#Canada #Q2 2025 #Boardwalk REIT #Calgary, Alberta #Canadian real estate

Boardwalk REIT Reports Impressive Financial Growth in Q2 2025

In a recent announcement, Boardwalk Real Estate Investment Trust (TSX: BEI.UN) detailed its robust financial performance for the second quarter (Q2) and the first half of 2025. The company reported significant growth metrics, highlighting a strategic advantage in its operations and market positioning.

Strong Financial Highlights

For the three-month period ending June 30, 2025, Boardwalk recorded Funds From Operations (FFO) of $1.16 per unit, representing an 11.5% increase from the same quarter a year prior. Profit surged to $76.3 million with a Net Operating Income (NOI) of $104.2 million, reflecting a 9.0% rise year-over-year. Furthermore, the Same Property NOI hit $104.4 million, demonstrating an impressive 9.8% increase from Q2 2024.

Over the first half of 2025, Boardwalk’s FFO per unit reached $2.22, also indicating an increase of 11.6% compared to the previous year. The overall profit for this period was reported at $210.1 million, while NOI rose to $200.8 million, marking a 9.6% growth from the preceding year.

Revenue Growth and Occupancy Rates

The organization's same property rental revenue grew modestly, achieving a 1.0% sequential quarterly increase from the prior quarter and a remarkable 6.2% increase from the previous year. During this period, the occupancy rate held steady at 97.9%, underscoring Boardwalk’s commitment to maintaining high occupancy amid fluctuating market conditions.

Market Conditions and Strategic Advantages

Boardwalk attributes its performance to favorable market conditions, particularly in Alberta, which has noted strong population growth among Canadian provinces. With some of the most affordable rental rates in Canada found in Edmonton, the Trust is well-positioned within its primary market. Additionally, the construction of new units has scaled up to align with population growth, which provides a more favorable supply-demand dynamic.

Boardwalk’s commitment to enhancing the quality of its portfolio since 2017 has been a major driver of its resilience during various economic cycles. The cumulative re-investment in common area improvements has reached 74% of its portfolio, thus elevating the overall living standards for residents.

Financial Stability and Outlook

As of the end of Q2, Boardwalk reported a well-configured balance sheet with approximately $324.6 million of total available liquidity. A favorable debt position is noted, with 96% of the company’s mortgages being CMHC-insured. The debt-to-EBITDA ratio stood at 9.77x, demonstrating solid financial leverage, which is an improvement from 10.08x the previous year, while the debt-to-total-assets ratio decreased to 39.6%.

Adjusting its financial guidance for 2025, Boardwalk now anticipates FFO ranging from $4.48 to $4.63 per unit and Same Property NOI growth projected at +8.0% to +10.0%, projecting sustained growth into the future.

Capital Management and Strategic Growth

Recently, Boardwalk has made strides in its capital management strategy, closing the sale of four communities totaling 568 suites for $117.2 million, as well as finalizing the acquisition of newer properties totaling 393 suites for $133.1 million. This strategic capital allocation is indicative of Boardwalk's ongoing goal of enhancing portfolio quality while also optimizing distributions for its stakeholders.

Commitment to Distributions

The Trust has confirmed a monthly cash distribution of $1.62 per trust unit for September, October, and November 2025. This confirmation signifies Boardwalk's commitment to delivering value to its unitholders while ensuring strong reinvestment strategies alongside operational optimization.

Conclusion

The exceptional performance announced for Q2 2025 reassures investors of Boardwalk’s stable footing in the multi-family housing market. CEO Sam Kolias remarked on the significance of ongoing immigration trends, economic resilience, and affordability in driving rental demand, ensuring that the Trust is well-positioned for continued success.

To sum up, Boardwalk REIT has not only showcased its strong operational results but also its commitment to fostering a sustainable growth trajectory, prioritizing both investor returns and the quality of living standards among its residents.