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Boardwalk REIT Continues to Deliver Strong Results With Third Quarter Funds From Operations Per Unit Growth of 6.8%

SUMMARY HIGHLIGHTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021

CONTINUED SOLID FFO PERFORMANCE
           FOR THE 3 MONTH PERIOD ENDED SEPTEMBER 30, 2021

Funds From Operations (FFO) of $0.79 per Trust Unit; an increase of 6.8% from Q3 2020.
3.0% same-property net operating income growth.
Return to positive same-property net operating income growth in Alberta.
Achieved same-property occupancy of 96.1%, including an 83-basis point increase in Alberta and 97-basis point increase in Edmonton from Q2 2021
FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 30, 2021
Funds From Operations of $2.19 per Trust Unit; an increase of 5.8% from the same period a year ago.
Reported FFO includes $0.02 per Trust Unit of retirement costs incurred in Q2 2021.

SOLID OPERATIONAL PERFORMANCE

Quarterly sequential revenue growth of 0.8%.
Continued sustainable reduction of incentives on lease renewals.
Disciplined approach to cost management.

STRONG AND FLEXIBLE FINANCIAL POSITION

Approximately $278 million of liquidity.
Continued interest expense reduction on CMHC-insured mortgage renewals.
98% of Boardwalk’s mortgage financing benefit from the security of CMHC-insurance.
Net Asset Value (NAV) increase to $64.29 per Trust Unit, equating to approximately $185,000 per door.

ACCRETIVE CAPITAL RECYCLING

Boardwalk has entered into an agreement to divest its 50% interest in its Sandalwood development in Mississauga, which is expected to close on November 26, 2021.
The Trust intends to apply to the Toronto Stock Exchange (the “TSX”) for approval of a normal course issuer bid
Current trading price of approximately $53.00 per Trust Unit implies a per door valuation of $168,000 and an approximate 4.9% cap rate on the Trust’s actual trailing twelve-month net operating income (NOI).

INCREASE TO 2021 FINANCIAL GUIDANCE

Upward revised H2 2021 same-property NOI growth range to: +2.0% to +4.5%.
Upward revised full-year 2021 same-property NOI growth range of: -0.5% to +1.0%.
FFO per unit range of: $2.89 to $2.95.
AFFO per unit range of: $2.24 to $2.30.

DISTRIBUTION OF $1.00 PER TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF NOVEMBER, DECEMBER 2021 AND JANUARY 2022

CALGARY, AB, Nov. 11, 2021 /CNW/ – Boardwalk Real Estate Investment Trust (TSX:BEI)

Boardwalk Real Estate Investment Trust (“Boardwalk”, the “REIT” or the “Trust”) today announced its financial results for the third quarter 2021.

Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT commented:

“We are pleased to report on another solid quarter with growth in FFO per Trust Unit of 6.8% compared to the same period a year ago.  Boardwalk’s continued strong financial performance is the result of improvement in apartment fundamentals in our core markets, and our entire team’s contribution and commitment in serving our Resident Members with the best quality communities across Canada.  In turn, our Residents have rewarded us with strong performance in occupancy, retention, and positive leasing spreads. 

Housing fundamentals in our core markets continue to improve with employment growth and the resumption of international immigration which have both increased housing demand.  Our unregulated and high affordability Western Canadian markets have seen increased optimism with the strong economic backdrop of higher commodity prices, and increased investment in clean energy such as carbon capture and hydrogen, as well as continued growth in the technology industry.  Our stable Eastern Canadian markets continue to benefit from suite turnovers allowing for a mark-to-market in rental rates.  Our portfolio of assets is well positioned to continue on our track record of the highest FFO per unit growth amongst our peers. 

The Trust has increased the estimated value of its assets to account for improved apartment fundamentals. Recent private market transactions continue to reflect lower cap rates and increased apartment valuations.  Continued low interest rates, the resiliency of the multi-family asset class, and revenue growth on the foundation of high affordability have increased apartment valuations in Western Canada.  In addition, our recent acquisitions in our target markets of Victoria, and Kitchener-Waterloo have performed above our expectations, further validating our recent investments in those markets.

Boardwalk is focused on opportunistically sourcing acquisition and development opportunities in our core and target markets while also recycling capital through the sale of non-core assets at prices at or above our IFRS fair value.  As a component of the Trust’s capital allocation strategy, the Trust intends to apply to the TSX for approval of a normal course issuer bid to re-deploy equity proceeds from non-core asset sales toward an investment in Boardwalk’s own high-quality portfolio on an accretive basis.  We look forward to sharing further updates.”

THIRD QUARTER & FIRST NINE-MONTHS FINANCIAL HIGHLIGHTS

$ millions, except per unit amounts

Highlights of the Trust’s Third Quarter 2021 Financial Results

3 Months Sep
30, 2021

3 Months Sep
30, 2020

% Change

9 Months
Sep 30,
2021

9 Months
Sep 30,
2020

% Change

Operational Highlights

Total Rental Revenue

$

118.4

$

116.2

1.9

%

$

351.8

$

349.0

0.8

%

Same Property Total
Rental Revenue *

$

115.3

$

115.2

0.1

%

$

343.3

$

345.2

-0.5

%

Net Operating Income (NOI)

$

71.8

$

68.2

5.2

%

$

205.3

$

203.4

0.9

%

Same Property NOI *

$

71.1

$

69.1

3.0

%

$

204.6

$

206.3

-0.8

%

Operating Margin

60.6

%

58.7

%

58.4

%

58.3

%

Same Property
Operating Margin *

61.7

%

60.0

%

59.6

%

59.8

%

Financial Highlights

Funds From Operations
(FFO) **

$

40.5

$

37.8

7.2

%

$

111.9

$

105.5

6.1

%

Adjusted Funds From Operations
(AFFO) **

$

32.2

$

29.1

10.5

%

$

86.7

$

79.5

9.1

%

Profit (Loss) for the Period ***

$

235.5

$

(31.4)

849.1

%

$

315.1

$

(8.8)

3,663.2

%

FFO per Unit

$

0.79

$

0.74

6.8

%

$

2.19

$

2.07

5.8

%

AFFO per Unit

$

0.63

$

0.57

10.5

%

$

1.70

$

1.56

9.0

%

Net Asset Value

IFRS Asset Value per Diluted Unit
(Trust & LP
Class B Units), period end

$

125.57

$

120.01

Debt Outstanding per Diluted Unit,
period end

$

(62.12)

$

(60.79)

Net Asset Value (NAV) per Diluted Unit
(Trust & LP Class B Units),
period end

$

63.4

5

$

59.22

Cash per Diluted Unit (Trust & LP Class B Units),
period end

$

0.84

$

1.63

Total per Diluted Unit (Trust
& LP Class B Units),
period end

$

64.29

$

60.85

Liquidity, Debt and Distributions

Cash Position, period end

$

43,000

Subsequent Committed/
Funded Financing

34,700

Line of Credit

$

199,800

Total Available Liquidity

Full story available on Benzinga.com

Source: benzinga.com

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