Boardwalk Real Estate Investment Trust (BOWFF) Q1 2025 Earnings Call Highlights: Strong Revenue …

• Same-Property Rental Revenue Growth: Increased by 7.5% year-over-year.

• Same-Property Net Operating Income (NOI): Increased by 10.3% year-over-year.

• Operating Margin: Increased by 160 basis points.

• Same-Property Funds From Operations (FFO) Per Unit: Increased by 11.1%.

• Occupancy Rate: Maintained at 98%.

• Average Occupied Rent: $1,538 for two-bedroom apartments.

• Rental Revenue Growth (Sequential): 1.1% growth in Q1 2025 compared to Q4 2024.

• Total Rental Expenses Increase: Increased by 3% year-over-year.

• Interest Coverage Ratio: 3.0 for the current quarter.

• Liquidity: Approximately $273 million, including $27 million in cash and an undrawn $246 million operating line.

• Estimated Fair Value of Investment Properties: $8.4 billion as of March 31, 2025.

• FFO Per Unit Guidance for 2025: Forecasted between $4.35 and $4.60.

• Distribution Increase: 12.5% increase from the previous year, equating to $1.62 per trust unit on an annualized basis.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Boardwalk Real Estate Investment Trust (BOWFF) reported a 7.5% increase in same-property rental revenue and a 10.3% increase in same-property net operating income compared to the same quarter last year.

• The Trust achieved a high occupancy rate of 98%, reflecting strong demand for affordable housing.

• Boardwalk’s strategic self-regulation of rental rates has resulted in high retention and occupancy, providing stability in a competitive market.

• The company has a strong financial position with approximately $273 million in liquidity, including cash and an undrawn operating line.

• Boardwalk’s investments in community upgrades and amenities have enhanced its value proposition, contributing to high occupancy and resident satisfaction.

• Vacancy loss increased due to new supply entering select markets, leading to increased competition and vacancy, particularly for higher-priced products.

• Leasing spreads on new and renewed leases have decreased, reflecting a more balanced supply and demand picture.

• Total rental expenses increased by 3% for Q1 2025 compared to the same period in the prior year, primarily due to higher utilities consumption.

• The Trust faces challenges with cost uncertainties and timelines in its development pipeline, leading to a pause in some projects.

• Current interest rates are above the Trust’s maturing rates, which could impact future refinancing costs.

Q: Are there any concerns about job growth in Alberta, particularly from the oil and gas sector, and could this impact interprovincial immigration? A: John Bowers, Vice President – Finance, Director of Investor Relations, explained that Alberta’s oil producers have improved their debt levels, positioning them better than in past cycles. Additionally, the province has diversified its economy, attracting job growth in sectors like healthcare and clean tech. James Ha, President, added that Alberta’s affordability and low taxes continue to attract positive migration, as evidenced by recent population growth statistics.