THIRD QUARTER 2018

Published: December 5, 2018

NEWS RELEASE FOR IMMEDIATE DISTRIBUTION
BOARDWALK REIT REPORTS THIRD QUARTER 2018 FINANCIAL RESULTS

Highlights for three and nine month periods ended September 30, 2018:

• Q3 2018 FFO per unit of $0.59, including $0.02 of adjustments relating to associate transition costs, an 11.3% increase from the same period a year ago
• Revenue recovery leading to solid NOI growth
• Q3 Same Property Rental Revenue increased 4.3%, Same Property NOI increased 6.5%
• Q3 Operating Margin increased to 53.8%
• Operating and Administration expense improvements in 2018
• $0.03 of adjustments relating to associate transition costs in the first 9M of 2018 ($0.02 in Q3)
• Additional associate transition costs anticipated in Q4
• Suite and common area investment accelerating growth
• Returns continue to exceed expectations
• Increased focus on common area investment while vacancy is low
• Accretive acquisition of high-quality portfolio in Calgary
• Four communities totaling 299-units, purchase price of $66.5 million or $222,000 per door
• Value-add opportunity; mark-to-market on in-place rents coupled with operating efficiencies
• Solid development opportunities
• Substantially completed: Pines Edge 3; Regina, SK and Under Construction: Brio; Calgary, AB
• Increased internal development opportunities to 6,000 apartment units on excess density
• Long-term growth target of 10,000 to 15,000 apartment units over the next 10 to 15 years
• Strong Financial Position
• Approximately $300 million of liquidity
• Net Asset Value of $63.05 per trust unit
• Tightens range for 2018 Financial Guidance
• Distribution of $1.00 per Trust Unit on an annualized basis confirmed for the months of November,December of 2018 and January of 2019

CALGARY, AB – November 14, 2018 - 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 third quarter of 2018.

“We are pleased to report on a solid third quarter for the Trust. Our recovering financial results are the product of our team’s commitment to the best product quality, service and experience which has resulted in higher revenues by maintaining high occupancy, a decrease of incentives, and increasing revenues. This approach has resulted in a positive revenue trend that began in 2018, and we continue to see a sequential and compounding improvement in our revenue. With the rental market in Alberta trending to a level of balance, we continue to focus on executing on this revenue growth strategy and are in the early stages of this significant opportunity.” said Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT.

Rob Geremia; President of Boardwalk REIT added: “The demand for our renovated product in each of our three brands remains strong. We continue to improve both our cost and delivery of renovated units and are better balancing renovations with vacancy. We have increased our investment in lobbies and common areas, and to date, have seen strong returns in the form of higher occupancy, tenant retention, and increasing net rental rates. Despite an increase in competition during our busy summer turnover season, our team successfully
reduced incentives while balancing only a slight decrease in our occupancy levels. Many of our communities which were offering significant incentives this time last year, are now being leased with limited to no incentives. Additionally, our approach of flexible rental rate increases on lease renewal continues, and has resulted in successfully reducing in-place incentives. Overall, total incentives have begun to decrease, and the compounding impact of these incentive reductions, when combined with high occupancy levels will further our recovery and growth.”

Mr. Kolias added: “Our results reflect a rental market re-balancing and improvement from a cyclical bottom and has provided us the confidence to expand our portfolio in Alberta and are proud to announce the acquisition of a 299-unit portfolio in Calgary which provides a significant mark-to-market opportunity on in-place rents while also adding further operating efficiencies given their proximity to our existing communities. This acquisition is anticipated to be immediately accretive, and create significant Net Asset Value once optimized. This is an example of an opportunistic acquisition within our core market which provides growth and a value-add opportunity in the early stages of a rental market improvement in Alberta.”

Mr. Geremia concluded: “We have made substantial progress in the last couple of years to ensure our Communities provide our Residents with the best product quality, service and experience at an affordable price point and are well positioned to further accelerate through this rental market recovery. Throughout 2018, the Trust has reviewed and improved its controllable operating and administration expense by focusing on a culture of a peak performing team. This philosophy provides more responsibility to high-performing team members and
has allowed the Trust to reduce its overall team size from 1,850 to approximately 1,700 Associates. In the first nine months of 2018, the Trust has incurred approximately $0.03 of FFO/Trust Unit of transition costs relating to this re-structuring. The Trust anticipates additional charges in the fourth quarter, however will be well positioned as we head into 2019. Technology is one place where Boardwalk has expanded its Administration investment as we look to expand and include modern advancements into our product offering for our Resident Members, and provide additional tools to empower our team to efficiently provide the best product quality, service and experience.”

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