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Same-Property Rental Revenue Growth: Increased by 7.5% year-over-year.
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Same-Property Net Operating Income (NOI): Increased by 10.3% year-over-year.
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Operating Margin: Increased by 160 basis points.
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Same-Property Funds From Operations (FFO) Per Unit: Increased by 11.1%.
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Occupancy Rate: Maintained at 98%.
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Average Occupied Rent: $1,538 for two-bedroom apartments.
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Rental Revenue Growth (Sequential): 1.1% growth in Q1 2025 compared to Q4 2024.
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Total Rental Expenses Increase: Increased by 3% year-over-year.
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Interest Coverage Ratio: 3.0 for the current quarter.
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Liquidity: Approximately $273 million, including $27 million in cash and an undrawn $246 million operating line.
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Estimated Fair Value of Investment Properties: $8.4 billion as of March 31, 2025.
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FFO Per Unit Guidance for 2025: Forecasted between $4.35 and $4.60.
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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.
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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.
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The Trust achieved a high occupancy rate of 98%, reflecting strong demand for affordable housing.
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Boardwalk’s strategic self-regulation of rental rates has resulted in high retention and occupancy, providing stability in a competitive market.
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The company has a strong financial position with approximately $273 million in liquidity, including cash and an undrawn operating line.
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Boardwalk’s investments in community upgrades and amenities have enhanced its value proposition, contributing to high occupancy and resident satisfaction.
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Vacancy loss increased due to new supply entering select markets, leading to increased competition and vacancy, particularly for higher-priced products.
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Leasing spreads on new and renewed leases have decreased, reflecting a more balanced supply and demand picture.
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Total rental expenses increased by 3% for Q1 2025 compared to the same period in the prior year, primarily due to higher utilities consumption.
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The Trust faces challenges with cost uncertainties and timelines in its development pipeline, leading to a pause in some projects.
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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.
Q: How is the new supply in Calgary and Edmonton affecting the market, and what is Boardwalk’s strategy in response? A: John Bowers noted that while Calgary has seen higher deliveries, the demand in Alberta remains high, particularly for affordable, high-quality housing, which Boardwalk offers. The company has maintained high occupancy levels by reinvesting in its portfolio. Sam Kolias, CEO, emphasized that Boardwalk’s strategy focuses on maintaining occupancy and offering value, which has been effective despite increased competition.
Q: What is the outlook for leasing spreads in Calgary, and how is Boardwalk balancing new leasing versus market rents? A: Sam Kolias stated that occupancy levels are high, with several communities having zero availability. The company is focusing on maintaining high occupancy and offering competitive value, which has resulted in stable market conditions in Calgary. The strategy includes targeting high retention rates and providing affordable, large apartment units.
Q: Can you provide details on the acquisition of BRIO and the decision not to list it for sale? A: Samantha Adams, Senior VP of Investments, explained that BRIO is in a prime location near the University of Calgary and offers operational efficiencies. The decision to acquire the remaining interest was strategic, as the property is seen as a valuable asset with strong potential for operational enhancements.
Q: How does Boardwalk view the current political landscape and its impact on the housing market? A: Sam Kolias expressed optimism about the political environment, highlighting the shift towards less taxation and the potential for economic growth. He noted the opportunity for collaboration between major political parties to implement policies that support economic development and housing affordability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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