1998 BEI Archived Press Release

October 23, 1998

Boardwalk’s growth yields
more record breaking results

Boardwalk Equities Inc. ("BEI" – TSE, ASE) takes pleasure in announcing record breaking first quarter results for the 1999 fiscal year. Characterized by continued strength in its overall operations, the Company has managed to post cash flow from operations of $0.33 per share for the three months ended August 31, 1998. This represents more than half of the $0.63 per share cash flow for the entire 1998 year, and places Boardwalk well on its way for another banner year of cash flow growth.

Selected highlights for the first quarter of the 1999 fiscal year include:

• Total revenues of $45.7 million, up $19.6 million, or 75% from 1998’s $26.1 million.
• Operating earnings before taxes in the amount of $10.2 million, up $2.7 million or 36% from $7.5 million posted in the first three months of 1998.
• Net earnings of $6.1 million, compared to $3.8 million in 1998 – a 61% increase.
• Cash flow from operations of $15.1 million ($0.33 per share), up 80% from 1998’s $8.4 million or $0.23 per share.
• Cash flow from rental operations of $9.5 million ($0.21 per share), up 107% from the $4.6 million ($0.12 per share) recorded at August 31, 1997.

Boardwalk is extremely pleased with these financial results, which were generated by a total weighted average of 18,893 units compared to an average of 8,688 units for the same period one year ago. Total units at August 31, 1998 were 19,891 compared to 19,507 at year end May 31, 1998. The majority of the 4,300 units acquired in the last quarter of 1998 were undergoing stabilization or renovation in the first quarter of 1999, yet rental revenue was up 143 percent from the levels recorded for the corresponding period of the 1998 fiscal year. Due to this stabilization and renovation process, as well as seasonal adjustments, occupancy was 94 percent and average rent per unit was $550, demonstrating significant upward movement potential in subsequent quarters. The current occupancy level of Boardwalk’s portfolio is approximately 97 percent and, to date, the Company considers less than 20 percent of its rental properties to be fully stabilized, with the balance in various stages of upgrading in order to enhance future revenues. To demonstrate, the net operating income for stabilized properties increased by 66% from the first quarter of 1998 to the first quarter of 1999.

Boardwalk Equities Inc. is a customer oriented, technologically advanced real estate company specializing in the acquisition and management of multi-family residential projects throughout Western Canada. Boardwalk owns or has contracted to acquire over 21,500 units representing over 18 million net rentable square feet.

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