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 Jul 31, 2024 9:11am

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Post# 36155917

RBC

July 30, 2024

Boardwalk REIT
Q2 – unsurprisingly strong

TSX: BEI.UN | CAD 79.00 | Outperform | Price Target CAD 88.00

Sentiment: Positive

First Look: Boardwalk REIT (“BEI”) reported FFO/unit of $1.04, +17% y/y, vs. RBC/consensus of $1.02/$1.04. The 2% positive variance to our estimate was due to higher NOI margin. Overall, it was another (unsurprisingly, in our view) solid print. 2024 FFO guidance was revised up once again (midpoint +2%), healthy MTM opportunity (+12%) remains; occupancy is holding strong in July (98.6%) and there appears to be no signs of deceleration.

Key points:

2024 FFO midpoint guidance increased by +1.7%: $4.11 to $4.23 (Mid $4.17) vs. $4.00 to $4.20 (mid $4.10) prior, based on SP NOI growth of 12.5%-14.5% (vs. 11%-14%)
SP NOI growth: +14.2% (SP-Rev +9.5%; SP-Exp +1.6%). NOI margin: 64.1%, +270 bps y/y
Average occupied rent: $1,460, +10% y/y, +3% q/q
Average occupancy: 98.7% (+36 bps y/y, -15 bps q/q); Occupancy in July 98.6%.
Leasing spreads: June AB new lease spreads +13.5%; renewal +9.3%.
MTM opportunity (market rent vs. occupied rent): +12%
Capital allocation: Acquired & will acquire: Elbow 5 Eight, 255-unit newly built in Calgary for $93M ($365K/suite, 5.75% stabilized cap); Dawson Landing, 63-unit new townhomes east of Calgary for $26.3M ($417K/suite, 5% going-in cap), The Brenda (6-unit walk up with redevelopment opportunity in Calgary) for $2M.
Debt to total assets: 40.8%, -100 bps q/q; Debt/EBITDA 10.8x
Reported NAV/unit: $92.39 (+2% q/q), based on 5.09% (+0bps) stabilized cap rate utilized.