BOARDWALK REIT REPORTS STRONG RESULTS FOR Q2 2025

Executive Summary

• Boardwalk REIT reported strong financial results for Q2 2025, with Funds From Operations (FFO) per unit increasing 11.5% year-over-year to $1.16, driven by robust Net Operating Income (NOI) growth of 9.0% to $104.2 million.
• The Trust updated its 2025 financial guidance upward, raising the FFO per unit range to $4.48–$4.63 and Same Property NOI growth to +8.0% to +10.0%, citing strong revenue growth, cost containment, and lower utility costs.
• Significant progress was made on the "Capital Upcycling" strategy, finalizing the sale of four communities (568 suites) for $117.2 million and the purchase of two newer communities (393 suites) for $133.1 million, while maintaining a strong balance sheet with $324.6 million in total liquidity.

Key Details

• Q2 2025 Financial Performance (3 Months Ended June 30, 2025):
  • FFO: $1.16 per unit (up 11.5% from Q2 2024); Total FFO of $61.9 million.
  • Profit: $76.3 million.
  • Net Operating Income (NOI): $104.2 million (up 9.0% from Q2 2024).
  • Same Property NOI: $104.4 million (up 9.8% from Q2 2024).
  • Operating Margin: 66.2% (up 210 bps from Q2 2024).
  • Same Property Rental Revenue Growth: 6.2% year-over-year; 1.0% sequential.
  • Occupancy: 97.9%.
• Six-Month Performance (Ended June 30, 2025):
  • FFO: $2.22 per unit (up 11.6% from prior year).
  • Profit: $210.1 million.
  • NOI: $200.8 million (up 9.6% from prior year).
  • Same Property NOI: $201.1 million (up 10.0% from prior year).
• Balance Sheet & Liquidity:
  • Total Available Liquidity: ~$324.6 million.
  • Unitholders' Equity: $5.0 billion.
  • Net Asset Value (NAV): $97.32 per unit (up from $93.68 at year-end 2024).
  • Debt to EBITDA: 9.77x (improved from 10.08x at Dec 31, 2024).
  • Debt to Total Assets: 39.6% (improved from 40.6% at Dec 31, 2024).
  • 96% of mortgages carry CMHC insurance.
• Capital Upcycling Transactions (Subsequent to Quarter End):
  • Dispositions: Finalized sale of four communities totaling 568 suites for $117.2 million.
    • Imperial Tower (Edmonton, 138 suites) – previously announced.
    • Insignia Tower (Edmonton, 124 suites).
    • Les Appartements du Verdier (Québec City, 195 suites).
    • Place du Parc (Québec City, 111 suites).
    • Combined exit cap rate: 5.3%.
  • Acquisitions: Finalized purchase of two newer communities totaling 393 suites for $133.1 million.
    • North Prairie Townhomes (Saskatoon/Regina, 235 suites) – previously announced; $71.1M; 5.2% cap rate.
    • The Arch (Calgary, 158 suites); $62.0M; 5.1% stabilized cap rate; assumes $27.1M mortgage at 2.84% interest.
• 2025 Financial Guidance Update:
  • Revised FFO per unit range: $4.48 to $4.63 (previously $4.35–$4.60).
  • Revised Same Property NOI growth range: +8.0% to +10.0% (previously +5.5% to +8.5%).
  • Revised AFFO per unit range: $3.85 to $4.00.
• Distribution:
  • Confirmed monthly distribution of $0.1350 per unit for September, October, and November 2025 (annualized $1.62).
  • FFO Payout Ratio: 34.9%.
• Regional Operational Highlights (Q2 2025 Same Property NOI Growth):
  • Edmonton: +12.8% (driven by lower incentives, higher rents, lower utilities).
  • Saskatchewan: +13.5% (strong revenue growth, lower property taxes/utilities).
  • British Columbia: +10.1% (higher market rents, 17.3% decrease in total rental expenses).
  • Alberta (Total): +10.3%.
  • Ontario: +8.8%.
  • Quebec: +5.6%.
• Mortgage Renewals:
  • Renewed $137.2 million of maturing mortgages in Q2 at a weighted average rate of 3.91% with a 5.2-year term extension.
  • $407.2 million of mortgages maturing in remainder of 2025; $244.1 million (43.6%) already renewed/forward-locked at 3.85% average rate.

Notable Quotes

• "We are pleased to report a strong second quarter with significant growth in Net Operating Income, Funds From Operations per Unit and Operating Margin. Our FFO per Unit of $1.16 during the second quarter represents an improvement of 11.5% from the prior year." — Sam Kolias, Chairman and CEO
• "We are also seeing that areas with greater affordability, stronger immigration fundamentals and economic resilience are supportive of better results. Affordability remains a primary driver of rental demand across our portfolio..." — Sam Kolias, Chairman and CEO