Boardwalk Real Estate Investment Trust (BEI-UN) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong financial and operational performance, with same property rental revenue up 9.5%, NOI up 13.5%, and FFO per unit up 15.6% year-over-year; profit rose 40.6% to $55.4 million.

• High occupancy rates of 98%–98.9% were supported by strong demand for affordable housing and strategic rental rate management.

• Strategic investments in renovations, amenities, and ESG initiatives enhanced value, with 70% of the portfolio targeted for common area improvements.

• Alberta led performance, benefiting from robust population and employment growth, driving demand for affordable housing.

• Focus remains on sustainable growth, balance sheet improvement, and stakeholder value, with ongoing collaboration on affordable housing solutions.

Financial highlights

• Same property rental revenue rose 9.5% to $150.1M, same property NOI increased 13.5% to $99.2M, and FFO per unit grew 15.6% to $1.11 in Q3 2024.

• Profit for Q3 2024 was $55.4M (up 40.6%); regular distributions per unit increased 22.9% to $0.36, annualized $1.44 confirmed for Dec 2024–Feb 2025.

• Debt to total assets improved to 40%–43% at Q3 2024, and debt to EBITDA improved to 10.31x.

• FFO payout ratio improved to 30.4%–32.2% in Q3 2024.

• Ample liquidity with $413.7M available, including $107.6M cash and $245.8M in unused credit facilities.

Outlook and guidance

• 2024 guidance: same property NOI growth of 12.5%–14.5%, FFO per unit $4.15–$4.23, AFFO per unit $2.96–$3.60.

• 2025 guidance to be provided with year-end results in February.

• Anticipates continued strong revenue and NOI growth, especially in non-price-controlled markets.