Boardwalk Real Estate Investment Trust CALGARY, Aug. 14, 2012 /CNW/
- Boardwalk Real Estate Investment Trust ("Boardwalk", "Boardwalk
REIT" or the "Trust") today announced solid financial results for
the three month period ended June 30, 2012. Funds From Operations
("FFO") for the second quarter totalled $38.3 million, or $0.73 per
unit on a diluted basis, compared to FFO of $34.7 million or $0.66
per unit for the same period last year, an increase of 10.3% and
10.6%, respectively. Funds from Operations for the six month period
ended June 30, 2012 increased 15.5% to $72.5 million from $62.8
million in the same period in 2011 and increased 15.8% to $1.39 per
Unit from $1.20 per Unit for the same six month period in 2011.
Adjusted Funds From Operation ("AFFO") for the second quarter
increased 11.9% to $0.66 per unit, compared to $0.59 per unit in
the same period last year. For the six month period ended
June 30, 2012, AFFO per Unit increased 18.1% to $1.24 from $1.05 in
the same period last year. The increase in reported FFO is
mainly attributed to rental revenue growth coupled with lower
overall financing costs, as the Trust continues to benefit from the
current low interest rate environment in the renewal of its
existing CMHC Insured Mortgages. FFO and AFFO are widely accepted
supplemental measures of the performance of a Canadian Real Estate
entity; however, are not measures defined by International
Financial Reporting Standards ("IFRS"). The reconciliation of
FFO and other financial performance measures can be found in the
Management's Discussion and Analysis (MD&A) for the three month
period June 30, 2012, under the section titled, "Performance
Measures". For further detail, please refer to page 15 of the
MD&A. Additional Information A more detailed analysis is
included in the Management's Discussion and Analysis and
Consolidated Financial Statements, which have been filed on SEDAR
and can be viewed at www.sedar.com or on the Trust's website at
www.boardwalkreit.com. Additionally, more detail on
Boardwalk's operations will be found in its conference call
presentation and other supplemental materials, to be posted on its
web site today at
http://www.boardwalkreit.com/FinancialReports/. The webcast
for this presentation will also be made available on its website at
www.boardwalkreit.com. $ millions, except per unit amounts
Highlights of the Trust's Second Quarter and First Six Months 2012
Financial Results Three Three Months Months Six Months Six Months
Jun 2012 Jun 2011 % Change Jun 2012 Jun 2011 % Change Total Rental
Revenue $ 109.3 $ 105.4 3.7% $ 217.3 $ 209.7 3.6% Net Operating
Income (NOI) $ 70.3 $ 67.1 4.8% $ 136.8 $ 128.0 6.9% Profit $ 161.6
$ 196.6 -17.8% $ 379.0 $ 919.1 -58.8% Funds From Operations (FFO) $
38.3 $ 34.7 10.3% $ 72.5 $ 62.8 15.5% Adjusted Funds From
Operations (AFFO) $ 34.3 $ 30.7 11.6% $ 64.6 $ 54.9 17.7% FFO Per
Unit $ 0.73 $ 0.66 10.6% $ 1.39 $ 1.20 15.8% AFFO Per Unit $ 0.66 $
0.59 11.9% $ 1.24 $ 1.05 18.1% Regular Distributions Declared
(Trust Units & LP B Units) $ 24.3 $ 23.5 3.5% $ 48.4 $ 47.0
2.9% Regular Distributions Declared Per Unit (Trust Units & LP
B Units) $ 0.47 $ 0.45 3.3% $ 0.93 $ 0.90 2.8% (2011 - $1.80 Per
Unit - 2012 - $1.86 per Unit on an annualized basis) Regular Payout
as a % FFO 63.5% 67.7% 66.7% 74.8% Regular Payout as a % AFFO 70.9%
76.5% 74.8% 85.6% Interest Coverage Ratio (Rolling 4 quarters) 2.57
2.37 2.57 2.37 Operating Margin 64.4% 63.7% 63.0% 61.0% The
Fair Value under IFRS for the Trust's portfolio increased, compared
to the end of the 2011 fiscal year, as a result of higher market
rents and lower Capitalization Rates in most municipalities for
multi-family assets. Below is a summary of the Trust's per
unit Net Asset Value with further discussion located in the 2012
Second Quarter MD&A. Highlights of the Trust's Fair Value of
Investment Properties 6/30/2012(1) 12/31/2011(1) IFRS Net Asset
Value (NAV) Per Diluted Unit (Trust & LP B) $ 54.73 $ 45.42
Cash Per Diluted Unit (Trust & LP B) $ 2.60 $ 4.90 Total Per
Diluted Unit (Trust & LP B) $ 57.33 $ 50.32 (1) Calculated
using principal amounts of unsecured and secured debt outstanding
in each period totalling $2.31 billion as of Jun 30, 2012 and $2.42
billion as of Dec 31, 2011. Weighted Average Capitalization Rate:
5.70% as at June 30, 2012 and includes Development Assets.
For further detail, please refer to page
31 of the MD&A. In the second quarter of 2012,
overall occupancy for Boardwalk's portfolio was 98.18%, an increase
to the occupancy level for the same period last year and
sequentially higher than the end of 2011. Average market rents have
increased to $1,087, up from $1,031 in June of 2011. Despite the
continued increase in average monthly and occupied rents the Trust
was able to achieve in the first six months of 2012, there remains
a considerable mark-to-market opportunity for the Trust as we near
the conclusion of the seasonally stronger, summer rental
season. Continued focus on product quality and Customer
Service remains key to Boardwalk's operating strategy and further
sustainable improvement of financial performance. Boardwalk's
rental optimization strategy of continuous active management of
three key variables: occupancy levels, market rents, and
suite-specific incentives, has allowed the Trust to report an
increase in both average and occupied rents versus the last quarter
and the same period a year ago. Average monthly rents
increased to $1,038 from $998 in June of 2011 and average occupied
rents for the period ended also increased to $1,055 versus $1,024
for the same period last year. The Trust's Customer friendly
self-imposed rent control and rental increase forgiveness for
financially challenged Residents continue to build goodwill and the
continued internalization of more maintenance and value-added
projects further enhances curb appeal and the quality of our
property portfolio, resulting in higher revenues and lower
turnover.
For further detail, please refer to page
16 of the MD&A. Portfolio Highlights for the
Second Quarter of 2012 Jun-12 Dec-11 Jun-11 Average Occupancy
(Period Average) 98.18% 97.47% 97.49% Average Monthly Rent (Period
Ended) $1,038 $1,012 $998 Average Market Rent (Period Ended) $1,087
$1,053 $1,031 Average Occupied Rent (Period Ended) $1,055 $1,033
$1,024 Loss-to-Lease (Period Ended) ($ millions) $13.3 $8.4 $3.0
Loss-to-Lease Per Trust Unit (Period Ended) $0.25 $0.16 $0.06
Cash(Period Ended) ($ millions) $135.7 $255.9 $183.0 % Change Year-
% Change Year- Over-Year - 3 Over-Year - 6 Same Property Results
Months Jun 2012 Months Jun 2012 Rental Revenue 3.7% 3.6% Operating
Costs 0.5% -2.8% Net Operating Income (NOI) 5.5% 7.6% For the
stabilized property analysis shown above, operating expense for Q1
and Q2 2011 was adjusted for the change in wage allocation
estimate, which was reported in Q3 of 2011. Stabilized Revenue Q2
2012 vs Q1 2012 vs Q4 2011 vs Q3 2011 vs Growth # of Units Q1 2012
Q4 2011 Q3 2011 Q2 2011 Calgary 5,310 1.3% 2.0% 1.3% 1.1% Edmonton
12,497 1.9% 0.7% 1.1% 0.9% Fort McMurray 352 1.7% 1.5% -1.5% -1.6%
Grande Prairie 645 1.1% 1.5% 3.2% 1.6% Red Deer 939 3.4% 1.5% 1.4%
0.6% British Columbia 633 -0.7% 0.5% 0.7% 1.1% Ontario 4,265 0.5%
0.6% 1.3% -0.7% Quebec 6,000 -0.2% 0.0% 0.6% 0.6% Saskatchewan
4,636 1.4% 0.7% 0.6% 0.6% 35,277 1.2% 0.8% 1.0% 0.6% On a
sequential basis, stabilized revenues for the second quarter of
2012 increased 1.2% when compared to the previous quarter, mainly
the result of higher market rents coupled with increased
occupancy. Alberta, our largest market led the sequential
revenue growth this quarter, with all areas in the province posting
positive three-month revenue growth. The increase in
occupancy while also increasing occupied rents reflects positively
on the Trust's vertically integrated operating and revenue
optimization strategies. For further detail, please refer to page
22 of the MD&A. Economic Market Fundamentals Market
Fundamentals
_____________________________________________________________________________________
|Market | | |Saskatchewan | | | |Fundamentals | BC | Alberta | |
Ontario | Quebec |
|_______________|_____________|_____________|_____________|_____________|_____________|
|
|Jun-12|Jun-11|Jun-12|Jun-11|Jun-12|Jun-11|Jun-12|Jun-11|Jun-12|Jun-11|
|_______________|______|______|______|______|______|______|______|______|______|______|
|Unemployment | | | | | | | | | | | |Rate | 6.6%| 7.3%| 4.6%| 5.6%|
4.9%| 4.9%| 7.7%| 7.7%| 7.7%| 7.9%|
|_______________|______|______|______|______|______|______|______|______|______|______|
| | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | | | 2012 |
2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
|_______________|______|______|______|______|______|______|______|______|______|______|
|Net | | | | | | | | | | | |Interprovencial| | | | | | | | | | |
|Migration |-2,554| -98|13,396| 5275| -9| -593|-3,932| -690|-1,915|
-894|
|_______________|______|______|______|______|______|______|______|______|______|______|
|Net | | | | | | | | | | | |International | | | | | | | | | | |
|Migration | 9,019| 7,132| 8,671| 3,708| 3,436|
1,496|22,068|22,229|12,426|10,733|
|_______________|______|______|______|______|______|______|______|______|______|______|
|Total Net | | | | | | | | | | | |Migration | 6,465| 7,034|22,067|
8,983| 3,427| 903|18,136|21,539|10,511| 9,839|
|_______________|______|______|______|______|______|______|______|______|______|______|
| | May | May | May | May | May | May | May | May | May | May | | |
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010
| | |to May|to May|to May|to May|to May|to May|to May|to May|to
May|to May| | | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 |
2011 | 2012 | 2011 |
|_______________|______|______|______|______|______|______|______|______|______|______|
|Average Weekly | | | | | | | | | | | |Wages Growth | 1.3%| 2.7%|
1.4%| 4.9%| 5.4%| 3.5%| 1.4%| 2.8%| 5.1%| 2.4%|
|_______________|______|______|______|______|______|______|______|______|______|______|
Source: Statistics Canada Western Canada CMHC expects
Alberta's economy to grow strongly over this year and next, and
says that this growth will be supported by healthy demand for oil,
while low natural gas prices will moderate economic activity
somewhat. Saskatchewan's economic growth is expected to
remain above the national average with their export sector showing
strong growth in 2012 and a growing U.S. economy that will continue
to support Saskatchewan exports throughout 2012 and into
2013. CMHC reports that key economic indicators show that the
British Columbia economy is growing in line with
expectations. CMHC also estimates that residential,
industrial and commercial investment, along with consumer spending;
will contribute to drive economic growth in 2012. As a result of
predicted strong economic growth, Alberta's unemployment rate is
expected to lower from 5.5% in 2011 to 5.0% in 2012, as well as to
remain relatively low throughout 2013. In Alberta, the demand
for labour has placed upward pressure on wages, as average weekly
earnings have risen 1.4% in May of 2012, while unemployment has
decreased by 100 basis points to 4.6%, the lowest in Canada.
With both a strong economy and high demand for labour, CMHC
predicts that Alberta is expected to see an increase in migration
to 46,300 in 2012 and 46,200 in 2013. CMHC anticipates that
Saskatchewan's average employment is expected to rise by 1.2% in
2012 and 1.4% in 2013. With increased employment prospects,
Saskatchewan will continue to attract migrants with total net
migration estimates at over 11,000 for both 2012 and 2013.
The demand for labour has driven an increase in wages by over 5%
since May of 2011. In British Columbia, the first quarter
increase in employment was concentrated in full-time jobs.
Average weekly wages were up 1.3% in 2012. According to CMHC,
the shift towards full-time jobs in British Columbia is expected to
continue as the provincial economy gains momentum. Eastern Canada
CMHC reports that the international exports have, and are expected
to, continue to gain traction as the U.S. labour market recovers,
and that U.S. vehicle sales are approaching a pre-recession level,
all of which is supportive of improving economic fundamentals and
job prospects for Ontario by 2013. Quebec is experiencing
slower economic growth. CMHC cautions that the current
uncertainty regarding economic prospects abroad may cause a more
cautious attitude domestically and less vigorous household spending
and private investment in 2012. According to CMHC, Ontario's net
migration, which is a key driver of population growth and housing
demand, is expected to improve throughout 2012 and into 2013.
In Quebec, migration numbers are expected to remain stable over the
coming years as no significant changes in immigration targets is
expected. MLS Housing Prices
_______________________________________________________________ |
British Columbia | Vancouver CMA | Victoria CMA |
|_____________________|_________________|_______________________| |
| Jul-12| Jul-11| Jul-12| Jul-11 |
|_____________________|________|________|________|______________|
|Average Single Family|NA |NA |$580,563| $574,717|
|_____________________|________|________|________|______________|
|Average Condo |NA |NA |$326,833| $315,371|
|_____________________|________|________|________|______________|
|Average Overall |$616,000|$630,251|NA |NA |
|_____________________|________|________|________|______________| |
| |_______________________________________________________________|
| Alberta | Calgary CMA | Edmonton CMA |
|_____________________|_________________|_______________________| |
| Jul-12| Jul-11| Jul-12| Jul-11|
|_____________________|________|________|________|______________|
|Average Single Family|$478,528|$456,374|$384,417| $384,656|
|_____________________|________|________|________|______________|
|Average Condo |$303,380|$304,971|$237,701| $244,225|
|_____________________|________|________|________|______________| |
| |_______________________________________________________________|
| Saskatchewan | Saskatoon CMA | Regina CMA |
|_____________________|_________________|_______________________| |
| Jul-12| Jul-11| Jul-12| Jul-11|
|_____________________|________|________|________|______________|
|Average Overall |$331,517|$305,419|$297,708| $272,548|
|_____________________|________|________|________|______________| |
| |_______________________________________________________________|
| Ontario | London CMA | Windsor CMA |
|_____________________|_________________|_______________________| |
| Jul-12| Jul-11| Jul-12| Jul-11|
|_____________________|________|________|________|______________|
|Average Overall |$240,993|$232,076|$171,552| $175,420|
|_____________________|________|________|________|______________| |
| |_______________________________________________________________|
| Quebec | Montreal CMA | |
|_____________________|_________________|_______________________| |
| Jul-12| Jul-11| |
|_____________________|________|________|_______________________|
|Average Overall* |$323,616|$317,645| |
|_____________________|________|________|_______________________|
|Internally generated, NA = Data not available, * Internally |
|calculated based on volume of | |sales and total sales as provided
by the Greater Montreal Real | |Estate Board. Source: |
|Association of Regina REALTORS®, Calgary Real Estate Board, |
|Canada Mortgage and | |Housing Corporation, Canadian Real Estate
Association, Edmonton| |Real Estate Board, | |Greater Montreal Real
Estate Board, London and St. Thomas | |Association of REALTORS®, |
|Real Estate Board of Greater Vancouver, Saskatoon Region |
|Association of REALTORS®, | |Victoria Real Estate Board,
Windsor-Essex County Real Estate | |Board |
|_______________________________________________________________|
Western Canada Single-detached home starts in British Columbia are
expected to pick up and reach 9,600 units in 2012, and this will
continue into 2013, where single starts are estimated to be 10,900
units, according to CMHC. While multi-family housing starts
have been the focus of new home construction in early 2012 in
British Columbia, CMHC says that this will moderate in the second
and third quarters and come in at 19,000 units in 2012 and 19,200
in 2013. With improving economic and demographic conditions,
housing demand is being lifted and builders are increasing
production in Alberta. CMHC predicts that single-detached
starts will rise to 17,500 units in 2012 and that the increase will
slow in 2013 to 18,000 units as a result of higher mortgage rates
and inventory build-up. CMHC also states that multi-family
starts will increase to 13,200 units in 2012 and decrease slightly
to 12,800 units in 2013. In Saskatchewan, single-detached
home starts are expected to increase to 4,500 units this year,
fuelled by gains in Regina, while in 2013, they will slow to 4,200
units, according to CMHC. Multi-family home starts in
Saskatchewan are expected to follow a similar trend, increasing to
3,400 in 2012 and moderating to 3,200 in 2013. In British Columbia,
the average resale home price is expected to be $548,100 in 2012
and $566,900 in 2013. CMHC expects re-sales in British
Columbia to gradually improve in 2012 to 79,100 units and to see an
increase in 2013 to 82,400 units. CMHC predicts that Alberta
re-sales will increase to 57,600 in 2012 and 59,200 in 2013, along
with rising prices with the average price being $360,900 in 2012
and $371,500 in 2013. According to CMHC, re-sales in
Saskatchewan will be supported by advances in Saskatchewan's
population and low mortgage rates and will increase to 13,500 in
2012 and moderate slightly to 13,050 in 2013. Solid job and
wage growth, coupled with low mortgage rates will help sustain a
shift towards higher priced homes in Saskatchewan, CMHC forecasts
prices to rise to $270,300 in 2012 and $273,700 in 2013. Eastern
Canada In Ontario, CMHC estimates that single-detached starts will
reach 25,600 in 2012, and stronger income growth and tight resale
conditions will boost construction in 2013 to 26,800 units.
Multi-family starts are expected to stay strong with 48,100 units
in 2012 before moderating in 2013 to 38,400 in Ontario, according
to CMHC. As a result of slower job growth, the recent easing
of the re-sale market and the continuing trend toward the
multi-family dwellings in Quebec, single-detached starts have
decreased significantly. CMHC predicts 16,200 units started
in 2012 and a slight increase to 17,100 in 2013. After a year
of sustained construction in 2011 in Quebec, CMHC expects
multi-family starts to be more sustainable at 28,100 units in 2012
and 28,000 units in 2013. CMHC predicts that Ontario re-sales will
have moderate growth in 2012, 205,400 units, before stabilizing in
2013 at 203,200. In Ontario, a combination of better supplied
housing markets and more first time home buying, will drive demand
to shift to less expensive housing. CMHC expects prices to be
$387,200 in 2012 and $395,800 in 2013. CMHC is expecting
re-sales in Quebec to be over 80,000 in 2012 and over 81,000 in
2013. As a result of stable demand for resale homes in Quebec
and the rising supply, pressure has been relieved on prices in
recent months, according to CMHC, price growth will moderate to
$265,000 in 2012 and $273,000 in 2013. Acquisitions, Dispositions,
and Development There were no Investment Property acquisitions or
dispositions in the second quarter of 2012. The Trust
continues to undertake a cautious approach to the sale of non-core
assets to comply with the existing rules surrounding the tax
treatment of publicly traded REITs (the "SIFT" Legislation) until
such time as technical amendments contained in proposed legislation
is substantially enacted that clarifies the nature of the income
generated from property sales. In a continuation from 2011, the
demand for Multi-Family Investment Properties in Canada continues
to be strong. As a result, further capitalization rate
compression and increases in values for Multi-Family assets
continue to be the trend. The Trust continues to actively bid
on higher quality assets; however, no new apartment acquisitions
have been completed to date, as the actual transaction prices on
these assets would not prove to be in the best interest of the
Trust on a risk-adjusted basis. The Trust has received development
approval and has commenced construction for a 109-unit, wood frame,
four storey, elevatored asset on existing excess land that the
Trust owns in Calgary, Alberta. It is estimated that the cost
of this development will be approximately $19 million. The
Trust applied for a grant from the Province of Alberta's 'Housing
Capital Initiatives' and will receive $7.5 million to assist in the
development of this property. In return, the Trust has agreed
to provide 54 of the 109 units at rental rates 10% below average
market rents for 20 years. The remainder of the development
costs will be funded by existing liquidity the Trust has on
hand. The Trust estimates that the stabilized capitalization
rate of this project will be 6.09%, while also allowing the Trust
to surface approximately $39,000 per apartment unit of land value.
The Trust continues to explore the viability of other potential
development of multi-family apartment buildings on excess land the
Trust currently owns in Alberta and Saskatchewan. The
increased demand for multi-family investment properties, which have
resulted in continued capitalization rate compression, continues to
present a unique opportunity for the Trust to explore the viability
of multi-family rental property development to improve the Trust's
portfolio and enhance value for Unitholders. For further detail,
please refer to page 16 and 32 of the MD&A. Investing in our
Properties The Trust believes that the quality of Boardwalk's
Communities continues to drive long-term revenue growth and
stability. The Trust continues to invest in its properties
and expects to invest approximately $97.5 million during the 2012
fiscal year to further enhance the curb appeal and quality of the
Trust's assets. For the first six months of 2012, Boardwalk
invested approximately $34.8 million in the form of project
enhancements and equipment purchases, including upgrades to
existing suites, common areas, mechanical systems, and building
exteriors, compared to $31.2 million for the same period in 2011.
Boardwalk's vertically integrated structure allows many repair and
maintenance functions, including landscaping, to be
internalized. A continued focus on completing more of these
functions in-house has resulted in improved quality, productivity,
effectiveness of resources, and overall execution of the Trust's
capital improvement program, leading to sustainable value for our
Customers and long-term growth for Unitholders. For further detail,
please refer to page 29 of the MD&A.
Liquidity and Continued Financial Strength In
January of 2012, the Trust's $112.4 million Unsecured Debentures
were retired with existing liquidity; however, the Trust continues
to maintain a solid financial position with $136 million of cash
and an undrawn $196 million credit facility. The Trust's interest
coverage ratio, excluding gain or loss on sale of assets, for the
most recent completed four quarters ended June 30, 2012 was 2.57
times compared to 2.37 times for the same period last year.
Cumulatively, since 2007, the Trust has purchased and cancelled
4,542,747 Trust Units, representing a total purchase cost of $170.5
million, or an average cost of $37.53 per Trust Unit through the
facilities of the Toronto Stock Exchange. The current Normal
Course Issuer Bid, which was renewed in August of 2011 and
terminates on August 23, 2012 or until such time as the Bid is
complete, allows the Trust to purchase and cancel up to 3,884,118
Trust Units, representing 10% of its public float of Trust
Units. Given the appreciation in the value of Boardwalk's
Trust Units, management continues to review all available options
that will provide the greatest return to our Unitholders. In $000's
Cash Position - June 30, 2012 $ 135,715 Subsequent Committed
Financing $ 45,190 Line of Credit* $ 196,276 Total Available
Liquidity $ 377,181 Liquidity as a % of Total Debt 16% Debt (net of
cash) as a % of reported asset value 42% For further detail,
please refer to page 33 of the MD&A. Mortgage Financing
Interest rates continue to hover near historic lows and have
benefitted the Trust's mortgage program as the Trust has continued
to renew existing CMHC Insured mortgages at interest rates well
below the maturing rates. As of June 30, 2012, the Trust's
total mortgage principal outstanding and weighted average interest
rate totaled $2.31 billion at a weighted average interest rate of
3.95%, compared to $2.34 billion (inclusive of the unsecured
debentures) at a weighted average interest rate of 4.22% reported
for June 30, 2011. Approximately 99% of the Trust's mortgages are
CMHC Insured, and provide the benefit of lower interest rates and
limits the renewal risk of these mortgage loans for the entire
amortization period, which can be up to 40 years. The Trust's
total debt had an average term to maturity of over 3 years, and
debt (net of cash) to reported asset value ratio was approximately
42% as of June 30, 2012. For the remainder of 2012, the Trust has
approximately $333.1 million remaining in maturing mortgage
principal at a weighted average interest rate of 4.71%. To
date, the Trust has forward locked the interest rate on $257.6
million, or 77% of these maturities, at an average interest rate of
3.16% while extending the term of these loans for an average of 8
years. The Trust continues to undertake a balanced approach to its
mortgage program, with current 5- and 10-year CMHC Mortgages
estimated to be 2.30% and 2.80%, and anticipate continued accretive
mortgage renewals in 2012. For further detail, please refer to page
33 of the MD&A. 2012 Financial Guidance As is
customary, the Trust reviews its financial guidance on a quarterly
basis, and has revised 2012 Financial Guidance as follows:
__________________________________________________________________
| Description | 2012 | 2012 - Q1 | 2012 - Q2 | | |Original
Guidance|Revised Guidance|Revised Guidance|
|______________|_________________|________________|________________|
| |No new apartment |No new apartment|No new apartment| |
Acquisitions | acquisitions or | acquisitions |acquisitions or | |
| dispositions |or dispositions | dispositions |
|______________|_________________|________________|________________|
| | | | | | Stabilized | | | | | Building NOI | | | | | Growth | 1%
to 4% | 2% to 4% | 3% to 5% |
|______________|_________________|________________|________________|
| | | | | |FFO Per Trust | | | | | Unit | $2.65 to $2.85 | $2.70 to
$2.85 | $2.75 to $2.90 |
|______________|_________________|________________|________________|
| | | | | |AFFO per Trust| | | | | Unit - based | | | | |on
$450/yr/apt| $2.35 to $2.55 | $2.40 to $2.55 | $2.45 to $2.60 |
|______________|_________________|________________|________________|
Based on the Trust's review, the reported stabilized
portfolio results for the first six months of 2012 were ahead of
internal expectations, mainly a result of higher revenue growth and
lower than anticipated rental utility charges. As such,
Boardwalk has increased its expectations on the annual Stabilized
Building NOI growth from a range of 2% to 4% to a range of 3% to
5%. The result of this is an increase in Boardwalk's overall
FFO and AFFO estimates to a range of between $2.75 to $2.90 and
$2.45 to $2.60, respectively. Management will continue to update
Financial Guidance on a quarterly basis. The reader is
cautioned that this information is forward-looking information and
actual results may vary materially from those reported. For further
detail, please refer to page 36 of the MD&A. 2012 Distribution
With the strong organic growth the Trust has reported in 2012,
Boardwalk's Board of Trustees has approved an additional
distribution increase of 3.2% to $0.16 per Trust Unit per Month, or
$1.92 per Trust Unit on an annualized basis, effective commencing
with the August 31, 2012 Record Date, which will be payable
September 17, 2012. Since the beginning of 2012, the Trust
has increased distributions by 6.7%. Boardwalk's Board of Trustee's
has approved the next three month of distributions of $0.16 per
Trust Unit per Month ($1.92 on an annualized basis) according to
the following schedule: ____________________________________ |Month
|Record Date|Distribution Date| | | | |
|______|___________|_________________| |Aug-12| 31-Aug-12|
17-Sep-12| |______|___________|_________________| |Sep-12|
28-Sep-12| 15-Oct-12| |______|___________|_________________|
|Oct-12| 31-Oct-12| 15-Nov-12|
|______|___________|_________________| The Board of Trustees
will continue to review the distributions made on the Trust Units
on a quarterly basis. Supplementary Information Boardwalk produces
the Quarterly Supplemental Information that provides detailed
information regarding the Trust's activities during the
quarter. The Second Quarter 2012 Supplemental Information is
available on our investor website at
http://www.boardwalkreit.com/FinancialReports Teleconference on
Second Quarter 2012 Financial Results Boardwalk invites you to
participate in the teleconference that will be held to discuss
these results tomorrow morning (August 15, 2012) at 11:00 am EST.
Senior management will speak to the second quarter financial
results and provide an update. Presentation materials will be made
available on Boardwalk's investor website at www.boardwalkreit.com
prior to the call. Participation & Registration: Please RSVP to
Investor Relations at 403-206-6739 or by email to
investor@bwalk.com. Teleconference: The telephone numbers for the
conference are toll-free 1-888-231-8191 (within North America) or
647-427-7450 (International.) Note: Please provide the operator
with the below Conference Call ID or Topic when dialling in to the
call. Conference ID: 85387298 Topic: Boardwalk REIT Second Quarter
Results Webcast: Investors will be able to listen to the call and
view Boardwalk's slide presentation over the Internet by visiting
http://www.boardwalkreit.com prior to the start of the call.
An information page will be provided for any software needed and
system requirements. The webcast and slide presentation will
also be available at
http://www.newswire.ca/en/webcast/detail/980135/1054563 Replay: An
audio recording of the teleconference will be available on the
Trust's website: www.boardwalkreit.com Corporate Profile Boardwalk
REIT is Canada's friendliest landlord and currently owns and
operates more than 225 properties with 35,277 residential units (as
at June 30, 2012) totalling approximately 30 million net rentable
square feet. Boardwalk's principal objectives are to provide
its Residents with the best quality communities and superior
customer service, while providing Unitholders with sustainable
monthly cash distributions, and increase the value of its Trust
Units through selective acquisition, disposition, and effective
management of its residential multi-family properties.
Boardwalk REIT is vertically integrated and is Canada's leading
owner/operator of Multi-Family Communities with 1,600 associates
bringing Customers home to properties located in Alberta,
Saskatchewan, Ontario, Quebec, and British Columbia. CAUTIONARY
STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS Information in this
news release that is not current or historical factual information
may constitute forward-looking information within the meaning of
securities laws. Implicit in this information, particularly
in respect of Boardwalk's objectives for 2012 and future periods,
Boardwalk's strategies to achieve those objectives, as well as
statements with respect to management's beliefs, plans, estimates
and intentions, and similar statements concerning anticipated
future events, results, circumstances, performance or expectations
are estimates and assumptions subject to risks and uncertainties,
including those described in the Management's Discussion &
Analysis of Boardwalk REIT's 2011 Annual Report under the heading
"Risks and Risk Management", which could cause Boardwalk's actual
results to differ materially from the forward-looking information
contained in this news release. Specifically Boardwalk has
assumed that the general economy remains stable, interest rates are
relatively stable, acquisition capitalization rates are stable,
competition for acquisition of residential apartments remains
intense, and equity and debt markets continue to provide access to
capital. These assumptions, although considered reasonable by
the Trust at the time of preparation, may prove to be
incorrect. For more exhaustive information on these risks and
uncertainties you should refer to Boardwalk's most recently filed
annual information form, which is available at www.sedar.com.
Forward-looking information contained in this news release is based
on Boardwalk's current estimates, expectations and projections,
which Boardwalk believes are reasonable as of the current
date. You should not place undue importance on
forward-looking information and should not rely upon this
information as of any other date. While the Trust may elect
to, Boardwalk is under no obligation and does not undertake to
update this information at any particular time.
Boardwalk Real Estate Investment Trust CONTACT:
Investor Relations: (403) 531-9255
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