#Canada #Calgary #Real Estate #Boardwalk REIT #Capital Recycling

Boardwalk REIT Provides Financial Update for Q4 2024

On January 6, 2025, Boardwalk Real Estate Investment Trust (often referred to as Boardwalk REIT or the Trust, trading on the TSX under BEI.UN) shared an operational update highlighting its robust performance in the midst of ongoing capital recycling initiatives. The Trust reported strong demand for its properties, particularly as Canadians seek affordable housing solutions amid rising living costs.

Occupancy Rates and Rental Growth

Boardwalk's performance indicators are impressive, showcasing a self-reported occupancy rate of 97.6% as of January 2025. This figure demonstrates exceptional stability in leasing, with rental rates steadily increasing over the past few months. For instance, the average occupied rent across their portfolio has shown a consistent increase, starting from $1,375 in November 2023 and climbing to $1,515 by November 2024. This aligns with a broader trend where affordable rentals are becoming increasingly valuable in Edmonton and other major Canadian markets.

Capital Recycling Initiatives

In December 2024, Boardwalk finalized the sale of three communities in Edmonton, totaling 390 suites for approximately $80 million. This strategic decision is poised to enhance Boardwalk’s portfolio value and operational flexibility. The sales equate to around $205,000 per suite and are based on a cap rate of about 4.8%. Following these sales, the Trust will pay off existing mortgages amounting to $21.6 million before closing, expected on January 21, 2025. This initiative reflects a significant commitment to repositioning assets while taking advantage of current market conditions.

NCIB Program Participation

Additionally, Boardwalk invested approximately $10 million into its Normal Course Issuer Bid (NCIB) program, acquiring shares at a weighted average price of $67.07. This move not only enables the Trust to recycle proceeds from asset sales effectively but also allows for reinvestment into their high-quality portfolio at competitive valuations, further enhancing shareholder value.

Sam Kolias, the Trust's CEO, expressed optimism regarding the organization's current positioning. "As winter leasing season wraps up, we’re seeing continued strength in demand across our properties. Our rates remain competitive compared to the market, which reflects the high standards and value we offer our residents, especially when contrasted with Edmonton's average market rents," he commented.

Outlook for Fourth Quarter Results

Looking ahead, Boardwalk REIT will unveil its financial results for the three- and twelve-month periods ending December 31, 2024, on February 20, 2025. Stakeholders are encouraged to participate in a teleconference scheduled for February 21, 2025, at 11 AM (Mountain) and 1 PM (Eastern). During the call, senior leadership will provide detailed analysis and insights into the Trust’s ongoing financial health and operational strategies.

The results will also be accompanied by a presentation available on Boardwalk’s investor relations website, ensuring transparency and continuous communication with its stakeholders.

Corporate Commitment

With over 34,000 residential suites across more than 200 communities, Boardwalk REIT maintains its commitment to providing affordable housing and fostering community development across Canada. Their focus on capital allocation, community enhancement, and resident satisfaction not only aims to sustain high occupancy rates but also to ensure long-term value for investors as reflected in their strong operational results.

For more detailed information about Boardwalk REIT, visit their website at www.bwalk.com/investors.