SUMMARY HIGHLIGHTS FOR THE THREE AND SIX-MONTH PERIODS ENDED
JUNE 30, 2020
- CONTINUED STRONG PERFORMANCE
FOR THE 3 MONTH
PERIOD ENDED JUNE 30, 2020
-
- Funds From Operations (FFO) of $0.71 per Trust Unit; an increase of 4.4%
- Excluding retirement costs, FFO of $0.75 per Trust Unit, an increase of
10.3%
- 3.1% same-property revenue growth
- 6.4% same-property net operating income growth
- FOR THE 6 MONTH PERIOD ENDED JUNE 30,
2020
-
- Funds From Operations (FFO) of $1.33 per Trust Unit; an increase of 7.3%
- Excluding retirement costs, FFO of $1.40 per Trust Unit, an increase of
12.9%
- 3.5% same-property revenue growth
- 7.3% same-property net operating income growth
- SOLID OPERATIONAL PERFORMANCE
-
- Stabilized portfolio occupancy of 96.9% as of the first of
July 2020
- Achieved occupancy of 96.8% for Q2 2020
- Reduced operating expenses by 1.8%
- Rental collections in the second quarter mainly inline with
pre-COVID levels
- STRONG AND FLEXIBLE FINANCIAL POSITION
-
- Approximately $342 million of
liquidity
- Recently completed CMHC-insured mortgage financings at record
low interest rates
- 99% of Boardwalk's mortgages carry CMHC-insurance
- Net Asset Value of $61.77 per
Trust Unit, equating to approximately $180,000 per door
- CONTINUE TO PROVIDE OUR ESSENTIAL SERVICE OF SAFE AND
AFFORDABLE HOUSING THROUGH THE COVID-19 PANDEMIC
-
- Health and safety of our Resident Members and our Associates
remains Boardwalk's top-priority
- DISTRIBUTION OF $1.00 PER
TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF
AUGUST, SEPTEMBER AND OCTOBER
2020
CALGARY, AB, Aug. 13, 2020 /PRNewswire/ - Boardwalk
Real Estate Investment Trust (TSX: BEI.UN)
Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT"
or the "Trust") today announced its financial results for the
second quarter of 2020.
Sam Kolias; Chairman and Chief
Executive Officer of Boardwalk REIT commented: "We are reporting
our second quarter results today as our markets across Canada continue to move through various stages
of economic relaunch. Unchanged since the beginning of the
pandemic, Boardwalk's top priority remains the health and safety of
both our Resident Members as well as Boardwalk's Team of Heroes who
everyday are performing and delivering our essential service of
safe and affordable housing.
Boardwalk's second quarter results are a reflection of our
commitment to providing the best product quality, service and
experience which has made Boardwalk a choice housing provider, both
before and through this pandemic. Our Resident Members have
rewarded us with higher occupancy, retention, and net promoter
scores, creating new long-lasting relationships with our Residents
within our Communities. Our focus on new and innovative ways
to deliver our homes in a more efficient manner is resulting in
lower operating costs while improving service and
experience.
Boardwalk's peak performance-based culture, which was introduced
in 2017 after experiencing increased competition in our core
markets, provided necessary learnings on how-to gain market share,
and today, Boardwalk's diverse brand and affordable product
offering has allowed the Trust to exceed expectations. As we
look forward to the second half of 2020, Boardwalk remains in a
strong financial position to capitalize on opportunities that may
arise, and is well positioned to continue delivering results
for all of our stakeholders on the foundation of strong
affordability within our portfolio of communities across
Canada where love always
lives."
SECOND QUARTER & FIRST SIX-MONTHS FINANCIAL
HIGHLIGHTS
|
$ millions, except
per unit amounts
|
Highlights of the
Trust's Second Quarter 2020 Financial Results
|
|
|
3 Months Jun
30, 2020
|
|
3 Months Jun
30, 2019
|
%
Change
|
|
6 Months Jun
30, 2020
|
|
6 Months Jun
30, 2019
|
%
Change
|
Operational
Highlights
|
|
|
|
|
|
|
|
|
|
|
Total Rental
Revenue
|
|
$
|
116.8
|
|
$
|
113.4
|
3.0%
|
|
$
|
232.8
|
|
$
|
225.3
|
3.4%
|
Same Property Total
Rental Revenue *
|
|
$
|
114.1
|
|
$
|
110.6
|
3.1%
|
|
$
|
227.5
|
|
$
|
219.8
|
3.5%
|
Net Operating Income
(NOI)
|
|
$
|
70.5
|
|
$
|
66.2
|
6.5%
|
|
$
|
135.2
|
|
$
|
126.1
|
7.2%
|
Same Property NOI
*
|
|
$
|
70.4
|
|
$
|
66.1
|
6.4%
|
|
$
|
135.3
|
|
$
|
126.1
|
7.3%
|
Operating
Margin
|
|
60.4%
|
|
58.4%
|
|
|
58.1%
|
|
56.0%
|
|
Same Property
Operating Margin *
|
|
61.7%
|
|
59.8%
|
|
|
59.5%
|
|
57.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations
(FFO)
|
|
$
|
36.2
|
|
$
|
34.8
|
4.1%
|
|
$
|
67.7
|
|
$
|
63.0
|
7.4%
|
Adjusted Funds From
Operations (AFFO)
|
|
$
|
31.1
|
|
$
|
28.8
|
8.0%
|
|
$
|
57.5
|
|
$
|
51.1
|
12.6%
|
(Loss) Profit for the
Period **
|
|
$
|
(35.3)
|
|
$
|
71.6
|
-149.3%
|
|
$
|
22.6
|
|
$
|
63.9
|
-64.6%
|
FFO per Unit
(includes $0.04 and $0.07 of retirement costs in Q2 2020 and YTD
2020, respectively)
|
|
$
|
0.71
|
|
$
|
0.68
|
4.4%
|
|
$
|
1.33
|
|
$
|
1.24
|
7.3%
|
AFFO per Unit
(includes $0.04 and $0.07 of retirement costs in Q2 2020 and YTD
2020, respectively)
|
|
$
|
0.61
|
|
$
|
0.57
|
7.0%
|
|
$
|
1.13
|
|
$
|
1.00
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset
Value
|
|
|
|
|
|
|
|
|
|
|
IFRS Asset Value per
Diluted Unit (Trust & LP B), period end
|
|
|
|
|
|
|
$
|
119.19
|
|
$
|
120.73
|
|
Debt Outstanding per
Diluted Unit, period end
|
|
|
|
|
|
|
$
|
(58.92)
|
|
$
|
(57.81)
|
|
Net Asset Value (NAV)
per Diluted Unit (Trust & LP B), period end
|
|
|
|
|
|
|
$
|
60.27
|
|
$
|
62.92
|
|
Cash per Diluted Unit
(Trust & LP B), period end
|
|
|
|
|
|
|
$
|
1.50
|
|
$
|
0.38
|
|
Total per Diluted
Unit (Trust & LP B), period end
|
|
|
|
|
|
|
$
|
61.77
|
|
$
|
63.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity, Debt
and Distributions
|
|
|
|
|
|
|
|
|
|
|
Cash Position, period
end
|
|
|
|
|
|
|
$
|
76,600
|
|
|
|
Subsequent Fundings
To End of Quarter
|
|
|
|
|
|
|
$
|
48,300
|
|
|
|
Committed
UpFinancings
|
|
|
|
|
|
|
$
|
16,700
|
|
|
|
Line of
Credit
|
|
|
|
|
|
|
$
|
200,000
|
|
|
|
Total Available
Liquidity
|
|
|
|
|
|
|
$
|
341,600
|
|
|
|
Liquidity as a % of
Period Total Debt
|
|
|
|
|
|
|
11%
|
|
|
|
Debt (net of cash) as
a % of Reported Asset Value
|
|
|
|
|
|
|
48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Outstanding, period end
|
|
$
|
2,906,985
|
|
$
|
2,833,004
|
|
|
$
|
2,906,985
|
|
$
|
2,833,004
|
|
Interest Coverage
Ratio (Rolling 4 quarters)
|
|
|
2.77
|
|
|
2.70
|
|
|
|
2.77
|
|
|
2.70
|
|
|
|
|
|
|
|
|
|
|
|
|
Regular Distributions
Declared (Trust Units & LP B Units)
|
|
$
|
12.8
|
|
$
|
12.7
|
0.3%
|
|
$
|
25.5
|
|
$
|
25.5
|
0.2%
|
Regular Distributions
Declared Per Unit (Trust Units & LP B Units)
|
|
$
|
0.250
|
|
$
|
0.250
|
0.0%
|
|
$
|
0.500
|
|
$
|
0.500
|
0.0%
|
Regular Payout as a %
FFO
|
|
35.3%
|
|
36.6%
|
|
|
37.7%
|
|
40.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized Apartment
Units
|
|
|
|
|
|
|
|
32,611
|
|
|
32,968
|
|
Un-Stabilized
Units
|
|
|
|
|
|
|
|
575
|
|
|
449
|
|
Total Apartment
Units
|
|
|
|
|
|
|
|
33,186
|
|
|
33,401
|
|
*Same Property figures exclude un-stabilized properties and
sold assets
** (Loss) Profit for the period as defined
by IFRS includes the changes in assets and/or liabilities carried
at fair value
NOI, FFO and AFFO are widely accepted supplemental measures
of the performance of a Canadian Real Estate entity; however, they
are non-GAAP financial measures as they are not measures defined by
International Financial Reporting Standards ("IFRS"). The
reconciliation of FFO, AFFO and other financial performance
measures can be found in the Management's Discussion and Analysis
("MD&A") for the three and six months ended June 30, 2020, under the section titled,
"Non-GAAP Measures", which is available under the Trust's profile
at www.sedar.com.
SOLID OPERATIONAL PERFORMANCE
Portfolio
Highlights for the Second Quarter of 2020
|
|
Jun-20
|
Dec-19
|
Jun-19
|
Average Occupancy
(Quarter Average)*
|
96.78%
|
96.19%
|
96.57%
|
|
|
|
|
Average Monthly Rent
(Period Ended)
|
$
|
1,142
|
$
|
1,132
|
$
|
1,120
|
Average Market Rent
(Period Ended)
|
$
|
1,331
|
$
|
1,341
|
$
|
1,315
|
Average Market Rent
(Period Ended), net of incentives
|
$
|
1,230
|
$
|
1,248
|
$
|
1,210
|
Average Occupied Rent
(Period Ended)
|
$
|
1,176
|
$
|
1,182
|
$
|
1,157
|
|
|
|
|
Loss -to-Lease
(Period Ended) ($ millions )
|
$
|
59.0
|
$
|
60.8
|
$
|
60.3
|
Loss -to-Lease
(Period Ended) ($ millions ), net of incentives
|
$
|
20.6
|
$
|
24.9
|
$
|
20.2
|
Loss -to-Lease Per
Trust Unit (Period Ended)
|
$
|
1.16
|
$
|
1.19
|
$
|
1.19
|
Loss -to-Lease Per
Trust Unit (Period Ended), net of incentives
|
$
|
0.40
|
$
|
0.49
|
$
|
0.40
|
|
|
|
|
*Average occupancy is adjusted to be on a same-property
basis
Boardwalk's core Alberta
portfolio continues to deliver solid growth with our two largest
markets, Edmonton and Calgary, delivering 7.6% and 3.6% same
property NOI growth in the second quarter, respectively, as
compared to the same period in 2019. The Trust's Ontario and Quebec markets, which represent over 25% of
the Trust's portfolio, are continuing to deliver strong and stable
results with record high occupancy and increasing market rents,
contributing significant NOI growth of 8.3% and 8.8%, respectively,
in the second quarter compared to the second quarter of 2019.
Saskatchewan's market continues to
improve with the Trust's portfolio realizing 6.6% same property NOI
growth in the second quarter versus the same period last
year.
Overall in the second quarter, the Trust delivered revenue
growth of 3.1%, and reduced operating expenses by 1.8% resulting in
portfolio stabilized NOI growth of 6.4%, each as compared to the
same period in 2019.
Jun 30 2020 - 3
M
|
# of
Units
|
% Revenue
Growth
|
% Operating
Expense
Growth
|
% Net
Operating
Income
Growth
|
% of
NOI
|
Edmonton
|
12,906
|
3.1%
|
-2.7%
|
7.6%
|
38.1%
|
Calgary
|
5,499
|
2.2%
|
-0.5%
|
3.6%
|
20.5%
|
Red Deer
|
939
|
0.9%
|
1.2%
|
0.6%
|
2.4%
|
Grande
Prairie
|
645
|
4.9%
|
18.8%
|
-5.0%
|
1.5%
|
Fort
McMurray
|
352
|
-1.3%
|
-0.8%
|
-1.6%
|
1.0%
|
Alberta
|
20,341
|
2.7%
|
-1.4%
|
5.5%
|
63.5%
|
Quebec
|
6,000
|
3.0%
|
-7.5%
|
8.8%
|
19.5%
|
Saskatchewan
|
3,685
|
3.2%
|
-0.9%
|
6.6%
|
10.0%
|
Ontario
|
2,585
|
7.3%
|
5.6%
|
8.3%
|
7.0%
|
|
32,611
|
3.1%
|
-1.8%
|
6.4%
|
100.0%
|
|
|
|
|
|
|
Jun 30 2020 - 6
M
|
# of
Units
|
% Revenue
Growth
|
% Operating
Expense
Growth
|
% Net
Operating
Income
Growth
|
% of
NOI
|
Edmonton
|
12,906
|
3.5%
|
-1.9%
|
8.2%
|
37.7%
|
Calgary
|
5,499
|
3.1%
|
-1.8%
|
5.8%
|
21.0%
|
Red Deer
|
939
|
1.2%
|
5.9%
|
-2.8%
|
2.3%
|
Grande
Prairie
|
645
|
6.5%
|
13.2%
|
0.9%
|
1.6%
|
Fort
McMurray
|
352
|
-0.5%
|
-2.8%
|
1.5%
|
1.0%
|
Alberta
|
20,341
|
3.3%
|
-1.1%
|
6.7%
|
63.5%
|
Quebec
|
6,000
|
2.8%
|
-8.3%
|
10.0%
|
19.3%
|
Saskatchewan
|
3,685
|
3.3%
|
1.8%
|
4.5%
|
10.2%
|
Ontario
|
2,585
|
7.1%
|
3.8%
|
9.3%
|
7.0%
|
|
32,611
|
3.5%
|
-1.6%
|
7.3%
|
100.0%
|
PROVIDING OUR ESSENTIAL SERVICE OF SAFE AND AFFORDABLE
HOUSING THROUGH COVID-19
The health, safety, and well-being of our Resident Members and
Associates remain our top priority; and as we continue to deliver
homes to our Resident Members through this pandemic, Boardwalk
remains committed to providing transparency and information to its
stakeholders:
- At the end of July 2020;
Boardwalk has collected 98.3% of its rental revenue due in July,
and is generally inline with collection levels pre-COVID
-
- Boardwalk is actively following-up with any of its Resident
Members in arrears or in need of a payment plan
- Boardwalk continues to offer flexible payment options to its
Resident Members who may require payment plans.
- Boardwalk's rent collection through COVID to-date, has been
generally inline with pre-COVID levels
- Boardwalk's occupancy within its stabilized portfolio at the
beginning of July 2020 was 96.9%
Q2 REGULAR MONTHLY DISTRIBUTION ANNOUNCEMENT
The Trust has confirmed its regular monthly distribution for the
months of August, September and October
2020 as follows:
Month
|
Per
Unit
|
Annualized
|
Record
Date
|
Distribution
Date
|
Aug 20
|
$
|
0.0834
|
$
|
1.00
|
31-Aug-20
|
15-Sep-20
|
Sep 20
|
$
|
0.0834
|
$
|
1.00
|
30-Sep-20
|
15-Oct-20
|
Oct 20
|
$
|
0.0834
|
$
|
1.00
|
30-Oct-20
|
16-Nov-20
|
In line with Boardwalk's distribution policy of maximum
re-investment, the Trust's payout ratio remains conservative at
35.3% of Q2-2020 FFO; and 37.6% of the last 12 months
FFO.
Boardwalk's regular monthly distribution provides a stable and
attractive yield for the Trust's stakeholders.
FINANCIAL AND SUPPLEMENTARY INFORMATION
Boardwalk produces quarterly financial statements, management's
discussion and analysis, and a supplemental information package
that provides detailed information regarding the Trust's activities
during the quarter. Financial and supplementary information
is available on Boardwalk's investor website at
www.bwalk.com/investors
TELECONFERENCE ON SECOND QUARTER 2020 FINANCIAL
RESULTS
Boardwalk invites you to participate in the teleconference that
will be held to discuss these results tomorrow morning
(August 14, 2020) at 11:00 am Eastern Time. Senior management will
speak to the period's results and provide an update. Presentation
materials will be made available on Boardwalk's investor website at
www.bwalk.com/investors prior to the call.
Teleconference: The telephone numbers for the conference
are 416-764-8650 (local/international callers) or toll-free
1-888-664-6383 (within North
America).
Note: Please provide the operator with the below Conference Call
ID or Topic when dialing in to the call.
Conference ID: 84873695
Topic: Boardwalk REIT Second Quarter Results
Webcast: Investors will be able to listen to the call and
view Boardwalk's slide presentation by visiting
www.bwalk.com/investors prior to the start of the
call.
An information page will be provided for any software needed and
system requirements. The webcast and slide presentation will
also be available at:
Boardwalk REIT Second Quarter Conference Call Webcast Link
Replay: An audio recording of the teleconference will be
available on the Trust's website:
www.bwalk.com/investors
CORPORATE PROFILE
Boardwalk REIT strives to be
Canada's friendliest communities
and currently owns and operates more than 200 communities with over
33,000 residential units totaling over 28 million net rentable
square feet. Boardwalk's principal objectives are to provide
its Residents with the best quality communities and superior
customer service, while providing Unitholders with sustainable
monthly cash distributions, and increase the value of its trust
units through selective acquisitions, dispositions, development,
and effective management of its residential multi-family
communities. Boardwalk REIT is vertically integrated and is
Canada's leading owner/operator of
multi-family communities bringing Residents home to properties
located in Alberta, Saskatchewan, Ontario, and Quebec.
Boardwalk REIT's Trust units are listed on the Toronto Stock
Exchange, trading under the symbol BEI.UN. Additional
information about Boardwalk REIT can be found on the Trust's
website www.bwalk.com/investors
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING
STATEMENTS
Information in this news release that is not current or
historical factual information may constitute forward-looking
statements and information (collectively, "forward-looking
statements") within the meaning of securities laws. Implicit
in these forward-looking statements, particularly in respect of
Boardwalk's objectives for 2020 and future periods, Boardwalk's
strategies to achieve those objectives, as well as statements with
respect to management's beliefs, plans, estimates and intentions,
and similar statements concerning anticipated future events,
results, circumstances, performance or expectations are estimates
and assumptions subject to risks and uncertainties, including those
described in the second quarter Management's Discussion &
Analysis of Boardwalk and the year-end Management's Discussion
& Analysis of Boardwalk under the heading "Risks and Risk
Management", which could cause Boardwalk's actual results to differ
materially from the forward-looking statements contained in this
news release. Specifically, Boardwalk has made assumptions
surrounding the impact of economic conditions in Canada and globally including as a result of
the COVID-19 pandemic, Boardwalk's future growth potential,
prospects and opportunities, the rental environment compared to
several years ago, relatively stable interest costs, access to
equity and debt capital markets to fund (at acceptable costs), the
future growth program to enable the Trust to refinance debts as
they mature, the availability of purchase opportunities for growth
in Canada, general industry
conditions and trends, changes in laws and regulations including,
without limitation, changes in tax laws, mortgage rules and other
temporary legislative changes in light of the COVID-19 pandemic,
increased competition, the availability of qualified personnel,
fluctuations in foreign exchange or interest rates, and stock
market volatility. These assumptions, although considered
reasonable by the Trust at the time of preparation, may prove to be
incorrect. For more exhaustive information on these risks and
uncertainties you should refer to Boardwalk's most recently filed
annual information form, which is available at www.sedar.com.
Forward-looking statements contained in this news release is based
on Boardwalk's current estimates, expectations and projections,
which Boardwalk believes are reasonable as of the current
date. You should not place undue importance on
forward-looking statements and should not rely upon forward-looking
statements as of any other date. Except as required by
applicable law, Boardwalk undertakes no obligation to publicly
update or revise any forward-looking statement, whether a result of
new information, future events, or otherwise.
View original
content:http://www.prnewswire.com/news-releases/boardwalk-reit-reports-second-quarter-funds-from-operations-per-unit-growth-of-4-4-10-3-excluding-retirement-costs-301112213.html
SOURCE Boardwalk Real Estate Investment Trust