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Boardwalk REIT Announces Special Non-Cash Distribution

On December 22, 2025, Boardwalk Real Estate Investment Trust (TSX: BEI.UN) made a significant announcement regarding financial adjustments within the trust. They have declared a special non-cash distribution amounting to $1.425 per Trust Unit, set to be paid on December 31, 2025, to unitholders of record at the closing of business on that same date.

What Does This Mean for Unitholders?

The decision to issue this special distribution stems from Boardwalk's ongoing strategy to distribute a portion of the capital gain and other income realized through the strategic sale of several communities throughout the fiscal year. Specifically, 2025 has seen the REIT successfully complete the dispositions of certain communities, which contributed positively to its funds from operations (FFO), exceeding the expectations laid out in their original financial guidance.

So, how will this non-cash distribution work? Essentially, it will be executed through the issuance of additional Trust Units equivalent to the value of the distribution. This will mean that unitholders will not receive cash but will instead acquire more units. Importantly, the issuance is designed so that post-distribution, the total number of Trust Units remains unchanged. This method is a tax-efficient way to return value to unitholders by adhering to Canadian income tax laws.

Tax Implications for Canadian Residents

For Canadian resident unitholders, the implications of this special distribution are significant. They will need to factor in their proportionate share of the Trust’s income and any net taxable capital gain when calculating their income for the 2025 tax year. The capital gain and other income realized through the dispositions will be allocated according to the Trust's designations.

It’s worth noting that unitholders who do not reside in Canada for income tax purposes may face applicable withholding taxes when the special distribution is paid out. Therefore, Boardwalk advises all unitholders to consult with their tax advisors to fully understand the consequences of this anticipated distribution and related consolidation of units.

The Path Forward for Boardwalk REIT

Boardwalk REIT's commitment to providing its unitholders with consistent value is clearly demonstrated through this strategic move. The Trust is dedicated to being Canada's premier provider of multi-family communities, which means responsibly managing assets, ensuring high-quality services for residents, and upholding strong investment returns.

The company's reputation relies on its proactive approach to capital allocation and the management of its apartment communities. A focus on delivering exceptional experiences for resident members has featured as a cornerstone of their business model, driving higher retention rates and better operational metrics.

Corporate Profile of Boardwalk REIT

Operating more than 200 communities and managing approximately 34,000 residential suites across Canada, Boardwalk emphasizes building better communities where love always lives. Their distinct branding—Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle—caters to a diverse demographic, showcasing their intent to cater to the life cycle of their resident members. The trust’s disciplined management and focus on quality have established them as a leader in the real estate sector.

For those interested in further information about Boardwalk REIT, it is accessible through their official website where they maintain updated investor relations and trust details.

Closing Thoughts

As the special distribution approaches its effective date of December 31, 2025, unitholders should remain informed of their financial positions and any required actions to comply with tax responsibilities. Being proactive in these matters will ensure that all stakeholders can maximize their benefits from Boardwalk's continued operational excellence and strategic decision-making.

Ultimately, Boardwalk REIT’s approach reflects a concerted effort to enhance shareholder value while navigating the complexities of real estate investment fluidly and responsibly. Trust units can be tracked under the symbol BEI.UN on the Toronto Stock Exchange, providing ample opportunity for investors to partake in Boardwalk's ongoing success.