Boardwalk Real Estate Investment Trust · TSX:BEI.UN
Boardwalk Real Estate Investment Trust — Investor Presentation (February 2025)
50 slides from Boardwalk Real Estate Investment Trust's investor presentation, Feb 28, 2025
Slide 1: February 2025 Investor Presentation
Gradient Swatches Gradient Bars Callout Text This is the preferred callout text size and shape. Explanation Caption February 2025 Investor Presentation This is an explanation box with emphasis. The typeface is Lato Bold 10.5 pt. Renewals represent 65-75% of monthly lease activity. In non-price-contr
Slide 2: Forward Looking Statements & Non-GAAP Measures
Forward Looking Statements & Non-GAAP Measures This presentation contains forward-looking statements and information include, but are not limited to, the impact of economic conditions in Canada and Non-GAAP Measures” in the Trust’s Management’s Discussion and Analysis for (collectively, "forward-loo
Slide 3: Executive Summary
Executive Summary Why Boardwalk? - Largest presence of affordable non-regulated apartments in Canada at an attractive valuation - Positioned in sustainably growing markets - Laser focused on affordable resident experience with love always - Intergenerational commitment and long-term focus - Operatio
Slide 4: BFF=Boardwalk Family Forever
BFF=Boardwalk Family Forever Our Reason For Being Love Always Delight Satisfaction Resident Investors Members Boardwalk WESG Family Partners Forever Capital Associates Excitement Comfort Community 4
Slide 5: Resident Members First
Resident Members First Resident Members Customer Service We live by a simple premise: Our Leaders put our Team first and our Team puts our Resident Operations Members first. Management Executives CEO 5
Slide 6: Operational Stability and the Resiliency of Affordable Housing
Operational Stability and the Resiliency of Affordable Housing Well-Positioned With Some of the Most Affordable Rents in Canada • Average occupied rent(1) of $1,524 compared to Canadian market rent of $2,284(2) • Affordable product is currently priced well below new supply • Affordable apartments wi
Slide 7: Corporate Profile
Corporate Profile Boardwalk is a growth-oriented Canadian multi-family real estate owner and operator with a community focus $8.6B $382.3M 96% >24% 34,405 Net Operating Income of mortgages are combined insider Total Assets(1) (12 months ended Total Suites(1)(2) December 31, 2024) CMHC insured(1) own
Slide 8: How We Create Value for Stakeholders
How We Create Value for Stakeholders Best In Class Organic Growth Paired With Strong Affordable Housing Fundamentals 9 Compelling Value 23 Accretive Capital Recycling 27 Solid Financial Foundation 32 8
Slide 9: Best In Class Organic Growth Paired With Strong Affordable Housing Fundamentals
Best In Class Organic Growth Paired With Strong Affordable Housing Fundamentals 9
Slide 10: Alberta Interprovincial Migration Mapping
Alberta Interprovincial Migration Mapping Alberta seeing record inflows from other regions of Canada. Interprovincial Migration Net(1) Net Interprovincial Current Trailing 4 Quarters Alberta Total2 = 39,375 BC: 10,891 SK + MB: 6,771 2016 Net Interprovincial ON + QC: 18,350 (Low Case) BC: 12,705 Albe
Slide 11: Consistent Outperformance on Population Growth
Consistent Outperformance on Population Growth Relative Population Growth by CMA (Index = Relative Population Growth by Province (Index 2001) = Q1 2001) 190 175 Calgary 180 Alberta 165 Edmonton 170 155 160 Saskatoon 145 Kitchener British Columbia 150 Vancouver Toronto 135 Ontario Regina 140 London 1
Slide 12: Non-Permanent Resident Share of Population
Non-Permanent Resident Share of Population Q3 2024 Provincial Non-Permanent Resident Concentration 1,600,000 10.00% 9.00% 1,400,000 8.00% 1,200,000 7.00% 1,000,000 6.00% 800,000 5.00% 4.00% 600,000 3.00% 400,000 2.00% 200,000 1.00% - 0.00% British Ontario Quebec Prince Edward Manitoba Alberta Nova S
Slide 13: Growing Relative Affordability
13 - 1,000,000 1,200,000 1,400,000 200,000 400,000 600,000 800,000 Jan-12 Source: CREA Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 ~90,000 Oct-15 Growing Relative Affordability Jan-16 Apr-16 Greater Vancouver Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oc
Slide 14: Alberta Labour Force Growth
Alberta Labour Force Growth Employment Growth Coming from Diverse Industries Total Employed (Index = Jan 2000) Labour Force Survey Alberta(1)(2) 170 400 Wholesale & retail trade AB 160 350 Health care 150 BC 300 Construction ON 250 140 Professional & QC scientific 130 SK 200 Education Oil, mining &
Slide 15: Calgary’s Tech Sector Leads the Way
Calgary’s Tech Sector Leads the Way Calgary has seen the highest percentage growth in tech jobs within CBRE’s 2024 Tech Talent Report. Over 26,000 jobs have been added between 2018 and 2023. Sources: CBRE, Statistics Canada, BLS 15 (1) Cities scaled by % change in jobs
Slide 16: Employment Growth in Boardwalk’s Largest Markets
Employment Growth in Boardwalk’s Largest Markets Calgary has seen the highest percentage growth in tech jobs within CBRE’s 2024 Tech Talent Report. Over 26,000 jobs have been added between 2018 and 2023. Investments in technology and community building continue to drive employment growth. Sources: C
Slide 17: Positioned in Canada’s Most Affordable Markets
Positioned in Canada’s Most Affordable Markets Affordability: Rent Compared to Median Household Income(1)(2)(3) 120,000 60% 49% 100,000 50% 41% 42% 35% 80,000 40% 31% 32% 29% 60,000 30% 23% 22% 22% 21% 40,000 20% 20,000 10% - 0% Edmonton Calgary Montreal London Regina Saskatoon Quebec Kitchener Vict
Slide 18: Under Construction Inventory
Under Construction Inventory Under Construction Inventory Scaled for Market Size 120,000 6.0% 100,000 5.0% Under Construction % of Housing Stock Under Construction Inventory 80,000 4.0% 60,000 3.0% 40,000 2.0% 20,000 1.0% - 0.0% Edmonton Calgary Montreal London Regina Saskatoon Quebec Kitchener Vict
Slide 19: Q4 2024 Operating Results
Q4 2024 Operating Results Same Property NOI Performance % Rental % Total Rental % Net Operating Same Property Dec. 31 2024 - 3 M # of Suites Revenue Growth Expenses Growth Income Growth % of NOI Edmonton 12,882 9.3% 4.9% 12.4% 34.9% Calgary 6,266 8.3% 2.0% 11.2% 24.5% Other Alberta 1,936 9.4% 8.2% 1
Slide 20: Rent Change on New & Renewal Leases
Rent Change on New & Renewal Leases Alberta Rent Change from Prior Lease Portfolio Rent Change from Prior Lease 9.5% 9.6% 9.3% 9.7% 9.3% 9.1% 9.0% 8.8% 8.9% 8.9% 8.7% 8.7% 8.9% 8.7% 8.4% 8.4% 8.2% 8.2% 7.5% 7.6% 7.9% 7.7% 7.6% 6.6% 6.9% 6.7% 12.6% 14.4% 14.1% 14.3% 12.9% 13.5% 12.1% 11.2% 10.4% 9.5%
Slide 21: Q4 2024 Operating Results
Q4 2024 Operating Results Operating Margin Rental Revenue, Total Rental Expenses & Operating Margin(1) $603.3 $545.7 $496.4 63.4% $465.6 $470.5 61.0% 57.8% 58.3% 58.2% $114.8 $117.9 $122.9 $108.2 $108.9 $88.2 $87.3 $92.9 $94.8 $98.0 2020 2021 2022 2023 2024 Rental Revenue Non-Controllable Expenses C
Slide 22: Vertically-Integrated Platform
Vertically-Integrated Platform In-House Landscaping, Cleaning and Maintenance - Maximizes Resident Member experience and enhances curb appeal of communities Leasing Internal Capital Team - Dedicated lease renewal teams - In-house renovation to most effectively serve our capabilities to refresh Stron
Slide 23: Compelling Value
23 Pu Compelling Value boardwalk
Slide 24: Exceptional Value
Exceptional Value Recent Transactions In Line With Current NAV Estimate In Boardwalk Markets Current Trading Price(1) Q4 NAV per Unit (2) Unit Price $60 $64 $70 $80 $90 $93.68 $100 $110+ Fair Value Cap Rate: 5.12% Price Per Suite $183k $189k $199k $215k $231k $237k $247k $263k+ Edgehill and Panorama
Slide 25: Increasing Replacement Costs
Increasing Replacement Costs Residential Composite Building Price Index 120 Key Components Constraining Supply 110 Response Relative to Demand 100 Escalation in replacement costs over 90 past several years. 80 Higher interest rates. 70 60 Construction timeframes for larger 50 multi-family assets. 40
Slide 26: Exceptional Value – Implied Cap Rate
Exceptional Value – Implied Cap Rate NOI Growth Supportive of Positive Spread vs. Interest Rates on Forward-Looking Basis $64 trading price equates to a 5.9% Cap Rate on trailing NOI; equates to approximately ~6.25% Cap Rate on 2025 NOI guidance midpoint Implied Cap Rates on trailing 12-month NOI ar
Slide 27: Accretive Capital Recycling
Accretive Capital Recycling 27
Slide 28: Accretive Capital Recycling - Summary
Accretive Capital Recycling - Summary Value-Add Capital Opportunistic, Accretive and ▪ Cost effective value-add amenity Strategic Acquisitions and common area renovations ▪ Source opportunities that are accretive requiring minimal per suite rental to FFO per Unit and to NAV per Unit increases to gen
Slide 29: 2024 Transaction Summary
2024 Transaction Summary Boardwalk Transacted on $294 Million Over 2024 and Early 2025 Acquisition Statistics $109 Million Total Investment Property Acquisitions(1) $290,000 per suite $93 Million Elbow 5 Eight Forward Sale $365,000 per suite Development Land Acquisition $12 Million Units Acquired(2)
Slide 30: Disciplined Capital Allocation
Disciplined Capital Allocation BEI-UN Unit Price $90 $85 $80 $75 $70 $65 $60 $55 $50 $45 $40 8/1/2021 9/1/2021 1/1/2022 2/1/2022 3/1/2022 4/1/2022 5/1/2022 6/1/2022 7/1/2022 8/1/2022 9/1/2022 1/1/2023 2/1/2023 3/1/2023 4/1/2023 5/1/2023 6/1/2023 7/1/2023 8/1/2023 9/1/2023 1/1/2024 2/1/2024 3/1/2024
Slide 31: Development Pipeline
Development Pipeline Steady Progress on Value Creating Development Pipeline Under Construction Future Developments – Timing TBD Project Aspire The Marin Marda Loop Island Highway Location View Royal, British Esquimalt, British Columbia Calgary, Alberta View Royal, British Columbia Columbia Ownership
Slide 32: Solid Financial Foundation
Solid Financial Foundation 32
Slide 33: FFO per Unit Growth and Distribution Increase
FFO per Unit Growth and Distribution Increase Policy of Maximum Cash Flow Retention for Reinvestment and Organic Growth Annual Funds from Operations per Unit(1) and Distribution per Unit(2)(3) $4.25 - $4.55 $4.18 $3.60 $3.13 Growth in $2.94 $2.57 $2.74 reinvested $2.11 $2.21 cash flow $1.59 $1.40 $1
Slide 34: Mortgage Summary
Mortgage Summary Prudent Balance Sheet Management Mortgages Payable Maturity Schedule(2) $700 96% of principal $600 outstanding is CMHC 4.49% insured $500 3.73% Principal Outstanding 3.62% 3.16% 4.13% 4.09% 3.70% $400 2.71% Average term to maturity of debt: 2.44% 2.33% $300 3.6 Years 2.67% $200 Curr
Slide 35: Solid Financial Foundation
Solid Financial Foundation Leverage Metrics 55.0% 13.5x 14.0x 13.3x 13.1x 50.0% 13.0x 45.0% 12.0x 11.0x 40.0% 11.0x 10.1x 35.0% 10.0x 30.0% 9.0x 25.0% 8.0x 50.8% 47.8% 48.8% 43.2% 40.6% 20.0% 7.0x Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 (1) (2)(3) Debt / Total Assets Debt / EBITDA Liquidity Summary
Slide 36: Creating Value for All Stakeholders
Creating Value for All Stakeholders 36
Slide 37: 2025 Guidance Introduction
2025 Guidance Introduction Description 2025 Guidance 2024 Actual Same Property NOI Growth 4.0% to 8.0% 13.0% Profit N/A $588,218 FFO (1)(2)(3) N/A $225,848 AFFO (1)(2)(3)(4) N/A $192,273 FFO Per Unit (2) $4.25 to $4.55 $4.18 (2)(4) AFFO Per Unit $3.62 to $3.92 $3.56 (1) This is a non-GAAP financial
Slide 38: Street Research Targets
Street Research Targets Analyst Target Prices $90.00 $86.00 $86.00 $85.00 $82.00 $80.00 $80.00 $80.00 $78.50 $73.00 BMO Scotiabank Desjardins National Bank CIBC Raymond James Cormark TD Cowen RBC Veritas Source: FactSet, as at February 28, 2025. 38
Slide 39: Contact Information
Contact Information Sam Kolias Gregg Tinling Samantha Chief Executive Chief Financial Kolias-Gunn Officer Officer Senior Vice President Corporate Development and Governance For Further Information Email: Investor@bwalk.com Phone: 403-531-9255 James Ha Eric Bowers President Vice President, Finance &
Slide 40: Appendix
40 Appendix boardwalk
Slide 41: Increasing Affordability Relative to Home Ownership
Increasing Affordability Relative to Home Ownership Monthly Mortgage Cost Less Boardwalk Same Property Occupied Rents(1)(2) 3,000 2,500 2,000 1,500 1,000 500 - 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 1/1/2024 Edmonton Calgary Source
Slide 42: Net Migration - Alberta
42 5,000 15,000 25,000 35,000 (15,000) (5,000) Q4 1965 Q1 1967 Q2 1968 Q3 1969 Source: Statistics Canada. Q4 1970 Q1 1972 Q2 1973 Q3 1974 Q4 1975 Q1 1977 Net Migration - Alberta Q2 1978 Q3 1979 Q4 1980 Q1 1982 Q2 1983 Q3 1984 Q4 1985 Q1 1987 Q2 1988 Q3 1989 Q4 1990 Q1 1992 Interprovincial Migration
Slide 43: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Net Asset Value per Unit(2) & 3 Months Ended December 31 Q4 2024 Q4 2023 % Change Unitholders' Equity $4,837 Same Property Rental Revenue $152.1 $140.5 8.2% Same Property Net Operating $93.68 $98.0 $88.3 11.0% Income Same Property Operating Margin 64.4% 62.8% +160 bps $4
Slide 44: Deploying Cash Flow Toward Repositioning & Value-Add Capital Improvements
Deploying Cash Flow Toward Repositioning & Value-Add Capital(1) Improvements Renovations Driving Market Share & Revenue Growth Suite Optimization Project 16 Properties 10 Properties 70% 62% 12 Properties 54% 15 Properties 45% 13,229 23 Properties 11,914 34% 10,825 24 Properties 25% 9,516 27 Properti
Slide 45: Occupancy Trend
Occupancy Trend Maintaining Occupancy as a Component of Revenue Optimization Rentals Move-Outs & Occupancy Annual Turnover 1,400 100.0% 1,200 29.7% 98.0% 1,000 96.0% 800 94.0% 600 92.0% 26.3% 400 25.3% 200 90.0% 0 88.0% Apr Nov Apr Nov Apr Nov Dec Dec Feb May Feb May Dec Feb May Mar Mar Mar Jan Aug
Slide 46: Reasons for Move-Out & Out of Town Rentals
Reasons for Move-Out & Out of Town Rentals 2023 2023 2024 2024 Out of Town Rentals Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Calgary Edmonton Transfer / Assignment 256 328 325 253 1,162 228 303 358 394 1,283 Fort McMurray Grande Prairie Moving out of town 359 607 490 341 1,797 313 556 546 388 1,803 Purcha
Slide 47: Mark-to-Market Revenue Gain Statistics – Same Property
Mark-to-Market Revenue Gain Statistics – Same Property Without Incentives With Incentives Annualized Annualized Mark-to- Mark-to- Market Adjusted Market Adjusted Dec 2024 for Current for Current Weighted Dec 2024 Dec 2024 Mark-to- Occupancy Market Dec 2024 Mark-to- Occupancy Average Market Occupied
Slide 48: Making an Impact - ESG initiatives and highlights
WESG Making an Impact - ESG initiatives and highlights Invested over $23 million Enhanced Resident Member Recognized as one of Canada’s in energy efficiency upgrades across engagement through partnerships with Most Responsible Companies our portfolio in 2024. Urban Microhabitat and Telus 2025 by New
Slide 49: WESG
WESG Making an Impact our ESG initiatives and highlights • Our guiding compass in our efforts to prioritize commitments to five core pillars to build more inclusive, sustainable and healthier communities. • Redefining what it means to be a landlord we are driven by purpose, with the goal of building
Slide 50: Communities in Motion
Communities in Motion At Boardwalk, Communities are in Motion. During the launch of our new website and beyond, you’ll see a vibrant new symbol appearing on our pages. This colourful “Communities in Motion” mark is a powerful reminder that the strongest, most vibrant communities emerge when we all c
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