2012 annual - Boardwalk REIT

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Delivering Value We are pleased to report on a positive year for Boardwalk REIT (“Boardwalk” or the “Trust”). In 2012, we continued to focus on Creating Community for our Residents by providing the best value in rental housing. The continued commitment by each of our Associates throughout the year helped drive our superior Customer Service, and as result, has allowed the Trust to report Funds from Operation (“FFO”) performance of $2.87 per Trust Unit on a diluted basis for 2012. The success of our Customer Friendly approach is being reflected with historically sustainable long-term growth and providing additional value for all of our Stakeholders. 4 / Letter to SHAREHolders Boardwalk REIT / AR 2012
Letter to Unitholders Throughout 2012, the Trust continued its commitment to providing the best Customer Experience for its Residents by developing and hosting over 45 innovative events for our Customers across the Country. In addition, we continue to provide Customer friendly programs including our Internal Subsidy Program, which will provide rental increase forgiveness to Customers who can prove financial hardship occasioned by a rental increase and our Self-Imposed Rent Protection Program, which limits the amount of a rental increase to a sustainable level for any given year for existing Residents. Both programs have contributed to further our Customer loyalty. The quality of our Communities continues to be a top priority and with this, we have increased our annual investment to approximately $90 million in 2012 to further enhance our Communities. We believe this continued focus has set Boardwalk apart and, to date, our Residents have rewarded us with lower turnover and higher occupancy as we continue to build longterm relationships with our Residents. 2012 Economic Environment Demand for rental housing in 2012 was strong in most of the Trust’s markets as the Canadian Economy continued to outperform its peers. During the year, vacancy rates in our core markets decreased, which allowed the Trust to continue its Rental Strategy of maintaining high occupancy, through the continuous monitoring of occupancy levels, adjusting market rents, and offering suite specific incentives to optimize revenue. (From left to right): William Wong, Chief Financial Officer; Van Kolias, Senior Vice President, Quality Control; Sam Kolias, Chief Executive Officer and Chairman of the Board; William Chidley, Senior Vice President, Corporate Development; Roberto Geremia, President; and Dean Burns, General Counsel and Secretary. The Canadian Real Estate market continued to be strong in 2012 as multi-family asset transactions showed that capitalization rates continued to decrease resulting in significant increases in prices for investment grade apartments. Debt financing continued to be healthy in 2012 with no shortage of demand for both Canadian Government and Corporate backed debt in Canadian Capital Markets and, as a result, we saw many of our REIT peers access equity markets to obtain additional capital. Debt financing continued to be readily available for CMHC-insured financing for Multi-Family Real Estate as the Trust was able to capitalize further on the low interest rate environment by renewing our maturing mortgages at interest rates well below the maturing rates. The resource driven Prairie Provinces led economic growth in 2012 and, as a result, presented good rental fundamentals for the Trust. Migration in Alberta and Saskatchewan in 2012 increased its pace and have exceeded in migration levels seen in 2007. A report from Canada Mortgage and Housing Corporation (“CMHC”) estimates that as a result of the positive net migration in Alberta and Saskatchewan, each province is expected to carry the lowest unemployment rates in Canada, near 4% in 2012. In addition, wage growth is expected to increase as the job market tightens. Home ownership and the home resale market appear to be under balanced conditions despite the tightening of mortgage criteria in 2012. There remains a significant spread between the price of Alberta Crude and market pricing for comparable crude. These factors have contributed to higher wage and operating expenses inflation in 2012, which tempered the Trust’s net operating income growth. Boardwalk REIT / AR 2012 Letter to UnitholdERS / 5
Page 1 and 2: TSX: BEI.UN Annual Report 2012 Deli
Page 3 and 4: 2012 Highlights Funds From Operatio
Page 5: Quebec City 1,319 units 3.7% of por
Page 9 and 10: Financial and Operating Highlights
Page 11 and 12: Rental Revenue Cycle Move-outs > Mo
Page 13 and 14: Customers: To work proactively to e
Page 15 and 16: Associates: Invest in our people to
Page 17 and 18: Community: To positively impact the
Page 19 and 20: Corporate Governance: To provide fu
Page 21 and 22: equests, communicate with Customer
Page 23 and 24: Les Jardins de Merici, Quebec QC Br
Page 25 and 26: Throughout 2012, Boardwalk continue
Page 27 and 28: Health and Safety The dedication an
Page 29 and 30: Free the Children, We Day Alberta D
Page 31 and 32: Environment Boardwalk encourages Cu
Page 33 and 34: Oakhill Estates, Calgary AB Spruce
Page 35 and 36: Riverdale Manor, Windsor ON Christi
Page 37 and 38: Financial Review Management’s Dis
Page 39 and 40: Executive Summary Business Overview
Page 41 and 42: 4. Commitment to expending at least
Page 43 and 44: Achieving this goal requires the fu
Page 45 and 46: Cost of Capital In understanding Bo
Page 47 and 48: PeRFoRMance Review of 2012 Boardwal
Page 49 and 50: FFO Reconciliations The Trust’s a
Page 51 and 52: program. Boardwalk continues to be
Page 53 and 54: For year ended December 31, 2012, B
Page 55 and 56: Boardwalk REIT’s Portfolio Occupa
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Stabilized revenue increased by 4.1
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subsequent periods as the Trust con
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Other Income and Expenses Income Ta
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Capital Improvements Boardwalk has
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The key valuation metrics for the T
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In addition to this, the Trust curr
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Boardwalk REIT Limited Partnership
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economically insurable. Boardwalk R
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Interest Risk is the combined risk
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Utility expenses, mainly consisting
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Existing Tax Filing Positions Altho
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property (calculated as the differe
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(d) Assets held for sale and discon
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(i) Unit-based payments Equity-sett
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Boardwalk REIT’s financial assets
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(n) Cash Cash is comprised of bank
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Future Changes in Critical Accounti
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Presentation of Financial Statement
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Annual Comparative Twelve Months En
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INDepenDent AUDitoRs’ RepoRT To t
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Consolidated Statements of Comprehe
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Consolidated Statements of Cash Flo
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are internal amounts that are direc
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‘measurement period’ (which can
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Deferred tax Deferred tax is recogn
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Classification Definition Measureme
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and the host contracts are not meas
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Note 3: Future accounting policies
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Note 4: Investment properties As at
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Investment properties with a fair v
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Note 8: tRade and other receivables
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esulting from changes in the fair v
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As at December 31, 2012 and 2011, t
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Note 17: DefeRRed government grant
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(b) Special Voting Units The Declar
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Note 21: Financing costs Financing
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1, 2010 to October 31, 2011 at a pr
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Note 28: Financial instruments (a)
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The three levels of the fair value
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The following table details the Tru
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BPCL represents the only entity whi
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Details of segmented information ar
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(b) Depreciation and amortization T
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Five Year SuMMary 2008 2009 2010 20
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2011 Quarterly Results (in $000’s
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Corporate Information EXECUTIVE OFF
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2012 annual - Boardwalk REIT

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