Boardwalk Real Estate Investment Trust (BEI-UN) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q4 2024, with high occupancy rates (98%–98.9%) and resilient demand for affordable multifamily housing, supported by strategic focus on customer service, affordability, and reinvestment in communities.

• Delivered significant growth in Net Operating Income (NOI) and Funds From Operations (FFO) per unit year-over-year, with FFO per unit up 12.5% and regular distributions per unit rising 22.9%.

• Increased regular monthly distribution by 12.5% for March 2025, reflecting confidence in cash flow growth.

• Continued to self-regulate rental rates, maintaining high retention and stable occupancy, while investing in property upgrades and ESG initiatives.

Financial highlights

• Same property rental revenue increased 8.2% year-over-year in Q4 2024, with same property NOI up 11%–12.6%; full-year NOI grew 13%–14.8% and revenue increased 9.2%.

• FFO per unit was $1.08 in Q4 2024 (up 12.5% YoY); full-year FFO per unit was $4.18 (up 16.1% YoY); FFO payout ratio improved to 30.8%–33.3%.

• Operating margin expanded by 160 basis points in Q4 2024, reaching 63.7%, and 63.4% for the year.

• Net asset value per unit grew 11% to $93.68; fair value of investment properties at CAD 8.2 billion as of Dec 31, 2024.

• Regular distributions per unit increased to $0.360 (+22.9% YoY); annualized distribution for 2025 set at $1.62.

Outlook and guidance

• 2025 guidance: FFO per unit $4.25–$4.55, AFFO per unit $3.62–$3.92, and same property NOI growth of 4%–8%.

• Monthly distribution to increase 12.5% to CAD 1.62 per unit annualized starting March 2025.

• Revenue growth guidance of 4.5%–6.5% and rental expense increase of 3%–6% for 2025.

• Targeting CAD 100–200 million in non-core asset dispositions in 2025.

• Management expects continued demand for affordable housing and resilient performance in 2025.