CALGARY, AB, July 30, 2024 /CNW/ - Boardwalk Real Estate Investment Trust (TSX:BEI) SUMMARY HIGHLIGHTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 STRONG FINANCIAL PERFORMANCEFOR THE 3 MONTH PERIOD ENDED JUNE 30, 2024 Funds From Operations ("FFO") of $1.04 per Unit(1)(2); an increase of 16.9% from Q2 2023 Profit of $159.2 million Net Operating Income ("NOI") of $95.6 million; an increase of 15.7% from Q2 2023 Same Property(3) Net Operating Income ("Same Property NOI") of $94.8 million; an increase of 14.2% from Q2 2023 Operating Margin of 64.1%; 270 basis point (bps) improvement from Q2 2023 FOR THE 6 MONTH PERIOD ENDED JUNE 30, 2024 Funds From Operations ("FFO") of $1.99 per Unit(1)(2); an increase of 18.5% from the same period a year ago Profit of $466.9 million Net Operating Income ("NOI") of $183.1 million; an increase of 15.6% from the same period a year ago Same Property(3) Net Operating Income ("Same Property NOI") of $182.0 million; an increase of 13.9% from the same period a year ago Operating Margin of 62.2%; 250 basis point (bps) improvement from the same period a year ago SAME PROPERTY RENTAL REVENUE GROWTH IN Q2 2024 Q2 2024 same property sequential quarterly rental revenue growth of 2.3% from the prior quarter Occupied rent of $1,460 in June of 2024, a $72 improvement from December 2023 Q2 2024 same property rental revenue growth of 9.5% from a year ago Occupancy of 98.7% in Q2 2024; an increase of 36 basis points from Q2 2023 LEASING STRENGTH CONTINUES IN JULY July 2024 preliminary occupancy of 98.6%, an increase of 30 bps from July 2023 New leasing spreads of 13.5% in Alberta in June 2024 Renewal leasing spreads of 9.3% in Alberta in June 2024 Rents in Alberta remain some of the most affordable amongst major cities in Canada STRONG BALANCE SHEET, MAKING PROGRESS ON ORGANIC DE-LEVERAGING Approximately $315.8 million of total available liquidity at the end of the quarter 96% of Boardwalk's mortgages carry CMHC-insurance Unitholders' Equity of $4.8 billion Fair value capitalization rate of 5.09%, an increase of 4 bps from Q4 2023 Net Asset Value increase to $92.39 per Unit(1)(2), primarily a result of higher market rental rates in the Trust's non-price controlled markets Debt to EBITDA(1) of 10.75x, compared to 11.02x for the year ended December 31, 2023 Debt to Total Assets(1) of 40.8%, compared to 43.2% for the year-ended December 31, 2023 UPDATE TO 2024 FINANCIAL GUIDANCE  Revised FFO range of $4.11 to $4.23 per Unit(1)(2) Revised Same Property NOI growth range of +12.5% to +14.5% DISTRIBUTION OF $1.44 PER TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF SEPTEMBER, OCTOBER, AND NOVEMBER 2024 (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 4,475,000 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 un-stabilized properties (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 second quarter of 2024. Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT commented: "We are pleased to report on another very strong quarter with significant growth in Net Operating Income and Funds from Operations per Unit. Our FFO per Unit of $1.04 during the second quarter represents an improvement of 16.9% from the prior year. We continue to prioritize growing our cash flows that can be redeployed and compounded within our value add capital program and accretive external opportunities, where appropriate. Our Operating Margin improved once again during the quarter as our Resident Member focused approach to sustainable rent adjustments and ongoing commitment to cost improvement initiatives has delivered solid NOI and FFO per Unit growth. We are encouraged with the progress we have made toward bringing our leverage down over the last several years, providing the Trust with increased flexibility going forward. As of the beginning of July, same property portfolio occupancy was at approximately 98.6%. We continue to implement positive market rent adjustments in many of our communities. Rental market fundamentals continue to be strong across most of the Trust's markets, as quality affordable housing remains in high demand. Our largest markets of Edmonton and Calgary continue to see large net inflows from both international and interprovincial migration as new Residents pursue exceptional relative affordability, lifestyle and economic opportunities. Population growth continues to significantly outpace new construction starts in Canada, while construction economics and labour shortages have presented challenges for new development. Our partnership and collaborative efforts with all levels of government and other stakeholders continues as we work toward encouraging and implementing proven public policy to help rebalance demand and supply over the longer term. We remain focused on delivering a win-win outcome for our Resident Members and our stakeholders through increased retention, reduced turnover and costs, increased margins and sustained financial performance. Our ongoing strategic self-moderation of leasing spreads on both new leases and lease renewals continues to be a key differentiator for our Resident Members, preserving essential affordability while allowing us to re-invest in our communities and to provide a gradual, less volatile, long-term revenue growth profile for our Unitholders. Our outlook for the remainder of the year continues to be positive. We are confident that the strong housing fundamentals that we are seeing, combined with our Resident-focus and quality of our communities will translate to strong ongoing performance in 2024.  We remain well-positioned to continue de-leveraging our balance sheet organically, while utilizing our enhanced liquidity to capitalize on additional growth opportunities when appropriate." SECOND QUARTER FINANCIAL HIGHLIGHTS $ millions, except per Unit amounts Highlights of the Trust's Second Quarter 2024 Financial Results 3 Months Jun. 30, 2024 3 Months Jun. 30, 2023 % Change 6 Months Jun. 30, 2024 6 Months Jun. 30, 2023 % Change Operational Highlights Rental Revenue $149.1 $134.6 10.8 % $294.3 $265.5 10.9 % Same Property Rental Revenue $145.5 $132.9 9.5 % $287.6 $262.8 9.4 % Net Operating Income ("NOI") $95.6 $82.6 15.7 % $183.1 $158.4 15.6 % Same Property NOI $94.8 $83.0 14.2 % $182.0 $159.8 13.9 % Operating Margin (1) 64.1 % 61.4 % 62.2 % 59.7 % Same Property Operating Margin 65.2 % 62.5 % 63.3 % 60.8 % Financial Highlights Funds From Operations ("FFO") (2)(3) $56.1 $44.6 25.8 % $107.1 $84.2 27.2 % Adjusted Funds From Operations ("AFFO") (2)(3) $47.5 $36.7 29.3 % $89.9 $68.5 31.3 % Profit $159.2 $232.2 -31.4 % $466.9 $453.6 2.9 % FFO per Unit (3) $1.04 $0.89 16.9 % $1.99 $1.68 18.5 % AFFO per Unit (3) $0.88 $0.73 20.5 % $1.67 $1.36 22.8 % Regular Distributions Declared (Trust Units & LP Class B Units) $19.4 $14.7 32.1 % $36.3 $28.6 27.1 % Regular Distributions Declared Per Unit (Trust Units & LP Class B Units) $0.360 $0.293 22.9 % $0.675 $0.570 18.4 % FFO Payout Ratio (3) 34.6 % 32.9 % 33.9 % 34.0 % Same Property Apartment Suites 33,564 33,264 Non-Same Property Apartment Suites (4) 829 582 Total Apartment Suites 34,393 33,846 (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 Q2 2024, same property operating margin increased compared to the same period in the prior year, as the Trust's same property rental revenue growth remained strong. The Trust anticipates further improvement in its operating margin throughout the remainder of 2024 as a result of continued strong revenue growth and execution of various cost containment initiatives. Continued Highlights of the Trust's Second Quarter 2024 Financial Results Jun. 30,2024 Dec. 31,2023 Equity Unitholders' equity $4,754,200 $4,320,072 Net Asset Value Net asset value (1)(2) $4,988,300 $4,553,515 Net asset value (NAV) per Unit (2) $92.39 $84.41 Liquidity, Debt and Distributions Cash and cash equivalents $119,960 Unused committed revolving credit facility(3) $195,800 Total Available Liquidity $315,760 Total mortgage principal outstanding $3,408,130 $3,446,801 Debt to EBITDA(1)(2) 10.75 11.02 Debt to Total Assets(1)(2) 40.8 % 43.2 % Interest Coverage Ratio (Rolling 4 quarters) 2.86 2.83 (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. (3) Subsequent to June 30, 2024, the Trust added an additional $50 million demand facility to the credit facility agreement. The Trust's fair value of its investment properties as at June 30, 2024 increased from year end, primarily attributable to an increase in market rents driven by strong market conditions. The Trust's stabilized capitalization rate ("cap rate") of 5.09% for Q2 2024 remained the same as the prior quarter. 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 Second Quarter of 2024 Jun-24 Jun-23 Average Occupancy (Quarter Average) (1) 98.68 % 98.32 % Average Monthly Rent (Period Ended) $ 1,439 $ 1,305 Average Market Rent (Period Ended) (2) $ 1,637 $ 1,495 Average Occupied Rent (Period Ended) (3) $ 1,460 $ 1,326 Mark-to-Market Revenue Gain (Period Ended) ($ millions) $ 70.6 $ 66.6 Mark-to-Market Revenue Gain Per Unit (Period Ended) $ 1.31 $ 1.33