Boardwalk Real Estate Investment Trust T.BEI.UN

Alternate Symbol(s): BOWFF

Real Estate REIT - Residential

Boardwalk Real Estate Investment Trust (Trust) is a Canada-based open-ended real estate investment trust, which owns/operates multi-family rental communities. The Company provides homes in more than 200 communities, with over 34,000 residential suites totaling over 29 million net rentable square feet. Its brands include Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle which, caters to a diverse demographic. Its objectives are to provide Resident Members with 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.

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Boardwalk Real Estate Investment Trust

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Post by retiredcfon Nov 09, 2022 8:32am

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Post# 35084626

TD

Currently have a 460.00 target. GLTA

Boardwalk REIT

(BEI.UN-T) C$49.47

Q3/22 First Look: Results Ahead; SPNOIG of +5.2% Event

Q3/22 results. Conference call 1:00 PM ET; dial-in: 1-888-664-6383; passcode: 50233156. (slides).

Impact: SLIGHTLY POSITIVE

FFO/unit (f.d.) of $0.85 was +7% versus Q3/21, and slightly ahead of our estimate and consensus of $0.83. AFFO/unit (our calculation) of $0.67 was +3% ahead of our estimate.

Guidance Update. Management raised the bottom end of its 2022 FFO/unit guidance to $3.08 from $3.00. The new range is $3.08-$3.15, +1.3% at the midpoint. Consensus is $3.10. SPNOI guidance increased to +3.0%-5.0% from +2.0%-5.0%.

Operating Highlights

Spreads on new leases averaged +7.6% in Q3 and accelerated further to +9.0% in October. Renewals were also strong at +3.9% (+4.6% in October). Alberta saw further momentum post Q3 with new lease spreads reaching +9.7% in October, while renewals were +5.7%.
Q3 SPNOI growth increased to +5.2% from +2.8% in Q2/22 (+3.2% YTD). Alberta posted solid growth at +3.7% driven by strong growth in Calgary (+8.9%) and offset partially by more modest growth in Edmonton (+0.2%). Saskatchewan was +8.4%, Ontario +8.0%, and Quebec increased +7.4% due to lower controllable expenses and the lease-up of its L'Astre community (transitioned from a Seniors' home). Same-property revenue growth was +4.9% y/y and +2.3% q/q. Operating costs were +4.3%, largely driven by Edmonton (higher property taxes), while SPNOI margins were +20bps y/y to 61.9%.
Average incentives were 18% lower y/y (-6% q/q) to $141/month. Stabilized portfolio occupancy was +90bps q/q to 97.2% and increased further to 97.9% in November (thus far). We believe Boardwalk is well positioned heading into the winter leasing months.
Occupied rents were +1.9% q/q to $1,252, while the mark-to-market spread (including incentives) jumped to $71 (Q2/22: $62).

Balance Sheet

Boardwalk recorded a ~$7mm IFRS fair value gain on investment properties on higher rents (overall cap rate was was largely unchanged at 4.91%). IFRS NAV was +1.5% q/q at $71.09. Repurchased 262,500 units for $2.8mm (average price: $44.63).
D/GBV was unchanged q/q at 46%. Boardwalk has ~$229mm of total liquidity (Q2: ~$264mm). During Q3, Boardwalk renewed $86.2mm of mortgages at a weighted average rate of 4.26% and expects to renew $161.5mm in Q4 (average in-place rate of 3.19%).