SUMMARY HIGHLIGHTS FOR THE THREE-MONTH PERIOD ENDED MARCH
31, 2020
- CONTINUED STRONG PERFORMANCE
-
- Funds From Operations (FFO) of $0.62 per Trust Unit; an increase of 10.7% and
eighth consecutive quarter of FFO growth
- Excluding retirement costs, FFO of $0.65 per Trust Unit, an increase of
16.1%
- Additional $0.04 per Trust Unit
of retirement cost anticipated in Q2 of 2020
- 3.8% same-property revenue growth
- 8.1% same-property net operating income growth
- STRONG AND FLEXIBLE FINANCIAL POSITION
-
- Approximately $300.2 million of
liquidity
- To date, completed approximately $127.2
million of mortgage renewals, and secured approximately
$98.7 million in additional
financing
- Recently completed CMHC-insured mortgage financings at record
low interest rates
- 99% of Boardwalk's mortgages carry CMHC-insurance
- Net Asset Value of $62.24 per
trust unit, equating to approximately $180,000 per door
- DELIVERING SOLID OPERATIONAL PERFORMANCE
-
- Stabilized occupancy increased through Q1 with April 2020 occupancy of 96.6%
- Achieved occupancy of 96.03% for Q1 2020
- 97.5% of April rent was collected in the month of April,
approximately 80 basis points below typical monthly collection
- May rent collection to date slightly ahead of April rent
collection
- PROVIDING OUR ESSENTIAL SERVICE OF SAFE AND AFFORDABLE
HOUSING THROUGH THE COVID-19 PANDEMIC
-
- Health and safety of our Resident Members and our Associates
remains Boardwalk's top-priority
- DISTRIBUTION OF $1.00 PER
TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF MAY,
JUNE AND JULY 2020
CALGARY, May 14, 2020 /PRNewswire/ - Boardwalk Real
Estate Investment Trust (TSX: BEI.UN)
Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT"
or the "Trust") today announced its financial results for the first
quarter of 2020.
Sam Kolias; Chairman and Chief
Executive Officer of Boardwalk REIT commented: "We are reporting
our first quarter results today, in a time where our world is
adapting to a new way of living. Boardwalk's top priority
remains the health and safety of both our Resident Members as well
as Boardwalk's Team of Heroes who everyday are performing and
delivering our essential service of safe and affordable
housing.
Boardwalk's commitment to providing the best product quality,
service and experience has made Boardwalk a choice housing provider
before and through this pandemic and have allowed us to create new
long-lasting relationships with our Residents. Our Residents
have rewarded us with even higher Net Promoter Scores, higher
retention and higher occupancy which are positioning us well as our
governments begin to ease restrictions."
Mr. Kolias concluded: "The pandemic has allowed us to expedite
many of the initiatives already planned for the year, such as our
implementation of Resident-friendly technology. Our new
Resident Member online self-service Yuhu portal, has seen strong
adoption and allowed our team to communicate and deliver our
service 24/7, while remaining physically distant. Our team
has implemented many other measures to provide safe and happy homes
for Boardwalk's Resident Members.
Boardwalk's solid first quarter results and the continued strong
performance our team has delivered over the past two years is a
reflection of the improved culture and quality of our portfolio as
we remain committed to our product, brand and service, to provide
safe and affordable homes to our Resident Members."
FIRST QUARTER FINANCIAL HIGHLIGHTS
|
$ millions, except
per unit amounts
|
Highlights of the
Trust's First Quarter 2020 Financial Results
|
|
|
3 Months Mar
31,
2020
|
|
3 Months Mar
31,
2019
|
%
Change
|
Operational
Highlights
|
|
|
|
|
|
Total Rental
Revenue
|
|
$
|
116.0
|
|
$
|
111.9
|
3.7%
|
Same Property Total
Rental Revenue
|
|
$
|
114.0
|
|
$
|
109.8
|
3.8%
|
Net Operating Income
(NOI), as reported
|
|
$
|
64.7
|
|
$
|
59.9
|
7.9%
|
Same Property NOI
*
|
|
$
|
65.2
|
|
$
|
60.3
|
8.1%
|
Operating Margin (as
reported)
|
|
55.7%
|
|
53.6%
|
|
Same Property
Operating Margin *
|
|
57.2%
|
|
54.9%
|
|
|
|
|
|
|
|
Financial
Highlights
|
|
|
|
|
|
Funds From Operations
(FFO)
|
|
$
|
31.5
|
|
$
|
28.2
|
11.4%
|
Adjusted Funds From
Operations (AFFO)
|
|
$
|
26.4
|
|
$
|
22.3
|
18.5%
|
Profit (Loss) for the
Period **
|
|
$
|
57.9
|
|
$
|
(7.7)
|
847.3%
|
FFO per Unit
(Includes $0.03 of retirement costs in 2020)
|
|
$
|
0.62
|
|
$
|
0.56
|
10.7%
|
AFFO per Unit
(Includes $0.03 of retirement costs in 2020)
|
|
$
|
0.52
|
|
$
|
0.44
|
18.2%
|
|
|
|
|
|
|
Net Asset
Value
|
|
|
|
|
|
IFRS Asset Value per
Diluted Unit (Trust & LP B), period end
|
|
$
|
120.04
|
|
$
|
121.22
|
|
Debt Outstanding per
Diluted Unit, period end
|
|
$
|
(58.41)
|
|
$
|
(58.18)
|
|
Net Asset Value (NAV)
per Diluted Trust Unit (Trust & LP B), period end
|
|
$
|
61.63
|
|
$
|
63.04
|
|
Cash per Diluted Unit
(Trust & LP B), period end
|
|
$
|
0.61
|
|
$
|
0.69
|
|
Total per Diluted
Unit (Trust & LP B), period end
|
|
$
|
62.24
|
|
$
|
63.73
|
|
|
|
|
|
|
|
Liquidity, Debt
and Distributions
|
|
|
|
|
|
Cash Position, period
end
|
|
$
|
31,000
|
|
|
|
Subsequent Committed
Financing
|
|
$
|
69,000
|
|
|
|
Line of
Credit
|
|
$
|
200,000
|
|
|
|
Total Available
Liquidity
|
|
$
|
300,000
|
|
|
|
Liquidity as a % of
Period Total Debt
|
|
10%
|
|
|
|
Debt (net of cash) as
a % of Reported Asset Value
|
|
48%
|
|
|
|
|
|
|
|
|
|
Principal
Outstanding, period end
|
|
$
|
2,854,239
|
|
$
|
2,830,036
|
|
Interest Coverage
Ratio (Rolling 4 quarters)
|
|
2.78
|
|
2.69
|
|
|
|
|
|
|
|
Regular Distributions
Declared (Trust Units & LP B Units)
|
|
$
|
12.8
|
|
$
|
12.7
|
0.2%
|
Regular Distributions
Declared Per Unit (Trust Units & LP B Units)
|
|
$
|
0.250
|
|
$
|
0.250
|
0.0%
|
Regular Payout as a %
FFO
|
|
40.5%
|
|
45.1%
|
|
|
|
|
|
|
|
Stabilized Apartment
Units
|
|
32,769
|
|
32,968
|
|
Un-Stabilized
Units
|
|
575
|
|
449
|
|
Total Apartment
Units
|
|
33,344
|
|
33,417
|
|
*Same Property figures exclude un-stabilized properties and
sold assets
** Profit (Loss) for the period as defined by
IFRS includes the changes in assets and/or liabilities carried at
fair value
NOI, FFO and AFFO are widely accepted supplemental measures
of the performance of a Canadian Real Estate entity; however, they
are non-GAAP financial measures as they are not measures defined by
International Financial Reporting Standards ("IFRS"). The
reconciliation of FFO, AFFO and other financial performance
measures can be found in the Management Discussion and Analysis
("MD&A") for the three months ended March 31, 2020, under the section titled,
"Non-GAAP Measures", which is available under the Trust's profile
at www.sedar.com.
DELIVERING SOLID OPERATIONAL PERFORMANCE
Occupancy within the Trust's stabilized portfolio increased as
the number of rentals exceeded the number of moveouts (as a
percentage of total portfolio) each month. Boardwalk's
stabilized occupancy in April of 2020 was 96.6%
|
Portfolio
Highlights for the First Quarter of 2020
|
|
Mar-20
|
Dec-19
|
Mar-19
|
Average Occupancy
(Quarter Average)*
|
96.03%
|
96.19%
|
96.64%
|
|
|
|
|
Average Monthly Rent
(Period Ended)
|
$
|
1,143
|
$
|
1,132
|
$
|
1,105
|
Average Market Rent
(Period Ended)
|
$
|
1,337
|
$
|
1,341
|
$
|
1,301
|
Average Market Rent
(Period Ended), net of incentives
|
$
|
1,241
|
$
|
1,248
|
$
|
1,189
|
Average Occupied Rent
(Period Ended)
|
$
|
1,185
|
$
|
1,182
|
$
|
1,141
|
|
|
|
|
Loss -to-Lease
(Period Ended) ($ millions )
|
$
|
58.0
|
$
|
60.8
|
$
|
61.3
|
Loss -to-Lease
(Period Ended) ($ millions ), net of incentives
|
$
|
21.4
|
$
|
24.9
|
$
|
18.4
|
Loss -to-Lease Per
Trust Unit (Period Ended)
|
$
|
1.14
|
$
|
1.19
|
$
|
1.21
|
Loss -to-Lease Per
Trust Unit (Period Ended), net of incentives
|
$
|
0.42
|
$
|
0.49
|
$
|
0.36
|
|
|
|
|
*Average occupancy is adjusted to be on a same-property
basis
2020 Monthly
Occupancy
|
Month
|
Occupancy
|
Moveouts
|
Rentals
|
January
|
95.5%
|
2.3%
|
3.5%
|
February
|
96.1%
|
2.6%
|
3.3%
|
March
|
96.5%
|
2.7%
|
2.9%
|
April
|
96.6%
|
2.5%
|
2.9%
|
Boardwalk's core Alberta
portfolio continues to deliver solid growth with our two largest
markets, Edmonton and Calgary, delivering 8.8% and 8.1% same
property NOI growth in the first quarter, respectively, as compared
to the same period in 2019. The Trust's Ontario and Quebec markets, which represent over 25% of
the Trust's portfolio, are continuing to deliver strong and stable
results with record high occupancy and increasing market rents,
contributing significant NOI growth of 10.5% and 11.4%,
respectively, in the first quarter compared to the first quarter of
2019. Saskatchewan has seen
improvement of housing balance with 2.4% same property NOI growth
in the first quarter versus the same period last year.
Overall in the first quarter, the Trust delivered revenue growth
of 3.8%, and reduced operating expenses by 1.5% resulting in
portfolio stabilized NOI growth of 8.1%, each as compared to the
same period in 2019.
Mar 31 2020 - 3
M
|
|
|
# of Units
|
% Revenue
Growth
|
% Operating
Expense
Growth
|
% Net
Operating
Income
Growth
|
% of NOI
|
Edmonton
|
|
|
12,906
|
4.0%
|
(1.1)%
|
8.8%
|
37.1%
|
Calgary
|
|
|
5,657
|
3.9%
|
(2.8)%
|
8.1%
|
21.8%
|
Red Deer
|
|
|
939
|
1.5%
|
10.3%
|
(6.7)%
|
2.1%
|
Grande
Prairie
|
|
|
645
|
8.0%
|
8.3%
|
7.8%
|
1.6%
|
Fort
McMurray
|
|
|
352
|
0.2%
|
(4.5)%
|
5.0%
|
1.0%
|
Alberta
|
|
|
20,499
|
3.9%
|
(0.9)%
|
7.9%
|
63.6%
|
Quebec
|
|
|
6,000
|
2.6%
|
(9.0)%
|
11.4%
|
19.0%
|
Saskatchewan
|
|
|
3,685
|
3.4%
|
4.6%
|
2.4%
|
10.3%
|
Ontario
|
|
|
2,585
|
6.9%
|
2.2%
|
10.5%
|
7.1%
|
|
|
|
32,769
|
3.8%
|
(1.5)%
|
8.1%
|
100.0%
|
PROVIDING OUR ESSENTIAL SERVICE OF SAFE AND AFFORDABLE
HOUSING THROUGH COVID-19
The health, safety, and well-being of our Resident Members and
Associates remain our top priority; and as we continue to deliver
homes to our Resident Members through this pandemic, Boardwalk
remains committed to providing transparency and information to its
stakeholders:
- Boardwalk has collected 97.5% of its rental revenue due in
April, and is approximately 80 basis points below a typical rental
collection
-
- Boardwalk is actively following-up with any of its Resident
Members in arrears or in need of a payment plan
- Boardwalk's rent collection to-date for the month of May is
slightly ahead of the trend seen in April
- Approximately 0.5% of Boardwalk's revenue is currently on a
rent deferral program
-
- Boardwalk's payment plan application, for Resident Members
facing financial hardship, was made available to all of its
Resident Members.
- Boardwalk's occupancy within its stabilized portfolio at the
end of April 2020 was 96.6%.
- Turnover (notices for moveout) in the month of May, to-date,
have decreased by approximately 25%.
- Boardwalk has seen an increase in online / self-service
payments in April and May. Approximately 40% of payments were
made via pre-authorized payment, 30% in-person, and 30%
online.
Q1 REGULAR MONTHLY DISTRIBUTION ANNOUNCEMENT
The Trust has confirmed its regular monthly distribution for the
months of May, June and July 2020 as
follows:
Month
|
Per Unit
|
Annualized
|
Record
Date
|
Distribution
Date
|
May-20
|
$
|
0.0834
|
$
|
1.00
|
29-May-20
|
15-Jun-20
|
Jun-20
|
$
|
0.0834
|
$
|
1.00
|
30-Jun-20
|
15-Jul-20
|
Jul-20
|
$
|
0.0834
|
$
|
1.00
|
31-Jul-20
|
17-Aug-20
|
In line with Boardwalk's distribution policy of maximum
re-investment, the Trust's payout ratio remains conservative at
40.5% of Q1-2020 FFO; and 38.0% of the last 12 months
FFO.
Boardwalk's regular monthly distribution provides a stable and
attractive yield for the Trust's stakeholders.
FINANCIAL AND SUPPLEMENTARY INFORMATION
Boardwalk produces quarterly financial statements, management's
discussion and analysis, and a supplemental information package
that provides detailed information regarding the Trust's activities
during the quarter. Financial and supplementary information
is available on Boardwalk's investor website at
www.bwalk.com/investors
TELECONFERENCE ON FIRST QUARTER 2020 FINANCIAL
RESULTS
Boardwalk invites you to participate in the
teleconference that will be held to discuss these results tomorrow
morning (May 15, 2020) at
11:00 am Eastern Time. Senior
management will speak to the period's results and provide an
update. Presentation materials will be made available on
Boardwalk's investor website at www.bwalk.com/investors prior
to the call.
Teleconference: The telephone numbers for the conference
are 416-764-8650 (local/international callers) or toll-free
1-888-664-6383 (within North
America).
Note: Please provide the operator with the below Conference Call
ID or Topic when dialing in to the call.
Conference ID: 43760491
Topic: Boardwalk REIT First Quarter Results
Webcast: Investors will be able to listen to the call and
view Boardwalk's slide presentation by visiting
www.bwalk.com/investors 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:
Boardwalk REIT First Quarter Conference Call Link
Replay: An audio recording of the teleconference will be
available on the Trust's website:
www.bwalk.com/investors
CORPORATE PROFILE
Boardwalk REIT strives to be
Canada's friendliest communities
and currently owns and operates more than 200 communities with over
33,000 residential units totaling over 28 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 acquisitions, dispositions, development,
and effective management of its residential multi-family
communities. Boardwalk REIT is vertically integrated and is
Canada's leading owner/operator of
multi-family communities bringing Residents home to properties
located in Alberta, Saskatchewan, Ontario, and Quebec.
Boardwalk REIT's Trust units are listed on the Toronto Stock
Exchange, trading under the symbol BEI.UN. Additional
information about Boardwalk REIT can be found on the Trust's
website at www.bwalk.com/investors and under the Trust's profile at
www.sedar.com
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING
STATEMENTS
Information in this news release that is not current or
historical factual information may constitute forward-looking
statements and information (collectively, "forward-looking
statements") within the meaning of securities laws. Implicit
in these forward-looking statements, particularly in respect of
Boardwalk's objectives for 2020 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 first quarter Management's Discussion &
Analysis of Boardwalk and the year-end Management's Discussion
& Analysis of Boardwalk under the heading "Risks and Risk
Management", which could cause Boardwalk's actual results to differ
materially from the forward-looking statements contained in this
news release. Specifically, Boardwalk has made assumptions
surrounding the impact of economic conditions in Canada and globally including as a result of
the COVID-19 pandemic, Boardwalk's future growth potential,
prospects and opportunities, the rental environment compared to
several years ago, relatively stable interest costs, access to
equity and debt capital markets to fund (at acceptable costs), the
future growth program to enable the Trust to refinance debts as
they mature, the availability of purchase opportunities for growth
in Canada, general industry
conditions and trends, changes in laws and regulations including,
without limitation, changes in tax laws, mortgage rules and other
temporary legislative changes in light of the COVID-19 pandemic,
increased competition, the availability of qualified personnel,
fluctuations in foreign exchange or interest rates, and stock
market volatility. 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 statements 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 statements and should not rely upon forward-looking
statements as of any other date. Except as required by
applicable law, Boardwalk undertakes no obligation to publicly
update or revise any forward-looking statement, whether a result of
new information, future events, or otherwise.
View original
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SOURCE Boardwalk Real Estate Investment Trust