TSX SYMBOL: BEI.UN February 17, 2005
Boardwalk Announces Record Full Year 2004 Financial Results;
9% Increase In 2004 FFO From Continuing Operations
Announces Revision In Reported Q2 And Q3 2004; Confirms 2005 Guidance For Funds From Operations And Distributable Income
DOWNLOAD Q4-2004 February 17, 2004 PRESS RELEASE (Printer Friendly PDF File - 141 Kb)
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Calgary, Alberta
- Boardwalk Real Estate Investment Trust ("BEI.UN" - TSX)
CALGARY, Feb. 17 /CNW/ - Boardwalk Real Estate Investment Trust
("BEI.UN" - TSX)
Boardwalk Real Estate Investment Trust ("Boardwalk REIT" or the "Trust")
today announced record financial results for fiscal 2004 and solid results for
the fourth quarter of 2004. These results reflect the activities of Boardwalk
Equities Inc. ("BEI") and Boardwalk REIT for the period January 1, 2004 to
December 31, 2004. The financial results have been reported as a "Continuity
of Interest" with specific financial results for the predecessor corporation
of Boardwalk REIT, BEI, and the newly established Trust detailed in the notes
to the financial statements which are included later in this press release.
For the fourth quarter ended December 31, 2004, the Trust reported Funds
From Operations ("FFO") from continuing operations of $17.7 million and FFO
from continuing operations per unit of $0.33 on a diluted basis, compared to
FFO from continuing operations of $18.3 million and FFO from continuing
operations per unit of $0.36 for the same period last year. Distributable
income ("DI") from continuing operations for the quarter was $18.7 million and
DI from continuing operations per unit was $0.35 on a diluted basis, compared
to $19.0 million and $0.37 per unit for the same period last year.
Funds from operations ("FFO") is a generally accepted measure of
operating performance of real estate investment trusts and companies,
however is a non-GAAP measurement. The Trust calculates FFO by taking net
earnings after discontinued operations and adding non-cash items
including future income taxes and amortization. The determination of this
amount may differ from that of other real estate investment trusts and
companies. Distributable income ("DI") is calculated based on the
definition as set out in the Trust's declaration of trust and is computed
by taking FFO from continuing operations and adding back amortization on
any deferred financing charges incurred prior to May 3, 2004 as well as
adjusting for any discounts or premiums relating to the amortization of
mark-to-market debt adjustment incurred subsequent to the real estate
investment trust conversion date of May 3, 2004.
Highlights of the Trust's fourth quarter 2004 financial results include:
- Rental revenues of $71.8 million, an increase of 2.7% compared to
$69.9 million for the three-month period ended December 31, 2003.
- Net operating income of $43.5 million, representing a 3.1% decrease
from $44.9 million in the same period last year.
- FFO from continuing operations of $17.7 million, a decrease of 3.3%
compared to $18.3 million for the three-month period ended
December 31, 2003.
- FFO from continuing operations per unit was $0.33 on a diluted basis,
down 8.3% compared to $0.36 for the three-month period ended
December 31, 2003.
- DI from continued operations was $0.35 per unit, down 5.4% compared to
$0.37 for the three months ended December 31, 2003.
Highlights of the Trust's financial results for fiscal 2004 include:
- Rental revenues of $282.5 million, an increase of 4.2% compared to
$271.0 million for the twelve-month period ended December 31, 2003.
- Net operating income of $180.0 million, representing a 2.2% increase
from $176.2 million in the same period last year.
- FFO from continuing operations of $75.5 million, an increase of 8.6%
compared to $69.5 million for the twelve-month period ended
December 31, 2003.
- FFO per unit from continuing operations was $1.43 on a diluted basis,
up 4.4% compared to $1.37 for the twelve-month period ended
December 31, 2003.
- DI from continued operations was $1.49 per unit, an increase of 4.2%
compared to $1.43 for the twelve months ended December 31, 2003.
Commenting on the Trust's fiscal 2004 results, Sam Kolias, President and
C.E.O., said "We are pleased to report yet another record-breaking year for
Boardwalk. Throughout 2004, we continued to achieve record financial results
due to our geographically diverse apartment assets, and despite weakened yet
slowly improving multi-family market fundamentals in some of our major
markets, in particular Edmonton and Calgary. As discussed in prior conference
calls, Edmonton, our largest market, continued to feel the impact of increased
property taxes in 2004 and during the fourth quarter. We are in the process of
appealing these increases, and, although not factored into our 2005 guidance,
we remain hopeful that we can recover some of these costs in due time."
"Over the past year we've witnessed continued low interest rates which
helped spur record amounts of new residential construction. As a result, our
residents continued to purchase new homes or condominiums. Today, we are
starting to see a decrease in our residents moving out to buy new homes. This
is consistent with the slowdown of overall housing activity across the country
due to significant increases in new and existing home prices along with
proportionate measurable interest rate increases. Housing analysts believe,
with which we concur, that much of the pent up demand for homeownership has
been satisfied in our major markets. Rising interest rates, as well as the
increasing costs of building materials and labour, will further erode
affordability for homeownership, resulting in a more stable rental market
outlook in 2005 and 2006."
Operational Highlights
The average vacancy rate across the Trust's portfolio for the fourth
quarter of 2004 was 4.22%, down from 5.48% in the third quarter of 2004, and
up from 3.67% in the fourth quarter of 2003.
The average monthly rent realized in fiscal 2004 was $741 per unit, an
increase of $7, or 1.0%, from $734 per unit for the twelve-months ended
December 31, 2003. Management estimates that market rents for its properties
at the end of December, 2004 averaged $797 per unit per month, which compares
to an average in-place monthly rent per occupied unit of $775 for the twelve-
months ended December 31, 2004. This translates into an estimated "loss-to-
lease" of approximately $8 million, maintaining existing occupancy rates.
Same-Property Results
Boardwalk continued to show solid performance in its stabilized
properties (defined as properties owned for over 24 months). The "same-
property" results for the Trust's stabilized portfolio for the twelve-month
period ended December 31, 2004 had rental growth of 1.0% and NOI growth of
0.1% compared to the same period last year. A total of 29,609 units,
representing approximately 92% of Boardwalk's total portfolio, were classified
as stabilized as at December 31, 2004.
Same-Property Results - Stabilized Portfolio
Twelve Months Ended December 31, 2004 vs. Twelve Months Ended
December 31, 2003
-------------------------------------------------------------------------
Rental Total
Revenues Expenses NOI % of NOI
-------------------------------------------------------------------------
Calgary -0.4% -0.6% -0.4% 20%
Edmonton -0.5% 8.7% -5.2% 34%
Other Alberta 4.6% -10.6% 12.0% 6%
Saskatchewan 0.7% -2.3% 2.6% 12%
Ontario 3.9% 1.3% 6.2% 12%
Quebec 2.7% 2.6% 2.7% 16%
-------------------------------------------------------------------------
Total 1.0% 2.6% 0.1% 100%
-------------------------------------------------------------------------
-------------------------------------------
-------------------------------------------------------------------------
Acquisition/Disposition Activity
During the fourth quarter of 2004, Boardwalk REIT closed on a 112-unit
property located in Montreal (Longueuil), Quebec:
- Les Jardins Viva - consists of fourteen 3-storey walk-up style
buildings, with 2 one-bedroom , 23 two-bedroom and 83 three-bedroom
units. The property was purchased at an acquisition price of
$4.8 million, using cash on hand, which equates to approximately
$42,900 per unit and approximately $52.7 per rentable square foot.
The going-in cap rate on the acquisition was 9.21% and the acquisition
closed on December 14, 2004.
In 2004, Boardwalk acquired a total of 917 new residential units for
approximately $58.7 million, increasing its portfolio to over 32,000
residential units at year-end. This represents a 2.9% increase in the Trust's
portfolio from the end of 2003. There were no property dispositions for the
Trust in 2004.
Subsequent Events
Subsequent to December 31, 2004, the Trust has purchased an additional
1,079 rental units, for a total purchase price of $105.1 million, in a series
of new acquisitions, all of which are expected to close by the end of the
first quarter 2005.
- Alberta and British Columbia portfolio - This 848 unit portfolio has
an acquisition price of approximately $83.1 million, which equates to
approximately $97,900 per unit and approximately $137.9 per rentable
square foot. The acquisition price, per door and per rentable square
foot, includes commercial space within the Surrey property described
below consisting of 40,137 square feet of rentable area at a price of
approximately $98.62 per square foot. This transaction closed on
February 1, 2005 and the acquisition had a going in cap rate of 6.39%.
Further information on this transaction, including how the purchase of
this portfolio was funded, is detailed in Boardwalk REIT's January 10,
2005 press release. The properties in the portfolio are:
- Sarcee Trail Place - Calgary, AB - a property consisting of
two high-rise buildings and one mid-rise building with a total of
376 units. There are 188 one-bedroom and 188 two-bedroom unit types
within the property.
- Horizon Towers - Vancouver (Burnaby), BC - Horizon Towers has
two 13-storey high-rise buildings with a total of 206 units.
There are 153 one-bedroom and 53 two-bedroom unit types within
the property.
- Surrey Village - Vancouver (Surrey), BC - Surrey Village consists
of one 18-storey high-rise building with a total of 266 apartment
units. There are 60 bachelor, 163 one-bedroom and 43 two-bedroom
unit types within the property. The property also includes a
3-storey stand-alone commercial property with 40,137 sq. feet of
rentable area.
- Varsity Place Apartments - Calgary, AB - Varsity Place is a 3-storey
walk-up wood frame property consisting of 30 one-bedrooms and
40 two-bedrooms for a total of 70 apartment units. The property had a
purchase price of $5.3 million, which equates to approximately
$75,000 per unit and approximately $111.4 per rentable square foot.
The purchase was funded using cash on hand. The going-in cap rate on
the acquisition was approximately 6.86%, and the transaction closed on
February 1, 2005.
- Christie Point Apartments - Victoria, B.C. - The Christie Point
property consists of nine 2-storey townhouse and apartment style
complexes with either two or three-bedroom types, for a total of
161 rental units. The property had a purchase price of $16.8 million,
which equates to approximately $104,000 per unit and approximately
$107.8 per rentable square foot. The purchase was funded using cash on
hand. The going-in cap rate on the acquisition is approximately 6.39%,
and the transaction closed on February 16, 2005. Christie Point is
located on an ocean front peninsula providing an extraordinary setting
for apartment and townhouse living.
In addition, the Trust has entered into a conditional contract to acquire
a 246-unit townhouse project in Quebec City, which, subject to successful
completion of due diligence, is expected to close in March.
Commenting on the Trust's inaugural British Columbia property
acquisitions, Bill Chidley, Senior VP Corporate Development, said "We are very
pleased to have been able to enter the Vancouver and Victoria markets on an
immediately accretive basis and look forward to expanding our presence in the
British Columbia market over time. Vancouver, with a rental vacancy rate of
1.3%, declining from 2.0% a year ago, is the third largest and one of the
strongest rental markets in Canada. Victoria, with a vacancy rate of 0.6%,
declining from 1.1% a year earlier, has the highest occupancy rate in the
country. Rents in place are substantially below market rents providing an
opportunity for significant positive rental adjustments. In addition, all of
these properties were acquired free and clear of existing debt, allowing the
Trust to take advantage of the current low interest rate environment."
Continued Financial Strength
The Trust maintained its solid financial position in the fourth quarter
of 2004. Boardwalk's total mortgage debt was $1.41 billion as at December 31,
2004, up from $1.39 billion at December 31, 2003, reflecting the additional
debt on acquisitions completed during the year. As at December 31, 2004, the
Trust's debt had an average maturity of 3.6 years with a weighted average
interest rate of 5.49%, and the Trust's debt-to-total-market-capitalization
ratio was 59.1%.
The Trust's interest coverage ratio, excluding gains, for the twelve-
month period ended December 31, 2004 increased to 2.05 times compared to 2.00
times in the same period last year.
During 2004, Boardwalk successfully completed approximately $121 million
in mortgage refinancings and renewals.
Outlook and 2005 Earnings Guidance
Commenting on the outlook for the Trust, Rob Geremia, Senior Vice
President, Finance and CFO, said "We are reaffirming our fiscal 2005 guidance
for FFO and distributable income of between $1.42 to $1.49 and $1.46 to $1.53,
respectively. These forecasts are based on the assumptions of approximately
0.0% to 1.0% stabilized NOI growth and new property acquisitions of between
1,000 to 2,000 new residential units for the year."
February 2005 Monthly Distribution
The Trust has declared its February 2005 distribution in the amount of
10.5 cents per unit ($1.26 annualized). The February distribution will be
payable on March 15, 2005 to unitholders of record on February 28, 2005.
To encourage participation and reward unitholders, investors registered
in the Distribution Reinvestment Plan ("DRIP") will continue to receive a
"bonus" distribution of additional Trust Units representing 3% of the amount
of their cash distributions reinvested pursuant to the Plan. A full copy of
the DRIP can be found on Trust's website at www.boardwalkREIT.com.
Revision of Q2 and Q3 2004 Reported Financial Results
The Trust today announced a revision to the reported financial results
for the second and third quarter of fiscal 2004. In the course of preparing
the audited financial statements for the fiscal year ended December 31, 2004,
management of Boardwalk REIT has identified three specific issues that affect
the previously reported second and third quarters of fiscal 2004. Reporting
procedures are being revised to address these issues. The first relates to a
miscalculation in the depreciation of Boardwalk REIT's real estate assets for
the reported periods. Although Boardwalk REIT's policy is to depreciate wood
frame buildings on a forty-year straight line basis and concrete high-rise
buildings on a fifty-year straight line basis, inadvertently, all buildings,
concrete and wood frame, were depreciated during the above noted two fiscal
quarters on the shorter forty-year basis. The effect of this miscalculation
has been to overstate depreciation in the second and third quarters of 2004,
and, as a direct result, to understate various resulting income statement line
items, most significantly net earnings during the same reporting periods.
The second issue relates to items that were incorrectly recorded as
prepaid assets in the same periods, but should have been more appropriately
reported as operating expenses. Such amounts were inadvertently deferred as
assets on the balance sheet to be expensed in following periods, when the
amounts should have been expensed in the periods reported.
Both of these items occurred in May, 2004, when records were transferred
from BEI to Boardwalk REIT in connection with the former's conversion into a
real estate investment trust (a "REIT"). During this period of time, a
significant volume of bookkeeping entries and adjustments were necessary to
implement the corporate and tax structure arising from the conversion of BEI
to a REIT.
The third and final item relates to revenue from a specific property that
was incorrectly understated in the third quarter of fiscal 2004. Revenue that
was earned and which should have been recorded in the third quarter was
deferred for recognition in the fourth quarter of last year.
These matters arose solely from bookkeeping errors, and the correction is
not the result of differences of opinion between Boardwalk REIT and its
auditors, nor is it the result of the mis-application of accounting policies
or GAAP.
The following chart details the financial effects on Q2 & Q3 of
Fiscal 2004;
-------------------------------------------------------------------------
In 000's, except per share amounts Q3 Q2
-------------------------------------------------------------------------
Revenue $431 $
-------------------------------------------------------------------------
Operating expenses $ $2,191
-------------------------------------------------------------------------
Amortization $(825) $(1,640)
-------------------------------------------------------------------------
Adjustment to Net Earnings $1,256 $(550)
-------------------------------------------------------------------------
Adjustment to Assets $1,256 $(550)
-------------------------------------------------------------------------
Adjustment to Equity $1,256 $(550)
-------------------------------------------------------------------------
Adjusted Net Earnings per unit $.08 $.05
-------------------------------------------------------------------------
Net Earnings per unit - originally reported $.06 $.06
-------------------------------------------------------------------------
Adjusted FFO - per unit $.43 $.35
-------------------------------------------------------------------------
FFO per unit - originally reported $.42 $.39
-------------------------------------------------------------------------
Adjusted DI per unit $.44 $.37
-------------------------------------------------------------------------
DI per unit - originally reported $.43 $.41
-------------------------------------------------------------------------
Supplementary Information
Boardwalk produces Quarterly Supplemental Information that provides
detailed information regarding the Trust's activities during the quarter.
The Fourth Quarter 2003 Supplemental Information is available on the INVESTOR
section of our website (www.bwalk.com).
Teleconference on Fourth Quarter and Year End Financial Results
We invite you to participate in the teleconference that will be held to
discuss these results this same morning at 11:00 am EST. Senior management
will speak to the fourth quarter financial results and provide a corporate
update. Presentation materials will be made available on the INVESTOR section
of our website (www.bwalk.com) prior to the call.
Participation & Registration: Please RSVP to Investor Relations at
403-531-9255 or by email to investor@bwalk.com.
Teleconference: The telephone numbers for the conference are:
416-640-4127 (within Toronto) or toll-free 1-800-814-3911 (outside Toronto).
Webcast: Investors will be able to listen to the call and view our
slide presentation over the Internet by visiting http://www.boardwalkreit.com/
15 min. prior to the start of the call. An information page will be
provided for any software needed and system requirements. The live
audiocast will also be available at
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1006500.
Replay: An audio recording of the teleconference will be available from
1:00pm ET on February 17, 2005 until 11:59pm ET on February 24, 2005. You can
access it by dialing 416-640-1917 and using the passcode 21111150 followed by
the pound sign. An audio archive will also be available on our website
(http://www.boardwalkreit.com/) approximately two hours after the conference
call.
Corporate Profile
Boardwalk REIT is an open-ended real estate investment trust formed to
acquire all of the assets and undertakings of Boardwalk Equities Inc.
Boardwalk REIT's principal objectives are to provide its unitholders with
monthly cash distributions, partially on a Canadian income tax-deferred basis,
and to increase the value of its units through the effective management of its
residential multi-family revenue producing properties and the acquisition of
additional properties. Boardwalk REIT currently owns and operates in excess of
260 properties with over 33,000 units totalling approximately 28 million net
rentable square feet, and is Canada's largest owner/operator of multi-family
rental communities. Boardwalk REIT's portfolio is concentrated in the
provinces of Alberta, British Columbia, Saskatchewan, Ontario and Quebec.
Forward Looking Information
This press release may contain forward looking statements. These
statements relate, but are not limited to, Boardwalk REIT's expectations,
intentions, plans and beliefs. These forward looking statements can
generally be identified by the use of words "anticipated", "expected"
or the negative thereof or other comparable terminology. You should be
aware that these statements are subject to known and unknown risks,
uncertainties and other factors, including the risks discussed under
the heading "Risk Factors" in the Management Information Circular of
Boardwalk Equities Inc. available on www.sedar.com. Actual events or
results may differ materially from those suggested by any forward-looking
statements. You should not place undue reliance on any forward-looking
statements contained in this press release.
By their nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts,
projections and various future events will not occur. Although
management of Boardwalk REIT believes that the expectations reflected
in the forward-looking statements are reasonable, there can be no
assurances that future results, levels of activity, performance or
achievements will occur as anticipated. None of Boardwalk REIT nor any
other person assumes responsibility for the accuracy and completeness of
any forward-looking statements, and no one has any obligations to update
or revise any forward-looking statement, whether as a result of new
information, future events or such other factors which affect this
information, except as required by law.
CONSOLIDATED BALANCE SHEETS
(CDN$ THOUSANDS)
As at December 31, December 31,
2004 2003
----------------------------
Assets
Revenue producing properties $1,733,026 $1,713,171
Properties held for resale 7,906 7,493
Deferred financing costs 39,056 38,044
Other assets 14,125 14,652
Future income taxes 547 -
Mortgages and accounts receivable 8,019 13,126
Segregated tenants' security deposits 6,460 6,771
Cash and cash equivalents - 10,123
-------------------------------------------------------------------------
$1,809,139 $1,803,380
---------------------------
---------------------------
Liabilities
Mortgages payable $1,414,122 $1,387,067
Accounts payable and accrued liabilities 27,151 19,801
Refundable tenants' security deposits and other 9,543 9,730
Capital lease obligations 84 3,515
Future income taxes - 74,765
Bank Indebtedness 2,723 -
-------------------------------------------------------------------------
$1,453,623 $1,494,878
---------------------------
Unitholders' Equity
Unitholders' capital 293,503 275,509
Accumulated earnings 62,013 32,993
-------------------------------------------------------------------------
$355,516 $308,502
-------------------------------------------------------------------------
$1,809,139 $1,803,380
---------------------------
---------------------------
CONSOLIDATED STATEMENTS OF EARNINGS
INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2004 COMBINES INFORMATION
FROM BOARDWALK REAL ESTATE INVESTMENT TRUST AND ITS PREDECESSOR
(CDN$ THOUSANDS, EXCEPT PER UNIT AMOUNTS)
3 months 3 months
ended ended Year ended Year ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
-------------------------------------------------------
Revenue
Rental income $71,845 $69,893 $282,510 $270,992
-------------------------------------------------------
Expenses
Revenue
producing
properties:
Operating
expenses 10,143 8,816 35,364 33,819
Utilities 10,425 9,591 38,493 34,736
Utility rebate (492) - (1,304) -
Property taxes 8,231 6,626 29,930 26,217
Administration 5,636 5,755 23,460 23,290
Financing costs 19,072 19,264 76,289 76,630
Deferred
financing costs
amortization 930 662 3,138 3,227
Amortization of
capital assets 18,710 13,176 72,439 50,766
-------------------------------------------------------------------------
72,655 63,890 277,809 248,685
-------------------------------------------------------
Earnings (loss)
from continuing
operations before
income taxes (810) 6,003 4,701 22,307
Large
corporations
taxes 165 878 1,620 3,546
Future income
taxes (recovery) (85) 6,592 (1,698) 11,761
-------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (890) (1,467) 4,779 7,000
Earnings from
discontinued
operations,
net of tax - - - 751
-------------------------------------------------------------------------
Net
earnings (loss) $(890) $(1,467) $4,779 $7,751
-------------------------------------------------------
-------------------------------------------------------
Basic earnings
(loss) per unit
- from
continuing
operations $(0.02) $(0.03) $0.09 $0.14
- from
discontinued
operations - - - 0.01
-------------------------------------------------------------------------
Basic earnings
(loss) per unit $(0.02) $(0.03) $0.09 $0.15
-------------------------------------------------------
-------------------------------------------------------
Diluted earnings
(loss) per unit
- from
continuing
operations $(0.02) $(0.03) $0.09 $0.14
- from
discontinued
operations - - - 0.01
-------------------------------------------------------------------------
Diluted earnings
(loss) per unit $(0.02) $(0.03) $0.09 $0.15
-------------------------------------------------------
-------------------------------------------------------
CONSOLIDATED STATEMENTS OF ACCUMULATED EARNINGS
(CDN$ THOUSANDS)
3 months 3 months
ended ended Year ended Year ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
-------------------------------------------------------
Accumulated
earnings,
beginning of
period $79,521 $38,260 $32,993 $35,229
Net
earnings (loss) (890) (1,467) 4,779 7,751
Distributions on
units (16,618) (3,800) (47,915) (9,595)
Premium on unit
repurchases
(stock
repurchases
before May 3,
2004) - - (1,397) (392)
Elimination of
future income
taxes on
conversion
to trust - - 73,553 -
-------------------------------------------------------------------------
Accumulated
earnings,
end of period $62,013 $32,993 $62,013 $32,993
-------------------------------------------------------
-------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
INFORMATION FOR THE YEAR DECEMBER 31, 2004 COMBINES INFORMATION FROM
BOARDWALK REAL ESTATE INVESTMENT TRUST AND ITS PREDECESSOR
(CDN$ THOUSANDS)
3 months 3 months
ended ended Year ended Year ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
-------------------------------------------------------
Operating
activities
Net
earnings (loss) $(890) $(1,467) $4,779 $7,751
Earnings from
discontinued
operations,
net of tax - - - (751)
Future income
taxes (recovery) (85) 6,592 (1,698) 11,761
Amortization of
capital assets 18,710 13,176 72,439 50,766
-------------------------------------------------------------------------
Funds from
continuing
operations 17,735 18,031 75,520 69,527
Funds from
discontinued
operations - - - 33
Net change in
operating
working capital 1,729 (1,405) 6,115 (489)
Net change in
properties
held for resale (106) (107) (413) 1,442
-------------------------------------------------------------------------
Total operating
cash flows 19,358 16,789 81,222 70,513
-------------------------------------------------------
Financing
activities
Issue of trust
units (net of
issue costs) 165 4,615 28,934 9,229
Restructuring
costs (654) - (10,174) -
Unit repurchase
program (stock
repurchase
program before
May 3, 2004) - - (766) (628)
Distributions
paid (16,505) (3,800) (42,333) (9,595)
Financing of
revenue
producing
properties 42,901 27,390 138,241 177,208
Repayment of
debt on revenue
producing
properties (38,877) (22,928) (131,523) (138,292)
Capital lease
obligations (61) (280) (3,431) (1,083)
Deferred
financing costs
incurred (net
of amortization) (348) (597) (1,488) (3,342)
-------------------------------------------------------------------------
(13,379) 4,400 (22,540) 33,497
-------------------------------------------------------
Investing
activities
Purchases of
revenue
producing
properties (17,949) - (40,212) (68,831)
Project
improvements
to revenue
producing
properties (7,617) (10,321) (30,492) (49,047)
Net cash
proceeds from
sale of
properties - - - 1,223
Technology for
real estate
operations (284) (777) (824) (863)
-------------------------------------------------------------------------
(25,850) (11,098) (71,528) (117,518)
-------------------------------------------------------
Net increase
(decrease) in
cash and cash
equivalents
balance (19,871) 10,091 (12,846) (13,508)
Cash and cash
equivalents,
beginning of
period 17,148 32 10,123 23,631
-------------------------------------------------------------------------
Cash and cash
equivalents
(bank
indebtedness),
end of period (2,723) $10,123 (2,723) $10,123
-------------------------------------------------------
-------------------------------------------------------
Supplementary
cash flow
information:
Taxes
paid (received) $(92) $833 $1,150 $3,399
Interest paid $19,075 $19,452 $76,300 $76,468
-------------------------------------------------------
-------------------------------------------------------
%SEDAR: 00020684E
For further information please contact:
Boardwalk REIT
Sam Kolias,
President and CEO,
(403) 531-9255;
Roberto Geremia,
Senior Vice President, Finance
and Chief Financial Officer,
(403) 531-9255;
Paul Moon,
Director of Corporate Communications,
(403) 531-9255.
