SUMMARY HIGHLIGHTS FOR THE THREE AND TWELVE-MONTH PERIODS
ENDED DECEMBER 31, 2020
- HEALTH AND SAFETY THROUGH THE COVID-19 PANDEMIC REMAINS
PRIORITY AS WE CONTINUE TO PROVIDE OUR ESSENTIAL SERVICE OF SAFE
AND AFFORDABLE HOUSING
- RESILIENT PERFORMANCE
FOR THE TWELVE MONTH PERIOD
ENDED DECEMBER 31, 2020
- Funds From Operations (FFO) of $2.74 per Trust Unit; an increase of 6.6%
- Excluding retirement costs of $3.7
million, FFO of $2.81 per
Trust Unit, an increase of 9.3%
- 2.3% same-property revenue growth
- 3.7% same-property net operating income growth
FOR THE THREE MONTH PERIOD
ENDED DECEMBER 31, 2020
-
- Funds From Operations (FFO) of $0.67 per Trust Unit; an increase of 6.3%
- 0.3% same-property revenue growth
- 0.2% same-property net operating income growth
- SOLID OPERATIONAL RESULTS
-
- Continued sustainable reduction of incentives on lease
renewals
- Q4 2020 same-property occupancy of 95.71% through
additional government imposed lockdowns and seasonally slower
period
- Rental collections consistent with pre-COVID levels
- STRONG AND FLEXIBLE FINANCIAL POSITION
-
- Approximately $269 million of
liquidity
- Further reduction of interest expense on CMHC-insured mortgage
renewals
- 99.7% of Boardwalk's mortgages carry CMHC-insurance
- Net Asset Value of $57.49 per
Trust Unit, equating to approximately $176,000 per door
- DISTRIBUTION OF $1.00 PER
TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF
FEBRUARY, MARCH, AND APRIL
2021
CALGARY, AB, Feb. 25, 2021 /CNW/ - 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
fourth quarter and fiscal 2020.
Sam Kolias; Chairman and Chief
Executive Officer of Boardwalk REIT commented: "We are pleased to
report on another solid quarter and performance through fiscal
2020, with growth in FFO per Trust Unit of 6.3% and 6.6%,
respectively. Our continued strong financial performance is a
result of our team's committed focus on finding innovative and
efficient ways to attract and retain Resident Members and deliver
our exceptional product quality, service, and
experience despite the challenging economic conditions faced
in 2020.
Our Boardwalk team had a robust start to the new year as we
continue to capture market share and gain further occupancy with
the increase in rental traffic from the easing of restrictions in
many of our markets. Rentals have exceeded moveouts in
January, and this trend has continued into February. This has
resulted in current availability below 4.0%. Our progress on
sustainable incentive reductions on lease renewals continues, and
we remain focused on investing our retained cashflow toward
value-enhancing improvements geared toward value and
affordability.
Our top priority remains the health and safety of both our
Resident Members and our Team in delivering our essential service
of housing to our Resident's across the country. We remain
ever grateful for our front line and essential service providers,
including our Boardwalk Team of Heroes who work tirelessly to
provide safe and affordable housing in all our markets.
With the vaccination program underway, record low interest
rates, an attractive portfolio and some of the most affordable
rents in Canada, Boardwalk is well
positioned to continue to deliver strong financial results as it
has over the past three years."
FOURTH QUARTER & TWELVE-MONTH FINANCIAL
HIGHLIGHTS
$ millions, except
per unit amounts
Highlights of the Trust's Fourth Quarter 2020 Financial
Results
|
|
|
3 Months Dec 31,
2020
|
|
3 Months Dec 31,
2019
|
%
Change
|
|
12 Months Dec 31,
2020
|
|
12 Months Dec 31,
2019
|
%
Change
|
Operational
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Rental
Revenue
|
|
$
|
116.5
|
|
$
|
115.4
|
1.0%
|
|
$
|
465.6
|
|
$
|
455.3
|
2.3%
|
Same Property Total
Rental Revenue *
|
|
$
|
114.4
|
|
$
|
114.0
|
0.3%
|
|
$
|
459.3
|
|
$
|
449.1
|
2.3%
|
Net Operating Income
(NOI)
|
|
$
|
65.8
|
|
$
|
64.8
|
1.6%
|
|
$
|
269.1
|
|
$
|
258.8
|
4.0%
|
Same Property NOI
*
|
|
$
|
66.0
|
|
$
|
65.9
|
0.2%
|
|
$
|
272.0
|
|
$
|
262.2
|
3.7%
|
Operating
Margin
|
|
|
56.4%
|
|
|
56.1%
|
|
|
|
57.8%
|
|
|
56.8%
|
|
Same Property
Operating Margin *
|
|
|
57.7%
|
|
|
57.8%
|
|
|
|
59.2%
|
|
|
58.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations
(FFO)
|
|
$
|
34.3
|
|
$
|
32.2
|
6.6%
|
|
$
|
139.7
|
|
$
|
131.0
|
6.7%
|
Adjusted Funds From
Operations (AFFO)
|
|
$
|
29.7
|
|
$
|
26.1
|
14.1%
|
|
$
|
119.9
|
|
$
|
106.9
|
12.1%
|
(Loss) Profit for the
Period **
|
|
$
|
(188.4)
|
|
$
|
(108.6)
|
73.5%
|
|
$
|
(197.3)
|
|
$
|
34.8
|
-667.2%
|
FFO per Unit
(includes $0.07 of retirement costs in YTD 2020)
|
|
$
|
0.67
|
|
$
|
0.63
|
6.3%
|
|
$
|
2.74
|
|
$
|
2.57
|
6.6%
|
AFFO per Unit
(includes $0.07 of retirement costs in YTD 2020)
|
|
$
|
0.58
|
|
$
|
0.51
|
13.7%
|
|
$
|
2.35
|
|
$
|
2.10
|
11.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset
Value
|
|
|
|
|
|
|
|
|
|
|
|
IFRS Asset Value per
Diluted Unit (Trust & LP B), period end
|
|
|
|
|
|
|
$
|
117.28
|
|
$
|
121.22
|
|
Debt Outstanding per
Diluted Unit, period end
|
|
|
|
|
|
|
$
|
(60.83)
|
|
$
|
(58.19)
|
|
Net Asset Value (NAV)
per Diluted Unit (Trust & LP B), period end
|
|
|
|
|
|
|
$
|
56.45
|
|
$
|
63.03
|
|
Cash per Diluted Unit
(Trust & LP B), period end
|
|
|
|
|
|
|
$
|
1.04
|
|
$
|
0.69
|
|
Total per Diluted
Unit (Trust & LP B), period end
|
|
|
|
|
|
|
$
|
57.49
|
|
$
|
63.72
|
|
*Same Property
figures exclude un-stabilized properties and sold
assets
|
** (Loss) Profit
for the period as defined by IFRS includes the changes in assets
and/or liabilities carried at fair value three and twelve months
ended December 31, 2020
|
The Trust's IFRS asset value of its investment properties, for
the year ended December 31, 2020,
decreased from the prior year primarily as a result of adjustments
to market rent and vacancy assumptions reflecting the more
competitive environment due to the COVID-19 pandemic. The
sequential decline from the prior quarter was largely related to
the Trust's annual shift to its forward year expense
assumptions. The Trust's current net asset value of its
investment properties equates to approximately $176,000 per apartment door.
Continued
Highlights of the Trust's Fourth Quarter 2020 Financial
Results
|
|
|
3 Months Dec 31,
2020
|
|
3 Months Dec 31,
2019
|
%
Change
|
|
12 Months Dec 31,
2020
|
|
12 Months Dec 31,
2019
|
%
Change
|
Liquidity, Debt
and Distributions
|
|
|
|
|
|
|
|
|
|
|
Cash Position, period
end
|
|
|
|
|
|
|
$
|
53,000
|
|
|
|
Fundings Subsequent
To End of Quarter
|
|
|
|
|
|
|
$
|
6,800
|
|
|
|
Committed
UpFinancings
|
|
|
|
|
|
|
$
|
9,700
|
|
|
|
Line of
Credit
|
|
|
|
|
|
|
$
|
199,800
|
|
|
|
Total Available
Liquidity
|
|
|
|
|
|
|
$
|
269,300
|
|
|
|
Liquidity as a % of
Period Total Debt
|
|
|
|
|
|
|
9%
|
|
|
|
Debt (net of cash) as
a % of Reported Asset Value
|
|
|
|
|
|
|
51%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Outstanding, period end
|
|
$
|
3,004,086
|
|
$
|
2,840,776
|
|
|
$
|
3,004,086
|
|
$
|
2,840,776
|
|
Interest Coverage
Ratio (Rolling 4 quarters)
|
|
2.79
|
|
2.76
|
|
|
2.79
|
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
Regular Distributions
Declared (Trust Units & LP B Units)
|
|
$
|
12.8
|
|
$
|
12.7
|
0.2%
|
|
$
|
51.0
|
|
$
|
50.9
|
0.2%
|
Regular Distributions
Declared Per Unit (Trust Units & LP B Units)
|
|
$
|
0.250
|
|
$
|
0.250
|
0.0%
|
|
$
|
1.001
|
|
$
|
1.001
|
0.0%
|
Regular Payout as a %
FFO
|
|
37.3%
|
|
39.6%
|
|
|
36.5%
|
|
38.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized Apartment
Units
|
|
|
|
|
|
|
32,909
|
|
32,769
|
|
Un-Stabilized
Units
|
|
|
|
|
|
|
487
|
|
494
|
|
Total Apartment
Units
|
|
|
|
|
|
|
33,396
|
|
33,263
|
|
SOLID OPERATIONAL RESULTS
Portfolio Highlights
for the Fourth Quarter of 2020
|
|
|
Dec-20
|
|
Dec-19
|
|
Average Occupancy
(Quarter Average)*
|
|
95.71
|
%
|
|
96.18
|
%
|
|
|
|
|
|
|
|
Average Monthly Rent
(Period Ended)
|
$
|
1,132
|
|
$
|
1,132
|
|
Average Market Rent
(Period Ended)
|
$
|
1,330
|
|
$
|
1,341
|
|
Average Occupied Rent
(Period Ended)
|
$
|
1,189
|
|
$
|
1,182
|
|
|
|
|
|
|
|
|
Loss-to-Lease (Period
Ended) ($ millions)
|
$
|
53.5
|
|
$
|
60.8
|
|
Loss-to-Lease Per
Trust Unit (Period Ended)
|
$
|
1.05
|
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Average occupancy
is adjusted to be on a same-property basis
|
The Trust maintained high occupancy compared to the same period
a year ago by focusing on gaining market share and retention.
Market rents were lowered to reflect a more competitive market
while average occupied rent increased sequentially and when
compared to the same period a year ago as the Trust focuses on
reducing incentives on lease renewals.
For the year, same-property revenue growth of 2.3% combined with
operating expense growth of 0.2%, resulted in same-property NOI
growth of 3.7%. Each of Boardwalk's core markets contributed
positively to this NOI growth through revenue optimization and
controllable operating expense innovation, offsetting increases in
non-controllable costs.
For the fourth quarter, higher non-controllable expenses such as
property tax and insurance, partially offset by a reduction in
controllable expenses resulted in Boardwalk's Edmonton and Calgary portfolios decrease in same-property
NOI of 4.3% and 3.7%, 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 stable results with high occupancy, contributing NOI growth
of 11.9% and 10.1%, respectively, in the fourth quarter of 2020
compared to the fourth quarter of 2019. Saskatchewan's market continues to improve
with the Trust's portfolio realizing 1.5% same property NOI growth
in the fourth quarter of 2020 versus the same period last
year.
Overall, in the fourth quarter, controllable expense savings
limited operating expense increase to 0.5% and when paired with
revenue growth of 0.3%, resulted in portfolio stabilized NOI growth
of 0.2%, each as compared to the same period in 2019.
|
|
|
|
|
|
|
|
|
|
|
Dec 31 2020 - 3
M
|
# of Units
|
|
% Revenue
Growth
|
|
%
Operating
Expense
Growth
|
|
% Net
Operating
Income
Growth
|
|
% of NOI
|
|
Edmonton
|
|
12,906
|
|
|
(1.9)
|
%
|
|
0.9
|
%
|
|
(4.3)
|
%
|
|
35.0
|
%
|
Calgary
|
|
5,798
|
|
|
0.1
|
%
|
|
6.8
|
%
|
|
(3.7)
|
%
|
|
21.2
|
%
|
Red Deer
|
|
939
|
|
|
(2.1)
|
%
|
|
(3.0)
|
%
|
|
(1.3)
|
%
|
|
2.3
|
%
|
Grande
Prairie
|
|
645
|
|
|
(2.0)
|
%
|
|
11.6
|
%
|
|
(12.5)
|
%
|
|
1.5
|
%
|
Fort
McMurray
|
|
352
|
|
|
(2.9)
|
%
|
|
(5.4)
|
%
|
|
(1.2)
|
%
|
|
1.1
|
%
|
Alberta
|
|
20,640
|
|
|
(1.3)
|
%
|
|
2.3
|
%
|
|
(4.2)
|
%
|
|
61.1
|
%
|
Quebec
|
|
6,000
|
|
|
2.6
|
%
|
|
(8.9)
|
%
|
|
10.1
|
%
|
|
20.2
|
%
|
Saskatchewan
|
|
3,684
|
|
|
2.3
|
%
|
|
3.5
|
%
|
|
1.5
|
%
|
|
10.9
|
%
|
Ontario
|
|
2,585
|
|
|
7.2
|
%
|
|
0.1
|
%
|
|
11.9
|
%
|
|
7.8
|
%
|
|
|
32,909
|
|
|
0.3
|
%
|
|
0.5
|
%
|
|
0.2
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31 2020 - 12
M
|
# of Units
|
|
% Revenue
Growth
|
|
%
Operating
Expense
Growth
|
|
% Net
Operating
Income
Growth
|
|
% of NOI
|
|
Edmonton
|
|
12,906
|
|
|
1.4
|
%
|
|
0.2
|
%
|
|
2.4
|
%
|
|
36.6
|
%
|
Calgary
|
|
5,798
|
|
|
1.9
|
%
|
|
3.9
|
%
|
|
0.8
|
%
|
|
21.4
|
%
|
Red Deer
|
|
939
|
|
|
(0.1)
|
%
|
|
4.2
|
%
|
|
(3.7)
|
%
|
|
2.2
|
%
|
Grande
Prairie
|
|
645
|
|
|
3.1
|
%
|
|
12.2
|
%
|
|
(4.0)
|
%
|
|
1.6
|
%
|
Fort
McMurray
|
|
352
|
|
|
(2.0)
|
%
|
|
(6.0)
|
%
|
|
1.1
|
%
|
|
1.0
|
%
|
Alberta
|
|
20,640
|
|
|
1.5
|
%
|
|
1.5
|
%
|
|
1.4
|
%
|
|
62.8
|
%
|
Quebec
|
|
6,000
|
|
|
2.8
|
%
|
|
(8.1)
|
%
|
|
9.6
|
%
|
|
19.6
|
%
|
Saskatchewan
|
|
3,684
|
|
|
3.2
|
%
|
|
2.9
|
%
|
|
3.5
|
%
|
|
10.5
|
%
|
Ontario
|
|
2,585
|
|
|
7.1
|
%
|
|
3.3
|
%
|
|
9.7
|
%
|
|
7.1
|
%
|
|
|
32,909
|
|
|
2.3
|
%
|
|
0.2
|
%
|
|
3.7
|
%
|
|
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:
- At the end of January 2021;
Boardwalk has collected 98.4% of its rental revenue due in
January
-
- Boardwalk is actively following-up with any of its Resident
Members in arrears or in need of a payment plan
- Boardwalk continues to offer flexible payment options to its
Resident Members who may require payment plans
- Boardwalk's rent collection through COVID to-date has remained
consistent with collection levels pre-COVID
STRONG LIQUIDITY POSITION WITH ACCESS TO RECORD LOW INTEREST
RATES
The Trust utilized the low interest rate environment in 2020 to
renew and refinance its mortgage maturities at interest rates well
below the maturing rates. In 2020, Boardwalk renewed maturing
mortgages at a weighted average interest rate of 1.64%, 90 basis
points below the maturing rate average of 2.54%.
In 2021, the Trust anticipates $384.2
million of mortgage maturities with an average in-place
interest rate of 2.40%. Current market 5 and 10 year CMHC
financing rates are estimated to be 1.30% and 2.10%, respectively,
providing a positive interest cost savings opportunity. To
date, the Trust has forward-locked or renewed the interest rate on
$81.4 million or 21% of its maturing
mortgages in 2021 at an average interest rate of 1.30%.
Q4 REGULAR MONTHLY DISTRIBUTION ANNOUNCEMENT
The Trust has confirmed its regular monthly distribution for the
months of February 2021, March 2021, and April
2021 as follows:
Month
|
|
Per Unit
|
|
Annualized
|
|
Record
Date
|
Distribution
Date
|
Feb-21
|
|
$
|
0.0834
|
|
$
|
1.00
|
|
26-Feb-21
|
15-Mar-21
|
Mar-21
|
|
$
|
0.0834
|
|
$
|
1.00
|
|
31-Mar-21
|
15-Apr-21
|
Apr-21
|
|
$
|
0.0834
|
|
$
|
1.00
|
|
30-Apr-21
|
17-May-21
|
In line with Boardwalk's distribution policy of maximum
re-investment, the Trust's payout ratio remains conservative at
37.3% of Q4 2020 FFO; and 36.5% of the last 12 months
FFO.
Boardwalk's regular monthly distribution provides a stable and
attractive yield for the Trust's stakeholders.
SECOND ANNUAL ESG REPORT
Boardwalk anticipates publishing its second annual ESG report in
March. The ESG report along with the Trust's Annual report
will be interactive in a digital format accessible on Boardwalk's
website. The Trust is excited to share an update and progress
in reporting on its ESG initiatives and improvements including the
completion of our inaugural GRESB assessment.
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 FOURTH QUARTER 2020 FINANCIAL
RESULTS
Boardwalk invites you to participate in the
teleconference that will be held to discuss these results tomorrow
morning (February 26, 2021) 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: 34608422
Topic: Boardwalk REIT, 2020 Fourth 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 Fourth Quarter Results Webcast 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, Quebec, Ontario, and Saskatchewan.
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.
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 its current 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 its 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
content:http://www.prnewswire.com/news-releases/boardwalk-reit-reports-strong-results-through-2020-with-funds-from-operation-per-unit-growth-of-6-6-301236092.html
SOURCE Boardwalk Real Estate Investment Trust