Boardwalk REIT (BEI.UN) AI Stock Analysis

• Market Cap: $3.74B
• Dividend Yield: 2.02%
• Average Volume (3M): 96.87K
• 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: 64
• Industry: REIT - Residential
• EPS (TTM): 2.73
• Shares Outstanding: 48,896,770
• 10 Day Avg. Volume: 104,032
• 30 Day Avg. Volume: 96,870
• 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: $79.57
• Price Target Upside: 13.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: C$78.00 ▲(11.16%Upside)

Boardwalk REIT's overall stock score is driven by strong financial performance and optimistic earnings guidance, supported by positive technical indicators and reasonable valuation. Strategic corporate events further enhance its position. The main risk factors are profit margin fluctuations and market competition.

Positive Factors

Capital Management

BEI has agreed to sell three properties in Edmonton for $80M, which may offer greater financial flexibility.

Financial Performance

BEI's FFO growth has outperformed Canadian multifamily peers over the past two-plus years, demonstrating strong financial performance.

Occupancy Improvement

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.

Market Competition

Increased competition from new housing units in Calgary and Edmonton could impact Boardwalk's legacy properties.

Revenue Growth Concerns

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
	EBIT
292.97M	323.85M	282.80M	244.46M	230.86M	268.31M
	EBITDA
460.82M	361.23M	282.80M	267.92M	130.79M	231.87M
	Net Income Common Stockholders
414.25M	588.22M	666.10M	283.10M	446.27M	-197.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.22M	122.41M	331.20M	52.82M	64.30M	52.96M
	Total Assets
6.23B	8.63B	8.14B	7.07B	6.66B	6.11B
	Total Debt
2.89B	3.65B	3.40B	3.29B	3.08B	3.00B
	Net Debt
2.86B	3.52B	3.06B	3.24B	3.02B	2.95B
	Total Liabilities
3.06B	3.79B	3.82B	3.60B	3.41B	3.23B
	Stockholders Equity
3.17B	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: 70.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 70.17 is above the 20-day moving average (MA) of 67.98, above the 50-day MA of 65.58, and above the 200-day MA of 69.49, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 67.11 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	81 Outperform	C$2.38B	3.71	22.26%	3.64%	5.77%	108.23%
MEQ	77 Outperform	C$1.77B	7.20	15.90%	0.07%	16.22%	39.56%
CAR.UN	76 Outperform	C$7.16B	63.66	1.29%	3.34%	0.93%	―
BEI.UN	75 Outperform	$3.74B	8.46	8.71%	2.02%	9.53%	-46.06%
MI.UN	71 Outperform	C$551.29M	6.05	9.03%	3.49%	-0.29%	―
IIP.UN	71 Outperform	C$1.91B	―	-7.00%	2.85%	2.52%	-573.45%
Sector *	61 Neutral	$2.85B	10.96	0.41%	8438.88%	5.73%	-21.25%

Boardwalk REIT Corporate Events

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.

Boardwalk REIT Expands Portfolio with Strategic Acquisition

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.