Boardwalk REIT Enhances Montreal Portfolio with $273 Million Transactions
Boardwalk Real Estate Investment Trust (REIT) has made significant progress in its capital upcycling initiative with two noteworthy transactions totaling approximately $273.1 million in the Greater Montreal area. The company disclosed the sale of two older communities located in Edmonton, Alberta, at a combined gross sales price of $24.1 million. Additionally, it finalized the acquisition of Central Parc 1, 2, and 3 in Laval, Quebec, for a substantial purchase price of $249 million.
Edmonton Dispositions:
Boardwalk REIT has sealed the deal on the sale of 134 suites housed in two older communities - Westmoreland Apartments and Lorelei House - which were sold for about $180,000 per suite, resulting in an exit cap rate of approximately 5.6%. The transaction is set to close in September 2025 and comes as part of the Trust's strategy to streamline its portfolio by divesting older properties. The disposed assets had an aggregate remaining mortgage balance of $8.6 million with an appealing interest rate of 3.0%.
Acquisition of Central Parc:
In a strategic expansion move, Boardwalk has acquired three concrete towers totaling 541 units in Laval, constructed between 2019 and 2022. The properties were purchased at an average cost of $460,000 per suite, with a favorable going-in cap rate of 4.5%. These modern communities are designed to meet the expectations of diverse demographics, offering one, two, and three-bedroom layouts, and boast upscale amenities and spacious designs averaging 942 square feet. Upon closing, Boardwalk will also assume CMHC mortgages totaling over $178 million at a competitive interest rate of 1.56%, ensuring ongoing affordability for residents by maintaining rent levels.
Boardwalk anticipates that its Funds from Operations (FFO) per unit will see a beneficial increase as a direct result of these acquisitions, projecting an increase by $0.02 per unit for the remaining months of the year, and approximately $0.07 per unit for the entire year of 2026. This financial boost demonstrates the Trust's robust operational strategy and effective capital allocation.
Sam Kolias, the Chairman and CEO of the Trust, expressed enthusiasm regarding the continued enhancement of Boardwalk's portfolio. He emphasized the strength and resilience of the Greater Montreal market, describing the acquisition as a move that aligns with Boardwalk's mission to provide affordable luxury living to its resident members. The CEO also highlighted the unique offerings of Central Parc that represent outstanding value for both residents and unitholders.
Boardwalk REIT's disciplined approach focuses not only on selective purchases but also on reinvesting surplus capital back into the Trust's assets. The company aims to maintain a healthy balance sheet while creating exceptional experiences for residents, which is underscored by their continued high rates of retention.
Boardwalk REIT aspires to be the number one choice for multi-family living in Canada, with a portfolio exceeding 200 communities, providing approximately 34,000 residential suites. With a solid commitment to building better communities, Boardwalk promotes a culture of high performance and exceptional service, ensuring that residents enjoy quality living spaces that lead to optimum returns for investors.
Boardwalk REIT is publicly traded on the Toronto Stock Exchange under the symbol BEI.UN. For more information about the Trust, visit their official website at www.bwalk.com/investors.
Details of the Transactions
Edmonton Dispositions:
Boardwalk REIT has sealed the deal on the sale of 134 suites housed in two older communities - Westmoreland Apartments and Lorelei House - which were sold for about $180,000 per suite, resulting in an exit cap rate of approximately 5.6%. The transaction is set to close in September 2025 and comes as part of the Trust's strategy to streamline its portfolio by divesting older properties. The disposed assets had an aggregate remaining mortgage balance of $8.6 million with an appealing interest rate of 3.0%.
Acquisition of Central Parc:
In a strategic expansion move, Boardwalk has acquired three concrete towers totaling 541 units in Laval, constructed between 2019 and 2022. The properties were purchased at an average cost of $460,000 per suite, with a favorable going-in cap rate of 4.5%. These modern communities are designed to meet the expectations of diverse demographics, offering one, two, and three-bedroom layouts, and boast upscale amenities and spacious designs averaging 942 square feet. Upon closing, Boardwalk will also assume CMHC mortgages totaling over $178 million at a competitive interest rate of 1.56%, ensuring ongoing affordability for residents by maintaining rent levels.
Future Financial Outlook
Boardwalk anticipates that its Funds from Operations (FFO) per unit will see a beneficial increase as a direct result of these acquisitions, projecting an increase by $0.02 per unit for the remaining months of the year, and approximately $0.07 per unit for the entire year of 2026. This financial boost demonstrates the Trust's robust operational strategy and effective capital allocation.
Leadership Commentary
Sam Kolias, the Chairman and CEO of the Trust, expressed enthusiasm regarding the continued enhancement of Boardwalk's portfolio. He emphasized the strength and resilience of the Greater Montreal market, describing the acquisition as a move that aligns with Boardwalk's mission to provide affordable luxury living to its resident members. The CEO also highlighted the unique offerings of Central Parc that represent outstanding value for both residents and unitholders.
Boardwalk REIT's disciplined approach focuses not only on selective purchases but also on reinvesting surplus capital back into the Trust's assets. The company aims to maintain a healthy balance sheet while creating exceptional experiences for residents, which is underscored by their continued high rates of retention.
Corporate Profile
Boardwalk REIT aspires to be the number one choice for multi-family living in Canada, with a portfolio exceeding 200 communities, providing approximately 34,000 residential suites. With a solid commitment to building better communities, Boardwalk promotes a culture of high performance and exceptional service, ensuring that residents enjoy quality living spaces that lead to optimum returns for investors.
Boardwalk REIT is publicly traded on the Toronto Stock Exchange under the symbol BEI.UN. For more information about the Trust, visit their official website at www.bwalk.com/investors.
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