Boardwalk expands Montreal portfolio

Mr. Sam Kolias reports BOARDWALK REIT ANNOUNCES CONTINUATION OF ITS CAPITAL UPCYCLING PROGRAM, EXPANDS ITS GREATER MONTREAL PORTFOLIO Boardwalk Real Estate Investment Trust today noted $273.1-million of transaction activity consisting of the sale of two older communities in Edmonton, Alta., for a gross sales price of $24.1-million and the acquisition of Central Parc 1, 2 and 3 in Laval, Que., for a total purchase price of $249.0-million. All amounts referenced herein exclude transaction and closing costs. Edmonton dispositions The trust has finalized the sale of two older vintage communities totalling 134 suites in Edmonton, Alta., for a gross sales price of $24.1-million. The sales price equates to approximately $180,000 per suite and an exit cap rate of approximately 5.6 per cent and includes the trust's Westmoreland Apartments and Lorelei House communities. The communities were sold to a local private buyer and were put under contract in Q2 2025. The existing mortgages have an aggregate balance remaining of $8.6-million at a weighted average interest rate of 3.0 per cent. The sale is scheduled to close in September, 2025. Central Parc 1, 2 and 3 The trust is pleased to announce the acquisition of the Central Parc 1, 2 and 3 communities in Laval, Que. The communities consist of three concrete towers totalling 541 suites built in phases from 2019 to 2022. The total purchase price of $249.0-million equates to approximately $460,000 per suite and a going-in cap rate of 4.5 per cent, excluding transaction costs. The communities offer best-in-class amenities and finishes, as well as spacious layouts with an average suite size of 942 square feet. The communities target a broad demographic with one-, two- and three-bedroom layouts. On closing, the trust will assume CMHC mortgages totalling $178.2-million with a weighted-average interest rate of 1.56 per cent and a weighted average remaining term of 3.2 years. Central Parc 2 and 3 were financed through CMHC's rental construction financing initiative and the trust is proud to partner in maintaining the in-place affordability criteria on 91 units. The acquisition of Central Parc 1, 2, and 3 is anticipated to close in late September, 2025. The trust is anticipating that its funds from operations per unit (FFO per unit) for the remainder of the year as a result of the Central Parc 1, 2, and 3 acquisitions, net of the Westmoreland Apartments and Lorelei House dispositions, will increase by two cents per unit, which was not included in the trust's Q2 guidance update. For the full year in 2026, the trust anticipates that its FFO per unit will increase by approximately seven cents as a result. Sam Kolias, chairman and chief executive officer, commented: "We are excited to welcome three new communities, Central Parc 1, 2 and 3, to our Boardwalk family forever. This addition marks further progress on our capital upcycling initiatives and significantly expands our presence in Greater Montreal, a desirable market for the trust that continues to exhibit strength, resilience and relative affordability. This community allows us to offer our resident members unmatched affordable luxury at an average in-place rent of approximately $2,225, with a unique product offering for the surrounding area. Central Parc's best-in-class amenity package, spacious suite layouts and views represent an outstanding value proposition for residents and unitholders. The trust is pleased to add these exceptional communities to its portfolio on an accretive basis to FFO per unit and at a meaningful discount to replacement cost. We are proud to continue our partnership with CMHC in preserving affordability in our markets through the assumption of the in-place debt on these communities. We would like to extend our gratitude to all our partners who brought this win-win outcome to fruition, and to our team's tireless efforts since sourcing this opportunity in early 2025. The trust continues to take a balanced, opportunistic approach to use of proceeds from dispositions and other capital sources, between attractive, unique acquisitions and reinvestment in the trust's own units through its normal course issuer bid, while maintaining a strong balance sheet over time." About Boardwalk Real Estate Investment Trust Boardwalk REIT strives to be Canada's friendliest community provider and the first choice in multifamily communities to work, invest and call home with its Boardwalk family forever. Providing homes in more than 200 communities, with approximately 34,000 residential suites totalling over 29 million net rentable square feet, Boardwalk has a proven long-term record of building better communities, where love always lives. The trust's three-tiered and distinct brands -- Boardwalk Living, Boardwalk Communities and Boardwalk Lifestyle -- cater to a large diverse demographic and have evolved to capture the life cycle of all resident members. Boardwalk's disciplined approach to capital allocation, acquisition, development, purposeful repositioning 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 the trust's resident members who reward the trust 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 the trust's stakeholders. We seek Safe Harbor.