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Boardwalk REIT (TSE:BEI.UN)
TSX:BEI.UN
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Boardwalk REIT
(TSX:BEI.UN)
75Outperform
Positive Factors
Capital Structure
Boardwalk Real Estate Investment Trust has a low payout ratio compared to peers, indicating a strong capital structure.
Financial Performance
BEI's FFO growth has outperformed Canadian multifamily peers over the past two-plus years, demonstrating strong financial performance.
Strategic Asset Management
BEI has agreed to sell three properties in Edmonton for $80M, which may offer greater financial flexibility.
Negative Factors
Competition
Increased competition from new housing units in Calgary and Edmonton could impact Boardwalk's legacy properties.
Demand and Supply
There is concern that demand is slowing during a period of elevated supply which could impact the company's performance.
Market Conditions
Sequential revenue growth may decelerate more quickly than the market is anticipating, posing a potential challenge for the company.
Boardwalk REIT (BEI.UN) vs. S&P 500 (SPY)
Market Cap
$3.33B
Dividend Yield2.32%
Average Volume (3M)147.67K
Price to Earnings (P/E)5.2
Beta (1Y)0.85
Revenue Growth10.56%
EPS Growth-15.69%
CountryCA
Employees1,558
SectorReal Estate
Sector Strength78
IndustryREIT - Residential
Share Statistics
EPS (TTM)11.80
Shares Outstanding48,896,664
10 Day Avg. Volume142,456
30 Day Avg. Volume147,668
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)N/A
Price to Sales (P/S)5.49
Price to Cash Flow (P/CF)14.20
P/FCF Ratio8.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$78.50Price Target Upside25.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Boardwalk REIT Business Overview & Revenue Model
Company DescriptionBoardwalk 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.
How the Company Makes MoneyBoardwalk REIT generates revenue primarily through rental income from its extensive portfolio of residential properties. The company owns and manages a diverse range of apartment buildings, collecting monthly rental payments from tenants. This rental income forms the core of its revenue stream. Additionally, Boardwalk REIT may enhance its earnings through strategic acquisitions and property improvements, which can increase occupancy rates and rental yields. The company may also engage in selective property sales to realize capital gains, further contributing to its financial performance. Partnerships with local communities and investment in property enhancements can play a significant role in maintaining high occupancy rates and customer satisfaction, thereby ensuring steady revenue growth.
Boardwalk REIT Financial Statement Overview
Summary
Boardwalk REIT shows strong revenue growth and high profitability margins, with a stable balance sheet and improving cash flow generation. Despite the decrease in net income and return on equity, the company maintains financial stability with moderate leverage. Overall, Boardwalk REIT presents a solid financial position with areas for potential improvement in income conversion to cash and profitability on equity.Income Statement
Boardwalk REIT demonstrated a strong revenue growth rate of 10.56% from 2023 to 2024, with a high gross profit margin of 63.36% for 2024. However, net income decreased by 11.68% year-over-year, resulting in a lower net profit margin of 97.50% in 2024. The absence of EBIT due to high depreciation and amortization expenses is a concern. Overall, the company shows robust revenue growth and high profitability, despite fluctuations in net income.78
Positive
Balance Sheet
The balance sheet indicates a stable debt-to-equity ratio of 0.75 in 2024, with an improved equity ratio of 56.07%, reflecting strong financial stability. The return on equity decreased to 12.16%, highlighting a reduction in profitability on equity. Overall, the company maintains a healthy balance sheet with moderate leverage, though profitability on equity could be improved.75
Positive
Cash Flow
Operating cash flow increased by 20.72% from 2023 to 2024, while free cash flow grew by 45.96% in the same period. The operating cash flow to net income ratio stands at 0.41, and the free cash flow to net income ratio is 0.18, indicating a reasonable conversion of income to cash. Overall, cash flow generation is strong, with positive growth, although the conversion ratios could be enhanced.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 603.29M | 545.66M | 494.81M | 470.53M | 465.57M |
| Gross Profit | ||||
| 382.33M | 332.99M | 288.66M | 274.34M | 269.14M |
| EBIT | ||||
| 0.00 | 282.80M | 260.14M | 122.98M | 268.31M |
| EBITDA | ||||
| 704.23M | 282.80M | 267.92M | 130.79M | 231.87M |
| Net Income Common Stockholders | ||||
| 588.22M | 666.10M | 283.10M | 446.27M | -197.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 122.41M | 331.20M | 52.82M | 64.30M | 52.96M |
| Total Assets | ||||
| 8.63B | 8.14B | 7.07B | 6.66B | 6.11B |
| Total Debt | ||||
| 3.65B | 3.40B | 3.29B | 3.08B | 3.00B |
| Net Debt | ||||
| 3.52B | 3.06B | 3.24B | 3.02B | 2.95B |
| Total Liabilities | ||||
| 3.79B | 3.82B | 3.60B | 3.41B | 3.23B |
| Stockholders Equity | ||||
| 4.84B | 4.32B | 3.47B | 3.25B | 2.88B |
| Cash Flow | Free Cash Flow | |||
| 107.77M | 73.82M | 31.55M | 34.86M | 136.12M |
| Operating Cash Flow | ||||
| 241.20M | 199.80M | 160.90M | 161.86M | 141.08M |
| Investing Cash Flow | ||||
| -351.63M | -154.83M | -197.06M | -137.88M | -217.04M |
| Financing Cash Flow | ||||
| -98.37M | 233.43M | 24.67M | -12.64M | 93.75M |
Boardwalk REIT Technical Analysis
Negative
62.37
Price Trends
64.44
Negative
64.53
Negative
71.53
Negative
Market Momentum
-0.99
Positive
44.33
Neutral
50.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BEI.UN, the sentiment is Negative. The current price of 62.37 is below the 20-day moving average (MA) of 64.09, below the 50-day MA of 64.44, and below the 200-day MA of 71.53, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BEI.UN.
Boardwalk REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$899.36M | 8.99 | 5.29% | 4.45% | 3.79% | -40.78% | |
75 Outperform | $3.33B | 5.24 | 13.02% | 2.32% | 10.56% | -15.69% | |
73 Outperform | C$2.01B | 3.09 | 23.97% | 4.22% | 5.04% | 151.14% | |
70 Neutral | C$6.60B | 23.46 | 3.20% | 3.66% | 4.45% | ― | |
59 Neutral | $2.71B | 11.71 | 0.09% | 8691.97% | 5.58% | -17.58% | |
58 Neutral | C$1.57B | ― | -6.27% | 3.63% | 3.85% | -266.02% | |
55 Neutral | C$498.58M | 13.46 | 5.77% | 3.94% | 0.16% | ― |
* Real Estate Sector Average
Performance Comparison
TSE:BEI.UN
Boardwalk REIT
62.37
-10.09
-13.92%
TSE:CAR.UN
Canadian Apartment
40.74
-1.08
-2.58%
TSE:IIP.UN
InterRent REIT Un
10.63
-1.20
-10.14%
TSE:KMP.UN
Killam Apartment REIT Un
16.79
-0.01
-0.06%
TSE:MRG.UN
Morguard NA REIT UN
16.83
1.87
12.50%
TSE:MI.UN
Minto Apartment Real Estate Investment Trust
12.97
-1.82
-12.31%
Boardwalk REIT Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -1.00% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
Boardwalk REIT demonstrated strong financial performance with increased revenue, high occupancy rates, and strategic growth through acquisitions and new developments. However, they faced challenges with increased operating expenses and moderated leasing spreads due to market competition. Overall, the call reflects a positive outlook with careful management of expenses and strategic investments.Highlights
Strong Financial Performance
Same property rental revenue increased by 8.2%, net operating income increased by 11%, and funds from operations per unit increased by 12.5% in Q4 2024 compared to Q4 2023.
High Occupancy Rates
Boardwalk REIT maintained a strong portfolio occupancy rate of 98%, indicating high demand for affordable rental housing.
New Developments and Acquisitions
Acquired properties like The Circle in Calgary and announced new developments such as Marda Loop, Calgary, and Aspire in Victoria, demonstrating continued growth and investment in high-demand areas.
Distribution Increase
Announced a 12.5% increase to the monthly distribution, equating to $1.62 per trust unit annually, reflecting strong financial health.
Successful Asset Sales
Successfully sold three non-core assets in Edmonton for $79.95 million, allowing for strategic reinvestment.
Lowlights
Increased Operating Expenses
Total rental expenses increased by 3.6% in Q4 2024, with higher operating expenses, utilities, and property taxes impacting margins.
Moderated Leasing Spreads
Leasing spreads on new and renewed leases decreased due to increased competition and new supply, impacting potential revenue growth.
Challenges with Higher Interest Rates
Current interest rates are above the Trust's maturing rates, potentially affecting future refinancing costs.
Company Guidance
During the Boardwalk REIT Q4 2024 earnings call, the management reported significant improvements in several key financial metrics. Same property rental revenue increased by 8.2%, while same property net operating income saw an 11% rise. The operating margin improved by 160 basis points, and same property funds from operations per unit increased by 12.5%. The company highlighted their strategy of maximizing free cash flow retention, which has allowed for reinvestment in new and existing communities, contributing to their strong performance. For 2025, Boardwalk REIT provided guidance for same property net operating income growth of 4% to 8% and funds from operations per unit ranging between $4.25 and $4.55. Additionally, Boardwalk announced a 12.5% increase in their monthly distribution, equating to $1.62 per trust unit on an annualized basis, reflecting their continued financial strength and commitment to returning value to shareholders.Boardwalk REIT Corporate Events
M&A TransactionsBusiness Operations and Strategy
Boardwalk REIT Expands Portfolio with Strategic Acquisition
Positive
Apr 3, 2025
Boardwalk REIT has announced the successful acquisition of Elbow 5 Eight, a 255-suite residential community in Calgary, for $93 million. This acquisition is expected to enhance the company’s portfolio by adding a modern, well-located property, potentially increasing value for stakeholders. The company also reported strong occupancy rates and rising rents, indicating robust demand for affordable housing. Boardwalk REIT will release its first-quarter financial results on May 6, 2025, with a teleconference scheduled for the following day to discuss these results.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.