#Canada #Financial Performance #Calgary #Real Estate #Boardwalk REIT

Boardwalk Real Estate Investment Trust Reports Strong Q3 2025 Results

On November 4, 2025, Boardwalk Real Estate Investment Trust (TSX: BEI.UN) unveiled notable financial performance for the third quarter ending September 30, 2025. Continuing its trajectory of growth, Boardwalk achieved impressive year-on-year increases across various financial metrics, highlighting its effective management and response to market demands.

Financial Highlights for Q3 2025

Boardwalk’s Funds From Operations (FFO) rose to $1.23 per unit, reflecting a 10.8% increase compared to Q3 2024. Profits also saw a substantial rise, amounting to $37.6 million, while the Net Operating Income (NOI) reached $108.3 million—an 8.1% increase from the same quarter last year.

The Same Property NOI was reported at $105.3 million, indicating a robust 8.6% increase, with an operating margin improvement to 67.4%, edging up 210 basis points compared to the previous year.

For the nine-month period leading to September 30, 2025, Boardwalk recorded $3.45 FFO per unit, an 11.3% increase year-on-year, with year-to-date profits hitting $247.7 million. The NOI for this period totaled $309.1 million, marking a 9.1% rise.

Rental Revenue Growth

In Q3 2025, the same property sequential rental revenue growth was noted at 1.4%, with an impressive 5.0% increase from a year ago, demonstrating Boardwalk’s ability to maintain occupancy rates effectively despite market fluctuations. With an occupancy rate of 97.7%, Boardwalk showcases its competency in attracting and retaining tenants in a competitive market.

Market Insights

Demand remains high in affordable regions, particularly in Alberta, Quebec, and Saskatchewan. With Edmonton recognized as the Trust’s largest market, rental prices remain competitive compared to other major cities in Canada. Boardwalk has strategically reinvested in property improvements across its portfolio, enhancing its appeal and resilience in various market conditions.

Strong Balance Sheet

At the close of Q3 2025, Boardwalk reported approximately $379.6 million in total liquidity. Impressively, 96% of the Trust’s mortgages are CMHC-insured, providing a safety net against market volatility. The Unitholders' equity stands at $5.0 billion, and the net asset value per unit reached $97.72, primarily attributable to increased rental rates in the Trust's affordable markets.

Financial Guidance Updates

Boardwalk has adjusted its financial guidance for 2025, revising FFO to a range between $4.58 and $4.65 per unit, alongside Same Property NOI growth expectations of 8.5% to 10.0%, indicating continued confidence in the Trust's robust operational strategies.

Capital Allocation Strategy

During the quarter, Boardwalk executed significant acquisitions totaling $419.5 million, while also disposing of properties in Edmonton and Quebec City valued at $141.2 million. This strategic capital allocation enables the Trust to focus on high-quality, income-generating assets and positions it well for future growth.

Conclusion

Sam Kolias, Chairman and CEO of Boardwalk REIT, expressed satisfaction with the quarter's performance, highlighting the effective control of expenses and the impressive rental growth achieved amidst changing market conditions. As the Trust prepares for the winter leasing season, it remains poised to maintain high occupancy rates and deliver continued value to its Unitholders.

In summary, Boardwalk REIT's Q3 2025 results underscore its strong financial health and commitment to providing quality living spaces across its properties, aligning with the continued demand for affordable housing across Canada.

Upcoming Teleconference: Investors and analysts are invited to join a teleconference on November 5, 2025, at 1 PM ET to discuss these results in detail and gain insights into the Trust’s future strategies. Further information will be accessible on Boardwalk's investor website.