Boardwalk REIT (BEI.UN) AI Stock Analysis

• Market Cap: C$3.71B
• Dividend Yield: 2.33%
• Average Volume (3M): 89.69K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.87
• Revenue Growth: 9.53%
• EPS Growth: -46.06%
• Country: CA
• Employees: 1,558
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Residential
• EPS (TTM): 2.73
• Shares Outstanding: 48,896,854
• 10 Day Avg. Volume: 72,518
• 30 Day Avg. Volume: 89,691
• PEG Ratio: -0.22
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 71.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$80.06
• Price Target Upside: 13.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: C$78.00 ▲(10.67%Upside)

Boardwalk REIT's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's attractive valuation and strategic corporate events further enhance its investment appeal. Challenges such as increased vacancy loss are present, but the overall outlook remains positive due to strong financial health and strategic growth initiatives.

Positive Factors

Asset Management

Capital recycling includes the previously announced disposition of three properties in Edmonton and the purchase of newly constructed Elbow 5 Eight, highlighting strategic asset management.

Financial Performance

BEI's FFO growth has outperformed Canadian multifamily peers over the past two-plus years and management has capitalized on robust market conditions to strengthen its balance sheet.

Occupancy and Leasing

Pricing adjustments have led to a +40bps occupancy increase, putting BEI in a strong position for the leasing season.

Negative Factors

Debt and Refinancing

Net debt increased by $54M to $3.4B, and refinancing will likely remain a headwind due to market rates.

Leasing Spreads

Average new leasing spreads in AB have dipped into negative territory, with averages for February, March, and April being -0.8%, -0.7%, and -1.1%, respectively.

Revenue Growth

Demand is slowing during a period of elevated supply, raising concerns about sequential revenue growth decelerating more quickly than anticipated.

Boardwalk REIT Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Boardwalk REIT primarily generates revenue through rental income from its portfolio of multi-family residential properties. The company leases apartments and residential units to tenants and collects monthly rent payments. This rental income is the core revenue stream for Boardwalk REIT. Additionally, the company may engage in property development and sales activities, contributing to its earnings. Operational efficiencies, strategic property acquisitions, and maintaining high occupancy rates are crucial factors that enhance Boardwalk REIT's profitability. The trust may also benefit from partnerships or joint ventures in the real estate sector, although specific details of such partnerships are not disclosed.

Boardwalk REIT Financial Statement Overview

Summary

Boardwalk REIT demonstrates solid financial health with strong revenue growth and efficient operations. However, a decrease in net profitability and increasing debt levels could pose future risks. Strong cash flow generation and moderate leverage are positive indicators.

Income Statement

The income statement indicates a healthy revenue growth trajectory with a significant increase in total revenue over the years. The TTM data shows a Gross Profit Margin of 63.35% and an EBIT Margin of 47.74%, demonstrating strong operational efficiency. However, the Net Profit Margin has decreased to 67.50% from the previous year, suggesting a decline in profitability. Despite this, the company maintains robust EBITDA margins of 75.07%, indicating strong cash-generating capabilities.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.68, which is relatively moderate for a REIT. The Equity Ratio stands at 56.68%, indicating a solid equity base. Return on Equity (ROE) is high at 8.41%, highlighting effective utilization of equity. However, the increase in total debt over time could pose leverage-related risks if not managed properly.

Cash Flow

Cash flow analysis reveals a strong Operating Cash Flow to Net Income Ratio of 0.56 and a Free Cash Flow to Net Income Ratio of 0.29, indicating good conversion of profit into cash flow. The Free Cash Flow Growth Rate stands at 9.77%, which is positive but could be improved further to ensure better cash availability for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	613.75M	603.29M	545.66M	496.36M	470.53M	465.57M
Gross Profit	388.77M	382.33M	332.99M	278.98M	274.34M	269.14M
EBITDA	460.82M	361.23M	282.80M	267.92M	130.79M	231.87M
Net Income	414.25M	588.22M	666.10M	283.10M	446.27M	-197.28M
Balance Sheet
Total Assets	8.69B	8.63B	8.14B	7.07B	6.66B	6.11B
Cash, Cash Equivalents and Short-Term Investments	27.02M	122.41M	331.20M	52.82M	64.30M	52.96M
Total Debt	3.35B	3.65B	3.40B	3.29B	3.08B	3.00B
Total Liabilities	3.76B	3.79B	3.82B	3.60B	3.41B	3.23B
Stockholders Equity	4.92B	4.84B	4.32B	3.47B	3.25B	2.88B
Cash Flow
Free Cash Flow	118.30M	107.77M	73.82M	31.55M	34.86M	136.12M
Operating Cash Flow	232.06M	241.20M	199.80M	160.90M	161.86M	141.08M
Investing Cash Flow	-234.19M	-351.63M	-154.83M	-197.06M	-137.88M	-217.04M
Financing Cash Flow	-153.62M	-98.37M	233.43M	24.67M	-12.64M	93.75M

Boardwalk REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BEI.UN, the sentiment is Positive. The current price of 70.48 is above the 20-day moving average (MA) of 69.37, above the 50-day MA of 68.03, and above the 200-day MA of 67.69, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 43.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BEI.UN.

Boardwalk REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	79 Outperform	C$2.31B	3.60	22.26%	3.78%	5.77%	108.23%
BEI.UN	74 Outperform	C$3.71B	8.49	8.71%	2.33%	9.53%	-46.06%
MEQ	72 Outperform	C$1.73B	7.16	15.90%	0.09%	16.22%	39.56%
MI.UN	71 Outperform	C$534.85M	6.03	9.03%	3.54%	-0.29%	―
IIP.UN	70 Neutral	C$1.88B	―	-7.00%	2.97%	2.52%	-573.45%
CAR.UN	68 Neutral	C$7.09B	63.23	1.29%	3.48%	0.93%	―
Sector *	64 Neutral	$6.92B	18.66	-1.93%	6.85%	4.65%	-25.39%

Boardwalk REIT Corporate Events

Boardwalk REIT Announces Strategic Portfolio Expansion and Strong Leasing Performance

Boardwalk REIT has reported strong leasing performance and progress in its capital upcycling initiatives, maintaining high occupancy rates and increasing rents during the peak leasing season. The company has sold its Imperial Tower community in Edmonton and acquired a three-community portfolio in Saskatchewan, enhancing its presence in key rental markets and demonstrating strategic growth through reinvestment and portfolio expansion.

The most recent analyst rating on ($TSE:BEI.UN) stock is a Hold with a C$85.00 price target. To see the full list of analyst forecasts on Boardwalk REIT stock, see the TSE:BEI.UN Stock Forecast page.

Boardwalk REIT Reports Robust Q1 2025 Results Amid Strong Demand for Affordable Housing

Boardwalk REIT reported strong financial results for Q1 2025, with an 11.6% increase in Funds From Operations per unit and a 10.3% rise in Net Operating Income compared to the previous year. The company maintained a high occupancy rate and continued to invest in property improvements, enhancing portfolio quality. Strategic capital allocation included the acquisition of new properties and repurchase of trust units, while maintaining a strong balance sheet with significant liquidity. The company’s focus on affordable housing remains a key driver of demand, particularly in its largest market of Edmonton, which benefits from economic diversification and an influx of young workers.

Boardwalk REIT Reports Strong Support in 2025 Unitholder Meeting

Boardwalk REIT announced the results of its 2025 annual meeting of unitholders, where all trustee nominees were elected, and Deloitte LLP was reappointed as auditor. The meeting saw a high level of participation with 84.84% of outstanding units represented. The resolutions, including the acceptance of the executive compensation approach, were passed with significant majorities, indicating strong support for the current management and strategic direction. This outcome reinforces Boardwalk’s stable governance and commitment to delivering value to its stakeholders.