BOARDWALK REAL ESTATE INVESTMENT ... - Boardwalk REIT

- 12 -OVERVIEWBoardwalk REIT is a customer-oriented real estate investment trust focused exclusively on andspecializing in the acquisition, refurbishment, management and ownership of multi-family residentialcommunities within Canada. As of December 31, 2010, the Trust owned 35,277 (December 31, 2009 – 36,419)residential units within the Provinces of Alberta, British Columbia, Saskatchewan, Ontario and Quebec,representing approximately 30 million (December 31, 2009 – 31 million) net rentable square feet. During theyear ended December 31, 2010, Boardwalk REIT sold 1,111 units in the Provinces of Alberta, British Columbia,Saskatchewan and Quebec. In addition, Boardwalk REIT decided not to rebuild and settled with its insurers on a31-unit building located in Grande Prairie, Alberta, that was destroyed by a fire in late 2009. Boardwalk REITcurrently has in excess of 1,500 employees working in 17 different cities across Canada. Boardwalk REITfocuses on maximizing internal growth combined with an aggressive but disciplined acquisition program. TheTrust looks to acquire, own and manage quality rental communities concentrated in attractive marketscharacterized by high barriers to new supply. Due to Boardwalk REIT's size and relationship with variouscommercial lenders and Canada Mortgage and Housing Corporation ("CMHC"), financing for such acquisitionscan often be negotiated on favourable terms. The management of Boardwalk REIT has over 25 years experiencein the ownership and management of multi-family residential communities. This experience, coupled withmanagement‘s significant ownership of Trust Units and Boardwalk‘s advanced and unique information systemsplatform, allows Boardwalk REIT to be the industry leader in Canada's multi-family rental industry and hasallowed Boardwalk to grow its operations into a truly national platform.Boardwalk REIT only owns the beneficial interest in, and notes of, the Operating Trust, and the OperatingTrust owns LP Class A Units. As a result, the activities described below will be those of the Partnership and itssubsidiaries.OBJECTIVES OF BOARDWALK REITThe objectives of Boardwalk REIT are to: (i) provide Unitholders with stable and growing monthly cashdistributions, partially on a Canadian income tax-deferred basis, from investments in its assets (collectively, the"Contributed Assets") and any additional revenue producing multi-family residential properties or interestsacquired by Boardwalk REIT; and (ii) increase REIT Unit value through the effective management of itsresidential, multi-family revenue producing properties and the acquisition of additional, accretive properties orinterests therein. The REIT has increased its regular distribution from $0.103 per Trust Unit in June, 2004 to$0.15 per Unit as of December 31, 2010.MANAGEMENT OF BOARDWALK REITThe overall operations and affairs of Boardwalk REIT are subject to the control of the trustees ofBoardwalk REIT (the "Trustees"), while the day-to-day activities of Boardwalk REIT are under the direction ofBoardwalk REIT's senior management team.Board of TrusteesThe Declaration of Trust provides that the assets and operations of Boardwalk REIT are subject to thecontrol and authority of a board of a minimum of five (5) Trustees and a maximum of 12 Trustees, a majority ofwhom shall be "independent trustees", as such term is defined in National Policy 58-201, entitled "CorporateGovernance Guidelines" ("Independent Trustees"). Currently, there are five (5) Trustees. Pursuant to theDeclaration of Trust, BPCL is entitled to appoint one Trustee to serve on the board provided that BPCL and itsaffiliates continue to beneficially own, in the aggregate, a number of REIT Units and/or LP Class B Units that,upon surrender or exchange of the LP Class B Units would equal at least five percent (5%) of the outstandingREIT Units (on a fully-diluted basis). The remaining Trustees will be elected by holders of REIT Units