Boardwalk Real Estate Investment Trust ("BEI.UN" -
TSX)
CALGARY, Feb. 13, 2013 /CNW/ - Boardwalk Real Estate
Investment Trust ("Boardwalk", "Boardwalk REIT" or the "Trust")
today announced positive financial results for the fourth quarter
and fiscal year of 2012.
Funds From Operations ("FFO") for the fourth
quarter totalled $38.4 million, or
$0.73 per unit on a diluted basis,
compared to FFO of $34.2 million or
$0.65 per unit for the same period
last year, an increase of 12.4% and 12.3%, respectively.
FFO for the twelve-month period ended
December 31, 2012 totalled
$150.3 million or $2.87 per unit on a diluted basis, compared to
FFO of $131.8 million or $2.52 per unit for the same period last year, an
increase of 14.1% and 13.9%, respectively.
Adjusted Funds From Operation ("AFFO") for the
fourth quarter increased 13.8% to $0.66 per unit, compared to $0.58 per unit in the same period last
year. AFFO for the twelve months of 2012 totalled
$2.57 per unit, an increase of 15.8%
compared to $2.22 per unit year over
year.
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 year ended December 31, 2012, under the section titled,
"Performance Measures".
The increase in reported FFO can be attributed
to positive growth in Net Operating Income ("NOI") and a decrease
in interest expense; however, growth was tempered by wage inflation
and higher operating expenses. At December
31, 2012, the Trust's liquidity balance was in excess of
$363 million, comprised of
$139 million of cash, $28 million from subsequent financing, and
$196 million from the Trust's undrawn
revolving credit facility.
For further detail, please refer to pages 45-49
of the MD&A.
Additional Information
A more detailed analysis is included in the
Management's Discussion and Analysis and Consolidated Financial
Statements, which have been filed on SEDAR and can be viewed at
www.sedar.com or on the Trust's website at
www.boardwalkreit.com. Additionally, more detail on
Boardwalk's operations will be found in its conference call
presentation and other supplemental materials, to be posted on its
web site today at
http://www.boardwalkreit.com/FinancialReports/. The webcast
for this presentation will also be made available on its web site
at http://www.boardwalkreit.com/.
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$ millions, except per unit
amounts |
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Highlights of
the Trust's Fourth Quarter and Twelve Months 2012 Financial
Results |
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Three Months Dec
2012 |
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Three Months Dec
2011 |
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%
Change |
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Twelve Months
Dec 2012 |
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Twelve Months
Dec 2011 |
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%
Change |
Total Rental Revenue |
|
$ |
112.0 |
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$ |
107.1 |
|
4.6% |
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$ |
439.9 |
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$ |
422.7 |
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4.1% |
Net Operating Income (NOI) |
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$ |
69.0 |
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$ |
67.2 |
|
2.8% |
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$ |
276.1 |
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$ |
262.7 |
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5.1% |
Profit |
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$ |
15.6 |
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$ |
136.9 |
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-88.6% |
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$ |
688.5 |
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$ |
1,225.1 |
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-43.8% |
Funds From Operations (FFO) |
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$ |
38.4 |
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$ |
34.2 |
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12.4% |
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$ |
150.3 |
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$ |
131.8 |
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14.1% |
Adjusted Funds From Operations (AFFO) |
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$ |
34.4 |
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$ |
30.2 |
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14.0% |
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$ |
134.5 |
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$ |
115.9 |
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16.0% |
FFO Per Unit |
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$ |
0.73 |
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$ |
0.65 |
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12.3% |
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$ |
2.87 |
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$ |
2.52 |
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13.9% |
AFFO Per Unit |
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$ |
0.66 |
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$ |
0.58 |
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13.8% |
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$ |
2.57 |
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$ |
2.22 |
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15.8% |
Regular Distributions Declared (Trust Units & LP B
Units) |
|
$ |
25.1 |
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$ |
23.5 |
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6.8% |
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$ |
98.3 |
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$ |
94.0 |
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4.6% |
Regular Distributions Declared Per Unit (Trust
Units & LP B Units) |
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$ |
0.480 |
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$ |
0.450 |
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6.7% |
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$ |
1.880 |
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$ |
1.799 |
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4.5% |
(2011 - $1.80 Per Unit - 2012 - $1.92 per Unit
on an annualized basis) |
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Regular Payout as a % FFO |
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65.4% |
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68.8% |
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65.4% |
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71.3% |
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Regular Payout as a % AFFO |
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73.0% |
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77.8% |
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73.1% |
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81.1% |
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Interest Coverage Ratio (Rolling 4 quarters) |
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2.76 |
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2.42 |
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2.76 |
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2.42 |
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Operating Margin |
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61.6% |
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62.7% |
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62.8% |
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62.1% |
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For further detail, please refer to pages 48-59
of the MD&A.
The Fair Value under IFRS for the Trust's
portfolio increased during 2012, primarily as a result of lower
capitalization rates in all municipalities since the same period
last year. In addition, NOI increased year over year, driven
by higher market rents in most municipalities. Below is a
summary of the Trust's per unit Net Asset Value with further
discussion located in the 2012 Year End MD&A.
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Highlights of the
Trust's Fair Value of Investment Properties |
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12/31/2012(1) |
9/30/2012(1) |
12/31/2011(1) |
IFRS Net Asset Value (NAV) Per Diluted Unit (Trust & LP
B) |
$ |
60.38 |
$ |
60.11 |
$ |
45.42 |
Cash Per Diluted Unit (Trust & LP B) |
$ |
2.65 |
$ |
3.07 |
$ |
4.90 |
Total Per Diluted Unit (Trust & LP B) |
$ |
63.03 |
$ |
63.18 |
$ |
50.32 |
(1) Calculated
using principal amounts of unsecured and secured debt outstanding
in each
period totalling $2.33 billion as of Dec 31, 2012, $2.34 billion as
of Sep 30, 2012, and $2.42 billion as of Dec 31, 2011. |
Weighted Average Capitalization Rate: 5.47%
as at December 31, 2012
For further detail, please refer to pages 60-67
of the MD&A.
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Portfolio Highlights for the
Fourth Quarter of 2012 |
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Dec-12 |
Sep-12 |
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Dec-11 |
Average Occupancy (3M Period Ended) |
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98.45% |
98.10% |
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97.98% |
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Average Monthly Rent (Period Ended) |
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$1,065 |
$1,049 |
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$1,012 |
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Average Market Rent (Period Ended) |
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$1,105 |
$1,100 |
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$1,053 |
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Average Occupied Rent (Period Ended) |
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$1,081 |
$1,067 |
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$1,033 |
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Loss-to-Lease (Period Ended) ($ millions) |
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$10.0 |
$13.7 |
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$8.4 |
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Loss-to-Lease Per Trust Unit (Period Ended) |
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$0.19 |
$0.26 |
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$0.16 |
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Cash (Period Ended) ($ millions) |
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$138.7 |
$160.6 |
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$255.9 |
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Same Property Results |
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% Change Year-
Over-Year - 3
Months Dec 2012 |
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% Change Year-
Over-Year - 12
Months Dec 2012 |
Rental Revenue |
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4.6% |
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4.1% |
Operating Costs |
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8.2% |
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2.5% |
Net Operating Income (NOI) |
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2.7% |
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5.0% |
Rents include Ancillary Rental Revenue |
For further details, please refer to pages 48-60
of the MD&A.
Sequential Revenue Analysis
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Stabilized Revenue
Growth |
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# of Units |
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Q4 2012 vs
Q3 2012 |
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Q3 2012 vs
Q2 2012 |
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Q2 2012 vs
Q1 2012 |
|
Q1 2012 vs
Q4 2011 |
Calgary |
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5,310 |
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1.7% |
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1.6% |
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1.3% |
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2.0% |
Edmonton |
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12,497 |
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1.5% |
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1.8% |
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1.9% |
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0.7% |
Fort McMurray |
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352 |
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-0.7% |
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-0.3% |
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1.7% |
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1.5% |
Grande Prairie |
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645 |
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3.4% |
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3.9% |
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1.1% |
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1.5% |
Red Deer |
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939 |
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1.1% |
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2.0% |
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3.4% |
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1.5% |
British Columbia |
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633 |
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0.4% |
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0.9% |
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-0.7% |
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0.5% |
Ontario |
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4,265 |
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1.6% |
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0.3% |
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0.5% |
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0.6% |
Quebec |
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6,000 |
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-0.2% |
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0.3% |
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-0.2% |
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0.0% |
Saskatchewan |
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4,636 |
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1.5% |
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1.0% |
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1.4% |
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0.7% |
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35,277 |
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1.3% |
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1.3% |
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1.2% |
|
0.8% |
On a sequential basis, stabilized revenues for
the fourth quarter of 2012 increased 1.3% when compared to the
previous quarter. The Trust's revenue strategy of maintaining
high occupancy, adjusting rents, and offering suite specific
incentives has positively impacted sequential revenue in each
period.
For further details, please refer to pages 48-49
of the MD&A.
Rental Market Fundamentals:
The Trust's occupancy increased to 98.45% in Q4,
2012, an increase from 97.98% for the same period in 2011. The
Trust continues to focus on its revenue strategy of maintaining
high occupancy, through the continuous monitoring of occupancy
levels, adjusting rents, and offering suite-specific incentives to
optimize revenue.
Market rents for the Trust's portfolio have
increased sequentially through 2012. As of December 2012, average market rents totalled
$1,105 per month, representing a
$24 per month mark-to-market from
average occupied rents achieved for the same period at $1,081.
For further details, please refer to pages 37-40
of the MD&A.
Economic Market Fundamentals From Across
Canada:
Unemployment, Migration and Wages
Market Fundamentals |
BC |
Alberta |
Saskatchewan |
Ontario |
Quebec |
|
Dec-12 |
Dec-11 |
Dec-12 |
Dec-11 |
Dec-12 |
Dec-11 |
Dec-12 |
Dec-11 |
Dec-12 |
Dec-11 |
Unemployment Rate |
6.5% |
7.0% |
4.5% |
4.9% |
4.6% |
5.2% |
7.9% |
7.7% |
7.3% |
8.7% |
|
Q3 2012 |
Q3 2011 |
Q3 2012 |
Q3 2011 |
Q3 2012 |
Q3 2011 |
Q3 2012 |
Q3 2011 |
Q3 2012 |
Q3 2011 |
Net Interprovincial Migration |
-2,748 |
-802 |
13,915 |
2778 |
1,286 |
860 |
-5,591 |
963 |
-1,886 |
17 |
Net International Migration |
15,104 |
15,689 |
10,809 |
8,935 |
3,734 |
3,343 |
31,554 |
33,933 |
14,608 |
12,033 |
Total Net Migration |
12,356 |
14,887 |
24,724 |
11,713 |
5,020 |
4,203 |
25,963 |
34,896 |
12,722 |
12,050 |
|
Nov 2011
to Nov 2012 |
Nov 2010
to Nov 2011 |
Nov 2011
to Nov 2012 |
Nov 2010
to Nov 2011 |
Nov 2011
to Nov 2012 |
Nov 2010
to Nov 2011 |
Nov 2011
to Nov 2012 |
Nov 2010
to Nov 2011 |
Nov 2011
to Nov 2012 |
Nov 2010
to Nov 2011 |
Average Weekly Wages Growth |
3.3% |
3.2% |
3.4% |
5.0% |
3.7% |
5.1% |
2.8% |
0.5% |
3.5% |
2.1% |
Source: Statistics Canada |
Western
Canada:
Economic fundamentals continued to be healthy in
Canada's Western markets.
Alberta posted strong employment,
while net migration accelerated in Saskatchewan and BC. Historically,
employment growth is a significant contributor to increased rental
demand. As of December 2012,
Alberta's unemployment rate
decreased to 4.5% from 4.9% reported for the same period last
year. Saskatchewan posted
the second lowest unemployment rate in the country in January, at
4.6% compared to 5.2% last year. In British Columbia, the
January unemployment rate decreased from 7.0% to 6.5%. All
provinces continue to see positive wage growth on a year-over-year
basis. While natural gas prices remain historically low, the
price of Alberta oil continues to
lag market pricing for comparable crude and as a result, resource
investment in Alberta has
decreased from its high pace. While Saskatchewan's Oil and
Gas Industry remains robust, investment has slowed in the resource
sector with crude logistics concerns. All three Western
provinces, British Columbia,
Alberta and Saskatchewan, continue to see consistent
positive net migration. Despite the decreased capital
investment being made in the Alberta and Saskatchewan resource sector, continued net
migration and low unemployment are positive indicators of the
future performance of real estate. The Government of
Alberta has recently announced
there will be some tough decisions with the upcoming Provincial
budget. We will monitor this to see the impact, if any, this will
have on our Alberta
operations.
Eastern
Canada:
As of December
2012, Ontario's
unemployment rate increased slightly from 7.7% to 7.9% from the
same period a year ago, driven by the higher cost of manufacturing
which is a result of the relative appreciation of the Canadian
Dollar. This coupled with the heightened global uncertainty
causes CMHC to expect job creation levels that are below historical
norms, which will then decrease consumer spending. With the
widening economic growth gap between Ontario and the rest of Canada, CMHC believes that Ontario will continue to lose migrants to the
province in the short term, but still predict that international
migration will provide some support to the population growth in
Ontario. Quebec's unemployment rate decreased from 8.7%
to 7.3% year-over-year. Both provinces continue to see
healthy wage growth and positive in-migration.
MLS Housing Prices:
As the rental market is in direct competition
with the housing market, Boardwalk reports on MLS Housing Prices
each quarter. MLS Housing Prices have historically been a
leading indicator for both rental rates and rental demand.
MLS Housing Prices
British Columbia |
Vancouver CMA |
Victoria CMA |
|
Jan-13 |
Jan-12 |
Jan-13 |
Jan-12 |
Average Single Family |
NA |
NA |
$530,517 |
$581,519 |
Average Condo |
NA |
NA |
$264,739 |
$306,546 |
Average Overall |
$588,100 |
$660,600 |
NA |
NA |
|
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Alberta |
Calgary CMA |
Edmonton CMA |
|
Jan-13 |
Jan-12 |
Jan-13 |
Jan-12 |
Average Single Family |
$496,578 |
$440,478 |
$399,832 |
$362,926 |
Average Condo |
$280,272 |
$247,837 |
$216,139 |
$215,407 |
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Saskatchewan |
Saskatoon CMA |
Regina CMA |
|
Dec-12 |
Dec-11 |
Jan-13 |
Jan-12 |
Average Overall |
$338,699 |
$312,834 |
$299,700 |
$284,744 |
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Ontario |
London CMA |
Windsor CMA |
|
Jan-13 |
Jan-12 |
Jan-13 |
Jan-12 |
Average Overall |
$299,586 |
$255,027 |
$166,204 |
$168,927 |
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Quebec |
Montreal CMA |
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Dec-12 |
Dec-11 |
|
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Average Overall* |
$328,688 |
$311,568 |
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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:
Despite the tightening of mortgage criteria by
the Canadian Government in 2012, home prices were higher in
Alberta and Sasktchewan as both
reported strong year-over-year gains in the average price of home
ownership. British
Columbia's home prices have tempered as the average overall
home prices move towards more sustainable levels.
The population growth British Columbia is seeing from individuals
moving to the province from other countries is a key source of
housing demand. With a net migration forecasted to increase
in 2013, along with GDP and employment growth that is expected to
be above the national average, British
Columbia is expected to see an increased demand for housing,
particularly in Vancouver.
In British Columbia, single-detached home starts are expected to
rise in 2013 to 9,400 from the expected 8,500 in 2012. CMHC
predicts that multiple starts in British
Columbia will amount to 20,000 units for all of 2012, and
then fall slightly in 2013 to 19,700.
In response to heightened demand in Alberta, single-detached construction has
increased in 2012, and, as such, a report from CMHC predicts that
2012 will finish with 17,500 units. While construction has
increased, the number of units accumulating in inventory has
actually decreased in 2012 from 2011. This decrease in
inventory will support an increase to 17,600 units in 2013.
Construction activity of multi-family housing in Alberta has increased by 41.8% since 2011 to
14,900 units in 2012. As a result of this increase,
construction will moderate in 2013 to prevent the increase of
inventory levels. CMHC predicts multi-family starts to
moderate to13,600 units in 2013.
As a result of economic and demographic factors, Saskatchewan is in a period of heightened
housing demand and the number of single-detached units under
construction has risen, providing additional supply. CMHC
suggests higher inventory levels will contribute to lower housing
starts in 2013 as 2012 single-detached starts are estimated to
reach 5,100 units, while tapering off slightly to 4,700 in
2013. Similarly, CMHC estimates the low multi-family
inventory in Saskatchewan has
caused increases in condominium construction in 2012, resulting in
an increase in starts for a third consecutive year at 4,100 units
in 2012 and reaching the highest level of production since 1982.
With higher inventory in 2013, multi-family starts are expected to
ease slightly to 3,500 units in Saskatchewan.
Eastern
Canada:
The housing market in Ontario and Quebec showed positive growth in 2012 as
average prices increased in both London and Montreal.
In Ontario, CMHC reports
single-detached starts have stabilized in recent months and will
reach 25,600 units in 2012 and stay relatively flat with an
estimated 25,500 units in 2013. Low inventories, tight
re-sale market conditions, and stronger income growth, are expected
to support single-detached starts in the future. In 2012,
multi-family home construction in Ontario has had a larger share of new home
activity, and CMHC expects this to continue into 2013. CMHC
expect multi-family starts to reach 52,000 in 2012. These
starts will moderate in 2013 to 39,500 as the demand slows in
Ontario.
CMHC predicts moderating housing starts in Quebec with 15,900 starts in 2012 and 15,000
in 2013, this moderation could be due to the rising popularity of
the more affordable multi-family homes, slower job growth and the
recent easing of the resale market. With sustained
construction of multi-family homes in the last couple of years in
Quebec, CMHC expects starts to
slow from 30,800 in 2012 to 27,300 in 2013, this is a result of the
fact that the supply in this market has remained strong relative to
the demand experienced in recent years.
Acquisitions, Dispositions and
Development
There were no Investment Property acquisitions or dispositions
in 2012. In October of 2012, legislation was tabled in the
House of Commons to implement outstanding tax amendments, including
those relating to REITs. The proposed legislation, which
essentially mirrors tax amendments previously announced and
provides further clarity on the nature of income generated from
property sales, will allow the Trust to continue its strategy of
potentially selling certain non-core assets without being offside
with the REIT exemption criteria under the specified investment
flow-through rules. The Trust continues to undertake a
cautious approach to the sale of non-core assets until the
legislation has been passed by the Government of Canada.
The demand for Multi-Family Investment Properties in
Canada continues to be
strong. As a result, continued further capitalization rate
compression and increases in values for Multi-Family assets
continue to be the trend. The Trust continues to 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.
In 2012, the Trust received development approval and commenced
construction of a 109-unit, wood frame, four storey, elevatored
asset on existing excess land the Trust owns in Calgary, Alberta. It is estimated 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 Calgary 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 the
stabilized capitalization rate of this project will be
approximately 6.10%, while also allowing the Trust to surface
approximately $4.25 million
($39,000 per apartment unit) of land
value.
The Trust continues to explore other viable development
opportunities for multi-family apartment buildings on excess land
the Trust currently owns in Alberta and Saskatchewan. The increased demand for
multi-family investment properties, which has 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 in order to improve the Trust's
portfolio and enhance value for Unitholders.
Investing in our Properties
Continued internalization of more maintenance and value-added
projects has further enhanced curb appeal and the quality of our
property portfolio. The Trust believes the quality of
Boardwalk's Communities continues to drive long-term revenue growth
and stability. In 2012, the Trust invested approximately
$89.3 million back into its
properties in the form of project enhancements and equipment
purchases, including upgrades to existing suites, common areas,
mechanical systems, and building exteriors, compared to
$73.7 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 64-67 of the
MD&A.
Liquidity and Continued Financial
Strength
At the end of 2012, the Trust had approximately $363 million in liquidity, comprised of
approximately $139 million of cash,
$28 million of subsequent financing,
and $196 million from an undrawn
revolving credit facility. This represented approximately 16%
of the Trust's outstanding debt as of December 31, 2012. Ample liquidity and
balance sheet strength continue to be an important component in the
execution of the Trust's overall strategy as it provides maximum
flexibility should a potential opportunity arise.
|
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In $000's |
|
|
|
|
|
Cash Position - Dec 31, 2012 |
|
|
|
$ |
138,656 |
|
|
|
|
|
|
Subsequent Committed Financing |
|
|
|
$ |
28,107 |
|
|
|
|
|
|
Line of Credit* |
|
|
|
$ |
196,276 |
|
|
|
|
|
|
Total Available Liquidity |
|
|
|
$ |
363,039 |
|
|
|
|
|
|
Liquidity as a % of Total Debt |
|
|
|
|
16% |
|
|
|
|
|
|
Debt (net of cash) as a % of reported asset value |
|
|
|
|
40% |
Boardwalk's Debt (net of cash) to Fair Value at the end of 2012
was a conservative 40%. The Trust's interest coverage ratio,
measured as Earnings Before Interest, Taxes, Depreciation, and
Amortization ("EBITDA") to interest expense (excluding gains), for
the current year increased to 2.76 times versus 2.42 times for the
previous year.
Through a combination of high occupancy and an increase in
occupied rents, though tempered by an increase in operating
expenses mainly attributable to higher wages and salaries as a
result of competitive wage inflation, the Trust posted an increase
of 5.0% in Net Operating Income, and was within the Trust's revised
Guidance range.
|
|
|
|
Boardwalk Stabilized NOI Growth
for 2012 |
|
|
|
|
|
|
Original Guidance |
|
|
1% - 4% |
Revised Guidance |
|
|
3 % - 5% |
Actual Results, 2012 |
|
|
5.0% |
For further detail, please refer to pages 60-64
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 December 31 2012, the Trust's total mortgage
principal outstanding totaled $2.33
billion at a weighted average interest rate of 3.69%,
compared to $2.42 billion at a
weighted average interest rate of 4.14% reported for December 31, 2011.
Approximately 99% of the Trust's mortgages are CMHC Insured,
providing the benefit of lower interest rates and limiting 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 approximately 4 years, and the
debt (net of cash) to reported asset value ratio was approximately
40% as of December 31, 2012.
In 2012, the Trust renewed $454 million of mortgage maturities at a weighted
average interest rate of 2.91%, a decrease from the maturing rate
of 4.64% for these mortgages, and a significant decrease in the
Trust's interest expense. As of February, 2013, five and ten
year CMHC insured rates are estimated to be 2.30% and 2.90%,
respectively. As the Trust looks forward to renewing its 2013
mortgage maturities, the current low interest rate environment
continues to present an opportunity for the Trust to further reduce
its interest expense through accretive mortgage renewals.
2012 Summary and 2013 Guidance
For fiscal 2012, Boardwalk reported positive FFO per unit of
$2.87 and landed within the Trust's
revised guidance range of $2.80-
$2.90.
|
|
|
|
|
Funds from Operation -
2012 |
|
|
|
|
|
|
|
|
Original Guidance |
|
|
$2.65 to $2.85 |
Revised Guidance |
|
|
$2.80 to $2.90 |
Actual Results, 2012 |
|
|
$2.87 |
Boardwalk's financial guidance for 2013 remains
unchanged from Boardwalk's 2012 third quarter outlook, and is
reiterated as follows:
Description
|
2013
Guidance |
Acquisitions |
No new apartment
acquisitions or
dispositions |
|
|
Stabilized Building NOI
Growth |
1% to 4% |
|
|
FFO Per Trust Unit |
$2.95 to $3.15 |
|
|
AFFO per Trust Unit -
based on $475/yr/apt |
$2.63 to $2.83 |
As is customary, Management will update the
market on Boardwalk's Annual 2013 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 90 of
the MD&A.
2013 Distribution
The Trust's Board of Trustees has approved an
increase to Boardwalk's annualized distributions to $1.98 per Trust Unit, an increase of 3.1% from
the previous distribution of $1.92
per Trust Unit on an annualized basis, effective with the
commencement of the February 28, 2013
record date. The Trust's Board has confirmed these increased
distributions for the next three months in the amount of
$0.165 per Trust Unit ($1.98 on an annualized basis) as per the
following schedule:
Month |
Record Date |
Distribution Date |
|
Feb-13 |
28-Feb-13 |
15-Mar-13 |
Mar-13 |
29-Mar-13 |
15-Apr-13 |
Apr-13 |
30-Apr-13 |
15-May-13 |
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 Fourth Quarter
2012 Supplemental Information is available on Boardwalk's investor
website at www.boardwalkreit.com.
Teleconference on Fourth Quarter 2012
Financial Results
Boardwalk invites you to participate in the
teleconference that will be held to discuss these results tomorrow
morning (February 14, 2013) at
11:00 am EST. Senior management will
speak to the fourth quarter and year-end 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 647-427-7450 (local/international callers) or
toll-free 1-888-231-8191 (within North
America).
Note: Please provide the operator with the below
Conference Call ID or Topic when dialling in to the call.
Conference ID: 81264415
Topic: Boardwalk Fourth 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/1088035/1185369
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 Dec 31, 2012), totaling
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 2013 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 and 2012 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