Boardwalk Real Estate Investment Trust T.BEI.UN

Alternate Symbol(s): BOWFF

Boardwalk Real Estate Investment Trust (Trust) is a Canada-based open-ended real estate investment trust, which owns/operates multi-family rental communities. It provides homes in more than 200 communities, with over 33,000 residential suites totaling over 29 million net rentable square feet. Its brands include Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle. Its three-tiered brands, namely Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, caters to a diverse demographic. Its objectives are to provide Resident Members with superior quality rental communities and the best tenant/customer service, provide its holders of Trust Units with stable monthly cash distributions, and to increase the value of the Trust Units through the effective management of its residential multi-family revenue producing properties, renovations and upgrades to its current portfolio, and the acquisition and/or development of additional, accretive properties or interests therein.

TSX:BEI.UN - Post by User

Boardwalk Real Estate Investment Trust

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Apr 29, 2022 12:18pm

125 Views

Post# 34642669

RBC

Have a $69.00 target. GLTA

April 24, 2022

Boardwalk REIT

Company description

Boardwalk REIT ("Boardwalk" or "BEI") is one of Canada’s largest multi-residential real estate owners and managers. The REIT’s portfolio encompasses more than 200 communities with ~34,000 residential suites and approximately 29 million net rentable square feet concentrated in Alberta, Quebec, Saskatchewan, and Ontario. Boardwalk was founded in 1984, went public in 1994, converted to a REIT in 2004, and trades on the Toronto Stock Exchange under the ticker BEI-U. For more information, please visit www.bwalk.com.

Investment summary

Our Outperform rating is primarily a function of our risk-adjusted total return expectations compared with the broader REIT/REOC sector. Key elements of the Boardwalk REIT ("Boardwalk" or "BEI") story include the following:

The Western Canadian apartment play. Boardwalk’s portfolio is heavily concentrated in Alberta (~62% of SP-NOI). Including Saskatchewan, the REIT generates ~73% of its SP-NOI from energy-centric markets. A downdraft in crude oil prices beginning in the summer of 2014 had a multi- year impact on economic growth in the West. Despite this, we believe Boardwalk is much better positioned than during the prior correction in crude oil markets, and the significant re-price in Boardwalk's units have provided a wide “margin of safety”.

Affordable markets: In the context of high housing price, many of its market offer a good value proposition in terms of affordability. This sets the stage of future rent growth and positive migration trends over the long term, especially as Alberta continues to diversify its key economic drivers.

Well-aligned management team. The REIT boasts a strong management team that is financially aligned with unitholders (owning a ~26% ownership stake).

Supplementing organic growth via modest new development and value-enhancing capex. Boardwalk currently has three projects in its development pipeline in Brampton ON and Victoria BC. In addition, value- enhancing capex remains a continued theme across the rest of BEI's portfolio, principally targeting amenity areas.

Potential catalysts

Potential positive catalysts for BEI's units include, but are not limited to: 1) capital recycling and improving portfolio diversification; 2) greater- than-expected rent growth and/or higher occupancy; and 3) cap rate compression for apartment properties.