE TO 2025 FINANCIAL GUIDANCE
Revised FFO range of $4.48 to $4.63 per Unit(1)(2)
Same Property NOI growth range of +8.0% to +10.0%
PROGRESS ON CAPITAL UPCYCLING INITIATIVES SUBSEQUENTLY TO QUARTER END
Finalized the sale of four communities totaling 568 suites for $117.2 million: Imperial Tower (previously announced) and Insignia Tower in Edmonton; Les Appartements du Verdier and Place du Parc in Québec City
Finalized the purchase of one newer portfolio and an additional newer community totaling 393 suites for $133.1 million: North Prairie Townhomes (previously announced) in Saskatoon and Regina, and The Arch in Calgary
EXCEPTIONAL VALUE
At current unit price of approximately $71, Boardwalk's implied value is approximately $201,000 per suite, equating to an attractive 5.9% cap rate on trailing NOI, with significant growth reflected in updated guidance above
DISTRIBUTION OF $1.62 PER TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF SEPTEMBER, OCTOBER AND NOVEMBER 2025
(1)
Please refer to the section titled "Presentation of Non-GAAP Measures" in this news release for more information.
(2)
Boardwalk REIT's units (the "Trust Units") trade on the Toronto Stock Exchange ("TSX") under the trading symbol 'BEI.UN'. Additionally, the Trust has 4,250,000 special voting units issued to holders of "Class B Units" of Boardwalk REIT Limited Partnership ("LP Class B Units" and, together with the Trust Units, the "Units"), each of which also has a special voting unit in the REIT.
(3)
Same property figures exclude properties which have been owned for less than 24 months and sold assets.
Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT" or the "Trust") today announced its financial results for the second quarter of 2025.
Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT commented:
"We are pleased to report a strong second quarter with significant growth in Net Operating Income, Funds From Operations per Unit and Operating Margin. Our FFO per Unit of $1.16 during the second quarter represents an improvement of 11.5% from the prior year. Our results continue to reflect the value of our resilient operating platform and exceptional team. As our cash flows improve, we continue to strengthen our balance sheet, providing greater ability and flexibility to compound per unit growth further through the Trust's value add capital program, tactical unit repurchases where appropriate and accretive external growth opportunities.
We are also seeing that areas with greater affordability, stronger immigration fundamentals and economic resilience are supportive of better results. Affordability remains a primary driver of rental demand across our portfolio, measured against both income levels and relative to home ownership options. Occupied rents in the Trust's largest market of Edmonton remain amongst the most affordable compared to household incomes and asking rents in other major centers in Canada. In a real estate market that is more balanced compared to a year ago across the country, Alberta continues to see higher population growth compared to other regions on an absolute basis. Relative to new supply deliveries, we are also seeing demand-side strength in Edmonton, Saskatchewan, and Montreal, in particular.
Through the summer leasing season, we are seeing occupancy hold strong at levels similar to the first quarter, which is a reflection of balanced demand and supply, as well as the ongoing value proposition within our portfolio compared to both newly-delivered supply and the offering of older communities from other community providers. Our commitment to delivering a win-win outcome for our Resident Members and our other stakeholders through the self-moderation of our lease renewal rates over the last number of years is also supporting ongoing sustainable renewal increases.
We look forward to continuing our track record of delivering strong results for our Boardwalk Family Forever."
SECOND QUARTER FINANCIAL HIGHLIGHTS
$ millions, except per Unit amounts
Highlights of the Trust's Second Quarter 2025 Financial Results
3 Months Jun. 30, 2025
3 Months Jun. 30, 2024
% Change
6 Months Jun. 30, 2025
6 Months Jun. 30, 2024
% Change
Operational Highlights
Rental Revenue
$157.3
$149.1
5.5 %
$313.0
$294.3
6.4 %
Same Property Rental Revenue
$154.6
$145.6
6.2 %
$307.5
$287.9
6.8 %
Net Operating Income ("NOI")
$104.2
$95.6
9.0 %
$200.8
$183.1
9.6 %
Same Property NOI
$104.4
$95.1
9.8 %
$201.1
$182.8
10.0 %
Operating Margin (1)
66.2 %
64.1 %
64.1 %
62.2 %
Same Property Operating Margin
67.5 %
65.3 %
65.4 %
63.5 %
Financial Highlights
Funds From Operations ("FFO") (2)(3)
$61.9
$56.1
10.3 %
$118.5
$107.1
10.7 %
Adjusted Funds From Operations ("AFFO") (2)(3)
$53.3
$47.5
12.3 %
$101.5
$89.9
12.9 %
Profit
$76.3
$159.2
-52.1 %
$210.1
$466.9
-55.0 %
FFO per Unit (3)
$1.16
$1.04
11.5 %
$2.22
$1.99
11.6 %
AFFO per Unit (3)
$1.00
$0.88
13.6 %
$1.90
$1.67
13.8 %
Regular Distributions Declared (Trust Units & LP Class B Units)
$21.6
$19.4
11.3 %
$41.6
$36.3
14.6 %
Regular Distributions Declared Per Unit (Trust Units & LP Class B Units)
$0.405
$0.360
12.5 %
$0.780
$0.675
15.6 %
FFO Payout Ratio (3)
34.9 %
34.6 %
35.1 %
33.9 %
Same Property Apartment Suites
33,456
33,564
Non-Same Property Apartment Suites (4)
814
829
Total Apartment Suites
34,270
34,393
(1)
Operating margin is calculated by dividing NOI by rental revenue allowing management to assess the percentage of rental revenue which generated profit.
(2)
This is a non-GAAP financial measure.
(3)
Please refer to the section titled "Presentation of Non-GAAP Measures" in this news release for more information.
(4)
Includes 183 suites related to the Trust's joint venture in Brampton, Ontario which is accounted for as an equity accounted investment
In Q2 2025, same property operating margin increased compared to the same period in the prior year as the Trust's same property rental revenue growth remained strong. The Trust anticipates further operating margin improvement throughout the remainder of 2025 as a result of strong revenue growth, execution of various cost containment initiatives, and lower utility costs due to the removal of the federal carbon charge.
Continued Highlights of the Trust's Second Quarter 2025 Financial Results
Jun. 30, 2025
Dec. 31, 2024
Equity
Unitholders' equity
$4,991,195
$4,836,809
Net Asset Value
Net asset value (1)(2)
$5,203,846
$5,047,029
Net asset value ("NAV") per Unit (2)
$97.32
$93.68
Liquidity, Debt and Distributions
Cash and cash equivalents
$25,618
Subsequent committed/funded financing
$53,200
Unused credit facilities
$245,800
Total Available Liquidity
$324,618
Total mortgage principal outstanding
$3,328,839
$3,410,173
Debt to EBITDA(2)
9.77
10.08
Debt to Total Assets(2)
39.6 %
40.6 %
Interest Coverage Ratio (Rolling 4 quarters)
3.05
2.95
(1)
This is a non-GAAP financial measure.
(2)
Please refer to the section titled "Presentation of Non-GAAP Measures" in this news release for more information.
The Trust's fair value of its investment properties as at June 30, 2025, increased from year end, primarily attributable to an increase in market rents in its largest market of Edmonton as well as other affordable markets which was partially offset by a decrease to market rents in Calgary and Kitchener. The Trust's stabilized capitalization rate ("Cap Rate") of 5.12% for Q2 2025 remained the same as in Q1 2025. The Cap Rate ranges utilized continue to be in line with recently published third party quarterly Cap Rate reports.
SOLID OPERATIONAL RESULTS
Portfolio Highlights for the Second Quarter of 2025
Jun-25
Jun-24
Average Occupancy (Quarter Average) (1)
97.88
%
98.68
%
Average Monthly Rent (Period Ended)
$
1,524
$
1,439
Average Market Rent (Period Ended) (2)
$
1,673
$
1,637
Average Occupied Rent (Period Ended) (3)
$
1,559
$
1,460
Mark-to-Market Revenue Gain (Period Ended) ($ millions)
$
45.1
$
70.6
Mark-to-Market Revenue Gain Per Unit (Period Ended)
$
0.84
$
1.31
(1)
Average occupancy is adjusted to be on a same property basis.
(2)
Market rent is a component of rental revenue and is calculated as of the first day of each month as the average rental revenue amount a willing landlord might reasonably expect to receive, and a willing tenant might reasonably expect to pay, for a tenancy, before adjustments for other rental revenue items such as incentives, vacancy loss, fees, specific recoveries, and revenue from commercial tenants.
(3)
Occupied rent is a component of rental revenue and is calculated for occupied suites as of the first day of each month as the average rental revenue, adjusted for other rental revenue items such as fees, specific recoveries, and revenue from commercial tenants.
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Same Property PortfolioOccupancy
98.6 %
98.7 %
98.4 %
98.1 %
98.0 %
97.9 %
97.6 %
97.8 %
97.9 %
97.9 %
98.0 %
97.8 %
