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.

TSX:BEI.UN - Post by User

Boardwalk Real Estate Investment Trust

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Jul 31, 2024 8:48am

68 Views

Post# 36155859

TD

Currently have a $90 target. GLTA

Q2/24 FIRST LOOK; RESULTS IN-LINE; 2024 GUIDANCE RAISED AGAIN

THE TD COWEN INSIGHT

Boardwalk delivered a solid quarter highlighted by +14.2% SPNOI growth and another increase to 2024 guidance. Fundamentals across the portfolio remain very strong (see our note from Boardwalk's recent Calgary investor day here) and continue to benefit from favourable demand/supply dynamics, particularly in the REIT's Alberta markets.

Impact: NEUTRAL
Q2/24 Results: FFO/unit (f.d.) of $1.04 was +17% y/y, and in line with consensus (TDS: $1.02). Higher NOI/lower interest expense was slightly offset by higher G&A. AFFO/unit (our calculation) of $0.85 was also slightly ahead of our estimate.

2024 Guidance Updated. Management raised its 2024 guidance for the second consecutive quarter, calling for $4.11 to $4.23 FFO/unit (from $4.00 to $4.20 in Q1; +2% at the mid- point), and +12.5% to +14.5% (from +11.0% to +14.0%). Current consensus of $4.16 is in-line with the midpoint of management's updated guidance.

Operating Highlights

Q2 SPNOIG of +14.2% accelerated slightly from Q1's pace (+13.5%). Gains were driven by +9.5% revenue growth, while SP expenses were up only 1.6%. By market, Saskatchewan led with +19.0%, followed by Alberta at +16.9% (Edmonton: +16.4%; Calgary: +17.4%), and Quebec at +6.9%. SP operating margin was +270bps y/y to 65.2%.
Average renewals in Q2/24 at +8.8% remain at the top end of management's 7-9% target range. Portfolio new lease spreads averaged 13.2% in Q2, also representing the upper end of management's targeted 10%-15% range for new lease uplifts in non-price controlled markets which management expects will lower turnover and lengthen the runway for growth.
Average incentives continue to trend lower to $90, down 17% y/y and 6% q/q. Average market rents increased +1.1% q/q to $1,637, demonstrating continued strength in Boardwalk's markets. Occupied rents were +3.0% q/q and +10.1% y/y to $1,460. Current mark-to-market rents (including. incentives) were $155 (Q1: $175).

Balance Sheet/Other

Recorded a $362mm FV gain owing to higher market rents (cap rate unchanged q/q at 5.09%). IFRS NAV was +2.2% q/q to $92.39. D/GBV was -110bps q/q to 39.1%. Liquidity decreased slightly to ~$315.8mm (Q1/24: ~$378.6mm).
On July 5, Boardwalk announced ~$120mm in Calgary acquisitions (link), including the forward purchase of Elbow 5 Eight for $93mm ($365k/suite), and Dawson Landing for $26.3mm ($417k/suite). Both acquisitions were/will be funded with remaining proceeds Boardwalk's Q4/23 equity issuance (link).

Conference call 1:00 PM ET; dial-in: (1-888-664-6383; passcode: 12521459