Boardwalk Real Estate Investment Trust (BEI-UN) Q4 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in 2025, with FFO per unit up 11.2% and NOI up 9.2% year-over-year, supported by disciplined capital allocation and a focus on affordability.

• Operating margin improved by up to 200 basis points to 66.4%, and regular monthly distribution increased 11.1% to CAD 1.80 per unit annualized for 2026.

• Maintained high occupancy rates averaging 97.6%, with rents well below the Canadian average, and outperformed market benchmarks, especially in Alberta.

• Strategic rebranding, property upgrades, and ESG initiatives underpinned operational stability and growth.

• Executed acquisitions, dispositions, and unit repurchases, investing in value-add repositioning and resident affordability.

Financial highlights

• Same property rental revenue rose 5.8% year-over-year to $608.9M, with NOI up 9.0% to $404.3M and FFO per unit up 11.2% to $4.65.

• Operating margin improved by 190–200 bps to 66.4%, and regular distributions per unit rose 14.0% to $1.59 for 2025.

• Sequential quarterly rental revenue growth was flat to 0.7% in Q4 2025, reflecting portfolio optimization.

• Total rental expenses declined 0.6% year-over-year, aided by lower utility costs and reduced property taxes and insurance.

• FFO payout ratio was 34.1% for 2025, with net asset value per unit increasing to $96.23.

Outlook and guidance

• 2026 guidance anticipates same-property NOI growth of 1.5%–4.5%, FFO per unit of $4.65–$4.90, and AFFO per unit of $3.99–$4.24.

• Regular monthly distribution to increase 11% to $1.80 per unit annualized, effective March 2026.

• Portfolio expected to benefit from resilient demand for affordable housing and continued high occupancy.

• Entering spring leasing season with occupancy at 97.3% and strong demand for affordable housing.