SUMMARY HIGHLIGHTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025
STRONG FINANCIAL PERFORMANCEFOR THE 3 MONTH PERIOD ENDED SEPTEMBER 30, 2025
Funds From Operations ("FFO") of $1.23 per Unit(1)(2); an increase of 10.8% from Q3 2024
Profit of $37.6 million
Net Operating Income ("NOI") of $108.3 million; an increase of 8.1% from Q3 2024
Same Property(3) Net Operating Income ("Same Property NOI") of $105.3 million; an increase of 8.6% from Q3 2024
Operating Margin of 67.4%; an increase of 210 basis points ("bps") from Q3 2024
FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 30, 2025
Funds From Operations ("FFO") of $3.45 per Unit(1)(2); an increase of 11.3% from the same period a year ago
Profit of $247.7 million
Net Operating Income ("NOI") of $309.1 million; an increase of 9.1% from the same period a year ago
Same Property(3) Net Operating Income ("Same Property NOI") of $302.7 million; an increase of 9.6% from the same period a year ago
Operating Margin of 65.2%; an increase of 190 bps from the same period a year ago
SAME PROPERTY RENTAL REVENUE GROWTH IN Q3 2025
Q3 2025 same property sequential quarterly rental revenue growth of 1.4% from the prior quarter, excluding Brio which the Trust closed on the purchase of the remaining 50% interest in August
Q3 2025 same property rental revenue growth of 5.0% from a year ago, excluding Brio
Occupancy of 97.7% in Q3 2025
AFFORDABLE REGIONS AND COMMUNITIES REMAIN IN HIGH DEMAND
Population growth continues to favor Alberta, Quebec, and Saskatchewan on a relative basis
Rents in Edmonton, the Trust's largest market, remain some of the most affordable amongst major cities in Canada
The Trust has cumulatively re-invested in common area improvements representing approximately 77% of its portfolio since 2017, improving portfolio quality and resilience across market conditions
STRONG AND FLEXIBLE BALANCE SHEET
Approximately $379.6 million of total available liquidity at the end of the quarter
96% of Boardwalk's mortgages carry CMHC-insurance
Unitholders' Equity of $5.0 billion
Fair value capitalization rate of 5.12%, consistent with Q4 2024
Net Asset Value increase to $97.72 per Unit(1)(2), primarily a result of higher rental rates in the Trust's more affordable markets
Debt to EBITDA(1) of 10.09x, compared to 10.08x for the year ended December 31, 2024
Debt to Total Assets(1) of 41.4%, compared to 40.6% as at December 31, 2024
Debt increased marginally during the quarter to capitalize on opportunistic accretive external growth opportunities
UPDATE TO 2025 FINANCIAL GUIDANCE
Revised FFO range of $4.58 to $4.65 per Unit(1)(2)
Same Property NOI growth range of +8.5% to +10.0%
STRATEGIC CAPITAL ALLOCATION
During the quarter, closed on previously announced acquisitions in Saskatoon, Regina, Calgary and Laval totaling $419.5 million and dispositions in Edmonton and Québec City totaling $141.2 million
Announced 639 Main Street acquisition in Saskatoon subsequently to quarter end for $39.0 million
Year-to-date, have invested $36.8 million into the repurchase and cancellation of 576,983 Trust Units at a weighted average price of $63.79
$6.0 million (included in $36.8 million above) deployed subsequently to quarter end at a weighted average price of $66.51; management prioritizing unit repurchases at current unit price level
EXCEPTIONAL VALUE
At current unit price of approximately $64, Boardwalk's implied value is approximately $188,000 per suite, equating to an attractive 6.4% cap rate on trailing NOI, with significant growth reflected in updated guidance above
REGULAR DISTRIBUTION OF $1.62 PER TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF DECEMBER 2025, JANUARY 2026 AND FEBRUARY 2026
(1) Please refer to the section titled "Presentation of Non-GAAP Measures" in this news release for more information.
(2) Boardwalk REIT's units (the "Trust Units") trade on the Toronto Stock Exchange ("TSX") under the trading symbol 'BEI.UN'. Additionally, the Trust has 4,250,000 special voting units issued to holders of "Class B Units" of Boardwalk REIT Limited Partnership ("LP Class B Units" and, together with the Trust Units, the "Units"), each of which also has a special voting unit in the REIT.
(3) Same property figures exclude properties which have been owned for less than 24 months and sold assets.
Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT" or the "Trust") today announced its financial results for the third quarter of 2025.
Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT commented:
"We are pleased to report another strong quarter with a continuation of our track record of growing Net Operating Income, Funds From Operations per Unit and Operating Margin. Our FFO per Unit of $1.23 during the third quarter represents an improvement of 10.8% from the prior year. Our results reflect the continued reduction of prior leasing incentives, with average rental rates now approaching 2015 levels. Our average occupied rents of $1,582 continue to provide exceptional value to our Resident Members relative to the Canadian average rent and remain well within the affordability range according to CMHC benchmarks.
Throughout the fall leasing season, we have strategically prioritized higher occupancy in anticipation of seasonality that we typically see during periods of more balanced supply and demand. Heading into the winter, we are well-positioned with our occupancy sitting at approximately 97.7%, which is a reflection of our exceptional team and adaptable operating platform, which continues to evolve and perform across varying market conditions. Across our markets, affordability remains a key theme, as we see more choice and use of incentives in higher-priced, newer communities. As we've seen across many cycles, high-quality, more affordable communities are always in demand.
We remain committed to re-investing our available liquidity from internally generated cash flows and proceeds from dispositions for re-deployment toward the highest risk-adjusted returns. The team is currently prioritizing tactical unit buybacks through the Trust's Normal Course Issuer Bid ("NCIB") to repurchase the Trust's own high-quality portfolio at an attractive implied return and significant discount to transaction values for apartments in the private market. During the third quarter, the team closed on several previously-announced dispositions in Edmonton and Québec City and acquisitions in Saskatoon, Regina, Calgary and Laval, executing the Trust's capital upcycling strategy that has been underway since late last year.
We look forward to continuing our track record of delivering strong results for our Boardwalk Family Forever."
THIRD QUARTER FINANCIAL HIGHLIGHTS
$ millions, except per Unit amounts
Highlights of the Trust's Third Quarter 2025 Financial Results
3 Months Sep. 30,2025
3 Months Sep. 30, 2024
% Change
9 Months Sep. 30, 2025
9 Months Sep. 30, 2024
% Change
Operational Highlights
Rental Revenue
$160.8
$153.4
4.8 %
$473.8
$447.7
5.8 %
Same Property Rental Revenue
$153.9
$146.5
5.1 %
$455.7
$428.9
6.2 %
Net Operating Income ("NOI")
$108.3
$100.2
8.1 %
$309.1
$283.3
9.1 %
Same Property NOI
$105.3
$97.0
8.6 %
$302.7
$276.2
9.6 %
Operating Margin (1)
67.4 %
65.3 %
65.2 %
63.3 %
Same Property Operating Margin
68.4 %
66.2 %
66.4 %
64.4 %
Financial Highlights
Funds From Operations ("FFO") (2)(3)
$65.9
$60.2
9.6 %
$184.5
$167.3
10.3 %
Adjusted Funds From Operations ("AFFO") (2)(3)
$57.4
$51.6
11.2 %
$158.9
$141.5
12.3 %
Profit
$37.6
$55.4
-32.1 %
$247.7
$522.3
-52.6 %
FFO per Unit (3)
$1.23
$1.11
10.8 %
$3.45
$3.10
11.3 %
AFFO per Unit (3)
$1.07
$0.95
12.6 %
$2.97
$2.62
13.4 %
Regular Distributions Declared (Trust Units & LP Class B Units)
$21.6
$19.4
11.4 %
$63.2
$55.8
13.4 %
Regular Distributions Declared Per Unit (Trust Units & LP Class B Units)
$0.405
$0.360
12.5 %
$1.185
$1.035
14.5 %
FFO Payout Ratio (3)
32.8 %
32.2 %
34.3 %
33.3 %
Same Property Apartment Suites
32,836
33,722
Non-Same Property Apartment Suites (4)
1,748
671
Total Apartment Suites
34,584
34,393
(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 news release for more information.
(4) Includes 183 suites related to the Trust's joint venture in Brampton, Ontario which is accounted for as an equity accounted investment
In Q3 2025, same property operating margin increased compared to the same period in the prior year as the Trust's same property rental revenue growth continued to outpace expenses. The Trust continues to target further operating margin improvement as a result of strong revenue growth, execution of various cost containment initiatives, and lower utility costs due to the removal of the federal carbon charge.
Continued Highlights of the Trust's Third Quarter 2025 Financial Results
Sep. 30, 2025
Dec. 31, 2024
Equity
Unitholders' equity
$5,012,702
$4,836,809
Net Asset Value
Net asset value (1)(2)
$5,227,333
$5,047,029
Net asset value ("NAV") per Unit (2)
$97.72
$93.68
Liquidity, Debt and Distributions
Cash and cash equivalents
$101,864
Subsequent committed/funded financing
$31,900
Unused credit facilities
$245,800
Total Available Liquidity
$379,564
Total mortgage principal outstanding
$3,602,558
$3,410,173
Debt to EBITDA(2)
10.09
10.08
Debt to Total Assets(2)
41.4 %
40.6 %
Interest Coverage Ratio (Rolling 4 quarters)
3.10
2.95
(1) This is a non-GAAP financial measure.
(2) Please refer to the section titled "Presentation of Non-GAAP Measures" in this news release for more information.
The Trust's fair value of its investment properties as at September 30, 2025, increased from year end, primarily attributable to an increase in market rents in its largest market of Edmonton as well as other affordable markets which was partially offset by a decrease to market rents in Calgary. The Trust's fair value also increased relative to year end as a result of the Trust's acquisition activity, net of dispositions. The Trust's stabilized capitalization rate ("Cap Rate") of 5.12% for Q3 2025 remained the same as Q2 2025. The Cap Rate ranges utilized continue to be in line with recently published third party quarterly Cap Rate reports.
SOLID OPERATIONAL RESULTS
Portfolio Highlights for the Third Quarter of 2025
Sep-25
Sep-24
Average Occupancy (Quarter Average) (1)
97.67
%
98.63
%
Average Monthly Rent (Period Ended)
$
1,547
$
1,472
Average Market Rent (Period Ended) (2)
$
1,673
$
1,644
Average Occupied Rent (Period Ended) (3)
$
1,582
$
1,493
Mark-to-Market Revenue Gain (Period Ended) ($ millions)
$
37.5
$
60.2
Mark-to-Market Revenue Gain Per Unit (Period Ended)
$
0.70
$
1.11
(1)Average occupancy is adjusted to be on a same property basis.
(2)Market rent is a component of rental revenue 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 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.
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Same Property PortfolioOccupancy
98.0 %
97.9 %
97.6 %
97.8 %
97.9 %
97.9 %
98.0 %
97.8 %
97.7 %
97.6 %
97.9 %
97.8 %
97.7 %
The Trust retained high occupancy during Q3 2025 by focusing on retention and by leveraging its vertically-integrated operating platform to limit the time to complete unit turnovers. The Trust's approach to strategically moderate its lease renewal rates over the last number of years, while markets were heavily undersupplied, also contributes to maintaining higher occupancy in a more balanced market. Positive market rent adjustments were implemented in some communities where rental market fundamentals were strong. In other communities, market rents were adjusted downward in pockets that have experienced higher deliveries of new supply and where rents were on the higher end of the price spectrum. Overall, demand remains strong for affordable housing. Average occupied rent increased sequentially, and when compared to the same period a year ago. The Trust continues to focus on maintaining high occupancy, reducing or eliminating past incentives on lease renewals, leasing at market rents for new leases and adjusting market rents in communities where appropriate.
For the third quarter of 2025, same property rental revenue increased 5.1% while same property total rental expense decreased by 1.8%, resulting in same property NOI growth of 8.6% in comparison to the same quarter in the prior year. Same property rental revenue increased due to higher in-place occupied rents across all regions as well as continued decreases in incentives in the Alberta and Saskatchewan markets.
In Edmonton, NOI growth was 11.4% for the third quarter of 2025 compared to the same period in the prior ...
