Boardwalk REIT Reports Impressive Q1 2025 Results Driven by Solid Demand for Affordable Housing

Boardwalk REIT Announces Strong Q1 2025 Performance

Boardwalk Real Estate Investment Trust (TSX: BEI.UN) has concluded its first quarter of 2025 with exceptionally strong results that showcase the resilience of its affordable housing segment. The trust's focus on providing quality homes is reflected in their financial performance, with several key metrics demonstrating substantial growth compared to the previous year.

Key Financial Highlights

During the three-month period ending March 31, 2025, Boardwalk REIT experienced notable increases in funds from operations (FFO) which rose to $1.06 per unit, marking an impressive growth of 11.6% from Q1 2024. The net profit for the quarter stood at $133.8 million, while the net operating income (NOI) surged to $96.5 million, demonstrating a 10.3% increase from the same period last year. The operating margin increased to an impressive 62%.

Rental Revenue Growth

In Q1 2025, the trust also reported a 7.5% growth in same property rental revenue compared to a year ago, with a sequential quarterly growth of 1.1%. The occupancy rate was maintained at a solid 97.8%, indicating a steady demand for rental housing solutions, although slightly down from 98.8% in the previous year. Preliminary data for May 2025 suggests an increase in occupancy to 98.0% as the spring leasing season commences.

Commitment to Affordable Housing

Boardwalk's dedication to affordable housing is evident, particularly in its largest market, Edmonton. The region continues to provide some of the most reasonable rents among major Canadian cities, fostering a healthy environment for rental demand. The trust's extensive investment in its portfolio's common areas has also contributed to increasing overall quality, with 73% of its properties having undergone improvements since 2017.

The Q1 results underline the REIT's strategic capital allocation, having successfully sold three communities in Edmonton while also engaging in significant buyback initiatives. Such measures not only enhance the trust’s liquidity position—totaling approximately $272.8 million—but also provide flexibility for further growth opportunities.

Strengthened Financial Position

At the end of the quarter, Boardwalk reported a debt to EBITDA ratio of 9.99x, an improvement from 10.08x at the previous year's closure. The fair value capitalization rate maintained at 5.12% indicates a strong market position. Furthermore, Boardwalk’s net asset value (NAV) per unit increased to $96.07 as the market rental rates in affordable sectors continue to rise. This is coupled with a robust unitholders' equity of $4.9 billion.

Future Financial Outlook

Looking ahead, the trust has revised its financial guidance for 2025, projecting FFO per unit in the range of $4.35 to $4.60 and a 5.5%-8.5% increase in same property NOI. This confidence stems from persistent demand for quality affordable housing solutions and effective management strategies that have proven successful in times of shifting market dynamics.

Overall, Boardwalk REIT's Q1 2025 results underscore its effective leadership and strategic vision, positioned to continue fostering strong relationships with residents and stakeholders alike. By focusing on sustainability and the principles of community-building, the trust remain committed to its motto of creating exceptional resident experiences throughout its expansive portfolio of more than 34,000 residential suites across Canada.

Conclusion

As the demand for affordable housing continues, Boardwalk's solid foundation, combined with strong financial performance, creates a promising outlook for both investors and the communities it serves. The REIT’s significant achievements in Q1 2025 are just the beginning of what is poised to be another successful year. For more financial insights and updates, investors are encouraged to participate in the upcoming teleconference on May 7, 2025, where leaders will discuss future goals and strategies in depth.