Boardwalk Real Estate Investment Trust (BEI-UN) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong operational and financial results, with high occupancy, robust leasing spreads, and disciplined cost control driving significant NOI and FFO growth year-over-year.

• Portfolio focused on Alberta and other high-growth regions, benefiting from strong migration, affordability, and limited new supply.

• Strategic moderation of rent increases and a resident-centric approach underpin high retention and sustainable growth.

• Continued investment in value-add renovations, ESG initiatives, and selective acquisitions to enhance long-term value.

• Management remains focused on organic de-leveraging and disciplined capital allocation.

Financial highlights

• Same-property NOI increased 14.2% in Q2 2024 versus Q2 2023; revenue grew 9.5% year-over-year to $145.5M.

• FFO per unit rose 16.9% year-over-year to $1.04; FFO payout ratio was 34.6% for Q2 2024.

• Operating margin improved to 64.1% in Q2 2024, a 270 bps increase from Q2 2023.

• Net asset value per unit grew 9.5% since Q4 2023 to $92.39.

• Operating expenses rose 1.6% in Q2 2024, mainly due to inflationary wage adjustments and higher utilities.

Outlook and guidance

• 2024 same-property NOI growth guidance tightened to 12.5%-14.5%; FFO per unit expected between $4.11 and $4.23.

• 2024 AFFO per unit guidance raised to $3.48-$3.60.

• Management anticipates continued strong leasing spreads, high occupancy, and mid to high single-digit revenue growth into 2025.

• Expense growth targeted below inflation for 2025, with controllable costs tightly managed.

• Management expects continued strong performance, supported by robust rental market fundamentals and high demand.