CALGARY, AB, Dec. 21, 2021 /PRNewswire/ - Boardwalk
Real Estate Investment Trust (TSX: BEI.UN)
Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT"
or the "Trust") announces that on December
15, 2021, the Trust closed on the sale of a non-core,
180-unit asset in Saskatoon,
SK. Reid Park is a
3-storey wood frame walk-up community located in southwest
Saskatoon. The sale price of $25.0
million, or $138,800 per
apartment door, was inline with the Trust's IFRS fair value of the
asset.
Throughout fiscal 2021, the Trust has sold non-core assets at or
above the Trust's IFRS fair value while continuing to increase its
funds from operations (FFO). This continued FFO growth in
combination with Boardwalk's minimum distribution policy, has
resulted in estimated fiscal 2021 total taxable income
(representing capital gains and other income) exceeding
distributions paid.
Boardwalk further announces that it has declared a special
non-cash distribution of $0.325 per
Trust Unit, payable on December 31,
2021 to Unitholders of record at the close of business on
December 31, 2021 (the "Special
Distribution"). The non-cash Special Distribution is
principally being made to distribute to Unitholders a portion of
the capital gain realized by the Trust from transactions completed
in the twelve-month period ended December
31, 2021. Accordingly, the Special Distribution will
be in the form of a capital gain for Canadian income tax
purposes.
Canadian resident Unitholders will generally be required to
include their proportionate share of the Trust's income and net
taxable capital gain for the 2021 tax year as allocated and
designated by the Trust in computing their respective income for
the 2021 tax year. Subject to finalization, the Trust
anticipates that after the non-cash Special Distribution,
Unitholder tax payable on distributions in 2021 should be
comparable to the tax paid on distributions in 2020.
The non-cash Special Distribution will be paid at the close of
business on December 31, 2021 by the
issuance of additional Trust Units that will have a fair market
value equal to the dollar amount of the Special Distribution and
which will be based on the closing price of the Trust Units on the
Toronto Stock Exchange on December
31, 2021. Immediately after the payment of the Special
Distribution, the issued and outstanding Trust Units will be
consolidated such that the aggregate number of issued and
outstanding Trust Units immediately after the Special Distribution
will be the same as immediately before the Special
Distribution. The amount of the Special Distribution will
increase the adjusted cost base of Unitholders' consolidated Trust
Units. Unitholders that are not a resident in Canada for Canadian federal income tax
purposes may be subject to applicable withholding taxes in
connection with the payment of the Special Distribution.
The Trust cautions that the foregoing comments are not intended
to be, and should not be construed as, legal or tax advice to any
Unitholder. The Trust recommends that the Unitholders consult
their own tax advisors regarding the income tax consequences to
them of this anticipated Special Distribution and related unit
consolidation.
NON-GAAP FINANCIAL MEASURES
Boardwalk believes non-GAAP financial measures are meaningful
and useful measures of real estate organizations operating
performance, however, are not measures defined by IFRS. As they do
not have standardized meanings prescribed by IFRS, they therefore
may not be comparable to similar measurements presented by other
entities and should not be construed as an alternative to IFRS
defined measures. The IFRS measurement most comparable to FFO
is profit (loss). We define FFO as income before fair value
adjustments, distributions on the LP Class B Units, gains or losses
on the sale of the Trust's investment properties, depreciation,
deferred income tax, and certain other non-cash adjustments, if
any, but after deducting the principal portion of lease liabilities
and adding the principal portion of lease receivables. The
reconciliation from profit (loss) under IFRS to FFO can be found in
the REIT's management's discussion and analysis for the three and
nine months ended September 30, 2021
(the "MD&A") under the section titled "Performance Review – FFO
and AFFO Reconciliations". Boardwalk considers FFO to be an
appropriate measurement of the performance of a publicly listed
multi-family residential entity. In order to facilitate a clear
understanding of the combined historical operating results of
Boardwalk, management feels FFO should be considered in conjunction
with profit (loss) as presented in the condensed consolidated
interim financial statements for the three and nine months ended
September 30, 2021.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements.
The use of any of the words "expect", "anticipate", "may", "will",
"should", "believe", "intends", and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements contained in this press release include our continued
FFO growth, that estimated fiscal 2021 total taxable income will
exceed distributions paid, as well as the anticipated Special
Distribution including the timing of payment thereof and tax
treatment thereof.
With respect to forward-looking statements contained in this
press release, we have made several assumptions including expected
2021 total taxable income, continued FFO growth and those described
in detail in our MD&A and the Annual Information Form for the
period ended December 31, 2020.
Readers and investors are cautioned that the assumptions used in
the preparation of such forward-looking statements, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. Our actual results, performance, or
achievements could differ materially from those expressed in, or
implied by, these forward-looking statements. We can give no
assurance that any of the events anticipated will transpire or
occur, or if any of them do, what benefits we will derive from
them.
By their nature, forward-looking statements are subject to
numerous risks and uncertainties, some of which are beyond our
control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices and stock
market volatility. The foregoing and other risks are described in
more detail in the REIT's MD&A, and the Annual Information Form
for the period ended December 31,
2020, each of which is available at www.sedar.com.
Further, any forward-looking statement is made only as of the
date of this press release, and the REIT undertakes no obligation
to update or revise any forward-looking statement or statements to
reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
events, except as required by applicable securities laws. New
factors emerge from time to time, and it is not possible for the
REIT to predict all of these factors or to assess in advance the
impact of each such factor on the REIT's business or the extent to
which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements.
The forward-looking statements contained in this press release
are expressly qualified by this cautionary statement.
CORPORATE PROFILE
Boardwalk REIT strives to be Canada's friendliest multi-family community
provider and is a leading owner/operator of multi-family rental
communities. Providing homes in more than 200 communities,
with over 33,000 residential units totaling over 28 million net
rentable square feet, Boardwalk has a proven long-term track record
of building better communities, where love always
livestm. Our three-tiered and distinct brands:
Boardwalk Living, Boardwalk Communities and Boardwalk Lifestyle,
cater to a large and diverse demographic and has evolved to capture
the life cycle of all Resident Members. Boardwalk's
disciplined approach to capital allocation, acquisition,
development, purposeful re-positioning, and management of apartment
communities allows the Trust to provide its brand of community
across Canada creating exceptional
Resident Member experiences. Differentiated by its peak performance
culture, Boardwalk is committed to delivering exceptional service,
product quality and experience to our Resident Members who reward
us with high retention and market leading operating results, which
in turn, lead to higher free cash flow and investment returns,
stable monthly distributions, and value creation for all our
stakeholders.
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 at www.bwalk.com/investors.
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SOURCE Boardwalk Real Estate Investment Trust