SUMMARY HIGHLIGHTS FOR THE THREE-MONTH PERIOD ENDED
MARCH 31, 2022
- STRONG FINANCIAL PERFORMANCE
-
- Profit of $69.4 million
- Funds From Operations ("FFO") of $0.68 per Unit(1); an increase of
4.6%
- SOLID OPERATIONAL RESULTS DESPITE NON-CONTROLLABLE EXPENSE
INFLATION
-
- Q1 2022 same property(2) rental revenue growth of
2.1%
- Q1 2022 same property Net Operating Income ("NOI") of
$64.9 million; an increase of
1.2%
- Q1 2022 same property occupancy of 95.53%; an increase of 67
basis points from last year
- Occupied rent increased to $1,217
in March of 2022, a $14 improvement
from December 2021
- POST-QUARTER LEASING STRENGTH
-
- April 2022 occupancy of
95.8%
- May 2022 preliminary occupancy of
96.6%, an increase of 100 basis points from January 2022
- Post-quarter occupancy growth
- Positive improvements in both new and renewal leasing
spreads
- FLEXIBLE FINANCIAL POSITION
-
- Approximately $255.8 million of
total available liquidity
- 95% of Boardwalk's mortgages carry CMHC-insurance
- Unitholders' Equity of $3.3
billion
- Net Asset Value increased to $68.61 per Unit(1)
- ACCRETIVE AND STRATEGIC CAPITAL ALLOCATION
-
- Acquisition of Ardglen Place, a 152-suite apartment
community in Brampton, ON
- Acquisition of Peak Estates, a 148-suite apartment
community in Canmore, AB
- Removed conditions on purchase of additional development site
in Victoria, BC
- Invested $7.6 million in the
repurchase and cancellation of 137,500 Trust Units in the first
quarter
- UPDATE TO 2022 FINANCIAL GUIDANCE FOR INCREASED VOLATILITY
IN UTILITY AND INTEREST COSTS
-
- Updated FFO per unit range of $2.95 to $3.15 per
Unit(1)
- Updated same property NOI growth of +2.0% to +5.0%
(1) Please refer to the section
titled "Presentation of Non-GAAP Measures" in this Earnings Release
for more information.
|
(2) Same property figures exclude
un-stabilized properties (properties which have been owned for less
than 24 months) and sold assets.
|
CALGARY, AB, May 9 2022 /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 first
quarter of 2022.
Sam Kolias; Chairman and Chief
Executive Officer of Boardwalk REIT commented:
"We are pleased to report on another solid quarter to begin
2022, with growth in NOI, FFO, and Profit through the Omicron wave
of the pandemic and non-controllable cost inflation primarily in
our utilities expense through the winter months.
As we look forward to our busy spring and summer leasing season,
we have seen significant leasing gains with our May occupancy
increasing to 96.6%. Leasing spreads on both renewals and new
leases have seen strong improvement, and in our largest market of
Alberta, have seen renewal spreads
increase to 4.7% in the month of April. New lease spreads
have also turned positive with housing fundamentals improving in
each of our markets allowing for incentive reductions and positive
rental rate growth.
Increased interest rates and anticipated significantly higher
utility costs in 2022 present a current headwind for community
providers, however, our portfolio of affordable, unregulated, and
high quality apartment communities is positioned to produce
sustainable rental rate adjustments that allow Boardwalk to further
build on our strong financial foundation."
FIRST QUARTER FINANCIAL HIGHLIGHTS
$ millions, except per unit
amounts
|
|
Highlights of the Trust's First Quarter 2022
Financial Results
|
|
|
3 Months Mar 31, 2022
|
|
|
3 Months Mar 31, 2021
|
|
% Change
|
|
Operational Highlights
|
|
|
|
|
|
|
|
Rental
Revenue
|
$
|
118.3
|
|
|
$
|
115.8
|
|
|
2.2
|
%
|
Same Property Rental
Revenue
|
$
|
115.6
|
|
|
$
|
113.3
|
|
|
2.1
|
%
|
Net Operating Income
(NOI)
|
$
|
64.9
|
|
|
$
|
63.9
|
|
|
1.6
|
%
|
Same Property
NOI
|
$
|
64.9
|
|
|
$
|
64.1
|
|
|
1.2
|
%
|
Operating Margin
(1)
|
|
54.9
|
%
|
|
|
55.2
|
%
|
|
|
Same Property Operating
Margin
|
|
56.1
|
%
|
|
|
56.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights
|
|
|
|
|
|
|
|
Funds From Operations
(FFO) (2)(3)
|
$
|
34.5
|
|
|
$
|
33.2
|
|
|
3.8
|
%
|
Adjusted Funds From
Operations (AFFO) (2)(3)
|
$
|
26.4
|
|
|
$
|
24.8
|
|
|
6.8
|
%
|
Profit
|
$
|
69.4
|
|
|
$
|
29.0
|
|
|
139.6
|
%
|
FFO per Unit
(3)
|
$
|
0.68
|
|
|
$
|
0.65
|
|
|
4.6
|
%
|
AFFO per Unit
(3)
|
$
|
0.52
|
|
|
$
|
0.49
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
Regular Distributions
Declared (Trust Units & LP Class B Units)
|
$
|
13.0
|
|
|
$
|
12.8
|
|
1.5
|
%
|
Regular Distributions
Declared Per Unit (Trust Units & LP Class B Units)
|
$
|
0.257
|
|
|
$
|
0.250
|
|
2.6
|
%
|
FFO Payout Ratio
(3)
|
37.6
|
%
|
|
38.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Stabilized Apartment
Suites
|
32,787
|
|
|
32,909
|
|
|
|
Un-Stabilized
Suites
|
777
|
|
|
487
|
|
|
|
Total Apartment
Suites
|
33,564
|
|
|
33,396
|
|
|
|
(1) Operating margin is
calculated by dividing NOI by rental revenue allowing management to
assess the percentage of rental revenue which generated profit.
(2) This is a non-GAAP financial measure.
(3) Please refer to the section titled "Presentation of
Non-GAAP Measures" in this Earnings Release for more
information.
|
Continued Highlights of the Trust's First Quarter
2022 Financial Results
|
|
Mar 31, 2022
|
|
|
Dec 31, 2021
|
|
Equity
|
|
|
|
|
|
Unitholders'
Equity
|
$
|
3,303,202
|
|
$
|
3,253,178
|
|
|
|
|
|
|
|
|
Net Asset Value
|
|
|
|
|
|
|
Net asset value
(1)(2)
|
$
|
3,464,858
|
|
$
|
3,412,130
|
|
Net asset value per
Unit (2)
|
$
|
68.61
|
|
$
|
66.87
|
|
|
|
|
|
|
|
|
Liquidity, Debt and
Distributions
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
29,805
|
|
$
|
64,300
|
|
Subsequent
committed/funded financing
|
$
|
26,270
|
|
$
|
42,200
|
|
Unused committed
revolving credit facility
|
$
|
199,750
|
|
$
|
199,750
|
|
Total Available
Liquidity
|
$
|
255,825
|
|
$
|
306,250
|
|
|
|
|
|
|
|
|
Total mortgage
principal outstanding
|
$
|
3,213,425
|
|
$
|
3,088,978
|
|
Interest Coverage Ratio
(Rolling 4 quarters)
|
|
2.99
|
|
|
|
2.97
|
|
|
|
|
|
|
|
(1) This is a
non-GAAP financial measure.
(2) Please refer to the section titled "Presentation of
Non-GAAP Measures" in this Earnings Release for more
information.
|
The Trust's IFRS fair value of its investment properties for the
three months ended March 31, 2022
increased from the previous quarter, primarily as a result of
increased market rents in some of its markets reflecting improving
rental fundamentals.
SOLID OPERATIONAL
RESULTS
Portfolio Highlights
for the First Quarter of 2022
|
|
Mar-22
|
Mar-21
|
Average Occupancy
(Quarter Average)(1)
|
|
95.53%
|
|
94.86%
|
|
|
|
Average Monthly Rent
(Period Ended)
|
$
|
1,163
|
$
|
1,128
|
Average Market Rent
(Period Ended)(2)
|
$
|
1,362
|
$
|
1,330
|
Average Occupied Rent
(Period Ended)(3)
|
$
|
1,217
|
$
|
1,186
|
|
|
|
Loss-to-Lease (Period
Ended) ($ millions)
|
$
|
55.0
|
$
|
54.2
|
Loss-to-Lease Per Trust
Unit (Period Ended)
|
$
|
1.09
|
$
|
1.06
|
|
|
|
(1) Average occupancy
is adjusted to be on a same property basis.
(2) Market rent is a component of rental revenue as calculated in
accordance with IFRS and is calculated as of the first day of each
month as the average rental revenue amount a willing landlord might
reasonably expect to receive, and a willing tenant might reasonably
expect to pay, for a tenancy, before adjustments for other rental
revenue items such as incentives, vacancy loss, fees, specific
recoveries, and revenue from commercial tenants.
(3) Occupied rent is a component of rental revenue as calculated in
accordance with IFRS and is calculated for occupied suites as of
the first day of each month as the average rental revenue, adjusted
for other rental revenue items such as fees, specific recoveries,
and revenue from commercial tenants.
|
|
Jan- 21
|
Feb- 21
|
Mar- 21
|
Apr- 21
|
May- 21
|
Jun- 21
|
Jul- 21
|
Aug- 21
|
Sep- 21
|
Oct- 21
|
Nov- 21
|
Dec- 21
|
Jan- 22
|
Feb- 22
|
Mar- 22
|
Apr- 22
|
May- 22
|
Stabilized
Property
Portfolio
Occupancy
|
94.8%
|
94.7%
|
95.0%
|
95.7%
|
96.0%
|
96.0%
|
95.9%
|
96.1%
|
96.2%
|
96.1%
|
95.7%
|
95.7%
|
95.6%
|
95.5%
|
95.4%
|
95.8%
|
96.6%
|
The Trust maintained high occupancy compared to the same period
a year ago by focusing on gaining market share and retention.
Market rents were increased in communities within some of the
Trust's markets where rental market fundamentals continue to
tighten 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 and minimizing incentives on
new leases in its stronger markets.
For the first quarter of 2022, a same property rental revenue
increase of 2.1% combined with a same property total rental expense
increase of 3.2%, resulted in same property NOI growth of
1.2%.
During the quarter, lower vacancy loss and incentives supported
Boardwalk's Calgary portfolio
increase in same property NOI of 6.5%, while in Edmonton, cost savings from lower property
taxes and other operating expenses were offset by higher utilities
expense resulting in NOI growth remaining flat for the first
quarter of 2022 compared to the first quarter of 2021.
Saskatchewan's market continues to
improve with the Trust's portfolio realizing 12.3% same property
NOI growth in the first quarter of 2022 versus the same period last
year, as a result of strong same property revenue growth and a
reduction in expenses related to tv and internet services provided
to Boardwalk's Resident Members in the province. In Ontario,
the mark-to-market opportunity on turnover, offset by growth in
non-controllable and controllable expenses, contributed to same
property NOI growth of 1.1% in the first quarter of 2022 compared
to the first quarter of 2021. In Quebec, increases in non-controllable expenses
such as property taxes, utilities and insurance and certain
controllable expense categories more than offset positive same
property revenue growth resulting in same property NOI decrease of
8.8% in the first quarter of 2022 compared to the first quarter of
2021.
Mar 31 2022 - 3
M
|
# of Suites
|
|
% Rental
Revenue Growth
|
% Total Rental
Expenses Growth
|
% Net Operating
Income Growth
|
% of NOI
|
Edmonton
|
|
12,882
|
|
|
0.3%
|
|
0.6%
|
|
—%
|
|
34.0%
|
Calgary
|
|
5,879
|
|
|
4.8%
|
|
1.2%
|
|
6.5%
|
|
22.8%
|
Red Deer
|
|
939
|
|
|
2.9%
|
|
2.2%
|
|
3.6%
|
|
2.2%
|
Grande
Prairie
|
|
645
|
|
|
(4.1)%
|
|
4.1%
|
|
(13.7)%
|
|
1.4%
|
Fort
McMurray
|
|
352
|
|
|
(0.1)%
|
|
3.9%
|
|
(4.4)%
|
|
0.9%
|
Alberta
|
|
20,697
|
|
|
1.7%
|
|
1.0%
|
|
2.2%
|
|
61.3%
|
Quebec
|
|
6,000
|
|
|
0.6%
|
|
16.6%
|
|
(8.8)%
|
|
18.9%
|
Saskatchewan
|
|
3,505
|
|
|
4.9%
|
|
(6.4)%
|
|
12.3%
|
|
11.9%
|
Ontario
|
|
2,585
|
|
|
5.0%
|
|
11.1%
|
|
1.1%
|
|
7.9%
|
|
|
32,787
|
|
|
2.1%
|
|
3.2%
|
|
1.2%
|
|
100.0%
|
STRONG LIQUIDITY
POSITION
In the first quarter, Boardwalk renewed its maturing mortgages
at a weighted average interest rate of 2.44% while extending the
term of these mortgages by an average of five years.
For the remainder of 2022, the Trust anticipates $400.8 million of mortgages payable maturing with
an average in-place interest rate of 2.66% and will continue to
renew these mortgages as they mature. Current market 5 and
10-year CMHC financing rates are estimated to be 3.70% and 4.00%,
respectively. While interest rates have increased significantly
since the beginning of March, the Trust remains positioned with a
balanced laddered maturity schedule within its mortgage program, a
disciplined capital allocation program and continued use of CMHC
funding, which decreases the renewal risk on its existing
mortgages.
ACCRETIVE AND STRATEGIC CAPITAL
ALLOCATION
The Trust remains committed to re-investing retained cashflow
and the net proceeds from the sale of non-core assets toward
opportunities that are both accretive to FFO per Unit in the
near-term and significantly enhance the NAV per Unit of the Trust
over the intermediate term.
As previously announced, on March 30,
2022, the Trust acquired a property in Brampton, Ontario comprised of 152 suites and
a property in Canmore, Alberta
comprised of 148 suites. The combined purchase price for these two
properties was $118.8 million
(including transaction costs). The acquisition provides immediate
FFO per Unit accretion and exposure to two growing and
under-supplied housing markets. Peak Estates in Canmore is an A-class community built in 2018
featuring large unit sizes, modern finishes and 6 in-suite
appliances. The property expands the Trust's portfolio in the
Banff and Canmore corridor to over 300 suites.
Ardglen Place in Brampton
features desirable townhouse suites and offers significant
value-add potential for the Trust. In addition, Ardglen
Place is located a short drive from the Trust's 45 Railroad
development, which is currently pre-leasing and is expected to come
online in Q4 2022.
Subsequent to the end of the first quarter, the Trust removed
conditions on the purchase of a development site in View Royal
(Victoria) at 339 – 345 Island
Highway. The purchase price is $12.0
million and the transaction is expected to close in the
second quarter of 2022. The site strengthens the Trust's long-term
development pipeline in the Victoria area and is located a short drive
from the Trust's two other development sites, Aspire in View
Royal and The Marin in Esquimalt.
During the fourth quarter of 2021, the Trust announced that it
received approval from the Toronto Stock Exchange (the "TSX") to
commence a normal course issuer bid ("NCIB"). The Trust continues
to view its own portfolio as offering un-paralleled value in the
multi-family sector and believes its current unit price represents
an attractive opportunity for re-investment. During the first
quarter, the Trust re-purchased 137,500 Trust Units at a
volume-weighted average price of $55.25 for a total price of approximately
$7.6 million.
UPDATE TO 2022 FINANCIAL
GUIDANCE
In February, the Trust introduced its financial guidance for
2022 and is providing an update to incorporate increased interest
costs and utility expense expectations, which are largely a result
of recent macroeconomic and geopolitical events.
The Trust's outlook on revenue growth remains strong as housing
fundamentals continue to improve in many of its core markets.
Description
|
2022 Revised
Guidance
|
2022 Original
Guidance
|
2021 Actual (in $
thousands
except per unit)
|
Same Property NOI
Growth
|
2.0% - 5.0%
|
3.0% - 7.0%
|
0.1%
|
Profit
|
N/A
|
N/A
|
$446,267
|
FFO(1)(2)
|
N/A
|
N/A
|
$150,207
|
AFFO(1)(2)(3)
|
N/A
|
N/A
|
$117,920
|
FFO Per
Unit(2)
|
$2.95 to
$3.15
|
$3.03 to
$3.18
|
$2.94
|
AFFO Per
Unit(2)(3)
|
$2.31 to
$2.51
|
$2.39 to
$2.54
|
$2.31
|
|
|
|
|
|
(1) This is
a non-GAAP financial measure.
|
(2) Please
refer to the section titled "Presentation of Non-GAAP Measures" in
this Earnings Release for more information.
|
(3)
Utilizing a Maintenance CAPEX of $965/suite/year.
|
FIRST QUARTER REGULAR MONTHLY DISTRIBUTION
ANNOUNCEMENT
The Trust has confirmed its regular monthly distributions for
the months of May 2022, June 2022, and July
2022 as follows:
Month
|
Per Unit
|
Annualized
|
Record Date
|
Distribution
Date
|
May-22
|
$
|
0.0900
|
$
|
1.08
|
31-May-22
|
15-Jun-22
|
Jun-22
|
$
|
0.0900
|
$
|
1.08
|
30-Jun-22
|
15-Jul-22
|
Jul-22
|
$
|
0.0900
|
$
|
1.08
|
29-Jul-22
|
15-Aug-22
|
In line with Boardwalk's distribution policy of maximum
re-investment, the Trust's payout ratio remains conservative at
37.6% of Q1 2022 FFO; and 43.7% of the last 12 months
FFO.
Boardwalk's regular monthly distribution was recently increased
by 8% in March of 2022 and provides a stable and attractive yield
for the Trust's unitholders.
THIRD ANNUAL ESG REPORT
The Trust is, and continues to be, committed to environmental,
social and governance ("ESG") objectives and initiatives, including
working towards reducing greenhouse gas emissions and electricity
and natural gas consumption, water conservation, waste
minimization, and a continued focus on governance and
oversight. In March, Boardwalk published its third annual ESG
report. The ESG report, along with the Trust's Annual report,
are available digitally on Boardwalk's website and under the
Trust's profile at www.sedar.com.
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 2022 FINANCIAL
RESULTS
Boardwalk invites you to participate in the teleconference that
will be held to discuss these results tomorrow morning
(May 10, 2022) at 11:00 am Eastern Time (9:00 am Mountain). 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: 85957330
Topic: Boardwalk Real Estate Investment Trust, 2022 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 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 community provider and is
a leading owner/operator of multi-family rental communities.
Providing homes in more than 200 communities, with over 33,000
residential units totaling over 28 million net rentable square
feet, Boardwalk has a proven long-term track record of building
better communities, where love always livestm. Our
three-tiered and distinct brands: Boardwalk Living, Boardwalk
Communities, and Boardwalk Lifestyle, cater to a large diverse
demographic and has evolved to capture the life cycle of all
Resident Members. Boardwalk's disciplined approach to capital
allocation, acquisition, development, purposeful re-positioning,
and management of apartment communities allows the Trust to provide
its brand of community across Canada creating exceptional Resident Member
experiences. Differentiated by its peak performance culture,
Boardwalk is committed to delivering exceptional service, product
quality and experience to our Resident Members who reward us with
high retention and market leading operating results, which in turn,
lead to higher free cash flow and investment returns, stable
monthly distributions, and value creation for all our
stakeholders.
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.
PRESENTATION OF NON-GAAP
MEASURES
Non-GAAP Financial Measures
Boardwalk believes
non-GAAP financial measures are meaningful and useful measures of
real estate organizations operating performance, however, are not
measures defined by IFRS. As they do not have standardized
meanings prescribed by IFRS, they therefore may not be comparable
to similar measurements presented by other entities and should not
be construed as an alternative to IFRS defined measures.
Below are the non-GAAP financial measures referred to in this
Earnings Release.
Funds From Operations
The IFRS measurement most
comparable to FFO is profit. Boardwalk REIT considers FFO to
be an appropriate measurement of the performance of a publicly
listed multi-family residential entity as it is the most widely
used and reported measure of real estate investment trust
performance. Profit (loss) includes items such as fair value
changes of investment property that are subject to market
conditions and capitalization rate fluctuations which are not
representative of recurring operating performance. We define
FFO as adjustments to profit (loss) for fair value gains or losses,
distributions on the LP Class B Units, gains or losses on the sale
of the Trust's investment properties, depreciation, deferred income
tax, and certain other non-cash adjustments, if any, but after
deducting the principal repayment on lease liabilities and adding
the principal repayment on lease receivables. The
reconciliation from profit (loss) under IFRS to FFO can be found
below. The Trust uses FFO to assess operating performance and
its distribution paying capacity, determine the level of Associate
incentive-based compensation, and decisions related to investment
in capital assets. To facilitate a clear understanding of the
combined historical operating results of Boardwalk REIT, management
of the Trust believes FFO should be considered in conjunction with
profit as presented in the condensed consolidated interim financial
statements for the three months ended March
31, 2022 and 2021.
FFO
Reconciliation
|
3 Months
|
3 Months
|
% Change
|
|
Mar 31, 2022
|
Mar 31, 2021
|
|
(In $000's, except per
Unit amounts)
|
|
|
|
Profit
|
$
|
69,428
|
$
|
28,977
|
|
Adjustments
|
|
|
|
Other
income
|
|
(5,452)
|
|
-
|
|
Fair value
(gains) losses
|
|
(31,719)
|
|
2,210
|
|
LP Class B Unit
distributions
|
|
1,149
|
|
1,120
|
|
Income tax
expense
|
|
93
|
|
10
|
|
Depreciation
|
|
1,826
|
|
1,694
|
|
Principal
repayments on lease liabilities
|
|
(1,013)
|
|
(959)
|
|
Principal
repayments on lease receivable
|
|
176
|
|
158
|
|
FFO
|
$
|
34,488
|
$
|
33,210
|
3.8%
|
FFO per Unit
|
$
|
0.68
|
$
|
0.65
|
4.6%
|
Adjusted Funds From Operations
Similar to FFO, the
IFRS measurement most comparable to AFFO is profit. Boardwalk
REIT considers AFFO to be an appropriate measurement of a publicly
listed multi-family residential entity as it measures the economic
performance after deducting for maintenance capital expenditures to
the existing portfolio of investment properties. AFFO is
determined by taking the amounts reported as FFO and deducting what
is commonly referred to as "Maintenance Capital Expenditures".
Maintenance Capital Expenditures are referred to as expenditures
that, by standard accounting definition, are accounted for as
capital in that the expenditure itself has a useful life in excess
of the current financial year and maintains the value of the
related assets. The reconciliation of AFFO can be found
below. The Trust uses AFFO to assess operating performance
and its distribution paying capacity, and decisions related to
investment in capital assets.
(000's)
|
3 Months
|
3 Months
|
12 Months
|
|
Mar 31, 2022
|
Mar 31, 2021
|
Dec 31, 2021
|
|
|
|
|
FFO
|
$
|
34,488
|
$
|
33,210
|
$
|
150,207
|
Maintenance Capital
Expenditures
|
|
8,049
|
|
8,449
|
|
32,287
|
AFFO
|
$
|
26,439
|
$
|
24,761
|
$
|
117,920
|
Adjusted Real Estate Assets
The IFRS measurement most
comparable to Adjusted Real Estate Assets is investment
properties. Adjusted Real Estate Assets is comprised of
investment properties, equity accounted investment, and cash and
cash equivalents. Adjusted Real Estate Assets is useful in
summarizing the real estate assets owned by the Trust and it is
used in the calculation of NAV, which management of the Trust
believes is a useful measure in estimating the entity's
value. The reconciliation from Investment Properties under
IFRS to Adjusted Real Estate Assets can be found on the following
page, under Net Asset Value.
Adjusted Real Estate Debt
The IFRS measurement most
comparable to Adjusted Real Estate Debt is mortgages payable.
Adjusted Real Estate Debt is comprised of total mortgage principal
outstanding, total lease liabilities attributable to land leases,
and construction loan payable. It is useful in summarizing
the Trust's debt which is attributable to its real estate assets
and is used in the calculation of NAV, which management of the
Trust believes is a useful measure in estimating the entity's
value. The reconciliation from Mortgages Payable under IFRS
to Adjusted Real Estate Debt can be found below under Net Asset
Value.
Net Asset Value
The IFRS measurement most comparable
to NAV is Unitholders' equity. With real estate entities, NAV
is the total value of the entity's investment properties and cash
minus the total value of the entity's debt. The Trust
determines NAV by taking Adjusted Real Estate Assets and
subtracting Adjusted Real Estate Debt, which management of the
Trust believes is a useful measure in estimating the entity's
value. The reconciliation from Unitholders' equity under IFRS
to Net Asset Value is below.
|
Mar 31, 2022
|
Dec 31, 2021
|
Investment
properties
|
$
|
6,683,050
|
$
|
6,492,969
|
Equity accounted
investment
|
|
41,118
|
|
41,118
|
Cash and cash
equivalents
|
|
29,805
|
|
64,300
|
Adjusted Real Estate
Assets
|
$
|
6,753,973
|
$
|
6,598,387
|
|
|
|
Total mortgage
principal outstanding
|
$
|
(3,213,425)
|
$
|
(3,088,978)
|
Total lease liabilities
attributable to land leases
|
|
(75,690)
|
|
(76,092)
|
Construction loan
payable
|
|
-
|
|
(21,187)
|
Adjusted Real Estate
Debt
|
$
|
(3,289,115)
|
$
|
(3,186,257)
|
|
|
|
Net Asset
Value
|
$
|
3,464,858
|
$
|
3,412,130
|
Net Asset Value per
Unit
|
$
|
68.61
|
$
|
66.87
|
Reconciliation of Unitholders' Equity to Net Asset
Value
|
Mar 31, 2022
|
Dec 31, 2021
|
Unitholders'
equity
|
$
|
3,303,202
|
$
|
3,253,178
|
Total Assets
|
|
(6,819,818)
|
|
(6,660,653)
|
Investment
properties
|
|
6,683,050
|
|
6,492,969
|
Equity accounted
investment
|
|
41,118
|
|
41,118
|
Cash and cash
equivalents
|
|
29,805
|
|
64,300
|
Total
Liabilities
|
|
3,516,616
|
|
3,407,475
|
Total mortgage
principal outstanding
|
|
(3,213,425)
|
|
(3,088,978)
|
Total lease liabilities
attributable to land leases(1)
|
|
(75,690)
|
|
(76,092)
|
Construction loan
payable
|
|
-
|
|
(21,187)
|
Net Asset
Value
|
$
|
3,464,858
|
$
|
3,412,130
|
(1) Total lease
liability attributable to land leases is a component of lease
liabilities as calculated in accordance with IFRS.
|
Non-GAAP Ratios
The discussion below outlines the non-GAAP ratios used by the
Trust. Each non-GAAP ratio has a non-GAAP financial measure
as one or more of its components, and, as a result, do not have
standardized meanings prescribed by IFRS and therefore may not be
comparable to similar financial measurements presented by other
entities. Non-GAAP financial measures should not be construed
as alternatives to IFRS defined measures.
FFO per Unit, AFFO per Unit, and NAV per Unit
FFO per
Unit includes the non-GAAP financial measure FFO as a component in
the calculation. The Trust uses FFO per Unit to assess
operating performance on a per Unit basis, as well as determining
the level of Associate incentive-based compensation.
AFFO per Unit includes the non-GAAP financial measure AFFO as a
component in the calculation. The Trust uses AFFO per Unit to
assess operating performance on a per Unit basis and its
distribution paying capacity.
NAV per Unit includes the non-GAAP financial measure NAV as a
component in the calculation. Management of the Trust
believes it is a useful measure in estimating the entity's value on
a per Unit basis, which an investor can compare to the entity's
Trust Unit price which is publicly traded to help with investment
decisions.
FFO per Unit and AFFO per Unit, are calculated by taking the
non-GAAP ratio's corresponding non-GAAP financial measure and
dividing by the weighted average Trust Units outstanding for the
period on a fully diluted basis, which assumes conversion of the LP
Class B Units and vested deferred units determined in the
calculation of diluted per Trust Unit amounts in accordance with
IFRS.
NAV per Unit is calculated as NAV divided by the Trust Units
outstanding as at the reporting date on a fully diluted basis which
assumes conversion of the LP Class B Units and vested deferred
units outstanding.
FFO per Unit Future Financial Guidance
FFO per Unit
Future Financial Guidance is calculated as FFO Future Financial
Guidance divided by the estimated weighted average Trust Units and
LP Class B Units outstanding throughout the year.
Boardwalk REIT considers FFO per Unit Future Financial Guidance to
be an appropriate measurement of the estimated future financial
performance based on information currently available to management
of the Trust at the date of this Earnings Release.
AFFO per Unit Future Financial Guidance
AFFO per Unit
Future Financial Guidance is calculated as AFFO Future Financial
Guidance divided by the estimated weighted average Trust Units and
LP Class B Units outstanding throughout the year.
Boardwalk REIT considers AFFO per Unit Future Financial Guidance to
be an appropriate measurement of the estimated future profitability
based on information currently available to management of the Trust
at the date of this Earnings Release.
FFO Payout Ratio
FFO Payout Ratio represents the
REIT's ability to pay distributions. This non-GAAP ratio is
computed by dividing regular distributions paid on the Trust Units
and LP Class B Units by the non-GAAP financial measure of FFO.
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. The use
of any of the words "expect", "anticipate", "may", "will",
"should", "believe", "intend" and similar expressions are intended
to identify forward-looking statements. Forward-looking
statements contained in this press release include Boardwalk's
financial guidance for fiscal 2022, expected distributions for May,
June, and July 2022, and accretive
capital recycling opportunities. 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, assumptions,
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 "Risk 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.
This news release also contains future-oriented financial
information and financial outlook information (collectively "FOFI")
about Boardwalk's same property NOI growth, FFO per Unit, and AFFO
per Unit guidance for fiscal 2022. Boardwalk has included the FOFI
for the purpose of providing further information about the Trust's
anticipated future business operation.
For more exhaustive information on the risks and
uncertainties in respect of forward-looking statements and FOFI you
should refer to Boardwalk's Management's Discussion & Analysis
and Annual Information Form for the year ended December 31, 2021 under the headings "Risk and
Risk Management" and "Challenges and Risks", respectively, which
are available at www.sedar.com. Forward-looking statements and FOFI
contained in this news release are made as of the date of this news
release and are 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 or FOFI and should not
rely upon forward-looking statements or FOFI as of any other
date. Except as required by applicable law, Boardwalk
undertakes no obligation to publicly update or revise any
forward-looking statement or FOFI, whether a result of new
information, future events, or otherwise.
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SOURCE Boardwalk Real Estate Investment Trust