Boardwalk Real Estate Investment Trust ("BEI.UN" -
TSX)
CALGARY, Aug. 14, 2012 /PRNewswire/ - 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 $1.05 in the same period last year.
The increase in reported FFO is mainly attributed to
rental revenue growth coupled with lower overall financing costs,
as the Trust continues to benefit from the current low interest
rate environment in the renewal of its existing CMHC Insured
Mortgages.
FFO and AFFO are widely accepted supplemental measures of the
performance of a Canadian Real Estate entity; however, are not
measures defined by International Financial Reporting Standards
("IFRS"). The reconciliation of FFO and other financial
performance measures can be found in the Management's Discussion
and Analysis (MD&A) for the three month period June 30, 2012, under the section titled,
"Performance Measures".
For further detail, please refer to page 15
of the MD&A.
Additional Information
A more detailed analysis is included in the
Management's Discussion and Analysis and Consolidated Financial
Statements, which have been filed on SEDAR and can be viewed at
www.sedar.com or on the Trust's website at
www.boardwalkreit.com. Additionally, more detail on
Boardwalk's operations will be found in its conference call
presentation and other supplemental materials, to be posted on its
web site today at
http://www.boardwalkreit.com/FinancialReports/. The webcast
for this presentation will also be made available on its website at
www.boardwalkreit.com.
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$ millions, except per unit amounts
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Highlights of the Trust's Second Quarter and First Six
Months 2012 Financial Results |
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Three Months Jun 2012 |
Three Months Jun 2011 |
% Change |
Six Months Jun 2012 |
Six Months 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) |
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Regular Payout as a % FFO |
63.5% |
67.7% |
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66.7% |
74.8% |
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Regular Payout as a % AFFO |
70.9% |
76.5% |
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74.8% |
85.6% |
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Interest Coverage Ratio (Rolling 4
quarters) |
2.57 |
2.37 |
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2.57 |
2.37 |
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Operating Margin |
64.4% |
63.7% |
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63.0% |
61.0% |
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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.
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Highlights of the Trust's Fair Value of Investment
Properties |
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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.
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Portfolio Highlights for the Second Quarter of
2012 |
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Jun-12 |
Dec-11 |
Jun-11 |
Average Occupancy (Period
Average) |
98.18% |
97.47% |
97.49% |
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Average Monthly Rent (Period
Ended) |
$1,038 |
$1,012 |
$998 |
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Average Market Rent (Period
Ended) |
$1,087 |
$1,053 |
$1,031 |
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Average Occupied Rent (Period
Ended) |
$1,055 |
$1,033 |
$1,024 |
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Loss-to-Lease (Period Ended) ($
millions) |
$13.3 |
$8.4 |
$3.0 |
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Loss-to-Lease Per Trust Unit
(Period Ended) |
$0.25 |
$0.16 |
$0.06 |
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Cash(Period Ended) ($
millions) |
$135.7 |
$255.9 |
$183.0 |
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Same Property Results |
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% Change Year-
Over-Year - 3
Months Jun 2012 |
% Change Year-
Over-Year - 6
Months Jun 2012 |
Rental Revenue |
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3.7% |
3.6% |
Operating Costs |
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0.5% |
-2.8% |
Net
Operating Income (NOI) |
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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. |
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Stabilized Revenue
Growth |
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# of
Units |
Q2 2012
vs
Q1 2012 |
Q1 2012
vs
Q4 2011 |
Q4 2011
vs
Q3 2011 |
Q3 2011
vs
Q2 2011 |
Calgary |
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5,310 |
1.3% |
2.0% |
1.3% |
1.1% |
Edmonton |
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12,497 |
1.9% |
0.7% |
1.1% |
0.9% |
Fort McMurray |
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352 |
1.7% |
1.5% |
-1.5% |
-1.6% |
Grande Prairie |
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645 |
1.1% |
1.5% |
3.2% |
1.6% |
Red Deer |
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939 |
3.4% |
1.5% |
1.4% |
0.6% |
British Columbia |
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633 |
-0.7% |
0.5% |
0.7% |
1.1% |
Ontario |
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4,265 |
0.5% |
0.6% |
1.3% |
-0.7% |
Quebec |
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6,000 |
-0.2% |
0.0% |
0.6% |
0.6% |
Saskatchewan |
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4,636 |
1.4% |
0.7% |
0.6% |
0.6% |
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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
Fundamentals |
BC |
Alberta |
Saskatchewan |
Ontario |
Quebec |
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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% |
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Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 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 2011
to May 2012 |
May 2010
to May 2011 |
May 2011
to May 2012 |
May 2010
to May 2011 |
May 2011
to May 2012 |
May 2010
to May 2011 |
May 2011
to May 2012 |
May 2010
to May 2011 |
May 2011
to May 2012 |
May 2010
to May 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 |
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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 |
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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 |
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Jul-12 |
Jul-11 |
|
Average Overall* |
$323,616 |
$317,645 |
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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 |
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Cash Position - June 30, 2012 |
|
$ |
135,715 |
|
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Subsequent Committed Financing |
|
$ |
45,190 |
|
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|
|
Line of Credit* |
|
$ |
196,276 |
|
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Total
Available Liquidity |
|
$ |
377,181 |
|
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Liquidity
as a % of Total Debt |
|
16% |
|
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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
Original Guidance |
2012 - Q1
Revised Guidance |
2012 - Q2
Revised Guidance |
Acquisitions |
No new apartment
acquisitions or dispositions |
No new apartment acquisitions
or dispositions |
No new apartment
acquisitions or 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.
SOURCE Boardwalk Real Estate Investment Trust