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2008 Boardwalk REIT Press Release

Boardwalk Rental Communities




TSX SYMBOL:  BEI.UN
				 
November 14, 2008

Boardwalk REIT Announces Solid Third Quarter 2008 Financial Results; FFO Per Unit Up 11.5% and DI Per Unit up 13.1% YOY; and its November 2008 Distribution

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CALGARY, Nov. 14 /CNW/ - Boardwalk Real Estate Investment Trust ("BEI.UN"
- TSX) - Boardwalk Real Estate Investment Trust ("Boardwalk", "Boardwalk REIT"
or the "Trust") today announced strong financial results for the third quarter
of 2008; FFO per unit up 11.5% and DI per unit up 13.1% YOY; and its November
2008 Distribution. FFO and DI are non-GAAP measures; the reconciliation to Net
Earnings and Total Operating Cash Flows, respectively, can be found in the
Management's Discussion and Analysis (MD&A) for the third quarter ended
September 30, 2008, under the section titled, "Performance Measures".
     For the third quarter ended September 30, 2008, the Trust reported Funds
From Operations ("FFO") of $36.8 million and FFO per unit of $0.68 on a
diluted basis, compared to FFO of $34.1 million and FFO per unit of $0.61 for
the same period last year. Distributable income ("DI") for the quarter was
$37.2 million and DI per unit was $0.69 on a diluted basis, compared to $34.3
million and $0.61 per unit for the same period last year.

     Change to Quarterly Reporting Format

     As mentioned in our last quarter, the Trust has adopted a new reporting
format beginning with the third quarter of 2008. The goal of the new
easier-to-read format is to reduce repetition and provide a high-level
overview of our quarterly results. A more detailed analysis is included in the
Management's Discussion and Analysis and Consolidated Financial Statements,
which have been filed on SEDAR and can be viewed at www.sedar.com or on the
Trust's website at www.boardwalkreit.com.

     $ million, except per unit amounts
     -------------------------------------------------------------------------
          Highlights of the Trust's Third Quarter 2008 Financial Results
     -------------------------------------------------------------------------
                        Three      Three              Nine       Nine
                       Months     Months    %       Months     Months    %
                     Sep 2008   Sep 2007  Change  Sep 2008   Sep 2007  Change

     Rental Revenue    $108.2      $95.7   13.0%    $315.9     $276.0   14.4%

     Net Operating
      Income (NOI)     $ 72.1      $64.1   12.4%    $199.3     $173.9   14.6%

     Funds From
      Operations
      (FFO)            $ 36.8      $34.1    8.2%    $ 97.4     $ 86.6   12.6%

     FFO Per Unit      $ 0.68      $0.61   11.5%    $ 1.78     $ 1.55   14.8%

     Distributable
      Income (DI)      $ 37.2      $34.3    8.4%    $ 98.7     $ 87.9   12.3%

     DI Per Unit       $ 0.69      $0.61   13.1%    $ 1.80     $ 1.57   14.6%

     Distributions
      Declared         $ 24.3      $22.5            $ 73.9     $ 65.4

     Distributions
      Declared
      Per Unit         $ 0.45      $0.40            $ 1.35     $ 1.17

     (2008 Target
      $1.80 Per Unit
      on an annualized
      basis)

     Payout as a
      % DI              65.2%      65.7%             74.9%      74.4%
     -------------------------------------------------------------------------
     For further detail, please refer to pages 8-9 and 14-15 of the MD&A.



     -------------------------------------------------------------------------
                     Portfolio Highlights for the Third Quarter 2008
     -------------------------------------------------------------------------
                                                       Sep        Jun     Sep
                                                      2008       2008    2007

     Average Vacancy (3 Months)                      4.58%      4.74%   3.93%

     Average Monthly Rent (3 Months)                $  977     $  955  $  879

     Average Market Rent (Month Ended)              $1,070     $1,068  $1,096

     Average Occupied Rent (Month Ended)            $1,027     $1,008  $  907

     Loss-to-Lease ($ million)                      $ 18.2     $ 25.2  $ 78.5

     Loss-to-Lease per Unit                         $ 0.34     $ 0.46  $ 1.39

     Debt-to-GBV ("Gross Book Value")                59.6%


                                                 % Change
     Same Property Results (3 Months)      Year-Over-Year

     Rental Revenue                                  9.7%

     Operating Costs                                 9.1%

     Net Operating Income (NOI)                      9.9%
     -------------------------------------------------------------------------
     For further details, please refer to pages 15-17 and 19-20 of the MD&A.

     Additionally, more detail on our operations will be found in our
conference call presentation to be posted on our web site today at
http://www.boardwalkreit.com/FinancialReports/ The conference call audio for
this presentation can also be found on our web site at
http://www.boardwalkreit.com/FinancialReports/ following the call.

     Sequential Revenue Analysis

     -------------------------------------------------------------------------
     Stabilized       No. of  Q3 2008 vs.  Q2 2008 vs. Q1 2008 vs. Q4 2007 vs.
      Revenue Growth   Units      Q2 2008     Q1 2008     Q4 2007     Q3 2007
     -------------------------------------------------------------------------
     Calgary           4,973         1.3%        3.0%        3.3%        0.4%
     Edmonton         10,649         3.5%        2.6%        5.3%        1.8%
     Other Alberta     1,680         0.3%        0.1%        3.2%        1.9%
     British Columbia    871         1.2%        1.9%        4.1%       -1.9%
     Ontario           4,265        -1.2%        0.9%       -0.4%        2.1%
     Quebec            6,756         2.2%        1.1%        0.0%        0.2%
     Saskatchewan      4,660         5.7%        6.6%        2.7%        4.6%
     -------------------------------------------------------------------------
                      33,854         2.4%        2.5%        2.9%        1.5%
     -------------------------------------------------------------------------

     On a sequential basis, stabilized revenues grew 2.4% from Q2 2008 to Q3
2008, 2.5% from Q1 2008 to Q2 2008, 2.9% from Q4 2007 to Q1 2008 and 1.5% from
Q3 2007 to Q4 2007.


     Market Fundamentals From Across Canada:
     Unemployment, migration and wages

     -------------------------------------------------------------------------
                             Market Fundamentals
     -------------------------------------------------------------------------
                            BC               Alberta          Saskatchewan
                            --               -------          ------------
                   Sep 2008  Sep 2007  Sep 2008  Sep 2007  Sep 2008  Sep 2007

     Unemployment
      Rate             4.6%      4.3%      3.8%      3.6%      4.1%      3.8%

                    Q2 2008   Q2 2007   Q2 2008   Q2 2007   Q2 2008   Q2 2007

     Net Inter-
      provincial
      Migration       1,669     4,337     6,730     4,677     1,107     1,691

     Net Inter-
      national
      Migration      15,178    10,800    13,439    10,634     1,757     1,126

     Total Net
      Migration      16,847    15,137    20,169    15,311     2,864     2,817

                   Aug 2007  Aug 2006  Aug 2007  Aug 2006  Aug 2007  Aug 2006
                         to        to        to        to        to        to
                   Aug 2008  Aug 2007  Aug 2008  Aug 2007  Aug 2008  Aug 2007

     Average Weekly
      Wages Growth     3.1%      3.5%      4.8%      4.1%      4.9%      3.9%
     -------------------------------------------------------------------------


     -------------------------------------------------------------------------
                             Market Fundamentals
     -------------------------------------------------------------------------
                         Ontario             Quebec
                         -------             ------
                   Sep 2008  Sep 2007  Sep 2008  Sep 2007
     Unemployment
      Rate             6.4%      6.2%      7.3%      6.9%

                    Q2 2008   Q2 2007   Q2 2008   Q2 2007

     Net Inter-
      provincial
      Migration      -3,942    -3,451    -4,952    -4,665

     Net Inter-
      national
      Migration      38,442    34,689    17,154    14,487

     Total Net
      Migration      34,500    31,238    12,202     9,822

                   Aug 2007  Aug 2006  Aug 2007  Aug 2006
                         to        to        to        to
                   Aug 2008  Aug 2007  Aug 2008  Aug 2007

     Average Weekly
      Wages Growth     2.8%      2.8%      0.7%      3.0%
     -------------------------------------------------------------------------

     Western Canada:

     While the market is tempering across Canada, market fundamentals remain
strong in the Western provinces and continued to support our solid rental
demand in the third quarter of 2008.
     Alberta and Saskatchewan both demonstrated steady employment and wage
growth over the first three quarters, with 17,000 and 7,700 jobs created in
September, respectively. Growth in natural resources for both provinces
remains strong, and Saskatchewan's economic strength is expected to increase
due to the province's ample supply of commodities such as oil & gas, uranium
and potash. Unemployment in Alberta is still the lowest in the country, at
3.8%, with Saskatchewan and British Columbia following in second and third.
Employment opportunities combined with high wages will continue to allow our
Customers to absorb rental costs going into the fourth quarter. Oil sands
development in Alberta remains positive, totaling over $180 billion as of
October 1, 2008. Imperial Oil recently announced it will move ahead with its
Kearl project in Fort McMurray, with an initial cost estimate of $5 to $8
billion; Suncor is also proceeding with its Voyageur project, although costs
have been scaled back to $6 billion for 2009. While interprovincial migration
into Alberta has slowed from its peak, gains in the second quarter remained
higher than the same time last year, and international migration reached
record levels. British Columbia also enjoyed high international migration
numbers, coming in behind Alberta and slightly ahead of Saskatchewan in terms
of population growth. Interprovincial migration continues to be a strong
component of population growth for Saskatchewan, which once again saw a net
gain in interprovincial migrants from Alberta for the seventh consecutive
quarter. International migration to Saskatchewan also reached record levels in
the second quarter. With a high number of migrants and immigrants arriving in
the Western provinces, we can expect demand for rental housing to remain
strong.

     Eastern Canada:

     With the economic downturn in the US and the global financial situation,
our markets in Eastern Canada will continue to be impacted negatively;
however, the recent drop in the value of the Canadian dollar may temper the
effect of this somewhat over the coming months. Manufacturing jobs in Ontario
continued to decrease over the third quarter by 16,000. However, both Ontario
and Quebec saw an employment increase of 0.4% in September 2008, gaining
52,000 and 32,000 jobs, respectively. While Ontario and Quebec showed losses
in interprovincial migration over the second quarter of 2008, international
migration levels remain high.

     MLS Housing Prices:

     -------------------------------------------------------------------------
                                 MLS Housing Prices
     -------------------------------------------------------------------------
     British Columbia                     Vancouver CMA       Victoria CMA
                                       Sep 2008  Sep 2007  Sep 2008  Sep 2007
       Average Single Family           $726,331  $737,927  $549,284  $584,193
       Average Condo                         na        na  $319,562  $343,462

     Alberta                               Calgary CMA          Edmonton
                                       Sep 2008  Sep 2007  Sep 2008  Sep 2007
       Average Single Family           $444,048  $470,888  $362,097  $399,555
       Average Condo                   $287,426  $321,614  $252,234  $270,745

     Saskatchewan                           Saskatoon            Regina
                                       Sep 2008  Sep 2007  Sep 2008  Sep 2007
       Average Overall                 $297,836  $242,091  $235,809  $185,653

     Ontario                                  London             Windsor
                                       Sep 2008  Sep 2007  Sep 2008  Sep 2007
       Average Single Family           $227,794  $216,275        na        na
       Average Condo                   $152,353  $152,189        na        na
       Average Overall                       na        na  $160,280  $170,585

     Quebec                               Montreal (CMA)
                                       Sep 2008  Sep 2007
       Average Overall                 $274,710  $258,780
     -------------------------------------------------------------------------
     Internally generated, NA = Data not available. Source:
     Association of Regina REALTORS(R), Calgary Real Estate Board, Canada
     Mortgage and Housing Corporation, Edmonton Real Estate Board, London and
     St. Thomas Association of REALTORS(R), Real Estate Board of Greater
     Vancouver, Saskatoon Region Association of REALTORS(R), Victoria Real
     Estate Board, Windsor-Essex County Real Estate Board

     Western Canada:

     In Calgary and Edmonton, housing prices are declining as the province
adjusts to large inventories of unsold homes and slowing interprovincial
migration, creating a buyers' market. Average single family sale prices for
Calgary and Edmonton in September 2008 were down 5.7% and 9.4%, and
condominium prices decreased 10.6% and 6.8%, respectively, year-over-year.
While average sale prices in Vancouver and Victoria for September 2008
declined from the same period last year, they remain high. Saskatchewan
continues to show remarkable growth in comparison to the other Western
provinces, supporting a strong rental market as home prices increase. In
September 2008, average residential sale prices for Regina and Saskatoon went
up 27.0% and 23.0%, respectively, year-over-year.

     Eastern Canada:

     Continuing from the last quarter, housing prices in Ontario and Quebec
remain relatively steady despite current economic difficulties. While the
average residential sale price in Windsor decreased 6.0% over September 2007,
London saw the average price of a single-family home for September increase
5.3% year over year. In Montreal, average sale prices for both single-family
homes and condominiums in September increased approximately 5.0% and 4.0%
respectively, compared to the same period last year. Montreal also saw the
sales volume for condominiums increase 25.0% over September 2007.

     Acquisitions and Dispositions

     With the gap between public apartment companies and private market cap
rates, there may be a unique opportunity to selectively sell apartment assets
to private buyers and redeploy these proceeds to acquire our trust units as
part of our Normal Course Issuer Bid.
     To date in 2008, the Trust's acquisitions and dispositions are as follow:

     Excluded from the table is one additional unit acquired in an Edmonton,
Alberta property called, "Morningside", of which Boardwalk REIT already owned
220 units. Dispositions to date for 2008 consisted solely of the sales and
closings of 36 units in a 90-unit property converted into condominiums for
sale.

     Closed - 2008

                                No. of                                Year 1
     Building Name     City      Units      Type         Price       Cap Rate
     -------------------------------------------------------------------------
     Varsity Square
      Apartments      Calgary     297     High Rise   $ 48,750,000      5.86%
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Total
      Acquisitions                297                 $ 48,750,000      5.86%
     -------------------------------------------------------------------------


                               Year 2
     Building Name            Cap Rate    $/unit    $/sq ft       Date Closed
     -------------------------------------------------------------------------
     Varsity Square
      Apartments                6.12%     164,141    $ 207      June 12, 2008
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Total
      Acquisitions              6.12%     164,141    $ 207
     -------------------------------------------------------------------------

     Excluded from the table is one additional unit acquired in an Edmonton,
     Alberta property called, "Morningside", of which Boardwalk REIT already
     owned 220 units. Dispositions to date for 2008 consisted solely of the
     sales and closings of 36 units in a 90-unit property converted into
     condominiums for sale.

     For further detail, please refer to pages 21-22 of the MD&A.

     Unit Buyback

     We continue to believe that one of the best investments we can make is
purchasing our Trust Units at current levels. Under the Normal Course Issuer
Bids, the Trust purchased and cancelled 1,969,200 REIT Trust Units in the
first nine months of 2008, representing a total market value of approximately
$76.3 million, or an average of $38.76 per Trust Unit. Together with the
856,447 Trust Units purchased and cancelled in 2007, the Trust has
cumulatively purchased and cancelled 2,825,647 Trust Units representing a
total market value of approximately $114.9 million at September 30, 2008, or
an average of $40.66 per Trust Unit.
     For further detail, please refer to pages 23-24 of the MD&A.

     Continued Financial Strength

     The Trust continued to build on its solid financial position throughout
the third quarter of 2008. Boardwalk REIT's total principal mortgage and debt
outstanding was $2.14 billion as of September 30, 2008, as compared to $1.95
billion as of December 31, 2007. As of September 30, 2008, the Trust's total
debt had an average term maturity of 3 years with a weighted average interest
rate of 4.91% and the debt-to-total enterprise value ratio was 51.9%.
     We currently estimate that by the end of this fiscal year, the Trust
could have access to approximately $350 million of available capital in the
form of cash-on-hand; a secured, undrawn acquisition and operating facility;
and estimated additional mortgage proceeds for the remainder of the year. The
Trust's interest coverage ratio, excluding gains, for the three-month period
ended September 30, 2008 was 2.40 times compared to 2.48 times in the same
period last year.
     For further detail, please refer to pages 24-26 of the MD&A.

     Outlook and 2008 Financial Guidance

     Each quarter, we review our key assumptions in providing our financial
guidance. Based on this review, we have tightened our 2008 financial guidance
range. We estimate that for fiscal 2008, we will report FFO on a per
outstanding Trust Unit between $2.37 - $2.43 (DI between $2.39 - $2.45). We
are not anticipating any new apartment acquisitions for the remainder of the
fiscal year.
     The following table summarizes the changes to our 2008 Financial
Guidance:

     -------------------------------------------------------------------------
                                                 Q2 Revised        Q3 Revised
     Description          Original Guidance        Guidance          Guidance
     -------------------------------------------------------------------------
     Acquisitions      $130 million to $260     $75 million       $50 million
                          million (1,000 to      (500 units)       (298 units)
                      2,000 apartment units)
     -------------------------------------------------------------------------
     Stabilized
      Building
      NOI growth                  8% to 14%       8% to 10%          8% to 10%
     -------------------------------------------------------------------------
     FFO per Trust
      Unit                   $2.35 to $2.50  $2.35 to $2.45     $2.37 to $2.43
     -------------------------------------------------------------------------
     DI per Trust
      Unit                   $2.37 to $2.52  $2.37 to $2.47     $2.39 to $2.45
     -------------------------------------------------------------------------
     For further detail, please refer to page 26 of the MD&A.

     As is customary in its Q3 reporting, Boardwalk is providing its financial
outlook for 2009. The following table details the 2009 Financial Guidance
along with key assumptions.

     2009 Financial Guidance

     -------------------------------------------------------------------------
     Description                                                     Guidance
     -------------------------------------------------------------------------
     Acquisitions                               No new apartment acquisitions
     -------------------------------------------------------------------------
     Stabilized Building NOI growth                                   4% to 6%
     -------------------------------------------------------------------------
     FFO per Trust Unit                                        $2.45 to $2.55
     -------------------------------------------------------------------------
     DI per Trust Unit                                         $2.47 to $2.57
     -------------------------------------------------------------------------
     For further detail, please refer to page 27 of the MD&A.

     November 2008 Monthly Distribution

     The Trust has declared its November 2008 distribution in the amount of
15.00 cents per Trust Unit ($1.80 on an annualized basis). The November
distribution will be payable on December 15, 2008 to Unitholders of record on
November 28, 2008.

     Supplementary Information

     Boardwalk produces the Quarterly Supplemental Information that provides
detailed information regarding the Trust's activities during the quarter. The
Third Quarter 2008 Supplemental Information is available on our investor
website at www.boardwalkreit.com.

     Teleconference on Third Quarter 2008 Financial Results

     We invite you to participate in the teleconference that will be held to
discuss these results this same morning (November 14, 2008) at 11:00 am EST.
Senior management will speak to the third quarter financial results and
provide a corporate update. Presentation materials will be made available on
our investor website at www.boardwalkreit.com prior to the call.
     Participation & Registration: Please RSVP to Investor Relations at
403-206-6808 or by email to investor@bwalk.com.
     Teleconference: The telephone numbers for the conference are 416-644-3417
(within Toronto) or toll-free 1-800-732-9307 (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=2414280
     Replay: An audio recording of the teleconference will be available from
1:00 pm ET on Friday, November 14, 2008 until 11:59 pm ET on Friday, November
21, 2008. You can access it by dialing 416-640-1917 and using the passcode
21281973 followed by the pound (No.) 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 36,785 units totalling approximately 40 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.

     (1) Funds From Operations ("FFO") is a generally accepted measure of
         operating performance of real estate investment trusts and companies;
         however, it is a non-GAAP measure. The Trust calculates FFO by taking
         net earnings after discontinued operations, adjusting for gains or
         losses on disposal of discontinued operation assets and extraordinary
         items, and adding non-cash expenses 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 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.

     CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

     This news release contains forward-looking statements relating to our
operations and the environment in which we operate, which are based on our
expectations, estimates, forecast and projections, which we believe are
reasonable as of the current date . These statements are not guarantees of
future performance and involve risks and uncertainties that are difficult to
control or predict. For more exhaustive information on these risks and
uncertainties you should refer to our most recently filed annual information
form which is available at www.sedar.com. Actual outcomes and results may
differ materially from those expressed in these forward-looking statements.
Readers, therefore, should not place undue reliance on any such
forward-looking statements. Further, a forward-looking statement speaks only
as of the date on which such statement is made and should not be relied upon
as of any other date. While we may elect to, we undertake no obligation to
publicly update any such statement to reflect new information or the
occurrence of future events or circumstances at any particular time.
     %SEDAR: 00020684E

For further information please contact:
Boardwalk REIT 

Sam Kolias, CEO, (403) 531-9255;
Roberto Geremia, President, (403) 531-9255



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