TSX:BEI.UN - Post by User
Post by
retiredcfon Nov 06, 2024 8:36am
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Post# 36298407
RBC
RBCNovember 5, 2024
Boardwalk REIT
A solid Q3 likely to be brushed aside
TSX: BEI.UN | CAD 71.91 | Outperform | Price Target CAD 98.00
Sentiment: Neutral
First Look: Boardwalk REIT (“BEI”) reported FFO/unit of $1.11, +16% y/y, vs. RBC/consensus of $1.09/$1.10. The 2% positive variance to our estimate was due mainly to higher NOI. Overall, it was a solid quarter with guidance inched up slightly. Leasing spreads remain healthy though moderated slightly. That said, we expect a neutral response to earnings as the market will likely look to commentary surrounding rent growth and leasing spreads in 2025 in the context of flattish population growth.
Key points:
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2024 FFO midpoint guidance +0.5%: $4.15 to $4.23 (Mid $4.19) vs. $4.11 to $4.23 (mid $4.17) prior, based on SP NOI growth of +12.5% to +14.5%(unchanged)
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SP NOI growth: +13.5% (SP-Rev +9.5%; SP-Exp +2.6%). NOI margin: 65.3%, +260 bps y/y
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Average occupied rent: $1,493, +10% y/y, +2% q/q
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Average occupancy: 98.6% (+18 bps y/y, -10 bps q/q); Occupancy in Nov was 98%.
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Leasing spreads: Sep new lease spreads +10.9% (+13.1% in Q2); renewal +7.9% (+8.7% in Q2)
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MTM opportunity (market rent vs. occupied rent): +10% (vs. +12% in Q2)
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Debt to total assets: 40.1%, -70 bps q/q; Debt/EBITDA 10.3x (-0.5x q/q)
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Reported NAV/unit: $94.64 (+2% q/q), based on 5.09% (+0bps) stabilized cap rate utilized.