BOARDWALK REIT REPORTS STRONG RESULTS FOR 2025, INCREASES DISTRIBUTION BY 11.1% AND INTRODUCES GUIDANCE FOR 2026

by | February 20, 2026 7:11 am | US Markets

CALGARY, AB, Feb. 19, 2026 /CNW/ – Boardwalk Real Estate Investment Trust (TSX:BEI)

SUMMARY HIGHLIGHTS FOR THE THREE AND TWELVE MONTH PERIODS ENDED DECEMBER 31, 2025

  • STRONG FINANCIAL PERFORMANCE
    FOR THE 3 MONTH PERIOD ENDED DECEMBER 31, 2025
    • Funds From Operations (“FFO”) of $1.20 per Unit(1)(2); an increase of 11.1% from Q4 2024
    • Net Operating Income (“NOI”) of $108.5 million; an increase of 9.5% from Q4 2024
    • Same Property(3) Net Operating Income (“Same Property NOI”) of $102.5 million; an increase of 7.3% from Q4 2024
    • Operating Margin of 65.8%; 210 basis point (“bps”) improvement from Q4 2024
    • Loss of $50.8 million

      FOR THE 12 MONTH PERIOD ENDED DECEMBER 31, 2025
    • FFO per Unit(1)(2) of $4.65; an increase of 11.2% from the same period a year ago
    • NOI of $417.6 million; an increase of 9.2% from the same period a year ago
    • Same Property NOI of $404.3 million; an increase of 9.0% from the same period a year ago
    • Operating Margin of 65.4%; 200 bps improvement from the same period a year ago
    • Profit of $196.9 million
  • SAME PROPERTY RENTAL REVENUE GROWTH IN Q4 2025
    • Q4 2025 same property sequential quarterly rental revenue growth of 0.7% from the prior quarter; normal seasonality in the winter leasing season is returning following post-COVID anomaly
    • Occupied rent of $1,590 in December of 2025, an $8 improvement from September 2025 and $66 improvement from December 2024
    • Q4 2025 same property rental revenue growth of 4.5% from a year ago
    • Occupancy of 97.6% in Q4 2025; a decrease of 41 basis points from Q4 2024
  • HIGH QUALITY AFFORDABLE HOUSING REMAINS IN DEMAND
    • Rents in Alberta remain some of the most affordable amongst major cities in Canada
    • The Trust has cumulatively re-invested in common area improvements across the majority of its portfolio since 2017, improving portfolio quality and resilience across market conditions
    • February 2026 preliminary occupancy of 97.3%
  • CAPITAL ALLOCATION
    • Completed previously announced dispositions of twelve non-core communities in Edmonton, Alberta and Québec City, Québec totaling 1,382 suites for gross proceeds of $277.6 million throughout 2025 and January 2026 (approximately $150.6 million net of existing mortgages)
    • Subsequently to year end, finalized the sale of two additional communities totaling 280 suites in Montreal (Longueuil and Brossard), Québec for a total sale price of $47.0 million (approximately $24.2 million after repayment of existing mortgages)
    • Completed previously announced acquisitions of six newer communities or portfolios in Calgary, Alberta; Saskatoon and Regina, Saskatchewan; and Laval, Québec totaling 1,376 suites for gross purchase price of $551.5 million throughout 2025 (approximately $276.2 million net of existing mortgages)
    • Tactically re-deployed $57.3 million under the Trust’s Normal Course Issuer Bid (“NCIB”) during 2025 and an additional $17.7 million subsequently to year end at a combined volume weighted average price of $64.66
  • STRONG AND FLEXIBLE BALANCE SHEET
    • Approximately $466.0 million of total available liquidity at the end of the quarter
    • 96% of Boardwalk’s mortgages carry CMHC-insurance
    • Unitholders’ Equity of $4.9 billion
    • Fair value capitalization rate of 5.19%, an increase of 7 bps from Q4 2024
    • Net Asset Value increase to $96.23 per Unit(1)(2) year over year, primarily a result of higher market rental rates in the Trust’s non-price-controlled markets as compared to same period in the prior year
    • Debt to EBITDA(1) of 9.99x compared to 10.08x for the year ended December 31, 2024
    • Debt to Total Assets(1) of 42.3% compared to 40.6% for the year ended December 31, 2024
  • INTRODUCTION OF 2026 FINANCIAL GUIDANCE
    • FFO range of $4.65 to $4.90 per Unit(1)(2)
    • Same Property NOI growth range of +1.5% to +4.5%
  • 11.1% INCREASE TO REGULAR MONTHLY DISTRIBUTION TO $1.80 PER TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF MARCH, APRIL, AND MAY 2026

(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 4,200,000 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 fourth quarter of 2025.

Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT commented:

“We are pleased to have built upon our track record of compounding our free cash flows in 2025 to further improve our communities and value proposition to our Resident Members, to provide additional capital for the Trust to enhance per Unit value for Unitholders, and to expand the reach of our Love Always to new communities and stakeholders.  2025 was another strong year where we delivered significant growth in Net Operating Income and Funds from Operations per Unit, and margin improvement. Our FFO per Unit of $4.65 is a result of implementing a frictionless approach to our processes that has brought clarity to our decisions and momentum to our execution, allowing our purpose to flow from intention to impact.

The foundation for resilient and strong performance remains in place for 2026 and beyond. We continue to see that demand for affordable housing persists across all market conditions. We are well positioned with the majority of our portfolio in regions that are both affordable and expected to outperform on a relative basis from an economic perspective. Our teams remain focused on high retention and occupancy by providing high-quality communities at an affordable price point for our Resident Members through delivery of exceptional service and a levelled-up brand experience as a result of our thoughtful re-investment into our communities over the past many years. Our portfolio remains differentiated with larger suites on average compared to most newly built supply and our best-in-class, fully vertically-integrated operating platform that allows us to maximize retention and lower suite turnover times in more balanced market conditions. We are supplementing our experience and expertise with new technologies and innovation to further enhance our operational efficiency, simplify our processes and improve our decision-making. We are entering our spring leasing season from a position of strength with same property occupancy at approximately 97.3% as of the beginning of February and an average occupied rent of $1,590 to close out 2025.

In 2026, our strategic focuses will continue to drive disciplined compounding of cash flow per Unit metrics for Unitholders. While organic growth remains the primary driver of performance in 2026, we are committed to supplementing our operational results with accretive capital deployment of excess cash flow and proceeds from select non-core dispositions. Our maximum cash flow model allows us to be tactical in our capital allocation to redeploy available proceeds to the most accretive uses, while upgrading our portfolio quality and improving our balance sheet over time. Our outlook remains positive for 2026. As overall Canadian housing demand rebalances to historical norms, we are well-positioned with our larger presence in some of the most affordable and economically productive markets in Canada, the quality of our communities and our commitment to providing the best product, service and experience.”

FOURTH QUARTER FINANCIAL HIGHLIGHTS

$ millions, except per Unit amounts

Highlights of the Trust’s Fourth Quarter 2025 Financial Results

3 Months
Dec. 31,
2025

3 Months
Dec. 31,
2024

% Change

12 Months
Dec. 31,
2025

12 Months
Dec. 31,
2024

% Change

Operational Highlights





Rental Revenue

$164.9

$155.6

6.0 %

$638.6

$603.3

5.9 %

Same Property Rental Revenue

$154.6

$147.9

4.5 %

$608.9

$575.5

5.8 %

Net Operating Income (“NOI”)

$108.5

$99.0

9.5 %

$417.6

$382.3

9.2 %

Same Property NOI

$102.5

$95.5

7.3 %

$404.3

$371.0

9.0 %

Operating Margin (1)

65.8 %

63.7 %

65.4 %

63.4 %

Same Property Operating Margin

66.3 %

64.6 %

66.4 %

64.5 %

Financial Highlights





Funds From Operations (“FFO”) (2)(3)

$64.0

$58.5

9.3 %

$248.5

$225.8

10.0 %

Adjusted Funds From Operations (“AFFO”) (2)(3)

$56.0

$50.8

10.3 %

$214.9

$192.3

11.8 %

Profit

$(50.8)

$65.9

-177.0 %

$196.9

$588.2

-66.5 %

FFO per Unit (3)

$1.20

$1.08

11.1 %

$4.65

$4.18

11.2 %

AFFO per Unit (3)

$1.05

$0.94

11.7 %

$4.02

$3.56

12.9 %

Distributions





Regular Distributions Declared (Trust Units & LP Class B Units)

$21.5

$19.3

11.4 %

$84.7

$75.1

12.8 %

Regular Distributions Declared Per Unit (Trust Units & LP Class B Units)

$0.405

$0.360

12.5 %

$1.590

$1.395

14.0 %

FFO Payout Ratio (3)

33.6 %

33.1 %

34.1 %

33.3 %

Suite Count





Same Property Apartment Suites


32,722

33,722

Non-Same Property Apartment Suites (4)


1,854

683

Total Apartment Suites


34,576

34,405

(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 Q4 2025, 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 and overall expense growth remained flat.

Continued Highlights of the Trust’s Fourth Quarter 2025 Financial Results





Dec. 31, 2025

Dec. 31, 2024

Equity





Unitholders’ equity



$4,918,159

$4,836,809

Net Asset Value





Net asset value (1)(2)



$5,108,421

$5,047,029

Net asset value (“NAV”) per Unit (2)



$96.23

$93.68

Liquidity and Debt





Cash and cash equivalents



$97,093

Subsequent committed/funded financing



$123,100

Unused credit facilities



$245,800

Total Available Liquidity



$465,993

Total mortgage principal outstanding



$3,623,470

$3,410,173

Debt to EBITDA(2)



9.99

10.08

Debt to Total Assets(2)



42.3 %

40.6 %

Interest Coverage Ratio (Rolling 4 quarters)



3.08

2.95

(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.

The Trust’s fair value of its investment properties as at December 31, 2025, decreased slightly from the prior quarter, mainly as a result of the Trust increasing cap rates in some of its eastern markets and secondary markets.  These adjustments were partially offset by higher rents. Compared to the prior year, the Trust’s fair value of investment properties increased mainly because of higher market rents, lower incentives and net acquisition activity during the year. The Trust’s stabilized capitalization rate (“Cap Rate”) increased to 5.19% for Q4 2025 compared to 5.12% in 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 Fourth Quarter of 2025

Dec-25

Dec-24

Average Occupancy (Quarter Average) (1)

97.61 %

98.02 %



Average Monthly Rent (Period Ended)

$                1,551

$                     1,491

Average Market Rent (Period Ended) (2)

$                1,673

$                     1,650

Average Occupied Rent (Period Ended) (3)

$                1,590

$                     1,524



Mark-to-Market Revenue Gain (Period Ended) ($ millions)

$                  33.4

$                       50.2

Mark-to-Market Revenue Gain Per Unit (Period Ended)

$                  0.62

$                       0.93

(1)Average occupancy is adjusted to be on a same property basis.

(2)Market rent is a component of rental revenue and is calculated as of the first day of each month as the average rental revenue amount a willing landlord might reasonably expect to receive, and a willing tenant might reasonably expect to pay, for a tenancy, before adjustments for other rental revenue items such as incentives, vacancy loss, fees, specific recoveries, and revenue from commercial tenants.

(3)Occupied rent is a component of rental revenue and is calculated for occupied suites as of the first day of each month as the average rental revenue, adjusted for other rental revenue items such as fees, specific recoveries, and revenue from commercial tenants.


Jan-

25

Feb-

25

Mar-
25

Apr-

25

May-
25

Jun-

25

Jul-

25

Aug-
25

Sep-

25

Oct-

25

Nov-
25

Dec-

25

Jan-

26

Feb-

26

Same
Property
Portfolio
Occupancy

97.6 %

97.8 %

97.9 %

97.9 %

98.0 %

97.8 %

97.7 %

97.6 %

97.9 %

Full story available on Benzinga.com