Q2 2020 Conference Call August 14, 2020 9:00am MT / 11:00am ET Forward Looking Statements & Non-GAAP Measures
Forward-Looking Statements
This conference call presentation contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this conference call presentation, and other statements concerning Boardwalk’s objectives and corporate strategy, including, but not limited to, increasing its occupancy rates, joint venture developments and construction activities, future acquisition and development opportunities, the ongoing suite renovation and rebranding program, and real estate technology ventures, its strategies to achieve those objectives, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including, but not limited to, maintenance capital expenditure estimates, secured financing analysis, anticipated mortgage maturities, provincial economic forecast summaries, as well as anticipated vacancy and rent, for Alberta and Saskatchewan and anticipated population increase in the Peel Region. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. All forward-looking statements in this conference call presentation are qualified by these cautionary statements. Certain material factors, estimates or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in these statements and actual results could differ materially from such conclusions, forecasts or projections. Specifically, Boardwalk has made assumptions surrounding the impact of economic conditions in Canada and globally including as a result of the novel strain coronavirus (COVID-19) pandemic, Boardwalk's future growth potential, prospects and opportunities, the rental environment compared to several years ago, relatively stable interest costs, access to equity and debt capital markets to fund (at acceptable costs or at all), the future growth program to enable Boardwalk to refinance debts as they mature, the availability of purchase opportunities for growth in Canada, general industry conditions and trends, changes in laws and regulations including, without limitation, changes in tax laws, mortgage rules and other temporary legislative changes in light of the COVID-19 pandemic, increased competition, the availability of qualified personnel, fluctuations in foreign exchange or interest rates, and stock market volatility. These assumptions, although considered reasonable by Boardwalk at the time of preparation, may prove to be incorrect. Those risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained herein include, but are not limited to, those related to liquidity in the global marketplace associated with current economic conditions, tenant rental rate concessions, occupancy levels, access to debt and equity capital, changes to Canada Mortgage and Housing Corporation rules regarding mortgage insurance, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, environmental matters, uninsured perils, legal matters, reliance on key personnel, unitholder liability, income taxes and changes to income tax rules. Of particular note, beginning in 2020, the world and Canada have been impacted by, and continue to be impacted by, the COVID-19 pandemic. In an attempt to slow down the spread of this virus, the various levels of government in Canada and throughout the world have enacted emergency measures. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown and unprecedented unemployment levels. As of Aug 14, 2020, the impact of the COVID-19 pandemic on the results of Boardwalk remains uncertain. This is not an exhaustive list of the factors that may affect Boardwalk’s forward-looking statements. Additional information on the material risks, including those risks resulting from the ongoing COVID-19 pandemic, that could cause our actual results to differ materially from the conclusions, forecast or projections in these forward-looking statements and the material factors, estimates or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements can be found in our annual information form, annual report and quarterly management's discussion and analysis, each of which are available on our website and under Boardwalk's profile on www.sedar.com.
Forward-looking statements contained in this conference call presentation are based on Boardwalk’s current estimates, expectations and projections, which Boardwalk believes are reasonable as of the current date. You should not place undue importance on forward-looking statements and should not rely upon forward-looking statements as of any other date. Except as required by applicable law, Boardwalk undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Measures
Boardwalk’s condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) and with the recommendations of REALpac, Canada’s senior national industry association for owners and managers of investment real estate. The Trust uses certain financial measures to assess performance, which are not generally accepted accounting principles (“GAAP”) under IFRS.
The following measures, Net Operating Income (“NOI”), Funds From Operations (“FFO”), Adjusted Funds From Operations (“AFFO”), Operating Margins, Stabilized Revenue Growth, Stabilized Operating Expense Growth and Stabilized NOI Growth, as well as other measures discussed in this conference call presentation, do not have a standardized definition prescribed by IFRS and are, therefore unlikely to be comparable to similar measures provided by other reporting issuers.
Non-GAAP measures should not be considered an alternative to profit (loss), cash flow from operations, or comparable metrics determined in accordance with IFRS as indicators of the Trust’s performance, profitability, cash flow and liquidity. For full descriptions of these measures and reconciliations, please refer to the “Non-GAAP Financial Measures” and “Performance Review” in Boardwalk’s Management’s Discussion and Analysis for the three months ended June 30, 2020, which is available on our website and under Boardwalk's profile on www.sedar.com
2 Response to Covid-19
Boardwalk’s top priority remains the health and safety of both our Resident Members as well as Boardwalk’s Team of Heroes who everyday are delivering our essential service of safe and affordable housing.
Adapt Evolve Emerge Changing how we work Leveraging technology to Due to our commitment to our everyday to ensure business provide superior customer resident members we have continuity service and experiences achieved: • Enhanced cleaning protocols • Virtual showings • Higher occupancy • Self regulation of rental increases • Resident Member Portal • Improved NPS scores • Rental payment plans • www.bwalk.info • Continued financial performance • Online payments & security deposits
3 Housing – An Essential Service
As we socially distance in response to Covid-19, we are all being reminded about the importance of our homes. Home is our…
With over 33,000 suites across Canada, Boardwalk will continue to provide its Resident Members with exceptional value by offering both superior product quality and customer service.
4 Boardwalk’s Portfolio - Positioned for Success
Well located portfolio across affordable markets in Western Canada, and significant mark-to-market in Eastern Canada.
5 Boardwalk’s Brands – Diverse Product Offering
Portfolio Distribution By Brand (Suite Basis) Boardwalk’s three brands provide exceptional value at each price point with a focus on affordability
6%
Average Net Rent By Brand $1,304
50% $1,134 $1,100 44%
Living Communities Lifestyle
6 Key Operational Metrics
Continued strong operational metrics. With the lifting of rental rate restrictions, focus will be on sustainable rental rate adjustments in the second half of 2020.
All values exclude sold properties; same store stabilized as reported.
7 Q2 2020: Lease Renewals
Alberta Rent Change from Prior Lease Portfolio Rent Change from Prior Lease
98.0% 98.0%
7.0%
6.8%
8.0%
6.5%
6.4%
7.6%
6.3%
7.4% 6.0%
7.0% 97.0% 97.0%
6.8%
5.8%
5.7%
6.5%
5.6%
6.3%
6.0%
6.0%
5.1%
5.3%
4.7%
4.6%
4.9%
4.6%
4.9% 4.6%
4.8% 96.0% 96.0%
4.6%
4.4%
4.2%
4.3%
4.3%
4.1%
3.9%
3.9%
3.8%
3.5%
3.6%
3.6%
3.1%
3.4%
3.3%
2.9% 3.2%
2.7% 95.0% 95.0%
2.8%
2.8%
2.5%
2.4%
1.6%
1.4%
1.1%
1.1%
1.5%
0.2%
1.5%
1.5%
0.2% 1.5%
94.0% 1.4% 94.0%
1.3%
0.8%
0.5% 0.1%
93.0% 0.0% 93.0%
0.0% 0.7%
- 92.0% 92.0%
1.6%
-
2.2%
2.4%
-
2.6%
0.4%
-
- -
91.0% 91.0%
5.1%
2.2%
-
- 5.9%
90.0% 2.7% 90.0%
- -
New Renewal Occupancy New Renewal Occupancy
• Renewals were strong leading into COVID situation • To drive higher occupancy during this environment, we have selectively increased the use of incentives for new rentals • Rental Increase restrictions have now been lifted, and have begun sustainable rental rate adjustments
8 Q2 2020: Portfolio Results – Same Property Results
% Revenue % Operating % Net Operating Jun 30 2020 - 3 M # of Units Growth Expense Growth Income Growth % of NOI Edmonton 12,906 3.1% -2.7% 7.6% 38.1% Calgary 5,499 2.2% -0.5% 3.6% 20.5% All provinces have posted strong SPNOI growth Red Deer 939 0.9% 1.2% 0.6% 2.4% Grande Prairie 645 4.9% 18.8% -5.0% 1.5% to-date driven by revenue growth and Fort McMurray 352 -1.3% -0.8% -1.6% 1.0% Alberta 20,341 2.7% -1.4% 5.5% 63.5% controllable operating expense savings. Quebec 6,000 3.0% -7.5% 8.8% 19.5% Saskatchewan 3,685 3.2% -0.9% 6.6% 10.0% Ontario 2,585 7.3% 5.6% 8.3% 7.0% 32,611 3.1% -1.8% 6.4% 100.0%
% Revenue % Operating % Net Operating Stabilized Revenue Q2 2020 vs Q1 2020 vs Q4 Q4 2019 vs Q3 Q3 2019 vs Jun 30 2020 - 6 M # of Units Growth Expense Growth Income Growth % of NOI Growth # of Units Q1 2020 2019 2019 Q2 2019 Edmonton 12,906 3.5% -1.9% 8.2% 37.7% Edmonton 12,906 1.0% 0.6% 0.3% 1.3% Calgary 5,499 3.1% -1.8% 5.8% 21.0% Red Deer 939 1.2% 5.9% -2.8% 2.3% Calgary 5,499 -0.4% 0.8% 0.6% 1.0% Grande Prairie 645 6.5% 13.2% 0.9% 1.6% Red Deer 939 1.5% -0.3% -0.6% 0.2% Fort McMurray 352 -0.5% -2.8% 1.5% 1.0% Grande Prairie 645 -0.6% 1.2% 1.9% 2.4% Alberta 20,341 3.3% -1.1% 6.7% 63.5% Fort McMurray 352 -0.8% -1.1% -0.7% 1.3% Quebec 6,000 2.8% -8.3% 10.0% 19.3% Saskatchewan 3,685 3.3% 1.8% 4.5% 10.2% Quebec 6,000 0.6% 0.2% 1.3% 1.0% Ontario 2,585 7.1% 3.8% 9.3% 7.0% Saskatchewan 3,685 0.6% -0.4% 1.8% 1.2% 32,611 3.5% -1.6% 7.3% 100.0% Ontario 2,585 2.2% 1.7% 1.9% 1.2% Stabilized as a % of Total Portfolio 98.3% 32,611 0.6% 0.5% 0.8% 1.1%
9 Boardwalk REIT – Building On Our Track Record
Leveraging our ability, brand, approach, discipline & experience to deliver nine consecutive quarters of FFO per unit growth
16.1% (Q1)& 10.3% (Q2) increase excluding retirement costs
10 Q2 Financial Highlights - Delivering Another Solid Quarter
+4.1% +7.4% +8.0% +12.6%
Included in Q2: $2.1 million ($0.04 per Trust Unit) and for 6M: $3.7 million ($0.07 per Trust Unit) for costs associated with retirement costs.
AFFO uses a maintenance capital investment estimate of $613 per suite per year
11 Q2 2020: Rent Collections
• Collections have generally been inline with pre-COVID trends • Collections reported are for the calendar month only and do not include revenue collected in subsequent months
12 Liquidity Snapshot
Liquidity Summary Cash Position - June 30, 2020 $ 76,600
Fundings Subsequent To End Of Quarter $ 48,300
Committed Upfinancings $ 16,700
Liquidity $ 141,600
Line of Credit $ 200,000
Total Available Liquidity $ 341,600
Strong liquidity available to take advantage of opportunities that may arise
13 Mortgage Maturities and Interest Coverage
Mortgage Maturity Schedule Interest Coverage – Rolling 12 Months
500,000 3.27% 3.50% 2.80 3.17% 2.78 2.73% 2.77 450,000 2.93% 2.89% 2.76 3.00% 400,000 2.74 2.57% 2.41% 2.56% 2.75 2.47% 2.45% 350,000 2.50% 2.13% 2.70 300,000 2.70 2.69 2.00% 2.68 2.68 250,000
Principal Principal Outstanding 1.50% 2.64
200,000 2.65 In In Place InterestRate 150,000 1.00% 2.59 100,000 2.60 0.50% 50,000 2.55 0 0.00% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Mortgage Outstanding in ($000's) WA interest Rate 2.50 Current CMHC 5 Year Rate Current CMHC 10 Year Rate Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
A well-balanced maturity curve with maturing interest Interest coverage – 2.77x rates above current market rates, ~99% of mortgages are Debt (net of cash) to assets – 48% CMHC insured
14 Q2 2020: Mortgage Program To Date
2020 Mortgage Program Summary
Maturing Renewed or % of Mortgage Fwd Locked New Maturing Average Mortgages Maturity Date Units Amount to Date Upfinancing Rate New Rate Term Completed Jan 114 $ 14,500,000 $ 14,500,000 2.47% 2.53% 8 100% Mar 153 $ 12,110,000 $ 12,110,000 4.98% 2.17% 5 100% Apr 791 $ 38,000,000 $ 38,000,000 $ 53,550,000 2.32% 2.36% 8 100% May 392 $ 41,360,000 $ 41,360,000 1.89% 1.75% 5 100% Jun 29 $ 1,060,000 $ 1,060,000 1.59% 1.25% 5 100% Jul 774 $ 54,880,000 $ 54,880,000 $ 48,310,000 1.81% 1.64% 6 100% Sep 280 $ 11,010,000 $ 11,010,000 $ 16,700,000 1.58% 1.10% 5 100% Oct 288 $ 23,430,000 4.25% 0% Nov 124 $ 19,420,000 3.09% 0% Dec 1,525 $ 98,020,000 2.59% 0% Unlevered 299 $ 44,040,000 1.73% 7 Grand Total 4,769 $ 313,790,000 $ 172,920,000 $162,600,000 2.53% 1.87% 7 55%
Mortgage renewals and upfinancings continue to be completed at record low interest rates.
Current 5 Year CMHC Insured Rates: 1.10%-1.25% Current 10 Year CMHC Insured Rates: 1.50%-1.65%
15 Fueling Future Growth
Value-add Capital Acquisitions Dispositions Development Generating incremental NOI, Accretive additions to the portfolio Non-core asset transactions that Creating new communities to by enhancing curb appeal and creating value through cashflow provide access to capital while high-grade and geographically the use of long-lasting materials growth and capital appreciation optimizing portfolio expand
Fort Garry House Insignia Tower 45 Railroad Chancellor Gate
Broadway Centre
Dorsett Square St. James Place Brio
16 Value-add Capital Program
Value-add Capital Program
• An eye-dropper approach, focused on best returns
• Common area and lobby renovations providing short paybacks with minimal rental adjustments required
• Suite renovations are focused on affordability
• Re-branding (high- grading) driven by market O’Neil Tower Maureen Manor Boardwalk Centre demand Calgary, AB Edmonton, AB Edmonton, AB Coworking Space (100% Leased) Lobby & Leasing Office Refresh PR Suite Renovation Yield on cost: 13% Projected yield on cost: 15% Annual yield on cost: 7 – 14%
17 Value-add Improvements and Repositioning To Date
18 Dispositions and Acquisitions – High Grading and Geographic Expansion
Marginal FFO Provides scale to Kitchener-Waterloo portfolio Disposition contribution as a Targeted of Non-Core result of land Acquisitions Asset lease payment reset
Elbow Tower (Land Lease) 4 Lena Crescent Calgary, AB Cambridge, ON High Grading 158 units 56 Units Year Built: 1967 Year Built: 2014 & Geographic Sale Price: $3,000,000 Sale Price: $16,200,000 Expansion
19 Development
Completed Under Construction Project Brio 45 Railroad Location Calgary, Alberta Brampton, Ontario
162 units and 10,000 sq. ft. of retail space in a stepped 12 storey mixed use 365 units and 10,700 sq. ft. of retail space within two 25 and 27 storey concrete Description concrete high rise. Developed as part of a joint venture with RioCan of which high-rise towers above a 3 storey podium. Developed as part of a joint venture Boardwalk has a 50% interest. with Redwood Properties of which Boardwalk has a 50% interest.
Occupancy began on April 1st and is 33% leased as of August 5, 2020 with Construction is underway with 3 level underground parking structure complete; Status average rents inline with proforma estimates. and work underway for a 3 storey podium.
20 Continuing To Offer Exceptional Value – Implied Value vs. Recent Market Transactions
Boardwalk’s current trading price represents exceptional value when compared to recent market transactions
Current Trading Price Q2 IFRS NAV $250k+ Per Door Unit Price1 $30 $38 $47 $59 $61.77 $73
Door Price1 $134k $146k $161k $178k $180k $200k Cap Rate 6.00% 5.50% 5.00% 4.50% 4.00%
Kings Alley (Calgary) Grand Central Manor (Edmonton) The Westside (Calgary) Infinity at 105 (Edmonton) Bow River Village (Calgary) February 2020 January 2020 March 2020 March 2020 June 2019 156 Units 306 Units 35 Units 109 Units 74 Units 4.17% Cap Rate 4.25% Cap Rate 4.75% Cap Rate 5.04% Cap Rate 5.09% Cap Rate $174k per door $301k per door $208k per door $259k per door $175k per door 1 Implied unit and door price are calculated using 2020 BEI.UN Factset NOI Consensus of $262.7M. Broker reported transaction cap rates vary between in-place, proforma, and stabilized NOI.
21 Well positioned across all our markets to deliver organic growth
Alberta Saskatchewan Ontario Quebec A $25 increase in average occupied rent across portfolio equates to ~$0.20 increase in annual FFO/Unit
Edmonton, Regina, London, Montreal, Core Markets Calgary Saskatoon Kitchener Quebec City Suite Count 20,845 3,756 2,585 6,000 % of Portfolio 63% 11% 8% 18% June 2020 Occupancy % 96.6% 95.9% 99.3% 99.0%
June 2020 Occupied Rent $1,215 $1,158 $1,039 $1,114
Mark to Market per Month1 $137 $150 $392 $116
1Mark to Market includes incentive reduction opportunity in Alberta and Saskatchewan
22 Looking to the Future – H2 2020 Goals and Key Performance Indicators
• Maintain high occupancy levels, and Resident Member retention • Sustainable rental rate adjustments to close the mark-to-market gap Organic Growth • Innovating efficiencies to reduce controllable operating costs to offset increases in un-controllable expenses (property taxes and insurance)
• Significant liquidity in place to take advantage of opportunities • Deployment of capital towards accretive investments will further improve Solid Financial Foundation leverage metrics • CMHC insured financing to ensure access to low cost capital
• Eye-dropper approach to value-add capital • Common area renovations providing best returns with minimal rental rate Brand and Product Diversification increases • Focus on affordability and value with suite renovations
• Accretive geographic expansion to progress towards long-term target portfolio High-Grading & Geographic Expansion • Non-core asset dispositions to fund opportunities • Solid development pipeline = • Management focused on continuing to deliver solid operating performance Unitholder Value • Current trading price represents exceptional value • Sustainable monthly cash distributions (3.3% yield at $30 trading price)
23 Appendix - Operations
24 Boardwalk’s ESG Initiatives
Boardwalk’s Golden Foundation: Treat others as we would like to be treated, be good, love community, and have fun!
Environmental Stewardship Social Responsibility Leadership in Governance
Energy and Water Conservation Initiatives Creating Community Transparency • LED light fixtures, high-efficiency mechanical • Empowering our Team and Resident • Leaders in transparency and disclosure to all systems, energy-star appliances, and Members to foster Communities where our stakeholders efficient building envelope systems Resident Members are proud to call home • On-going assessment of Trustee and • Low-flow faucets, toilets, timed irrigation, • Partner with social agencies to provide Management performance and and rainwater recycling systems affordable homes to those in need composition Engaging with our Resident Members • Dedicated to sponsoring causes that create Ethics, Integrity, and Equality • Compost, recycling, and donation programs community • Boardwalk Code of Conduct guides • Grassroots communication and involvement Investing in our Team standards and expectations all team towards reducing carbon emissions • Creating a culture where performance is members Environmental Governance rewarded • Whistleblower Policy • Boardwalk formed Green Initiative • Provide a work environment that provides • Diverse Trustee and Management Committee in 2019 both personal and professional growth composition • Asset benchmarking to identify largest Corporate Culture Governance Recognition opportunities • A performance culture that strives to provide • Ranked in top quartile among Canadian • Investing in technology to reduce waste and the best product quality, service and publicly listed companies, and top of carbon emissions experience to our Resident Members industry in annual Board Games ranking by Globe and Mail
25 Occupancy Statistics
Supply & Demand 1,400 97.5%
1,200 97.0%
1,000 96.5% 800 96.0% 600 95.5% 400
200 95.0%
0 94.5%
Move Outs Rentals % Occupancy
26 Revenue, Vacancy Loss & Incentives
Revenue, Incentives, Vacancy Loss ($000's) $135,000
$125,000
$115,000
$105,000 Vacancy Loss Incentives
Net Rental Revenue $95,000
$85,000
$75,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020
*Excludes amortization of incentives
27 Reasons for Move Out & Out of Town Rentals
2018 2018 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Total Change in Life Situation 617 873 846 747 3,083 755 958 959 822 3,494 717 904 1,621 Personal Reasons 412 675 646 515 2,248 388 638 571 524 2,121 442 615 1,057 Transfer / Assignment 413 492 504 465 1,874 369 538 537 495 1,939 481 524 1,005 Purchased Home 265 382 380 366 1,393 254 365 408 377 1,404 274 322 596 Skip / Eviction 329 329 392 355 1,405 313 315 361 325 1,314 374 210 584 Cost 201 236 262 244 943 170 252 242 235 899 183 192 375 Suite Size 192 215 243 220 870 169 246 235 201 851 183 197 380 Service 39 41 49 39 168 41 45 55 43 184 45 44 89 Community 11 22 19 14 66 12 12 11 17 52 10 11 21 Unknown 10 15 16 14 55 8 8 13 5 34 6 5 11 Total 2,489 3,280 3,357 2,979 12,105 2,479 3,377 3,392 3,044 12,292 2,715 3,024 5,739
City (All) Same Store (All)
2018 2019 2020 % Q2-2020 TO decreased 10.5% relative to the same period in Q2 Q2 Q2 Chg. 2019 mostly due to the COVD-19 pandemic Change in Life Situation 873 958 904 -5.6% Personal Reasons 675 638 615 -3.6% Transfer / Assignment 492 538 524 -2.6% Purchased Home 382 365 322 -11.8% Skip / Eviction 329 315 210 -33.3% Suite Size 215 246 197 -19.9% Cost 236 252 192 -23.8% Service 41 45 44 -2.2% Community 22 12 11 -8.3% Unknown 15 8 5 -37.5% Total 3,280 3,377 3,024 -10.5% *Percentage of new Boardwalk Resident Members that are new to the indicated city
28 Loss to Lease Statistics – Same Property Mark to Market
Annualized Mark Annualized Mark to Market to Market Weighted Adjusted for Jun 2020 Market Adjusted for Average Jun 2020 Market Jun 2020 Mark to Market Vacancies Rent, including Jun 2020 Occupied Mark to Market Vacancies Units % of Portfolio Rent Occupied Rent Per Month ($000's) Incentives Rent Per Month ($000's)
Edmonton 12,906 40% $ 1,304 $ 1,191 $ 113 $ 16,858 $ 1,188 $ 1,191 $ (3) $ (780) Calgary 5,499 17% $ 1,507 $ 1,319 $ 188 $ 12,076 $ 1,341 $ 1,319 $ 22 $ 1,326 Red Deer 939 3% $ 1,194 $ 1,050 $ 144 $ 1,580 $ 1,041 $ 1,050 $ (9) $ (119) Grande Prairie 645 2% $ 1,140 $ 1,066 $ 74 $ 548 $ 1,091 $ 1,066 $ 25 $ 180 Fort McMurray 352 1% $ 1,494 $ 1,194 $ 300 $ 1,245 $ 1,216 $ 1,194 $ 22 $ 88 Alberta Portfolio 20,341 62% $ 1,352 $ 1,215 $ 137 $ 32,307 $ 1,220 $ 1,215 $ 5 $ 695
Quebec 6,000 18% $ 1,230 $ 1,114 $ 116 $ 8,257 $ 1,227 $ 1,114 $ 113 $ 8,134 Saskatchewan 3,685 11% $ 1,307 $ 1,158 $ 150 $ 6,337 $ 1,151 $ 1,158 $ (7) $ (401) Ontario 2,585 8% $ 1,431 $ 1,039 $ 392 $ 12,128 $ 1,430 $ 1,039 $ 391 $ 12,128
Total Portfolio 32,611 100% $ 1,331 $ 1,176 $ 155 $ 59,029 $ 1,230 $ 1,176 $ 54 $ 20,556
29 Responsible Revenue Growth Strategy
In addition to quality communities, resident satisfaction has proven to be a driver of resident retention. Boardwalk works with each resident and provides internal programs
Self-Imposed “Rent Protection” Affordable Housing Partnerships Guarantees a sustainable increase for As an advocate of social responsibility, a significant number of units renewing Residents have been committed to address the need for affordable housing • By providing sustainable increases, Boardwalk is able to achieve long term, Housing First sustainable revenue growth 300 • Increases are reviewed annually Homeward Trust • Based on Boardwalk’s annual guidance Affordable 300 estimates published quarterly 1000 Housing The New Start Program
Fixed Rate Rental 200 In-House Subsidy Program Supplement Program 200 Boardwalk will eliminate or reduce rent Collaboration with increases for any resident who can Government Organizations prove financial hardship
30 Internal Opportunity – Rent and Expense Sensitivity
A $25 increase or decrease to in-place rents equates to approximately $0.20 in FFO per Unit A 1% increase or decrease in operating expenses equates to approximately $0.04 in FFO per Unit
Rent Sensitivity Expense Sensitivity $0.50 $0.15 $0.40 $0.30 $0.10 $0.20 $0.05 $0.10 $- $- $(0.10) Rent - $50 Rent - $25 2019 Base FFO Rent +$25 Rent+$50 Expenses - 3% Expenses - 1% 2019 Base FFO Expenses +1% Expenses +3% $(0.20) $(0.05)
$(0.30) $(0.10) $(0.40) $(0.50) $(0.15)
*Amount generated are based on conditions as at the end of 2019.
31 Appendix - Financials
32 FFO Performance
FFO Reconciliation 3 Months 6 Months
FFO Opening - Jun 30, 2019 $0.68 $1.24
Net Operating Income ("NOI") from Stabilized Properties 0.08 0.18 NOI from Unstabilized Properties 0.01 0.01 FFO Loss from Sold Properties 0.00 (0.01) Administration, financing and other (0.02) (0.02) $0.07 $0.16 $0.75 $1.40 Other Adjustments Retirement costs ($0.04) ($0.07) FFO Closing - Jun 30, 2020 $0.71 $1.33
33 FFO Performance – FFO Reconciliation
FFO Reconciliation 3 Months 3 Months 6 Months 6 Months In $000's, except per unit amounts Jun-20 Jun-19 % Change Jun-20 Jun-19 % Change
(Loss) profit $ (35,269) $ 71,601 $ 22,600 $ 63,857
Adjustments Adjustments to right-of-use asset related to lease receivable $ - $ - $ 159 $ - Loss on sale of assets $ 604 $ 277 $ 604 $ 277 Adjust fair value losses (gains) $ 68,661 $ (39,366) $ 40,133 $ (5,212) Deferred income tax recovery $ (82) $ (102) $ (231) $ (536) Add depreciation of property, plant and equipment $ 1,984 $ 2,157 $ 3,859 $ 4,205 Add back distributions paid to LP 'B' Unitholders $ 1,120 $ 1,120 $ 2,240 $ 2,240 Principal portion of lease liabilities $ (928) $ (899) $ (1,821) $ (1,794) Principal portion of lease receivable $ 111 $ - $ 141 $ - Funds from operations $ 36,201 $ 34,788 4.1% $ 67,684 $ 63,037 7.4%
Funds from operations - per unit (diluted) $ 0.71 $ 0.68 4.4% $ 1.33 $ 1.24 7.3%
34 Overall Performance
3 Months 3 Months 6 Months 6 Months In 000's, except per unit amounts Jun-20 Jun-19 Change Jun-20 Jun-19 Change (as reported) Total rental revenue (including ancillary rental income) $116,818 $113,383 3.0% $232,822 $225,275 3.4%
Expenses Operating expenses $22,964 $24,791 -7.4% $48,477 $50,383 -3.8% Utilities $11,359 $10,799 5.2% $25,304 $25,572 -1.0% Property taxes $11,971 $11,590 3.3% $23,862 $23,172 3.0% $ 46,294 $ 47,180 -1.9% $ 97,643 $ 99,127 -1.5% Net operating income $ 70,524 $ 66,203 6.5% $ 135,179 $ 126,148 7.2%
Average rental revenue per unit per month $ 1,170 $ 1,137 2.9% $ 1,166 $ 1,123 3.8% Operating costs per unit per month $ 464 $ 473 -2.0% $ 489 $ 494 -1.1% Operating margins 60.4% 58.4% 58.1% 56.0%
35 Monthly Distribution
The Trust’s minimum distribution / maximum re-investment policy allows Boardwalk to reinvest cashflow to value-add capital allocation opportunities and is comprised of an annual distribution, paid monthly, at least equal to the taxable portion of the Trust’s income
Month Per Unit Annualized Record Date Distribution Date Aug 20 $ 0.0834 $ 1.00 31-Aug-20 15-Sep-20 Sep 20 $ 0.0834 $ 1.00 30-Sep-20 15-Oct-20 Oct 20 $ 0.0834 $ 1.00 30-Oct-20 16-Nov-20
FFO Payout Ratio Current Annual Yield 3M Jun 2020: 35.3% $30 Trust Unit Price: 6M Jun 2020: 37.7% 3.3%
36 Capital Investment
3 Months 6 Months $ in 000's, except for per suite amounts 30-Jun-20 Per Suite Per Unit 30-Jun-20 Per Suite
Repairs and Maintenance - expense $ 5,709 $ 171 $ 12,101 $ 363 On-Site Maintenance Personnel - expense $ 8,243 $ 248 $ 17,502 $ 526 $ 13,952 $ 419 $ 29,603 $ 889
Invested Capital Cost - Investment Properties (including $ 22,493 $ 676 $ 45,108 $ 1,355 Suite Upgrades) $ 36,445 $ 1,095 $ 74,711 $ 2,244
Estimated Maintenance CapEx $ 5,102 $ 153 $ 10,214 $ 307 Value Enhancing Capex (including Suite Upgrades) $ 17,391 $ 522 $ 34,894 $ 1,048 $ 22,493 $ 675 $ 45,108 $ 1,355
Invested Capital Cost - Investment Properties $ 22,493 $ 675 $ 45,108 $ 1,355 Property, Plant & Equipment $ 1,157 $ 35 $ 2,502 $ 75 $ 23,650 $ 710 $ 47,610 $ 1,430 Development $ 942 $ 4,358 Capital Contribution in Equity Accounted Investment $ 2,380 $ 4,772 $ 26,972 $ 56,740
A three-year rolling average is utilized to estimate Maintenance CapEx
2018 $620 2019 $605 2020 $613 2020 3 Yr. Rolling Avg. $613
37 Administration Review
Total Administration Costs (Operating & Corporate) Continuing Operations 3M 2020 - $16.3 million 3M 2019 - $14.8 million (As reported)
38 Implied Net Asset Value and Cap Rate
IFRS Reported Implied Trust Unit Cash per Trust Value (000s) Cap Rate value ($) Unit ($) Total ($)
Revenue $ 489,278 4.00% 93.73 1.50 95.24 4.25% 84.87 1.50 86.37 4.50% 76.98 1.50 78.49 Operating Expenses $ 181,832 4.75% 69.93 1.50 71.43 5.00% 63.58 1.50 65.09 Net Operating Income $ 307,445 5.25% 57.84 1.50 59.34 5.50% 52.62 1.50 54.12 Reported Value - Stabilized $ 5,826,091 5.75% 47.85 1.50 49.36 6.00% 43.48 1.50 44.99 Reported Values - Un-Stabilized $ 146,874 6.25% 39.46 1.50 40.97 $ 5,972,965 6.50% 35.75 1.50 37.26 6.75% 32.32 1.50 33.82 Implied cap Rate 5.28% 7.00% 29.13 1.50 30.63
Current Price 28.50 1.50 30.00 Secured Mortgages $ 2,906,985 Implied cap rate 7.05% 6.93%
Trust Units O/S 50,986 NAV range reflects implied capitalization rates, only on anticipated net operating Cash $ 76,600 Suites 33,186 income. Both revenues and expenses are based on assumptions used to determine the Fair Value of Boardwalk Investment assets consistent with that reported on its balance sheet on Jun 30, 2020. Revenue under IFRS Reported Value is based on a forecast of market rents and is net of an industry standard 3- Per Unit Per Door 6% vacancy loss / bad debt. Operating Expenses under IFRS Reported Value IFRS NAV including cash $ 61.77 $ 180,000 utilizes industry standard costs for certain expenses such as R & M , staffing and operating G & A, which may differ from actual Operating Expenses. Current Trust Price $ 30.00 $ 134,000 Boardwalk’s Fair Value is calculated based on capitalization rates reflective of stabilized conditions provided by an independent national appraisal firm.
39 Comparative Apartment Prices Per Unit
The Trust’s implied valuation represents exceptional value relative to NAV, recent transactions and Condominium Ownership
BEI.un - Valuation Per Door 250,000
200,000 $180,000/Door
150,000
100,000
50,000
- $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95
Price per Door Equivalent Debt per Door NAV including Cash Per Door
40 Fair Value of Investment Properties
2020-Q2 2020-Q1 2019-Q2 City Min Cap Max Cap Min Cap Max Cap Min Cap Max Cap Edmonton 4.76% 5.75% 4.76% 5.75% 4.83% 5.75% Calgary 4.50% 7.14% 4.50% 7.14% 4.50% 6.00% Other Alberta 5.75% 7.50% 5.75% 7.50% 5.75% 7.25% Regina 5.65% 6.00% 5.65% 6.00% 5.65% 6.00% Saskatoon 5.75% 6.00% 5.75% 6.00% 5.75% 6.00% London 4.50% 4.75% 4.50% 4.75% 4.75% 5.00% Kitchener 4.50% 4.50% 4.50% 4.50% 4.75% 4.75% Montreal CMA 4.75% 5.75% 4.75% 5.75% 4.75% 5.75% Québec City 5.25% 5.75% 5.25% 5.75% 5.25% 5.75% Free Hold Range 4.50% 7.50% 4.50% 7.50% 4.50% 7.25% Land Lease Range 4.50% 25.54% 4.50% 25.54% 4.50% 22.77%
W.A. Cap Rate - All 5.27% 5.27% 5.27%
Value of Investment $5,973 $5,989 $6,036 Properties ($ millions)* % Increase from 2019-Q2 -1.04% -0.76% n/a
Sensitivity Analysis NOI As Forecasted As at Jun 30, 2020 In ($000's) $ 304,000 $ 311,000 $ 314,000 $ 317,000 $ 323,000 Capitalization Rate -3% -1% 0% 1% 3% 5.02% $ 109,000 $ 234,000 $ 297,000 $ 359,000 $ 484,000 5.27% $ (179,000) $ (60,000) $ 5,957,000 $ 60,000 $ 179,000 5.52% $ (440,000) $ (327,000) $ (270,000) $ (213,000) $ (99,000)
41 IFRS Review – Same Property
Alberta Saskatchewan
$4,100 $610 $4,050
$600 Millions Millions $4,000
$3,950 $590 $3,900 $3,850 $580 $3,800 $570 $3,750 $3,700 $560 1.3% increase since 2.9% decrease Q1-2016 since Q1-2016
Ontario Quebec
$600 $900
$500 $850
Millions Millions $400 $800 $300 $750 $200
$100 $700
$0 $650 92.3% increase since 18.3% increase Q1-2016 since Q1-2016
42 IFRS Review – Balance Sheet
43 Well Staggered Mortgage Maturity Schedule
WA Interest Principal O/S as at Rate By Year of Term Maturity Jun 30, 2020 Maturity % of Total 2020 $206,743,451 2.57% 7.1% 2021 $372,696,681 2.41% 12.7% 2022 $435,440,968 2.73% 15.0% • Average term to maturity is over 4 years 2023 $350,956,314 2.93% 12.1% • Average amortization period is 30 years 2024 $257,933,008 2.89% 8.9% • Current 5-year interest rates are 1.30% 2025 $421,870,130 2.47% 14.5% • Current 10-year Interest rates are 1.75% 2026 $142,431,434 2.45% 4.9% 2027 $353,224,784 3.17% 12.2% 2028 $109,679,430 3.27% 3.8% 2029 $179,839,507 2.56% 6.2% 2030 $76,169,101 2.13% 2.6% Total Principal Outstanding $2,906,984,808 2.71% 100.0% Unamortized Transaction Costs ($101,455,547) Unamortized Market Debt Adjustments $0 Total Per Financial Statements $2,805,529,261
44 Secured Financing Analysis – Property Valuation
CMHC Underwriting Valuation Model with Jun 2020 Revenue and Standardized Costs ($ amounts in 000's)
Loan to Estimated Projected Maximum Underwriting Year Units Underwriting Value Loan Amount Period End Balance Potential Net Benefit Value 2020 2991 $495,603 $346,922 $206,743 $140,178 42% 2021 4717 $754,147 $527,903 $372,697 $162,462 49% 2022 5428 $939,380 $657,566 $435,441 $222,125 46% 2023 3914 $712,079 $498,455 $361,136 $140,262 51% 2024 2684 $473,121 $331,184 $247,753 $88,008 52% 2025 4206 $788,203 $551,742 $425,055 $134,513 54% 2026 1464 $241,589 $169,112 $139,247 $29,865 58% 2027 3474 $574,883 $402,418 $353,225 $51,272 61% 2028 1062 $172,988 $121,092 $109,679 $13,097 63% 2029 1671 $288,398 $201,878 $179,840 $22,116 62% 2030 618 $110,744 $77,521 $76,169 $3,849 69% Unlevered 876 $137,533 $96,273 $0 $96,273 0% Total 33,105 $5,688,667 $3,982,067 $2,906,985 $1,104,021 51% 99% of Boardwalk’s Secured Mortgages are NHA-insured and Cash - June 30, 2020 $76,614 assumes an average Capitalization Rate of 5.50% based on recent CMHC underwriting criteria. Grand Total Net of Cash $2,830,371 50% Underwriting values extrapolated using current CMHC criteria Model assumes a conservative 70% LTV on a per property basis. Excludes BRIO (50% JV, recently completed), and Sold Properties
45 Natural Gas Review
Boardwalk consumes approximately 2.1 million GJ of Natural Gas annually. A $1.00 annualized change in the price of Natural Gas would result in either an increase or decrease to FFO in the amount of $2.2 million (including tax) or approximately $0.04 in annual FFO per Unit.
46 Appendix – Investments and Asset Management
47 Brand Diversification & Renovations
Brand Diversification • Increases and improves product and service offerings to grow organically • Focuses our investments on properties with maximum return – Asset Management Strategy • Retains resident base by providing appropriate housing needs to a wide demographic
Boardwalk’s suite renovation and rebranding program focuses on select projects - repositioning them to a significantly higher level of quality with the new Boardwalk Lifestyle brand
Upgrades include: • Modernization of lobbies, hallways and common areas • Enhancements to existing amenities • Complete suite renovations to new specifications
The suite renovation program will: • Enhance product quality • Increase revenues • Reduce incentives and vacancy loss • High grade Boardwalk’s portfolio
48 Lifestyle Property Profile – Park Place Tower – Edmonton, AB
Located in the desirable community of Strathcona, Park Place Tower offers its Resident Members easy access to both downtown Edmonton and Whyte Avenue’s many restaurants and stores. The property was repositioned and rebranded in 2019 through a renovation of the leasing office, lobby, hallways and amenities.
Year Built: 1974 (repositioned 2019) Suite Count:178 Construction: Concrete
49 Lifestyle Property Profile – Park Place Tower – Edmonton, AB (cont’d)
54 of Park Place Tower’s 186 suites have been renovated and feature a galley kitchen and large bedrooms
50 Communities Property Profile – Dorsett Square – Calgary, AB
Year Built: 1981 Suite Count:109 Construction: Concrete
Acquired in 2018, Dorsett received a refresh of its lobby, leasing office and signage in 2019. This lighter level of renovation dramatically improved the general appearance of the building, creating an inviting home for prospective Resident Members.
51 Communities Property Profile – Dorsett Square – Calgary, AB (cont’d)
Located in the Beltline and just blocks away from the many bars, restaurants and shops along 17th Ave SW, Dorsett Square is a great choice for young professionals.
52 Communities Property Profile – O’Neil Tower – Calgary, AB
Located in the west end and only steps away from the C-Train, O’Neil Tower is a perfect choice for anyone wanting to live and work in downtown Calgary.
Year Built: 1967 (renovated 2019) Suite Count:186 Construction: Concrete
53 Communities Property Profile – O’Neil Tower – Calgary, AB (cont’d)
The renovation in 2019 included improvements to the exterior signage, landscaping, lobby/lounge, leasing office, party room, laundry room, hallways & gym.
24% of the 186 suites have been renovated.
Boardroom
Boardroom, a 2,780 sq.ft. office space was renovated in 2019 and is currently leased by a local technology start up.
54 Communities Property Profile – Nun’s Island – Montreal, QC
Hi-Rise 1: Boardwalk’s Nun’s Premium Suite Island portfolio of 3,100 suites, situated in the desirable borough of Verdun in Montreal, is the preeminent provider of rental apartments for the island.
Building Number Construction Type of Suites
Hi-Rise Concrete 863
Mid Rise Wood Frame 981
Walk Up Wood Frame 936
Townhouses Wood Frame 320
55 Living Property Profile – Noel Meadows – London, ON
Noel Meadows is situated in the community of Argyle in London, Ontario and is conveniently located by Nelson Plaza Mall, grocery stores and public transportation. This Living property provides a comfortable and affordable option for Resident Members looking to call Argyle home.
Year Built: 1973 Suite Count:105 Construction: Concrete
56 Brand Diversification and Renovations – Suite & Common Area Comparisons
57 Joint Venture – Western Canada – Brio – Lease Up in Progress
BRIO, Calgary RioCan Joint Venture (50/50) 50 Brentwood Common NW, Calgary, Alberta
Site is well located with close proximity to downtown along the LRT, near the University of Calgary, Foothills Hospital and close to Boardwalk’s existing northwest assets • A stepped 6, 10 and 12 storey concrete high rise • 130,000 sq. ft. (net) of residential (~ 162 units) managed by Boardwalk at cost • 10,000 sq. ft. of retail managed by RioCan at cost • Total estimated construction cost: $75 - $80 million (including $6.5 million for land). Boardwalk’s 50% portion: $37.5 - $40 million • Development Costs anticipated to be finalized near bottom end of range • Possession of the building was on Feb 21, 2020 • Furniture, staging and fixturing is complete and first Residents moved in on April 1, 2020 • As of August 5, 2020: 54 units have been leased
58 Development Update
45 Railroad (50/50 JV) Sandalwood Square (50/50 JV) • 45 Railroad Street, Brampton, Ontario • 60 Bristol Road East, Mississauga, Ontario • Construction on site continues amid COVID-19 with extra • Initial Zoning Application comments received from the precautions and lower staffing levels to maintain social City in late 2019 were generally positive. distancing. The entire site is expected to be at grade in Q3 - 2020. • Zoning re-submission was submitted in early March 2020. • Estimated construction completion of Tower 1 and Tower 2 to be 2022 and 2023, respectively.
Estimated Construction Timeline 2019 2020 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 BRIO; Calgary, AB 45 Railroad; Brampton, ON Tower 1 Tower 2 Sandalwood Square; Mississauga, ON Joint Venture – Eastern Canada – 45 Railroad - Construction Update
45 Railroad Street, Brampton Redwood Joint Venture (50/50)
This prime site is in Downtown Brampton, directly across the street from the Brampton GO Station. Development plan includes two towers - 25 and 27-storey concrete high-rise above a 3-storey podium (parking and retail) and 3 levels of underground parking • ~380,000 buildable sq. ft. of residential (~365 units; average suite size of 890 sq. ft.) and ~10,700 sq. ft. of retail • Total construction cost estimated to be between $200 million and $215 million. Boardwalk’s 50% portion: $100 - $107.5 million (including $7.9 million for land). • Rent control does not apply at this time for new development • Construction on site continues amid COVID-19 with extra precautions and lower staffing levels to maintain social distancing. The entire site is expected to be at grade in Q3 - 2020 • Estimated construction completion of Tower 1 and Tower 2 to be 2022 and 2023, respectively
60 Joint Venture – Eastern Canada – Sandalwood Square - Development Update
Sandalwood Square 60 Bristol Road East, Mississauga RioCan - Boardwalk Joint Venture (50/50)
• This site is located along the new Hurontario LRT line, which will connect Port Credit Go Station in Mississauga to Gateway Bus Terminal in southern Brampton. The line is expected to open in 2022 • Land cost is approximately $14.9 million (~$80 per sq. ft.), representing Boardwalk’s 50% portion, and is dependent upon final approved density • Initial Zoning Application comments received from the City in late 2019 were generally positive • Zoning re-submission was submitted in early March 2020 Development Opportunities
Development Opportunities Region City Properties # of Sites Land Size (Acres) Demo New Units Gross Buildable Western Canada Calgary Sarcee (Duo) & Russet Court 2 12.2 206 1,085 1,055,000 Edmonton Viking Arms & West Edmonton Village 2 14.0 112 1,260 1,280,000 Regina Pines Edge 4/5 & Wascana Park Estates 2 35.4 320 2,092 2,113,000 Western Canada Total 6 61.6 638 4,437 4,448,000 Eastern Canada Kitchener Kings Tower & Westheights Place 2 5.6 0 305 305,000 Landmark Towers, Topping Lane Terrace, Forest City Estates, London Maple Ridge on the Parc, The Bristol, Heritage Square, 8 49.1 0 1,040 1,040,000 Castlegrove Estates, Sandford Apartments Montreal Complexe Deguire & Le Bienville 2 9.7 0 190 190,000 Quebec Complexe Laudance & Du Verdier 2 9.8 0 120 120,000 Eastern Canada Total 14 74.3 0 1,655 1,655,000 GRAND TOTAL 20 136 638 6,092 6,103,000
62 Real Estate Technology Ventures (RETV) - Investment
Industry Challenge • The Real Estate industry, especially Multifamily, is presently under served by property technology vendors • Emerging new vendors struggle to gain traction and reach critical mass • Due to resource constraints and other challenges, owner/managers do not have the luxury to depend on technology vendors surviving long term
The Solution • RETV identifies and supports disruptive technology companies to assist in creating operational efficiencies and to strengthen margins • Along side other REITs and Multi Family companies across North America, Boardwalk has invested in a Real Estate Technology Fund • Total outlay of US $2 million • Investment partners own and operate a combined 925,000 units
63 Appendix - Economic Data
64 Alberta & Saskatchewan Forecast Summary
65 Migration, Earnings & Employment
Source: Statistics Canada
66 Migration Q1 2020 Across Canada
Q1 2020, Year over year change in net migration
67 Alberta Economy - Labour Market
Source: Statistics Canada
68 Calgary New Home Construction
Source: CMHC Housing Information Portal
69 Edmonton New Home Construction
Source: CMHC Housing Information Portal
70 Saskatchewan New Home Construction
Source: CMHC Housing Information Portal
71 Canada Population Growth
Source: Stats Canada Table 17-10-0135-01
72 Market Dynamics – Western Canada Population Growth vs Housing Construction
Source: Stats Canada Table 17-10-0135-01 & CMHC
73 Market Dynamics – Eastern Canada Population Growth vs Housing Construction
Source: Stats Canada Table 17-10-0135-01 & CMHC
74 Market Dynamics – Migration vs Housing Construction
Note: Housing Starts take 12-36 months to complete depending on construction type
Source: Statistics Canada, CMHC
75 Monthly Differential of Rental vs. Home Ownership
Renting in Boardwalk’s major markets continues to be the more affordable option vs. owning as shown by the average monthly carrying cost minus average two-bedroom rent
Mortgage Payment vs. Monthly Rent – Calgary & Edmonton
$1,800 Calgary $1,600 Edmonton $1,400
$1,200
$1,000
$800
$600
$400
$200
$0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(f)
Source: CMHC, CMHC calculations and forecast (f), CREA
76 Average Vacancy & Average Rent
Source: CMHC, Rental Market Report
77 Calgary & Edmonton Real Estate Statistics
Source: Calgary Real Estate Board (CREB), Edmonton Real Estate Board (EREB) & CMHC Housing Market Information
78 Saskatchewan Real Estate Statistics
Source: Saskatoon Real Estate Board, Association of Regina Realtors
79 Saskatchewan Real Estate Statistics
Source: Saskatoon Real Estate Board, Association of Regina Realtors
80 Housing Affordability Index
Courtesy: CBRE
81 Peel Region Highlights – Case For New Development
Peel Region population forecasted to expand by ~30,000 annually between 2017 – 2041, ranking 2nd out of 49 census divisions in Ontario(1) Median Total Household Income (2015)(2): Brampton ($87k), Mississauga ($83k), Toronto CMA ($78k)
Median Single-Detached Sales Price(3) • Robust Population Growth $1,000,000 $800,000 • Household Incomes Supportive $600,000 of Higher Rents $400,000 $200,000 • Eroding Housing Affordability To $0 Support Increased Demand for Brampton Mississauga Rental July 2019 July 2015 • Undersupply in Existing Rental City CMHC Vacancy Vacancy Rate – New Rental Units Under Market Rate – October Purpose-Built Rental – Construction as % of 2018(4) Q2 2019(5) Existing Rental Stock(4)
Brampton 1.1% 0.1% 3.3%
Mississauga 0.8% 0.2% 1.8%
(1) Ontario Ministry of Finance: Ontario Population Projections Update, 2017 -2041; Historical and projected population by census division, selected years – reference scenario (2) Statistics Canada (3) Toronto Real Estate Board (4) CMHC; rental units under construction adjusted for 45 Railroad (5) Urbanation; includes market rental projects completed since 2005
82 Alberta Major Projects
Jul 2020 Value of Apr 2020 Value of Jan 2020 Value of Oct 2019 Value of Jul 2019 Value of Sector Projects ($Millions) Projects ($Millions) Projects ($Millions) Projects ($Millions) Projects ($Millions) Commercial 1,828.30 1,826.70 1,988.00 1,978.70 2,424.20 Industrial, Infrastructure & Institutional 61,938.20 61,294.40 60,525.70 62,735.70 47,614.50 Mixed Use / Other Sectors 11,742.30 11,789.30 11,777.80 14,094.90 13,584.40 Oil & Gas, Oil Sands 31,464.00 31,359.00 59,639.00 63,976.50 66,596.50 Pipelines 33,439.00 33,165.00 33,065.00 33,305.00 33,270.00 Power 11,553.00 11,806.00 11,681.50 11,691.00 9,228.60 Residential 6,438.00 6,525.20 5,845.80 5,902.10 5,738.60 Retail 287.80 239.80 224.70 200.60 195.60 Tourism/Recreation 4,859.80 6,645.50 6,314.20 6,694.20 6,492.30 Total $163,550.4 $164,650.9 $191,061.7 $200,578.7 $185,144.7
Source: Government of Alberta & Alberta Energy
83 Alberta Vacancy Rates vs. WTI
Alberta's rental rates continue to increase even with oil price volatility
84