Boardwalk Real Estate Investment Trust (BEI-UN) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results with FFO per unit up 11.5% year-over-year, NOI up 9.8%, and double-digit growth in key operating metrics, driven by high occupancy and affordability-focused markets.

• Operating margin improved by 220 basis points, with profit of $76.3 million for the quarter and continued outperformance in affordable housing.

• Maintained high occupancy just below 98%, with average occupied rents of $1,559, well below the Canadian average.

• Strategic rebranding, suite renovations, and targeted acquisitions continued, with 74% of communities renovated by year-end 2025.

• Updated 2025 guidance upward, reflecting confidence in continued NOI and FFO per unit growth.

Financial highlights

• Same property rental revenue rose 6.2% year-over-year to $154.6M; net operating income up 9.8%.

• FFO per unit up 11.5% to $1.16 in Q2 2025; AFFO per unit up 13.6% to $1.00.

• Regular distributions per unit increased 12.5% year-over-year to $0.405; payout ratio 34.9%.

• Net asset value per unit grew 3.9% since Q4 2024, reaching $97.32.

• Total rental expenses decreased 0.6% year-over-year, mainly due to lower utilities and insurance premiums.

Outlook and guidance

• 2025 same property NOI growth guidance raised to 8%-10%; FFO per unit outlook increased to $4.48–$4.63; AFFO per unit to $3.85–$4.00.

• Regular monthly distributions confirmed, totaling $1.62 per unit annualized, a 12.5% increase year-over-year.

• Distribution has grown at a 12% annual average since 2021, with high cash flow retention for reinvestment.

• Expects continued strong demand for affordable multi-family housing, especially in Edmonton and other non-price controlled markets.