The following is a summary of the Boardwalk Real Estate Investment Trust (BOWFF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Boardwalk Real Estate Investment Trust reported an increase in FFO per unit, net asset value, & unitholder equity compared to the same quarter of last year.
Company's profit grew quarter-over-quarter, attributed to stronger apartment rental fundamentals leading to higher fair value adjustments.
Enjoyed steady compound annual growth rate of 9.5% in FFO per unit over the last three years.
Q4 2023 same property net operating income increased 16.8% YOY, driven by a revenue growth of 9.2%.
Net margin expanded to 61% in 2023, due to disciplined expense management and robust revenue growth.
Administration costs showed a quarterly decrease but an annual increase due to inflationary wage adjustments.
The Trust is well-positioned with estimated liquidity of $527 million.
Increased estimated fair value of investment properties to $7.6 billion from previous year's $6.8 billion.
The Trust's largest market, Edmonton, registered a 10.2% revenue growth in Q4 2023.
Business Progress:
Key trophy locations such as Victoria developments and the 45 Rail contributed significantly to the company's success.
Partnership with RioCan led to creation of Brio community near University of Calgary Foothills Hospital.
Actively converting administrative and storage spaces into additional housing units.
Focus on expanding into countercyclical trophy locations.
Actively exploring office conversions, although dependent on government support.
Maintained commitment to affordable housing in Alberta and Saskatchewan markets.
Secured $46.5 million CMHC financing for the acquisition of The Vue in Victoria.
The forecasted payout ratio for 2024 remains the same as in previous year.
Announced a substantial 23% increase in monthly cash distribution and double-digit Net Operating Income (NOI) growth.
Anticipation of 2024 same property NOI growth to be between 10% and 14% and FFO to range from $3.93 to $4.18 per trust unit.
Conversion of storage spaces added 23 more units in 2023.
Invested $70 million to acquire The Circle, a 295-unit community in Calgary.
Development of a 234-unit construction, Aspire, in Victoria is in progress.
Strategy includes strategic acquisitions and new developments in undersupplied housing markets with a continued focus on maintaining a low payout ratio and optimizing capital deployment for growth.
More details: BOARDWALK REAL ESTATE INVESTMENT TR IR
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