#Canada #Financial Performance #Calgary #affordable housing #Boardwalk REIT

Boardwalk REIT Reports Strong 2024 Financial Results

Overview
Boardwalk Real Estate Investment Trust (REIT), listed on the Toronto Stock Exchange under the symbol BEI.UN, has unveiled its robust financial outcomes for 2024, signaling optimism for the future. The Trust's impressive performance includes significant increases in Funds From Operations (FFO) and Net Operating Income (NOI), alongside a notable enhancement in distributions to unitholders.

Financial Highlights

For the three months concluded on December 31, 2024, Boardwalk REIT reported:

• - FFO of $1.08 per unit, up 12.5% from the previous quarter.
• - Profit of $65.9 million.
• - NOI of $99.0 million, reflecting an increase of 12.6% compared to Q4 2023.
• - Same Property NOI reached $98.0 million, marking an 11.0% rise from the prior year.
• - Operating Margin improved to 63.7%.

For the year ending December 31, 2024:

• - Annual FFO per unit climbed to $4.18, an increase of 16.1% year-over-year.
• - Total profit amounted to $588.2 million.
• - NOI for the full year was $382.3 million, a rise of 14.8% compared to 2023.
• - Same Property NOI stood at $380.4 million, up 13.0% from the previous year.

These figures illustrate Boardwalk's resilient operational model and effective management strategies in response to the Canadian housing market dynamics.

Rental Revenue Growth

In the fourth quarter of 2024, Boardwalk REIT experienced a 1.3% quarter-over-quarter sequential growth in rental revenue for the same properties, whereas the average occupied rent reached $1,524, a $31 increase from the prior quarter and a $136 increase from the previous year. The occupancy rate of 98.0% remains slightly lower than the preceding year’s figure but reflects the Trust's diligent approach to maintaining customer satisfaction and community engagement.

Capital Management Strategies

The Trust has strategically directed its capital reinvestments, improving the quality of its portfolio and addressing the ever-growing demand for affordable housing. Since 2017, Boardwalk has re-invested significantly in common area enhancements across 70% of its properties, bolstering market competitiveness. Furthermore, Boardwalk has confirmed a 12.5% increase in its regular monthly distribution to $1.62 per unit for March, April, and May 2025, affirming its commitment to providing value to its unitholders.

Prosperous Forecast for 2025

Looking forward, Boardwalk REIT has set ambitious yet achievable guidance for 2025, with an expected FFO per unit ranging between $4.25 and $4.55 and Same Property NOI growth projected to be between 4.0% and 8.0%. This guidance reflects the Trust's adaptive strategies to navigate economic shifts while continuing to meet the needs of residents seeking affordable housing solutions across Canada.

Commitment to Quality and Community Engagement

The Trust's focus remains steadfast on enhancing community living standards, evidenced by a preliminary occupancy rate of 97.8% in February 2025. Through ongoing investments in its properties and community initiatives, Boardwalk aims to foster environments that not only support residents but also achieve sustainable growth for unitholders.

Conclusion

In summary, the latest financial disclosure from Boardwalk REIT underlines robust growth and a strategic vision that positions the Trust well for ongoing success in the multi-family real estate sector. The commitment to affordable housing, alongside strong operational performance and capital management, showcases Boardwalk's potential for future advancement in 2025 and beyond.