#Canada #Calgary #Real Estate #Boardwalk REIT #FFO

Boardwalk REIT's Stellar Performance in 2025

Boardwalk Real Estate Investment Trust (REIT) has announced noteworthy financial results for the year ended December 31, 2025, showcasing a commendable growth trajectory in both revenue and distributions. The company reported a remarkable Funds From Operations (FFO) of $4.65 per unit, an 11.2% increase from 2024, signaling its robust operational health.

Quarterly Highlights

In the fourth quarter alone, Boardwalk REIT achieved an impressive FFO of $1.20 per unit, marking an 11.1% increase from the same quarter the previous year. This financial performance was coupled with a Net Operating Income (NOI) of $108.5 million, up 9.5% from Q4 2024. Additionally, the Same Property NOI also experienced growth, increasing by 7.3% to $102.5 million. These figures showcase Boardwalk's ability to maintain a strong operational margin of 65.8%, which is an increase of 210 basis points from the prior year.

Yearly Financial Overview

Despite a reported loss of $50.8 million for the year, Boardwalk's overall profit reached $196.9 million, representing a strong year-on-year performance driven by strategic investments and a focus on enhancing community offerings. The Trust's very own occupied rent rose to $1,590 by December 2025, and the average occupancy was recorded at an impressive 97.6%, only slightly down by 41 basis points compared to the previous year.

Demand for Affordable Housing

A key strength for Boardwalk remains its strategic positioning in Alberta, where rental rates are among the most affordable in Canada. The Trust has cultivated its portfolio since 2017, focusing on enhancing common areas which bolster its value proposition amid fluctuating market conditions. Preliminary figures for February 2026 indicate an occupancy rate of 97.3%, further confirming the demand for quality, affordable housing.

Strategic Capital Allocation

Boardwalk's disciplined approach to capital has seen the completion of twelve previously announced dispositions of non-core communities, generating a total gross income of approximately $277.6 million. Conversely, the Trust has made several acquisitions in Calgary and other regions, totaling 1,376 suites for a gross purchase price of $551.5 million. Such maneuvers reflect a tactical repositioning to optimize portfolio quality and asset value.

Future Guidance for 2026

Looking ahead, Boardwalk introduced its financial guidance for 2026, projecting an FFO per unit in the range of $4.65 to $4.90 and a Same Property NOI growth ranging from 1.5% to 4.5%. This optimistic outlook demonstrates confidence in market recovery alongside a sustained demand for affordable housing across Canada.

Distribution Increase

In line with its strategic growth, Boardwalk confirmed a monthly distribution increase of 11.1% to $1.80 per unit, effective for the months of March, April, and May 2026. The payout ratio remains conservative at 33.6% of Q4 2025 FFO, emphasizing a commitment to maximizing returns for unitholders.

Conclusion

Overall, Boardwalk REIT is well-positioned to navigate the complexities of the housing market. With proactive management and a focus on affordable housing, the Trust is brimming with potential for growth in 2026 and beyond. The integration of innovative operational strategies and commitment to enhancing community living will continue to drive performance and value creation for unitholders.