2012 annual - Boardwalk REIT

In Summary
Our focus on our Communities in 2012 by each of our 1,600 Associates resulted in a
positive year for the Trust. We continue to strive towards long-term relationships with
our Residents by providing the best in product quality and service, while building a
foundation for continued long term sustainable growth for our stakeholders.
For fiscal 2012, our reported FFO increased by approximately 14% versus the same period
last year at $2.87, and finished at the high end of our revised guidance range of $2.80 -
$2.90 per Trust Unit. The positive FFO growth can be attributed to the positive NOI growth
the Trust was able to achieve, combined with continued reduction in interest expense.
Funds from Operations – 2012
Original Guidance $2.65 to $2.85
Revised Guidance $2.80 to $2.90
Actual Results, 2012 $2.87
2013 Outlook
Unit Breakdown by Province
2012 was a positive year for the Trust.
As
We
at Dec
continue
31, 2012
to build long term relationships with
our Residents while further enhancing our product and service. We believe we are wellpositioned
to continue to close the mark-to-market gap on rents BC 1.8% with sustainable rent
increases in most of our markets, while maintaining the high occupancy levels with which
AB 56.0%
we have been rewarded. This organic growth opportunity combined with management
of inflationary expenses will continue to drive NOI results in 2013. SK 13.1%
ON 12.1%
A continued low interest rate environment will additionally add to FFO growth as
approximately $288 million of mortgages will mature in 2013 QC with 17.0% an average interest
rate of 4.45%, representing a significant interest savings opportunity. Although consensus
estimates forecast that interest rates will remain low through 2013, the Trust is constantly
monitoring the credit market and, if it feels it is warranted, the Trust may forward commit
to interest rate locks to crystallize interest rate savings; however, a balanced approach to
the Trust’s mortgage program will be undertaken.
With this in mind, we are optimistic for 2013. As is customary, at the end of the third
quarter of 2012, the Trust provided a financial outlook for the upcoming year to increase
transparency in our financial reporting by sharing our own perspectives on the Trust’s
current position and objectives. This guidance is updated on a quarterly basis and is first
reported during our quarterly conference calls and press releases.
Description
2013 Guidance
No new apartment acquisitions
Acquisitions
or dispositions
Stabilized Building noI Growth 1% to 4%
FFO Per Trust Unit $2.95 to $3.15
AFFO per Trust Unit – based on $475/yr/apt $2.63 to $2.83
Unit Breakdown by Province
As at Dec 31, 2012
NOI Breakdown by Province
As at Dec 31, 2012
BC 1.8%
AB 56.0%
SK 13.1%
ON 12.1%
QC 17.0%
BC 1.9%
AB 61.4%
SK 14.3%
ON 7.5%
QC 14.9%
8 / Letter to UnitholdERS Boardwalk REIT / AR 2012