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 Aug 10, 2022 8:34am

115 Views

Post# 34884037

TD

Have a $61.00 target. GLTA

Boardwalk REIT

(BEI.UN-T) C$48.26

Q2/22 First Look: +2.2% Sequential Rev Growth Highest Since 2008

Event

Q2/22 results. Conference call 1:00 PM ET; dial-in: 1-888-664-6383; passcode: 45545020. (slides).

Impact: NEUTRAL

FFO/unit (f.d.) of $0.80 was +7% versus Q2/21, and largely in line with our estimate/ consensus of $0.82/$0.79. AFFO/unit (our calculation) of $0.62 was $0.01 below our estimate.

Guidance Update. The bottom end of the guidance range was increased modestly. FFO/unit guidance now calls for FFO/unit in the range of $3.00-$3.15 versus $2.95-$3.15 previously (+1% at the mid-point). SPNOI growth of 2%-5% was left unchanged.

Operating Highlights

Spreads on new leases saw monthly improvements throughout Q2 (averaged: +3.7%) and increased to +6.6% in July. Renewals were also positive at +4% (July:+3.1% overall, but +5.0% in AB)
Q2 SPNOI growth was +2.8%. Alberta was +2.3% as strong growth in Calgary (+7.2%) was partially offset by a 0.6% decline in Edmonton due to higher utility and operating expenses. Same-property revenue growth was +3.4% y/y and +2.2% q/q (highest since 2008) with all regions reporting positive q/q growth. Operating costs were +4.2% (elevated leasing costs in Edmonton on higher leasing volumes), while SPNOI margins were -40bps y/y to 60.0%.
Occupancy as previously disclosed (link) jumped +160bps from March to 97.0% in July (Q2 average occupancy of 96.4%) and improved a further 10bps in August to 97.1% (thus far). Incentives/suite continued to trend lower and were -5% q/q (-15% y/y).
Occupied rents were +0.9% q/q to $1,228, while the mark-to-market spread (inclusive of incentives) increased slightly to $62 (Q1/22: $59).

Acquisitions

Post-Q2 acquired a newly constructed (in 2020), fully-occupied property "The Level" in Calgary, Alberta totaling 158 suites for $41.9mm ($265,000/suite or a 4.75% cap rate). The Level is in close proximity to Boardwalk's Auburn Landing community and therefore should provide opportunities for operational efficiencies.

Balance Sheet

Boardwalk recorded an ~$37mm IFRS fair value gain on investment properties on higher rents (overall cap rate was left unchanged at 4.66%). IFRS NAV was +2.1% q/q at $70.03. Repurchased 240,000 units for $11.3mm (average price: $47.02) and a further 42,500 units in July for $1.9mm ($44.12/unit).
D/GBV is 46% versus 47% as of Q1. Boardwalk has ~$264mm of total liquidity (Q1: ~$256mm).