BOARDWALK REAL ESTATE INVESTMENT ... - Boardwalk REIT

- 31 -Boardwalk REIT strives to acquire, develop or retain assets in those markets that demonstrate positiveeconomic prospects. Boardwalk REIT continues to focus on markets that are typified by strong economic outlookand relatively low vacancy rates.In the multi-family residential sector, the markets in which Boardwalk REIT operates have experiencedlittle new construction in recent years. With aggressive leasing efforts and a diversified portfolio, managementbelieves that Boardwalk REIT is well-positioned to continue to expand to other Canadian regions in the future. Asignificant portion of the Trust's rentable portfolio is located in the Province of Alberta, with 56% of its total unitsas at December 31, 2010. Alberta has led Canada's economic and job growth over the past five years, andeconomists are projecting that Alberta, along with British Columbia and Saskatchewan, will continue to show oneof the highest GDP and population growth rates over the next several years. The Conference Board of Canada isprojecting that Calgary and Edmonton, Boardwalk REIT's two largest markets, along with Saskatoon and Regina,other important markets for Boardwalk REIT, will continue to rank among the top cities for economic growth inthe country through 2010. These positive developments bode well for the Western Canadian economy and, as aresult, Boardwalk REIT views these and other markets as providing long-term strategic opportunities.New Apartment DevelopmentBoardwalk REIT continues to explore the possibility of developing new multi-family product in selectmarkets.. At this time, the Trust is focusing on selected properties that feature excess density in Calgary andEdmonton. Boardwalk REIT continues to explore this opportunity. . The Trust continues on a selective basis toexplore density intensification and financial feasibility, as well as design and permitting.Though Boardwalk REIT is optimistic about this potential, it is important to note that to obtain theestimated maximum density, it will be necessary to demolish existing rental units. It is the Trust's belief that thekey to this development is to find the optimal trade-off between maximizing density and retaining as much of theexisting rental stock as possible.Normal Course Issuer BidIn the third quarter of fiscal 2010, Boardwalk REIT filed an application to renew its Normal Course IssuerBid (the "Bid"), which received regulatory approval from the Toronto Stock Exchange on August 20, 2010. TheBid allows Boardwalk REIT to purchase and cancel up to 3,918,286 REIT Units, representing 10% of the publicfloat of its REIT Units at the time of the TSX approval. The Bid will terminate on the earlier of one year from thedate of renewal of the Bid on August 23, 2011, or at such time as purchases under the Bid are complete.BidNumberNumber ofTrust UnitsPurchased andCancelledFor the Year Ended December 31, 2010 For the Year Ended December 31, 2009Purchase Cost($000)Cost per Trust UnitNumber of TrustUnits Purchasedand CancelledPurchase Cost($000)AverageCost PerTrust Unit1 - - - - - -2 - - - 790,000 $22,756 $28.813 208,400 $8,221 $39.45 - - -4 215,000 $8,803 $40.95 - - -423,400 $17,024 $40.21 790,000 $22,756 $28.81BidNumberApproval Date Termination Date Maximum TrustUnits Allowed to bePurchased andCancelledCumulativeNumber of TrustUnits Purchasedand CancelledCumulativePurchase Cost($000)AverageCost perTrust Unit1 August 10, 2007 August 17, 2008 4,267,048 2,522,447 $103,865 $41.182 August 18, 2008 August 19, 2009 4,040,192 1,436,000 42,880 $29.863 August 24, 2009 August 23, 2010 3,932,211 208,400 8,221 $39.454 August 20, 2010 August 23, 2011 3,918,286 215,000 8,803 $40.95Total 4,381,847 163,769 $37.37