BOARDWALK REIT REPORTS STRONG RESULTS FOR 2025, INCREASES DISTRIBUTION BY 11.1% AND INTRODUCES GUIDANCE FOR 2026
CALGARY, AB, Feb. 19, 2026 /PRNewswire/ - Boardwalk Real Estate Investment Trust (TSX: BEI.UN) 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'.
