Boardwalk Real Estate Investment Trust

Boardwalk said Q2 2026 same-property rental revenue increased 1.7% year over year and same-property NOI increased 1.7% year over year. Operating margin was 67.6%, occupancy was about 97%, and same-property NOI in Alberta rose 1% on 1.1% revenue growth. FFO was down slightly because of recent asset sales, but FFO per unit increased 2.6%; management also noted profit was down due to a non-cash reduction in IFRS net asset value. On the balance sheet, debt-to-EBITDA improved to 9.3x from about 10x in Q4 2025, debt-to-assets was about 43%, liquidity was just under $375 million, and the company had renewed or forward locked $457 million of the $815 million of 2026 maturities at 3.78% on average. For 2026, management reiterated same-property NOI growth guidance of 1% to 3.5% and FFO per unit guidance of $4.60 to $4.80.

Sam Kolias framed the quarter around Boardwalk’s resident-first, family-oriented operating culture and said that approach is supporting resilient results. He pointed to 1.7% same-property revenue and NOI growth, 67.6% operating margin, and the benefit from asset sales funding buybacks that lifted FFO per unit. His tone was highly upbeat and promotional, emphasizing affordable housing demand, Alberta’s economic momentum, and the idea that Boardwalk is well positioned in the right markets at the right time.

Gregg Tinling focused on operating discipline, noting that Boardwalk kept occupancy high through retention, faster suite turn times, and flexible lease pricing. He said average occupied rent increased sequentially and versus last year, vacancy loss rose, but incentives were reduced, supporting higher Q2 revenue; he also said total rental expenses rose 1.9% year over year due mainly to repairs and maintenance, bad debt, and property taxes. On the balance sheet, he highlighted 99% of mortgages as NHA-insured through CMHC, an interest coverage ratio of 2.97, $8.4 billion of investment property fair value at June 30 versus $8.6 billion at year-end, and a 2025 GRESB score of 72, up 7.5% from the prior year.

Analysts focused heavily on the new Desjardins co-ownership: whether it could scale, what assets might fit, whether development assets could be included, and whether the JV would change capital allocation away from the NCIB. Management said there are no fixed annual targets, the initial portfolio was matched to Desjardins’ core/core-plus criteria, future growth is expected mainly through third-party acquisitions, and the structure includes ROFO rights. On capital allocation, James Ha repeatedly said the NCIB remains the best use of capital at current pricing, though acquisitions could be pursued if they offer equal or better returns; he cited the stock trading at over a 6% cap rate and a mid-7% FFO yield. Questions also covered incentives, with management saying they were broad-based in Q2 but July volumes looked strong and occupancy could move toward 97.5% to 98%.