CALGARY – November 03, 2026 -- Boardwalk Real Estate Investment Trust (TSX: BEI.UN) reported Q3 2026 Funds From Operations of $1.21 per Unit, down 1.6% from Q3 2025. Higher property taxes outweighed modest revenue growth, while the Trust cut leverage to 9.02x Debt to EBITDA through asset sales and unit buybacks.
Property taxes trim Q3 margin by 100 basis points
Same Property Net Operating Income (NOI) fell 1.1% to $98.2 million, even as Same Property rental revenue rose 0.9% and occupancy held at 97.0%. Total NOI declined 2.0% to $106.2 million. Operating margin slipped 100 basis points to 66.4%, which the Trust attributed mainly to year-over-year property tax increases.
Moderated demand is a further drag. The Trust said the federal Immigration Levels Plan released in fall 2025 is temporarily reducing demand in 2026 and 2027. Management adjusted market rents downward in pockets with heavy new supply and higher-priced rents, and upward in communities with strong fundamentals. Average occupied rent rose both sequentially and year over year.
Nine-month results remain ahead of last year
For the nine months to September 30, Same Property NOI rose 2.0% to $292.1 million and total NOI gained 3.4% to $319.6 million. FFO reached $3.54 per Unit, up 2.6%. Operating margin widened 80 basis points to 66.0%.
The Trust tightened 2026 guidance to FFO of $4.65 to $4.75 per Unit and Same Property NOI growth of 1.0% to 2.0%.
Asset sales raise gross proceeds of $322.7 million
After quarter end, Boardwalk finalized the sale of three Edmonton communities totaling 536 suites for $106.5 million gross, or about $68.2 million net of existing mortgages. In Q3 it closed the sale of ten non-core communities in London, Ontario, and Grande Prairie, Alberta (411 suites) for $70.2 million gross, or about $40.2 million net.
Also in Q3, the Trust sold a 50% interest in a 328-suite seed portfolio to DGAM Canadian Private Real Estate Fund, L.P., managed by DGAM Global Asset Management. Gross proceeds were $146.0 million, or about $86.5 million net of mortgages.
Boardwalk completes buyback of 4.0 million units for $262.2 million
The Trust completed its Normal Course Issuer Bid during Q3. Since the renewal in November 2025, it has repurchased and cancelled 4,018,000 Units at a weighted average price of $65.26. CEO Sam Kolias described the buyback as a "historically rare opportunity" to repurchase the Trust's own communities at a sharp discount to underlying value.
At a unit price of about $63, Boardwalk calculates an implied value of roughly $195,000 per suite, equal to a 6.5% cap rate on trailing NOI. Net Asset Value stood at $96.89 per Unit, up from both Q4 2025 and Q2 2026.
Debt to EBITDA improves to 9.02x from 9.99x
Total available liquidity was about $403.2 million at quarter end. Unitholders' Equity totaled $4.6 billion, and 99% of mortgages carry CMHC insurance. Debt to Total Assets edged up to 42.7% from 42.3% at December 31, 2025.
The stabilized capitalization rate was 5.22%, versus 5.19% at year end and 5.25% at Q2 2026. Boardwalk said the move from Q2 mainly reflects the shift of its Central Parc Laval property from acquisition price to a stabilized cap rate methodology. Fair value of investment properties fell from year end on dispositions, lower Calgary market rents and the slight cap rate increase.
The Trust is holding higher cash for opportunistic deployment. It has reinvested in common area improvements across about 74% of its portfolio since 2017. Boardwalk confirmed a regular distribution of $1.80 per Unit annualized for December 2026, January 2027 and February 2027.