Boardwalk REIT (BEI) 2024年年度報告「TSX」.pdf

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1、2 0 2 4 A N N U A L R E P O R TBuilding Communitieswith Love AlwaysP E R F O R M A N C E W I T H P U R P O S E:Redwood Court,Edmonton.Thoughtfully renovated,the lobby balances contemporary aesthetics with its original architectural character.03 PERFORMANCE WITH PURPOSE05 CORPORATE PROFILE07 2024 HIG

2、HLIGHTS09 LETTER TO UNITHOLDERS16 ESG UPDATE18 OUR PORTFOLIO20 MULTI-FAMILY PROPERTY PORTFOLIO27 FINANCIAL REVIEW CONTENTS28 MANAGEMENTS DISCUSSION AND ANALYSIS91 INDEPENDENT AUDITORS REPORT94 FINANCIAL STATEMENTS98 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS146 CORPORATE INFORMATION TABLE OF CON

3、TENTSAbove:Leewood Village,Edmonton.The new bold community room.On the cover:Whitehall Square,Edmonton.The newly transformed entrance to the community centre welcomes you in style.BOARDWALK REIT|2024 ANNUAL REPORT01Love AlwaysWESGInvestorsBoardwalkFamilyForeverResidentMembersCapitalCommunityAssociat

4、esPartnersTransforming intentions into impact:The intersections of what we love02Performance with Purposeits more than just a philosophyits the driving force behind everything we do.At the heart of our purpose is the Boardwalk Family Forever.It comes to life through our Communities in Motion mark.Ea

5、ch roof represents more than just a home;it is the connection,belonging,and shared purpose that defines our CommunitiesBy focusing on the intersection of what we love,our communities,our strengths,and the values that sustain us,we transform intention into meaningful impact.This unwavering commitment

6、 forms our resilient foundationone that continues to support our collective strengths,progressive growth,and thriving future.In a time of rapid change,Boardwalk remains disciplined,navigating uncertainty with confidence and aligning our efforts with the needs of our communities.Weve embraced change

7、and transformed challenges into opportunities.Momentum drives this annual report.Fueled by performance,persistence,and progresswe continue to create meaningful impact,championing our unwavering commitment to our Boardwalk Family Forever.Thriving Through Adversity:Connection,Community,and Consistency

8、.Building Communitieswith Love AlwaysP E R F O R M A N C E W I T H P U R P O S E:03Communities inMotion MarkRedwood Court,Edmonton.A bold new look with colourful artwork that makes a statement.Whitehall Square,Edmonton.A fitness centre addition designed to wow even the most discerning fitness enthus

9、iast.04CORPORATE PROFILEBoardwalk REIT(“Boardwalk”,the“Trust”)aims to be Canadas friendliest community provider and the first choice in multi-family communities to work,invest,and call home with our Boardwalk Family Forever.Providing homes in more than 200 communities,with approximately 34,000 resid

10、ential suites totaling over 29 million net rentable square feet,Boardwalk has a proven long-term track record of building better communities,Where Love Always Lives.Our three-tiered and distinct brands:Boardwalk Living,Boardwalk Communities,and Boardwalk Lifestyle,cater to a large diverse demographi

11、c and has evolved to capture the life cycle of all Resident Members.Boardwalks disciplined approach to capital allocation,acquisition,development,purposeful re-positioning,and management of apartment communities allows the Trust to provide its brand of community across Canada creating exceptional Re

12、sident Member experiences.Differentiated by its peak performance culture,Boardwalk is committed to delivering exceptional service,product quality and experience to our Resident Members who reward us with high retention and market leading operating results,which in turn,lead to higher free cash flow

13、and investment returns,stable monthly distributions,and value creation for all our stakeholders.Boardwalk REITs Trust Units are listed on the Toronto Stock Exchange,trading under the symbol BEI.UN.Additional information about Boardwalk REIT can be found on the Trusts website at REIT|2024 ANNUAL REPO

14、RT05Leewood Village,Edmonton.The newly created community room was styled with a bold and vibrant look.06$4.18(1)FFO per Unit$588.2 millionProfit+16.1%Growth in FFO per Unit33.3%FFO Payout Ratio$4.8 billionUnitholders Equity$93.68(1)Net Asset Value per Unit10.1x(1)Trailing 12 Months Debt to EBITDA40.

15、6%(1)Debt to Total Assets$368.2 millionTotal Available Liquidity at the end of 2024$133.4 millionInvestment in Capital Assets$109.0 millionBuilding Acquisitions$1,524Occupied Rent(December 2024)24.0%Management Ownership2024 HIGHLIGHTSBOARDWALK REIT|2024 ANNUAL REPORT07(1)Please refer to the section

16、titled“Presentation ofNon-GAAP Measures”in the MD&A for more information.Whitehall Square,Edmonton.Bold,vibrant branding brings new energy to our community centre!Whitehall Square,Edmonton.A family-friendly community made even better with a new dedicated Kids Zone.08Dear Boardwalk Family Forever,Boa

17、rdwalk performs with purpose,and delivered exceptional results for Resident Members and Unitholders in 2024 by focusing on our commitment to building communities with Love Always.Our resident-focused approach,vertically-integrated operating platform and investment in our communities provides a stron

18、g starting point for 2025.Demand for affordable housing remains high across Canada.As the overall market adjusts to immigration levels that are more balanced from a historical perspective,our significant presence in some of the most affordable self-regulated markets in Canada and unique value propos

19、ition positions the Trust for resilient performance heading into 2025.Our Unique Value PropositionResident Members are at the core of the Trusts success and building communities with love always is critical to achieving sustainable outcomes for Resident Members and Unitholders.In 2024,our Resident M

20、embers emphasized their positive experience with us.Our NPS score of 83 is a reflection of our teams commitment to excellence.Throughout 2024,the Trust prioritized high retention rates in its non-price controlled markets through self-moderation of positive adjustments on its lease renewals.This posi

21、tions the Trust favorably for resilient operational and financial performance,as overall supply and demand fundamentals return to more sustainable levels,and creates a win-win outcome for Resident Members and Unitholders.LETTER to UNITHOLDERSResident Members are at the core of the Trusts success and

22、 building communities with love always is critical to achieving sustainable outcomes for Resident Members and Unitholders.sam kolias Chairman and Chief Executive Officer BOARDWALK REIT|2024 ANNUAL REPORT09The Trust has demonstrated over the last number of years that the best and most cost-effective

23、source of capital for re-investment in its communities is the cash flow generated by its operations.The Trust employs a maximum cash flow retention policy,through our minimum distribution,in order to further improve our communities for Resident Members and compound returns for Unitholders.As the Tru

24、st has grown its cash flows over time,it has increased the capital available for re-investment in its communities to the benefit of Resident Members,while consistently growing distributions to Unitholders.This remains a focus for the Trust moving into 2025.Capital AllocationThe Trust continues to ut

25、ilize its cheapest source of capital,internally generated cash flow,to further compound returns for Unitholders while improving its communities for Resident Members through re-investment into its value-add capital program.In 2024,the Trusts FFO of$225.8 million grew significantly year-over-year and

26、more than covered its investment in capital assets(value-add and maintenance capital)of$133.4 million and distributions of$75.1 million(includes B units),which is a key differentiator for the Trust within the Canadian multi-family REIT environment.As re-iterated below with the introduction of 2025 f

27、inancial guidance,the Rental Revenue of$603.3 million,+10.6%from 2023 Net Operating Income of$382.3 million,+14.8%from 2023 Profit of$588.2 million Operating Margin of 63.4%,compared to 61.0%in 2023 Same Property Rental Revenue of$591.5 million,+9.2%from 2023 Same Property Net Operating Income of$38

28、0.4 million,+13.0%from 2023 Same Property Operating Margin of 64.3%,compared to 62.1%in 2023 Funds from Operations(“FFO”)per Unit of$4.18,+16.1%from 2023 Net Asset Value per Unit of$93.68,+11.0%from 2023 Unitholders Equity of$4.8 billion Debt to EBITDA of 10.1x,down from 11.0 x in 2023 Debt to Total

29、 Assets of 40.6%,compared to 43.2%in 2023Key financial highlights for 2024 include:10Trust is confident that it will continue to grow its cash flows in 2025.Boardwalk remained prudent in its capital deployment initiatives in 2024.Early in the year,the Trust repaid its portion of the construction lin

30、e for 45 Railroad which had an interest rate of approximately 6.6%at the time.From an external growth perspective,the Trust is capitalizing on its relationships and disciplined approach to source opportunistic acquisitions that are accretive to FFO per unit and Net Asset Value per unit over the shor

31、t to medium term.During 2024,the Trust completed the acquisition of the newly-built The Circle community in Calgary,Alberta,Dawson Landing in Chestermere,Alberta and also removed conditions on the acquisition of the Elbow 5 Eight community in Calgary,Alberta,which is expected to close in Q1 2025.The

32、 acquisitions strategically increase the scale of the Trusts portfolio in rapidly growing regions where it has an existing presence,improve the overall quality of its portfolio while providing accretion to Unitholders.The Trust also re-implemented its capital recycling program to source additional c

33、apital through the disposition of non-core communities.Subsequently to the end of 2024,the Trust closed on the disposition of three communities in Edmonton,Alberta totaling 390 units for net proceeds of approximately$58.3 million.In November 2024,the Trust renewed its Normal Course Issuer Bid(“NCIB”

34、)to enable it to tactically capitalize on significant disconnects between its unit price and the value of its own high-quality portfolio.In December 2024 and January 2025,the Trust re-deployed$28.0 million into its NCIB at an average weighted price of$64.02.Management viewed this as an attractive en

35、try point,repurchasing units at an implied going-in cap rate in excess of 6%for its own high-quality portfolio,which compares very favorably to opportunities available in the private market.In allocating capital to unit repurchases,management takes into account a number of considerations including i

36、mplied returns of repurchasing its own units,long-term strategic vision,its current cash position,impact on leverage,opportunity set available for external re-deployment,and overall trading liquidity implications.As part of its long-term growth strategy,the Trust maintains a selective development pi

37、peline in order to incrementally improve the quality and breadth of its product offering over time and scale up in supply-constrained markets that are difficult to access.During 2024,the Trust progressed on the construction of its Aspire development in View Royal,British Columbia which is anticipate

38、d to deliver in 2025.The Trust also made progress in re-plenishing its future development pipeline in irreplaceable locations through the acquisitions of its Marda Loop site,The Brenda and two additional properties in Calgary,Alberta for a total consideration of approximately$17.0 million.Balance Sh

39、eet Strength The Trust continues to take significant strides in improving the strength of its balance sheet.In 2024,the Trust lowered its overall leverage significantly.Debt to Total Assets was reduced to 40.6%from 43.2%the prior year,while the Debt to EBITDA improved to 10.1x from 11.0 x BOARDWALK

40、REIT|2024 ANNUAL REPORT11 Rental revenue growth of 10.6%Achieved same property NOI growth of 13.0%Expansion of Operating Margin to 63.4%,compared to 61.0%in the prior year Leading performance culture,aNPS of 74 compared to target of 72 Resident satisfaction and retention,NPS of 83 compared to target

41、 of 82,maintained occupancy above 97.0%Re-invested$99.9 million of value-add capital into our communities Repaid the Trusts portion of construction facility for 45 Railroad that was paying interest of 6.6%Acquired 313 suites in Calgary,AB,and 63 suites in Chestermere,AB,removed conditions on additio

42、nal 255 suites in Calgary Re-initiated capital recycling program;completed sale of 390 suites subsequent to year-end Invested$10 million into Normal Course Issuer Bid in December 96%of mortgages are CMHC insured Total Available Liquidity of$368.2 million as at December 2024 Reduced Debt to EBITDA(1)

43、from 11.0 x to 10.1x;reduced Debt to Total Assets(1)from 43.2%to 40.6%Cumulatively repositioned/renovated common areas representing 70%of our portfolio since 2017 Net Asset Value per Unit(1)growth of 11.0%Average Occupied Rent of$1,524 as of December 2024FFO(1)of$225.8 million;AFFO(1)of$192.3 millio

44、nFFO per Unit(1)of$4.18(Initial 2024 Guidance range of$3.93 to$4.18)AFFO per Unit(1)of$3.56(Initial 2024 Guidance range of$3.30 to$3.55)Profit of$588.2 millionOUR GOALS and 2024 RESULTS(1)Please refer to the section titled“Presentation ofNon-GAAP Measures”in the MD&A for more information.Organic Gro

45、wthAccretive Capital RecyclingSolid Financial FoundationCompelling ValueCreating Stakeholder Value PURPOSE 2024 PERFORMANCE12Elbow 5 Eight,Calgary.A stylish and inviting community space in our newest additionBOARDWALK REIT|2024 ANNUAL REPORT13on a trailing 12-month basis as a result of the Trusts gr

46、owing cash flows.The Trusts strategy of maintaining a well-laddered maturity curve on its mortgages has proven effective in minimizing mortgage renewal risk in any individual year.The Trusts presence in primarily non-price controlled markets has also increased its ability to offset higher interest c

47、osts over time.As of the end of 2024,approximately 96%of the Trusts outstanding mortgage principal balance is CMHC insured which provides the Trust with low-cost financing and lowers the renewal risk of its mortgage portfolio.Overall improvement in our balance sheet over the last number of years com

48、bined with our maximum cash flow retention policy from a distribution standpoint positions us well to capitalize on opportunities to supplement the Trusts organic growth in both stable periods and in periods of increased volatility in the overall market.2025 OutlookAs 2025 begins,our foundation for

49、resilient performance is strong.Demand for affordable housing is omnipresent across our markets and our growing cash flow provides a means to further compound growth through re-investment in our communities.We are pairing this additional cash flow with our capital recycling initiatives,through the d

50、isposition of select non-core communities,to expand the reach of our love always into new communities that will further enhance value for Resident Members and Unitholders.Boardwalks position in our largest market of Alberta remains a differentiator for the Trust.Alberta continues to attract migratio

51、n from more expensive areas of Canada and overseas while punching above its weight for employment growth,creating approximately 22%of all Canadian jobs in 2024.The Alberta governments fiscal surplus uniquely positions the province to invest in infrastructure and invest to attract new areas of employ

52、ment.Our approach to sustainable self-moderation of rent adjustments in our non-price controlled markets has strengthened our reputation as a community provider of choice,and helps to provide stability across various market conditions for all our stakeholders.We have re-invested into the majority of

53、 our communities since 2017,positioning the Executive Group14Trust to hold occupancy above the level of the overall market,while providing an affordable and attractive alternative to newer supply and across various market conditions.Organic growth remains a primary driver in 2025.While anticipated p

54、erformance by market varies,we are well-positioned to deliver strong relative performance.Renewal spreads in the Trusts non-price controlled and Quebec markets are expected to be primary drivers for FFO per unit growth in 2025.The Trust will look to supplement this organic growth with accretive capi

55、tal deployment of excess cash flow and proceeds from select non-core dispositions.As a result of this favorable outlook,the Trust is introducing its 2025 financial guidance as follows:As a result of improving cash flow and higher taxable income,the Trust is increasing its regular monthly distributio

56、n by 12.5%to$0.1350 per Unit or$1.62 per Unit on an annualized basis for the months of March,April and May 2025.At$64,Boardwalks Trust Units are currently trading at an equivalent value of$189 thousand per suite,and at an approximate 5.9%cap rate on our most recent fiscal year NOI.This compares to o

57、ur estimated NAV of approximately$237 thousand per suite which represents a 4.7%cap rate on our last twelve months of NOI.Our conviction is unwavering that this represents exceptional value in the multi-family space given the quality of the Trusts asset base,growth profile,and transactions in the pr

58、ivate market.Thank you to you,our Unitholders,for your ongoing support and trust,as we pursue strong and sustainable financial performance together.Thank you to our lenders,CMHC,and our various levels of government who are invaluable partners in achieving our common goal of providing affordable hous

59、ing options and best product quality,service and experience to our Resident Members.Thank you to our amazing Boardwalk team who relentlessly drive our performance with purpose:building communities with love always.And lastly,thank you to our Family Resident Members,who are the heart of our communiti

60、es and make Boardwalk the place to call home.With love always,sam koliasBOARDWALK REIT|2024 ANNUAL REPORT15DRIVING CHANGE withHEART AND PURPOSEESG UPDATEBoardwalk is committed to integrating environmental,social and governance practices throughout our business,to positively impact our Associates,Res

61、ident Members and Stakeholders.Management works closely with the Board of Trustees to ensure that we are taking a comprehensive ESG governance approach that aligns with our overall business strategy.Management evaluates,prioritizes and manages ESG risks,while considering their economic,environmental

62、 and social impacts.Collaborative,cross-functional teams support the various aspects of our ESG program.In 2024 we published our fifth annual ESG Report,highlighting our 2023 initiatives and achievements,and setting out our 2024 objectives aimed at sustainable operations and minimizing resource cons

63、umption,a happy and healthy culture,building communities,and a strong governance framework.Whitehall Square,Edmonton.The new community room is the perfect setting for hosting,connecting,and celebrating.16DRIVING CHANGE withHEART AND PURPOSEESG UPDATEWe are thankful for our Associates,Resident Member

64、s and Stakeholders for supporting our ESG program and enabling the progress we have seen so far.We will continue to review and refine our ESG strategy to drive meaningful improvements in our business and our communities.For additional information,refer to Boardwalks 2023 ESG report at 2024 ESG repor

65、t will be published in May 2025.Key 2024 accomplishments include:EnvironmentalSocialGovernance Created a water subcommittee to work towards our water use intensity reduction target of 15%by 2030.Over$23 million of investments in energy efficiency upgrades,such as window and building envelope,buildin

66、g HVAC,LED lighting.Completed energy audits at 6 of our AB communities to assist with developing future decarbonization plans.Expanded our submetering program by adding 331 suites for electricity,946 suites for water and 776 suites for thermal.Four building certifications applications in progress.En

67、hanced Resident Member engagement through partnerships with Urban Microhabitat and Telus Environmental Solutions.Launched mental health training and ambassador program to offer support and resources to our Associates,in conjunction with the Canadian Mental Health Association.Achieved a Net Promoter

68、Score of 83 and Associate Net Promoter Score of 74,reflecting an improvement in Resident Member satisfaction and associate engagement.Recognized as one of Canadas Most Responsible Companies 2025 by Newsweek,which is based on a comprehensive review of all ESG pillars.Continued to strengthen our priva

69、cy and information security programs,maintaining an overall A rating on our Security Scorecard.Launched a supplier ESG survey and received responses from approximately 50%of our suppliers,providing additional insight into diversity and sustainability practices within our supply chain.BOARDWALK REIT|

70、2024 ANNUAL REPORT17OUR PORTFOLIOResidential SuitesComprised of approximately 34,000 apartment suites across Canada,with three distinct brands,Boardwalk aims to serve all rental demographics Where Love Always Lives.2001200220032004200520062007200820092010201120122013201420152016201720182019202020212

71、0222023202425,88929,32631,23932,15933,29834,20736,48736,78536,41935,27735,27735,27735,38634,62632,94733,77333,18733,41733,26333,39633,26433,81033,02934,405Elbow 5 Eight,Calgary.The experience centre comes to life with Boardwalks signature art and professional design.18Victoria0.7%Edmonton37.4%Calgar

72、y19.3%Other AB5.6%Saskatoon4.5%Kitchener/WaterlooCambridge1.8%Regina5.7%Brampton1.0%London6.6%Quebec3.8%Montreal13.6%BOARDWALK REIT|2024 ANNUAL REPORT19 THE BOARDWALK PORTFOLIOEdmonton/St.Albert/Spruce Grove 12,882 37.4%Calgary/Airdrie/Canmore/Banff/Chestermere 6,642 19.3%Montreal 4,681 13.6%London

73、2,256 6.6%Regina 1,974 5.7%Red Deer/Fort McMurray/Grande Prairie 1,936 5.6%Saskatoon 1,531 4.5%Quebec City 1,319 3.8%Kitchener/Waterloo/Cambridge 611 1.8%Brampton 335 1.0%Victoria 238 0.7%Under Development;Victoria 234 unitsVictoria,BC Aurora Lifestyle Walk-Up 114 95,756 840 The Vue Lifestyle Highri

74、se 124 122,815 990 Subtotal:238 218,571 918 Edmonton,Spruce Grove,St.Albert,AB West Edmonton Village Living 2021HR,WU&TH 1,176 1,138,368 968 Whitehall Square Living 2019&2024HR&WU 598 545,934 913 Boardwalk Centre Living 2022&2023Highrise 597 471,871 790 Fairmont Village Living 2022&2024Walk-Up 424 3

75、62,184 854 Meadowview Manor Living 2023Walk-Up 348 284,490 818 Sturgeon Point Villas Living 2022Walk-up 280 284,953 1,018 Boardwalk Villages Living Townhouse 255 258,150 1,012 Riverview Plaza Living 2020Walk-Up 252 203,740 808 Morningside Estates Living 2015Walk-Up 223 167,064 749 Sir William Place

76、Living 2022&2023HR&WU 220 126,940 577 Pembroke Estates Living 2015Walk-Up 198 198,360 1,002 Greentree Village Living 2021Walk-Up 192 156,000 813 Maple Gardens Living 2020Walk-Up 181 163,840 905 Northridge Estates Living 2020Walk-Up 180 103,270 574 Briarwynd Court Living TH&WU 172 144,896 842 Westbro

77、ok Estates Living 2022&2024Walk-Up 172 148,616 864 Springwood Place Apartments Living 2019Lowrise 160 122,640 767 Lord Byron Towers Living 2022&2023Highrise 158 133,994 848 Corian Apartments Living 2020Garden 153 167,400 1,094 Primrose Lane Apartments Living 2020Walk-Up 153 151,310 989 Habitat Villa

78、ge Living 2024Townhouse 151 129,256 856 Meadowside Estates Living 2016Walk-Up 148 104,036 703 Multi-Family Property Portfolio MULTI-FAMILYPROPERTY PORTFOLIOProperty(1)Brand Year of Renovation(2)Building Type(3)#Suites Net Rentable Sq.Ft.Average Suite Size(1)Ordered by brand,followed by descending nu

79、mber of suites(2)Year of renovation is provided for those properties participating in the Trusts brand diversification initiative(3)HR-Highrise;MR-Midrise;TH-Townhouse;WU-Walk-Up20MULTI-FAMILYPROPERTY PORTFOLIOProperty(1)Brand Year of Renovation(2)Building Type(3)#Suites Net Rentable Sq.Ft.Average S

80、uite Size Edmonton,Spruce Grove,St.Albert,AB (continued from previous page)Lord Byron Townhouses Living Townhouse 147 172,369 1,173 Cedarville Apartments Living 2020Walk-Up 144 122,120 848 Leewood Village Living 2024Walk-Up 142 129,375 911 Pinetree Village Living 2015&2020Walk-Up 142 106,740 752 Imp

81、erial Tower Living 2016Highrise 138 112,050 812 The Westmount Living 2022&2023Highrise 133 124,825 939 Tamarack East&West Living Garden 132 212,486 1,610 Brookside Terrace Living TH&WU 131 196,779 1,502 Carmen Living 2022Walk-Up 128 109,250 854 Redwood Court Living 2024Lowrise 116 107,680 928 Terrac

82、e Garden Estates Living 2015Walk-Up 114 101,980 895 Castleridge Estates Living 2015Townhouse 108 124,524 1,153 Kew Place Living Walk-Up 108 105,776 979 Cambrian Place Living 2020Walk-Up 105 105,008 1,000 Monterey Pointe Living Walk-Up 104 83,548 803 Parkview Estates Living Townhouse 104 88,432 850 V

83、ictorian Arms Living Walk-Up 96 91,524 953 The Palisades Living 2020Highrise 94 77,200 821 Westridge Estates B Living 2024Lowrise 91 56,950 626 Westridge Estates C Living 2024Lowrise 90 56,950 633 Castle Court Living Walk-Up 89 93,950 1,056 West Edmonton Court Living Walk-Up 82 73,209 893 Sandstone

84、Pointe Living Walk-Up 81 83,800 1,035 Aspen Court Living Walk-Up 80 68,680 859 Lorelei House Living 2020Walk-Up 78 65,870 844 Kingsway Tower Living 2022Highrise 74 41,550 561 Point West Townhouses Living Townhouse 69 72,810 1,055 Village Plaza Living 2020Townhouse 68 65,280 960 Breton Manor Living 2

85、024Walk-Up 66 57,760 875 Westridge Manor Living Garden 64 69,038 1,079 Fontana Place Living Lowrise 62 40,820 658 Suncourt Place Living Walk-Up 62 55,144 889 Warwick Apartments Living Walk-Up 60 49,092 818 Westborough Court Living Walk-Up 60 50,250 838 Garden Oaks Living Garden 56 47,250 844 Marlbor

86、ough Manor Living 2020&2023Walk-Up 56 49,582 885 Westmoreland Apartments Living Lowrise 56 45,865 819 Valley Ridge Tower Living 2024Highrise 49 30,546 623 Granville Square Living Townhouse 48 53,376 1,112 Westwinds of Summerlea Living Garden 48 53,872 1,122 Christopher Arms Living Lowrise 45 29,900

87、664 Summerlea Place Living Garden 39 43,297 1,110(1)Ordered by brand,followed by descending number of suites(2)Year of renovation is provided for those properties participating in the Trusts brand diversification initiative(3)HR-Highrise;MR-Midrise;TH-Townhouse;WU-Walk-UpBOARDWALK REIT|2024 ANNUAL R

88、EPORT21Edmonton,Spruce Grove,St.Albert,AB (continued from previous page)Viking Arms Communities 2018Highrise 240 257,410 1,073 Ermineskin Place Communities 2020Highrise 226 181,788 804 Southgate Tower Communities 2020Highrise 170 153,385 902 Wimbledon Communities 2019Highrise 165 117,216 710 Capital

89、 View Tower Communities 2019Highrise 115 71,281 620 Tower On The Hill Communities 2019Highrise 100 85,008 850 Fort Garry House Communities 2019Highrise 93 70,950 763 Maureen Manor Communities Highrise 91 64,918 713 Prominence Place Communities 2018Highrise 91 73,310 806 Solano House Communities 2018

90、&2024Highrise 91 79,325 872 Terrace Tower Communities 2020Highrise 84 66,000 786 Tower Hill Communities 2020Highrise 82 46,360 565 Riverview Manor Communities 2020Highrise 81 62,092 767 Deville Apartments Communities 2020Highrise 66 47,700 723 The Edge Lifestyle 2020Lowrise 182 163,103 896 Park Plac

91、e Tower Lifestyle 2019Highrise 179 162,049 905 Vita Estates Lifestyle 2020Lowrise 162 135,454 836 Insignia Tower Lifestyle Highrise 124 112,864 910 Dispositions Subsequent to Year End Axxess Lowrise 165 149,565 906 Galbraith House Highrise 163 110,400 677 Lansdowne Park Midrise 62 48,473 782 Subtota

92、l-December 31,2024:12,882 11,352,470 881 Subtotal-Excluding Dispositions Closed Subsequently to Year End 12,492 11,044,032 884 Calgary,Airdrie,Chestermere,Banff&Canmore,AB Russet Court Living 2018Garden 206 213,264 1,035 Radisson Village I Living 2019TH&WU 124 108,269 873 Radisson Village II Living

93、2019TH&WU 124 108,015 871 Radisson Village III Living 2019Townhouse 118 124,379 1,054 Vista Gardens Living 2020Townhouse 100 121,040 1,210 Travois Apartments Living 2021Walk-Up 89 61,350 689 Hillside Estates Living 2020Walk-Up 76 58,900 775 Pineridge Apartments Living 2019Lowrise 76 52,275 688 Flint

94、ridge Place Living 2018Midrise 68 55,023 809 Willow Park Gardens Living 2022Walk-Up 66 44,563 675 McKinnon Manor Apartments Living Walk-Up 60 43,740 729 McKinnon Court Apartments Living 2021Walk-Up 48 36,540 761 Patrician Village Communities 2018&2024Walk-Up 392 295,600 754 Richmond Towers Communiti

95、es 2020HR&MR 376 301,720 802 The Circle Communities 2024Walk-up/Elevatored 295 212,570 721 Spruce Ridge Estates Communities 2020Walk-Up 284 196,464 692 Property(1)Brand Year of Renovation(2)Building Type(3)#Suites Net Rentable Sq.Ft.Average Suite Size(1)Ordered by brand,followed by descending number

96、 of suites(2)Year of renovation is provided for those properties participating in the Trusts brand diversification initiative(3)HR-Highrise;MR-Midrise;TH-Townhouse;WU-Walk-Up22Calgary,Airdrie,Chestermere,Banff&Canmore,AB (continued from previous page)Oak Hill Estates Communities 2020Townhouse 240 23

97、6,040 984 Boardwalk Heights Communities 2018&2024Highrise 202 160,894 797 ONeil Tower Communities 2019Highrise 187 131,281 702 Westwinds Village Communities 2019Walk-Up 180 137,815 766 Tower Lane Terrace Apts Communities 2018Walk-Up 163 130,920 803 Ridgeview Gardens Communities 2020Townhouse 160 151

98、,080 944 The Level Communities 2023Walk-up/Elevatored 158 114,550 725 Northwest Pointe Communities 2018&2024Walk-Up 150 102,750 685 Skygate Tower Communities 2018&2023Highrise 142 113,350 798 Boardwalk Retirement Community Communities 2019Highrise 124 43,760 353 Lakeview Apartments Communities 2021W

99、alkup 120 107,680 897 Brentview Tower Communities 2018Highrise 115 69,310 603 Dorsett Square Communities 2021Highrise 109 98,948 908 Spruce Ridge Gardens Communities Walk-Up 109 86,351 792 Lakeside Estates Communities Walk-Up 89 77,732 873 Glamorgan Manor Communities 2022Walk-Up 86 63,510 738 Royal

100、Park Plaza Communities 2018Highrise 86 66,137 769 Mountainview Estates Communities TH&WU 81 75,624 934 Elk Valley Estates Communities Walk-Up 76 53,340 702 Prominence Place Apartments Communities 2021Walk-Up 75 55,920 746 Randal House Communities 2019Highrise 70 56,600 809 Varsity Place Apartments C

101、ommunities 2018Walk-up 70 47,090 673 Beddington Court Communities 2020Walk-Up 66 50,919 772 Dawson Landing Communities Townhouse 63 84,730 1,345 Village Vale Communities Townhouse 54 66,366 1,229 The Brenda Apartments Communities Lowrise 6 5,250 875 The Samantha Communities Lowrise 6 5,750 958 The V

102、anessa Communities Lowrise 6 5,150 858 Varsity Square Apartments Lifestyle 2018MR&LR 297 241,128 812 Auburn Landing Lifestyle 2023Lowrise 238 209,976 882 Peak Estates Lifestyle Walk-up/Elevatored 148 149,689 1,011 Chateau Apartments Lifestyle 2017Highrise 145 110,545 762 Centre Pointe West Lifestyle

103、 2017Midrise 123 110,611 899 Broadway Centre Lifestyle 2018Highrise 115 80,424 699 BRIO Lifestyle Highrise 81 71,500 883 Subtotal:6,642 5,406,432 814 Red Deer,Fort McMurrary&Grande Prairie,AB Boardwalk Park Estates I Living TH&WU 369 306,850 832 Prairie Sunrise Living 2022HR&WU 244 201,992 828 Canyo

104、n Pointe Apartments Living 2018Walk-Up 163 114,039 700 Property(1)Brand Year of Renovation(2)Building Type(3)#Suites Net Rentable Sq.Ft.Average Suite Size(1)Ordered by brand,followed by descending number of suites(2)Year of renovation is provided for those properties participating in the Trusts bran

105、d diversification initiative(3)HR-Highrise;MR-Midrise;TH-Townhouse;WU-Walk-UpBOARDWALK REIT|2024 ANNUAL REPORT23Red Deer,Fort McMurrary&Grande Prairie,AB(continued from previous page)Riverbend Village Apartments Living Walk-Up 150 114,750 765 Taylor Heights Apartments Living 2019Walk-Up 140 103,512

106、739 Chanteclair Apartments Living 2024Walk-Up 79 68,138 863 Inglewood Terrace Apartments Living Lowrise 68 42,407 624 McMurray Manor Living Lowrise 44 30,350 690 The Granada Living Walk-Up 44 35,775 813 The Valencia Living Walk-Up 40 33,850 846 Mallard Arms Living Walk-Up 36 30,497 847 Edelweiss Ter

107、race Living Walk-Up 32 27,226 851 Boardwalk Park Estates II Living Townhouse 32 30,210 944 Hillside Manor Living Walk-Up 30 21,248 708 Birchwood Manor Living Walk-Up 24 18,120 755 Heatherton Apartments Living Walk-Up 23 16,750 728 Cloverhill Terrace Communities 2018Midrise 120 102,225 852 Westridge

108、Estates Communities Townhouse 112 113,664 1,015 Parke Avenue Square Communities 2021Walk-up 88 87,268 992 Watson Tower Communities 2017Midrise 50 43,988 880 Saratoga Tower Communities 2019Midrise 48 53,762 1,120 Subtotal:1,936 1,596,621 825 Regina,SK Wascana Park Estates Living Townhouse 316 303,360

109、 960 Quappelle Village III Living Walk-Up 180 144,160 801 Centennial South Living Garden 170 129,080 759 Quappelle Village I&II Living TH&WU 154 133,200 865 Eastside Estates Living Townhouse 150 167,550 1,117 Evergreen Estates Living Walk-Up 150 125,660 838 Pines of Normanview Living 2021Garden 133

110、115,973 872 Lockwood Arms Apartments Living Walk-Up 96 69,000 719 Grace Manors Living Townhouse 72 69,120 960 Greenbriar Apartments Living 2020Walk-Up 72 57,600 800 Centennial West Living Garden 60 46,032 767 The Meadows Living Townhouse 52 57,824 1,112 Southpointe Plaza Communities 2021Midrise 140

111、117,560 840 Pines Edge Communities Garden 79 67,298 852 Pines Edge II Lifestyle Garden 79 67,298 852 Pines Edge III Lifestyle Garden 71 62,818 885 Subtotal:1,974 1,733,533 878 Saskatoon,SK Palace Gates Living Walk-Up 206 142,525 692 Meadow Park Estates Living 2023Townhouse 200 192,000 960 Stonebridg

112、e Apartments Living Walk-Up 162 131,864 814 Property(1)Brand Year of Renovation(2)Building Type(3)#Suites Net Rentable Sq.Ft.Average Suite Size(1)Ordered by brand,followed by descending number of suites(2)Year of renovation is provided for those properties participating in the Trusts brand diversifi

113、cation initiative(3)HR-Highrise;MR-Midrise;TH-Townhouse;WU-Walk-Up24Saskatoon,SK(continued from previous page)St.Charles Place Living Walk-Up 156 123,000 788 Heritage Townhomes Living Townhouse 104 99,840 960 Stonebridge Townhomes Living Townhouse 100 135,486 1,355 Lawson Village Living Walk-Up 96 7

114、5,441 786 Wildwood Ways B Living Walk-Up 54 43,961 814 Regal Towers Communities 2020Highrise 161 122,384 760 Carlton Tower Communities 2019Highrise 158 155,138 982 Penthouse Apartments Communities 2021Lowrise 82 61,550 751 Dorchester Tower Communities 2020Highrise 52 48,608 935 Subtotal:1,531 1,331,

115、797 870 London,ON Noel Meadows Living Walk-Up 105 72,600 691 Heritage Square Communities 2019MR&WU 359 270,828 754 Forest City Estates Communities 2019Highrise 272 221,000 813 Maple Ridge On The Parc Communities 2019Highrise 257 247,166 962 Landmark Towers Communities 2020Highrise 213 173,400 814 To

116、pping Lane Terrace Communities Midrise 189 177,880 941 Westmount Ridge Communities 2019Midrise 179 131,700 736 Meadowcrest Apartments Communities Walk-Up 162 110,835 684 Castlegrove Estates Communities Lowrise 144 126,420 878 The Bristol Communities Highrise 138 109,059 790 Sandford Apartments Commu

117、nities 2019Walk-Up 96 77,594 808 Villages of Hyde Park Communities Townhouse 60 57,850 964 Abbey Estates Communities Townhouse 53 59,794 1,128 Ridgewood Estates Communities Townhouse 29 31,020 1,070 Subtotal:2,256 1,867,146 828 Kitchener,Waterloo,Cambridge&Brampton,ON Ardglen Place Living Townhouse

118、152 159,696 1,051 Kings Tower Communities 2021Highrise 226 171,100 757 Westheights Place Communities Midrise 103 91,920 892 Elmridge Heights Communities Walk-Up 70 71,420 1,020 Courtland Place Communities Walk-Up 60 61,152 1,019 Mayfieldview Court Communities Walk-Up 60 61,440 1,024 Cambridge Court

119、Communities Townhouse 56 66,550 1,188 Wesley Park Communities Walk-Up 36 41,960 1,166 45 Railroad Lifestyle Highrise 183 162,703 889 Subtotal:946 887,941 939 Montreal,QC Le Bienville Living Walk-up 168 115,600 688 Jardins Viva Living Walk-up 112 91,000 813 Property(1)Brand Year of Renovation(2)Build

120、ing Type(3)#Suites Net Rentable Sq.Ft.Average Suite Size(1)Ordered by brand,followed by descending number of suites(2)Year of renovation is provided for those properties participating in the Trusts brand diversification initiative(3)HR-Highrise;MR-Midrise;TH-Townhouse;WU-Walk-UpBOARDWALK REIT|2024 A

121、NNUAL REPORT25Montreal,QC(continued from previous page)Nuns Island Portfolio Communities 2021&2023HR,WU&TH 3,100 3,106,110 1,002 Domaine dIberville Apartments Communities Highrise 720 560,880 779 Complexe Deguire Communities Highrise 322 276,324 858 Le Quatre Cent Communities Highrise 259 153,500 59

122、3 Subtotal:4,681 4,303,414 919 Quebec City,QC Place Chamonix Living Townhouse 246 236,630 962 Les Jardins de Merici Communities 2024Highrise 346 300,000 867 Les Appartements Du Verdier Communities Walk-Up 195 152,645 783 LAstre Communities 2021Midrise 183 134,480 735 Place Samuel de Champlain Commun

123、ities Highrise 130 104,153 801 Place Charlesbourg Communities Midrise 108 82,624 765 Place du Parc Communities Midrise 111 81,746 736 Subtotal:1,319 1,092,278 828 Total Portfolio-As at Dec.31,2024 34,405 29,790,203 866 Total Portfolio-Excluding Dispositions Closed Subsequently to Year End 34,015 29,

124、481,765 867 Property(1)Brand Year of Renovation(2)Building Type(3)#Suites Net Rentable Sq.Ft.Average Suite Size(1)Ordered by brand,followed by descending number of suites(2)Year of renovation is provided for those properties participating in the Trusts brand diversification initiative(3)HR-Highrise;

125、MR-Midrise;TH-Townhouse;WU-Walk-UpWhitehall Square,Edmonton.Where cutting-edge design meets the ultimate workout space.26Financial Review ContentsManagements Discussion and Analysis General and Forward-looking Statements Advisory 28Executive Summary 30 Business Overview 30 Environmental,Social and G

126、overnance Overview 30 MD&A Overview 30 Outlook 30 Declaration of Trust 33 Presentation of Financial Information 34 Presentation of Non-GAAP Measures 34 Performance Review of 2024 37 Financial Performance Summary 40Consolidated Operations and Earnings Review 40 Overall Review 40 Segmented Operational

127、 Reviews 42 Operational Sensitivities 45 Same Property Results 47 Financing Costs 50 Administration 51 Depreciation 51 Other Income and Expenses 52Financial Condition 53 Review of Cash Flows 53 Capital Structure and Liquidity 60Risks and Risk Management 66 General Risks 66 Specific Risks 70 Certain

128、Tax Risks 74 Risks Associated with Disclosure Controls and Procedures&Internal Control Over Financial Reporting 75Accounting and Control Matters 76 Critical Accounting Policies 76 Application of New and Revised IFRS Accounting Standards and Future Accounting Policies 85 IFRS Accounting Standards 87

129、Disclosure Controls and Procedures(“DC&P”)&Internal Control Over Financial Reporting 872025 Financial Outlook and Market Guidance 88 Selected Consolidated Financial Information 89Financial StatementsIndependent Auditors Report 91 Financial Statements 94 Notes to the Consolidated Financial Statements

130、 98Supplemental InformationFive Year Summary 141 2024 Quarterly Results 143 2023 Quarterly Results 144 Market&Unitholder Information 145 Corporate Information 14627BOARDWALK REIT|2024 ANNUAL REPORT27Managements Discussion and AnalysisFor the Years Ended,December 31,2024 and 2023GENERAL AND FORWARD-L

131、OOKING STATEMENTS ADVISORYGeneralThe terms“Boardwalk”,“Boardwalk REIT”,the“REIT”,the“Trust”,“we”,“us”and“our”in the following Managements Discussion and Analysis(“MD&A”)refer to Boardwalk Real Estate Investment Trust.Financial data,including related historical comparatives,provided in this MD&A has

132、been prepared in accordance with IFRS Accounting Standards,as issued by the International Accounting Standards Board(“IFRS Accounting Standards”).This MD&A is current as of February 19,2025 unless otherwise stated,and should be read in conjunction with Boardwalks audited annual consolidated financia

133、l statements for the years ended December 31,2024 and 2023,which have been prepared in accordance with IFRS Accounting Standards,together with this MD&A,copies of which have been filed electronically with securities regulators in Canada through the System for Electronic Document Analysis and Retriev

134、al(“SEDAR+”)and may be accessed through the SEDAR+website at www.sedarplus.ca.Historical results and percentage relationships contained in the audited annual consolidated financial statements for the years ended December 31,2024 and 2023 and this MD&A,including trends,should not be read as indicativ

135、e of future operations.Provided all of the Trusts income each year is paid or made payable to Unitholders(as defined below),then the Trust itself would generally not be subject to income tax.Boardwalk intends to distribute or allocate all of its taxable income of the Trust to its Unitholders and to

136、deduct these distributions for income tax purposes.The Income Tax Act(Canada)(the“Tax Act”)contains legislation affecting the tax treatment of publicly traded trusts(the“SIFT Legislation”),which if applicable,would tax the Trust in a manner similar to a corporation and tax certain distributions from

137、 such trusts as taxable dividends from a taxable Canadian corporation.A trust which qualifies under the Tax Act as a real estate investment trust(the“REIT Exemption”)is not subject to tax under SIFT Legislation.Boardwalk qualified for the REIT Exemption for the years ended December 31,2024 and 2023

138、and intends to continue to qualify for the REIT Exemption on an ongoing basis.Further discussion of this is contained in this MD&A.Certain information contained in this MD&A,including information described under the heading Risks and Risk Management,concerning the economy generally and relating to t

139、he industry in which the Trust operates has been obtained from publicly and/or industry available information from third party sources,including both the Bank of Canadas January 2025 Monetary Policy Report and the Royal Bank of Canadas December 2024 Provincial Report.The Trust has not verified the a

140、ccuracy or completeness of any information contained in such publicly available information.In addition,the Trust has not determined if there has been any omission by any such third party to disclose any facts,information,or events which may have occurred prior to or subsequent to the date as of whi

141、ch any such information contained in such publicly available information has been furnished or which may affect the significance or accuracy of any information contained in any such information and summarized herein.Unless otherwise indicated,all amounts are expressed in Canadian dollars.Forward-loo

142、king Statements AdvisoryCertain information included in this MD&A,including information described under the heading“Risks and Risk Management”,contains forward-looking statements and information(collectively“forward-looking statements”)within the meaning of applicable securities laws.These forward-l

143、ooking statements include,but are not limited to,statements made concerning Boardwalks objectives,including,but not limited to,the REITs 2025 financial outlook and market guidance,the expectation that Boardwalk will continue to qualify for the REIT Exemption,increasing and maintaining its occupancy

144、rates,environmental,social and governance(ESG)initiatives and objectives,joint arrangement developments and future acquisition and development opportunities,including its plans for land in Victoria,British Columbia and proposed purchase of Elbow 5 Eight and its long-term strategic plan of opportunis

145、tic acquisitions and investments,its strategies to achieve objectives and business optimization expectations regarding Boardwalks vision and its strategies to achieve that vision,expected value enhancements through Boardwalks branding initiative and suite renovation program,expected demand for housi

146、ng and expected occupancy rates,the Trusts ability to provide the optimal return to Unitholders and payment of all of the REITs taxable income to Unitholders,the Trusts intention to redeploy capital towards long-term value creation and maintain consistent and sustainable distributions while optimizi

147、ng capital allocation,Boardwalks goal of expanding geographically and diversifying its brand,expected increases in property taxes,utilities,and insurance costs,the anticipated impact of inflation and higher interest rates and fluctuations related thereto,the possibility of economic contractions as a

148、 result of a potential recession,Boardwalks goal to offer select incentives implemented to maintain occupancy levels,Boardwalks operational sensitivities,Boardwalks focus on optimizing 2828performance measures,the competitive nature of the real estate industry,Boardwalks competitive status and strat

149、egies to remain competitive,the Trusts plans with respect to adjustment of rental rates,real estate trends and the seasonality of the industry,depreciation adjustments,the Trusts intention to dispute the notices of reassessment with Canada Revenue Agency(“CRA”)Appeals Division,plans for capital impr

150、ovement projects,maintenance,capital expenditure,and investment properties,changes in Boardwalks community classifications,financing costs,conversion of short-term mortgages to long-term,use,review,and alteration of critical accounting policies and IFRS Accounting Standards(as defined herein),as wel

151、l as statements with respect to management of the Trusts beliefs,plans,estimates,assumptions,intentions,and similar statements concerning anticipated future events,results,circumstances,performance,or expectations that are not historical facts.Forward-looking statements generally can be identified b

152、y 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 of the Trusts curre

153、nt beliefs and are based on information currently available to management of the Trust at the time such statements are made.Management of the Trusts estimates,beliefs,and assumptions are inherently subject to significant business,economic,competitive and other uncertainties and contingencies regardi

154、ng future events and as such,are subject to change.All forward-looking statements in this MD&A are qualified by these cautionary statements.Forward-looking statements are not guarantees of future events or performance and,by their nature,are based on Boardwalks current estimates and assumptions,whic

155、h are subject to risks and uncertainties,including those described in Boardwalk REITs Annual Information Form for the year ended December 31,2024(“AIF”)dated February 19,2025 under the heading“Challenges and Risks”and in this MD&A under the heading Risks and Risk Management”,which could cause actual

156、 events or results to differ materially from the forward-looking statements contained in this MD&A.Those risks and uncertainties include,but are not limited to,those related to liquidity in the global marketplace associated with current economic conditions,the imposition of any tariffs,surtaxes or o

157、ther restrictive trade measures or countermeasures affecting trade between Canada and the United States,real estate industry risks,changes in regulation and applicable law,including rent control regulations,tenant rental rate concessions,occupancy levels,access to debt and equity capital,changes to

158、Canada Mortgage and Housing Corporation(“CMHC”)rules regarding mortgage insurance,interest rates,joint arrangements/partnerships,the relative illiquidity of real property,unexpected costs or liabilities related to acquisitions,construction,environmental matters,climate-related risks,competition in t

159、he real estate industry,ground lease interruption,fluctuation in cash distributions,cyber incidents,availability of workforce,credit risk respecting tenants,supply and demand fluctuations,utility and tax expenses,increased costs of materials used in construction including increased costs as a result

160、 of increased or new tariffs imposed by local or foreign governments,uninsured perils,legal matters,reliance on key personnel,Unitholder liability,income taxes,limitations on interest deductibility and changes to income tax rules that impair the ability of Boardwalk to qualify for the REIT Exemption

161、.This is not an exhaustive list of the factors that may affect Boardwalks forward-looking statements.Other risks and uncertainties not presently known to Boardwalk could also cause actual results or events to differ materially from those expressed in its forward-looking statements.Material factors o

162、r assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements may include,but are not limited to,the impact of economic conditions in Canada and globally,the REITs future growth potential,prospects and opportunities,interest costs,access to e

163、quity and debt capital markets to fund(at acceptable costs),the future growth program to enable the Trust to refinance debts as they mature,the availability of purchase opportunities for growth in Canada,the timing to deploy equity proceeds,the impact of accounting principles under IFRS Accounting S

164、tandards,general industry conditions and trends,changes in laws and regulations including,without limitation,changes in tax laws,increased competition,the availability of qualified personnel,fluctuations in foreign exchange or interest rates,and stock market volatility.Although the forward-looking s

165、tatements contained in this MD&A are based upon what management of the Trust believes are reasonable assumptions,there can be no assurance actual results will be consistent with these forward-looking statements and no assurances can be given that any of the events anticipated by the forward-looking

166、statements will transpire or occur at all,or if any of them do so,what benefits that Boardwalk will derive from them.As such,undue reliance should not be placed on forward-looking statements.Certain statements included in this MD&A may be considered“financial outlook”or“future oriented financial inf

167、ormation(“FOFI”)for purposes of applicable securities laws,all of which are subject to the same assumptions,risk factors,limitations and qualifications as set forth above.The actual results of operations of the Trust and the resulting financial results will likely vary from the amounts set forth in

168、this MD&A and such variation may be material.Boardwalk REIT and its management believe that the FOFI contained in this MD&A has been prepared on a reasonable basis,reflecting management of the Trusts best estimates and judgements.However,because this information is subjective and subject to numerous

169、 risks,it should not be relied on as necessarily indicative of future results.FOFI contained in this MD&A was made as of the date of this MD&A and was provided for the purpose of providing further information about the Trusts anticipated future business operations.Readers are cautioned that the FOFI

170、 contained in this MD&A should not be used for purposes other than for which it is disclosed herein.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.29B

171、OARDWALK REIT|2024 ANNUAL REPORT2929Executive SummaryBUSINESS OVERVIEWBoardwalk REIT is an unincorporated,open-ended real estate investment trust created pursuant to a Declaration of Trust,dated January 9,2004,as amended and restated on various dates between May 3,2004,and May 6,2024(the“Declaration

172、 of Trust”or“DOT”),under the laws of the Province of Alberta.Boardwalk REIT was created to invest in revenue producing multi-family residential properties,or interests,initially through the acquisition of assets and operations of Boardwalk Equities Inc.(the“Corporation”).Boardwalk REITs units(the“Tr

173、ust Units”)trade on the Toronto Stock Exchange(“TSX”)under the trading symbol BEI.UN.Additionally,the Trust has 4,415,000 special voting units issued to holders of“Class B Units”of Boardwalk REIT Limited Partnership(“LP Class B Units”and,together with the Trust Units,the“Units”),each of which also h

174、as a special voting unit in the REIT.Boardwalk REITs principal objectives are to provide Resident Members(as defined herein)with superior quality rental communities and the best tenant/customer service,provide its holders(“Unitholders”)of Trust Units with stable monthly cash distributions,and to inc

175、rease the value of the Trust Units through the effective management of its residential multi-family revenue producing properties,renovations and upgrades to its current portfolio,and the acquisition and/or development of additional,accretive properties or interests therein.As at December 31,2024,Boa

176、rdwalk REIT owned and operated in excess of 200 properties,comprised of approximately 34,000 residential suites,and totaling over 29 million net rentable square feet.At the end of 2024,Boardwalk REITs property portfolio was located in the provinces of British Columbia,Alberta,Saskatchewan,Ontario,an

177、d Quebec.ENVIRONMENTAL,SOCIAL AND GOVERNANCE OVERVIEWThe Trust is committed to ESG objectives and initiatives,including working towards reducing greenhouse gas emissions as well as electricity and natural gas consumption,water conservation,waste minimization,Resident Member satisfaction and a contin

178、ued focus on governance and oversight.As part of its 2024 annual reporting,the Trust will be publishing its ESG Report in May 2025 which will be available on the Trusts website at ESG Report does not form a part of this MD&A.MD&A OVERVIEWThis MD&A focuses on key areas from the audited annual consoli

179、dated financial statements for the years ended December 31,2024 and 2023,and pertains to major known risks and uncertainties relating to the real estate industry,in general,and the Trusts business,in particular.This discussion should not be considered all-inclusive as it excludes changes that may oc

180、cur in general economic,political,and environmental conditions.Additionally,other elements may or may not occur,which could affect the organization in the future.Please refer to the section titled“General and Forward-Looking Statements Advisory Forward-Looking Statements Advisory”in this MD&A.To ens

181、ure that the reader is obtaining the best overall perspective,this discussion should be read in conjunction with material contained in Boardwalk REITs 2024 Annual Report,the audited annual consolidated financial statements for the years ended December 31,2024 and 2023,and the AIF,each of which are a

182、vailable under the REITs profile on www.sedarplus.ca.OUTLOOKIn its January 2025 Monetary Policy Report,which was released on January 29,2025,the Bank of Canada(“BoC”)noted that since August 2024,inflation in Canada has stayed around 2%,though shelter prices remain elevated.Economic growth in Canada

183、has been slower than expected,but has gained momentum due to past interest rate cuts,despite a slowdown in population growth.The central bank expects household spending to remain strong,with economic growth forecasted at 1.8%for 2025 and 2026.Despite the projected growth,the BoC emphasized the uncer

184、tainty surrounding US trade policies,particularly with respect to potential tariffs on imports,which could impact Canadian business confidence and the exchange rate.The BoC continues to monitor these developments closely.The Royal Bank of Canada(“RBC”)December 2024 Provincial Report continues to hig

185、hlight both the challenges and opportunities the Canadian economy faces.The countrys gross domestic product(“GDP”)has been underperforming,with per-capita GDP declining for several quarters and unemployment rising.However,inflation is easing,with consumer price growth staying near the BoCs target 30

186、30which has allowed the central bank to reduce interest rates more quickly than other nations,including the U.S.Per RBC,while population growth has helped support the economy,new plans to reduce immigration could slow future growth and turn demographics into a challenge.While per-capita GDP growth i

187、s expected to recover by mid-2025 as a result of the revised immigration policy,RBC expects labor markets to soften further,with unemployment potentially peaking at 7%.Despite some signs in recovery in certain sectors like housing,long-term growth concerns for Canada remain,particularly with low pro

188、ductivity,weak business investment and potential trade disruptions.For Alberta,RBC expects its economy to grow by approximately 2.8%in 2025,making it the expected top-performing province in Canada for 2025.The energy sector,driven by the Trans Mountain pipeline expansion and weakening Canadian dolla

189、r will continue to support growth by boosting oil production and exports and demand.Moving into 2025,RBC expects some of these tailwinds to slow down,but the continued use of new infrastructure,lower interest rates and strong inter-provincial migration will help Alberta maintain its momentum of grow

190、th at the forefront of Canadian provinces.For Saskatchewan,RBC remains optimistic and predicts its growth to accelerate by 1.9%,an upward revision from the previous estimate of 1.5%.The favorable revision is largely attributable to larger than anticipated interest rate cuts,alongside a modest pick-u

191、p in fertilizer prices and ongoing major construction projects that bode well for businesses.For British Columbia,RBC believes the province is set to rebound with growth reaching 1.5%in 2025,an upward revision from its original forecast of 0.9%.The stronger growth is attributed to falling interest r

192、ates that have helped the housing market activity to rebound,combined with a more favorable natural gas outlook.For Ontario and Quebec,RBC has placed both provinces near the bottom of its provincial growth ranking in 2025 at 1.2%growth for both.Although falling interest rates have brought on renewed

193、 activity in the housing markets and are projected to ease financial pressures for some,stricter than anticipated immigration targets and uncertainty from potential new or increased trade tariffs have limited provincial growth.On October 24,2024,the Government of Canada announced its 2025-2027 Immig

194、ration Levels Plan(“Immigration Levels Plan”)aimed at pausing short-term growth to enable sustainable long-term development and growth.This plan introduces controlled targets for both temporary residents,such as international students and foreign workers,and permanent residents.The Government of Can

195、ada acknowledged the vital role that immigration has had in the post-pandemic economic recovery but seeks to reduce pressure on housing,infrastructure,and social services.The Immigration Levels Plan is expected to result in a marginal population decline of 0.2%in both 2025 and 2026,before returning

196、to a population growth of 0.8%in 2027.The Immigration Levels Plan outlines a reduction to permanent resident targets from 500,000 permanent residents to 395,000 in 2025 and further down to 380,000 by 2026 and 365,000 in 2027,while temporary resident numbers are expected to drop significantly,in line

197、 with tightened eligibility criteria and caps.The Government of Canada expects that decreasing immigration levels should alleviate some pressure in the housing market,with an estimated reduction in the housing supply gap of approximately 670,000 units by the end of 2027.Management of the Trust is cu

198、rrently evaluating the impact of this recent announcement,acknowledging that although it will affect demand in the Trusts markets,the impact is expected to be somewhat mitigated by the fact that the majority of the Trusts portfolio is affordable housing in regions where demand remains strong relativ

199、e to other regions in Canada.Relative to other provinces,Alberta is expected to be less impacted by the new Immigration Levels Plan due to its strong interprovincial migration and lower concentration of non-permanent residents as a percentage of the population.When considering rent as compared to me

200、dian renter household income,the Trusts core,non-price controlled markets remain among the most affordable in the country,positioning the REIT for stable organic growth.Affordability remains integral to our rent growth thesis that we are well positioned within our core markets.Calgary ranked as the

201、fifth most liveable city in the world in the 2024 Economist Intelligence Units Global Liveability Index,taking Vancouvers spot who moved to number seven.In addition,Alberta was the fastest growing province in 2024,according to U-Hauls Growth Index report,and Calgary was the fastest-growing city for

202、the second year in a row.We continue to be in the right place at the right time.The real estate industry may also be negatively impacted by any tariffs,including those contemplated by the new United States administration,surtaxes or other restrictive trade measures or countermeasures affecting trade

203、 between Canada and the United States and specifically the goods and materials used in construction.While discussions regarding a potential economic arrangement between the United States and Canada are ongoing,there remains significant uncertainty regarding whether any restrictive trade measures or

204、countermeasures will ultimately be implemented.Such measures could result in,among other things,a high degree of both cost and price volatility and a relative weakening of the Canadian dollar.The Trust continues to monitor these developments closely,however,the measures implemented,if any,as well as

205、 their scope,impact and duration remain uncertain at this time.31BOARDWALK REIT|2024 ANNUAL REPORT31Boardwalks StrategyCommunity,Team,Performance.Boardwalk aims to be the first choice in multi-family apartment communities to work,invest and call home with our Boardwalk Family Forever.Driven by our d

206、ynamic culture and performance-focused team,Boardwalk is dedicated to creating the best multi-family communities across diverse,affordable,growing housing markets.This is our purpose:to build better communities,where love always lives.Boardwalk aims to deliver consistent,strong total unitholder retu

207、rn through operational excellence,innovation and strategic capital allocation.Our initiatives include strategic acquisitions in targeted,high-growth markets with limited price-controls,high-return new development,and dispositions of non-core assets and accretively redeploying capital.Our investment

208、principles prioritize sustainable,long-term growth in FFO and NAV per Unit.Please refer to the section titled“Presentation of Non-GAAP Measures”in this MD&A for more information on FFO and NAV.Built into this strategic plan is Boardwalks brand diversification through common area upgrades,building im

209、provements,and suite renovations to ensure long-term value for Unitholders and stakeholders.Strong rental apartment housing fundamentals in Boardwalks core markets,paired with the Trusts proven platform,positions Boardwalk for optimized cash flow growth.Management of the Trust believes that reinvest

210、ing maximum cash flow and maintaining a strong balance sheet enables the Trust to pursue external growth opportunities,develop communities in undersupplied markets,enhance value through capital investments,and,when appropriate,invest in our own portfolio through the purchase and cancellation of Trus

211、t Units through the REITs normal course issuer bid(“NCIB”)implemented in both 2024 and 2023.Management of the Trust continues to review all available options to provide the optimal return to Unitholders.Brand DiversificationThe medium to long-term goal of the Trust is to not only expand geographical

212、ly,but also diversify its product offering through its three distinct brands.The spectrum of rental housing in Canada has expanded over the last few years,with rental demand seen across the price spectrum from affordability to affordable high-end luxury.As a result,the ability to offer a more divers

213、e product offering will allow Boardwalk to attract a larger demographic to the Boardwalk brand.We believe that our success as a business is closely linked to the success of the communities in which we operate.We are committed to providing a place where our Resident Members can feel at home through o

214、ur multi-brand strategy and our community renovation programs.Our Multi-brand StrategyBoardwalk Lifestyle:Our refined Lifestyle communities go above and beyond to provide an elevated experience.Situated in central neighbourhoods,our buildings offer the perfect blend of elegance and convenience,grant

215、ing Resident Members access to the best shopping,dining,and entertainment options.Resident Members can immerse themselves in upscale amenities,including fully equipped fitness centres,inviting BBQ patios,spacious Wi-Fi lounges and multi-use community rooms.Boardwalk Communities:Our vibrant Boardwalk

216、 Communities provide our Resident Members with excitement and endless fun.These spacious and affordable homes are the perfect backdrop for unforgettable adventures and making lifelong memories.Resident Members are able to connect with neighbours at community events and find a community where they tr

217、uly belong.Boardwalk Living:The perfect home for our Resident Members stories.With a focus on exceptional security,customer service,and affordability,we aim to provide our Resident Members with a sense of belonging.At our Living communities,our Resident Members are cherished members of our family.45

218、%Communities7%Lifestyle48%Living3232Boardwalks Branding Initiative and Suite Renovation ProgramIn 2024,Boardwalk invested$133.4 million in capital assets(year ended December 31,2023$126.0 million),including$99.6 million in value-add capital($93.4 million in 2023),focusing on building improvements,en

219、ergy efficiency projects,upgrading common areas,and suite renovations.Please refer to the section titled“Financial Condition Review of Cash Flows Investing Activities Maintenance of Productive Capacity”in this MD&A for further discussion on value-add capital.Each of the three brands have different r

220、enovation specifications depending on needs and anticipated returns.Market rents are adjusted upward based on an expected rate of return on the strategic investment.Management of the Trust believes these renovations and upgrades will continue to achieve future upward excess market rent adjustments,i

221、ncreased occupancy,as well as cost savings on turnovers.Historic investment in our assets and brands has resulted in a diversified product mix to match varying demand while allowing us to gain and maintain market share with increasing choice for existing and new Resident Members.Boardwalks most affo

222、rdable brand,Boardwalk Living,receives suite enhancements on an as needed basis,with the focus being on providing affordable suites to this demographic segment.Boardwalk Communities,the Trusts core brand,conveys enhanced value and receives major suite upgrades based on need as well as upgrades to ex

223、isting common areas.Boardwalk Lifestyle,which exemplifies upgraded,luxury suites,receives the highest level of overall renovations,including significant upgrades to suites and common areas.Additional amenities such as upgraded fitness facilities,Wi-Fi lounges and concierge services may be added when

224、 appropriate.In determining a brand that a particular rental community will represent,the Trust looks at a number of criteria,including the buildings location,proximity to existing amenities,suite size,and suite layout.Once renovations are completed,Boardwalk adjusts the rents on these individual su

225、ites with the goal of achieving an 8%return on investment.Overall,Boardwalk has and continues to achieve more than its targeted rate of return.While management of the Trust believes these investments will enhance long-term value,we also recognize the short-term effects of this program,such as tempor

226、ary higher vacancies and incentives,though with the increase in apartment demand,this impact has been significantly reduced.Rebranding and repositioning communities will take time.Construction causes disruption to existing Resident Members and,depending on the level of investment,may result in highe

227、r turnover.Boardwalk continues to reduce the vacancy loss associated with suites being renovated by reducing the time to completion while still lowering the cost of the renovations.DECLARATION OF TRUSTThe investment guidelines and operating policies of the Trust are outlined in the DOT,a copy of whi

228、ch is available on request to all Unitholders and is also available under the REITs profile on www.sedarplus.ca.A more detailed summary of the DOT can also be located in the AIF.Some of the main financial guidelines and operating policies set out in the DOT are as follows:Investment Guidelines1.Acqu

229、ire,hold,develop,maintain,improve,lease,and manage multi-family residential properties and ancillary real estate ventures;and2.No investment will be made that would disqualify Boardwalk REIT as a“mutual fund trust”or a“registered investment”as defined in the Tax Act.Operating Policies1.Interest Cove

230、rage Ratio of at least 1.5 to 1;2.No guaranteeing of third-party debt unless related to direct or indirect ownership or acquisition of real property,including potential joint arrangement partner structures;3.Third-party surveys of structural and environmental conditions are required prior to the acq

231、uisition of a multi-family asset;and4.Commitment to expending at least 8.5%of its gross consolidated annual rental revenues generated from properties that have been insured by CMHC on on-site maintenance compensation to the employees of the Trust(“Associates”),repairs and maintenance,as well as capi

232、tal upgrades.33BOARDWALK REIT|2024 ANNUAL REPORT33Distribution PolicyBoardwalk REIT may distribute to holders of Trust Units and LP Class B Units on or about each distribution date such percentage of FFO for the calendar month then ended as the Trusts board of trustees(“Board of Trustees”)determines

233、 in its discretion.Distributions will not be less than Boardwalk REITs taxable income,unless the Board of Trustees,in its absolute discretion,determines another amount.The Board of Trustees reviews the distributions on a quarterly basis and takes into consideration distribution sustainability and wh

234、ether there are more attractive alternatives to the Trusts current capital allocation strategy,such as its value-add capital renovation program,brand diversification initiative,acquisitions and new construction of multi-family communities in supply-constrained markets.Compliance with DOTAs at Decemb

235、er 31,2024,the Trust was in compliance with all investment guidelines and operating policies as stipulated in the DOT.More details are provided later in this MD&A with respect to certain detailed calculations.For the year ended December 31,2024,Boardwalk REITs interest coverage ratio of consolidated

236、 EBITDA(i.e.Earnings Before Interest,Taxes,Depreciation and Amortization)to consolidated interest expense was 2.95(year ended December 31,2023 2.83).Further details of the Trusts interest coverage ratio can be found in NOTE 22 to the audited annual consolidated financial statements for the years end

237、ed December 31,2024 and 2023,which are available under the Trusts profile at www.sedarplus.ca.PRESENTATION OF FINANCIAL INFORMATIONFinancial results,including related historical comparatives,contained in this MD&A are based on the Trusts audited annual consolidated financial statements for the years

238、 ended December 31,2024 and 2023,unless otherwise specified.PRESENTATION OF NON-GAAP MEASURESNon-GAAP Financial MeasuresBoardwalk REIT prepares its consolidated financial statements in accordance with IFRS Accounting Standards and with the recommendations of REALPAC,Canadas senior national industry

239、association for owners and managers of investment real estate.REALPAC has adopted non-GAAP financial measures called FFO and Adjusted Funds From Operations(“AFFO”)to supplement operating income and profits as measures of operating performance,as well as a cash flow metric called Adjusted Cash Flow F

240、rom Operations(“ACFO”).These non-GAAP financial measures are considered to be meaningful and useful measures of real estate operating performance,however,are not measures defined by IFRS Accounting Standards.The discussion below outlines these measurements and the other non-GAAP financial measures u

241、sed by the Trust.Non-GAAP financial measures are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other entities.Non-GAAP financial measures should not be construed as alternatives to IFRS Accounting Standards

242、defined measures.Funds From OperationsThe IFRS Accounting Standards measurement most comparable to FFO is profit.Boardwalk REIT considers FFO to be an appropriate measurement of the performance of a publicly listed multi-family residential entity as it is the most widely used and reported measure of

243、 real estate investment trust performance.Profit includes items such as fair value changes of investment property that are subject to market conditions and capitalization rate fluctuations which are not representative of recurring operating performance.Consistent with REALPAC,we define FFO as profit

244、 adjusted for fair value gains or losses,distributions on the LP Class B Units,gains or losses on the sale of the Trusts investment properties,depreciation,deferred income tax,and certain other non-cash adjustments,if any,but after deducting the principal repayment on lease liabilities and adding th

245、e principal repayment on lease receivable.Management of the Trust believes that such income is volatile and unpredictable and would significantly dilute the relevance of FFO as a measure of performance.Excluding gains or losses in the calculation of FFO is consistent with the REALPAC definition of F

246、FO.Under IFRS Accounting Standards,the LP Class B Units are considered financial instruments in accordance with IFRS 9 Financial Instruments(“IFRS 9”).As a result of this classification,their corresponding distribution amounts are considered“financing costs”under IFRS Accounting Standards.REALPAC re

247、cognizes this classification,however,adds the distributions that were treated as an interest expense back when calculating FFO,which suggests these puttable instruments are similar to equity.Management of the Trust agrees these distribution payments,are similar to equity,as these amounts are only pa

248、yable if the Trust declares distributions,and only for the amount of any distributions declared,both of which are at the discretion of the Board of Trustees as outlined in the 3434DOT.Therefore,these distributions are excluded from the calculation of FFO,consistent with the treatment of distribution

249、s paid to all other Unitholders.The reconciliation from profit under IFRS Accounting Standards to FFO can be found under the section titled“Performance Review of 2024 FFO and AFFO Reconciliations”in this MD&A.The Trust uses FFO to assess operating performance and its distribution paying capacity,det

250、ermine the level of Associate incentive-based compensation,and decisions related to investment in capital assets.To facilitate a clear understanding of the combined historical operating results of Boardwalk REIT,management of the Trust believes FFO should be considered in conjunction with profit as

251、presented in the audited annual consolidated financial statements for the years ended December 31,2024 and 2023.Adjusted Funds From OperationsSimilar to FFO,the IFRS Accounting Standards measurement most comparable to AFFO is profit.Boardwalk REIT considers AFFO to be an appropriate measurement of a

252、 publicly listed multi-family residential entity as it measures the economic performance after deducting for maintenance capital expenditures to the existing portfolio of investment properties.AFFO is determined by taking the amounts reported as FFO and deducting what is commonly referred to as“Main

253、tenance Capital Expenditures”.Maintenance Capital Expenditures are expenditures that,by standard accounting definition,are accounted for as capital in that the expenditure itself has a useful life in excess of the current financial year and maintains the value of the related assets.The reconciliatio

254、n of AFFO can be found under the section titled“Performance Review of 2024 FFO and AFFO Reconciliations”in this MD&A.The Trust uses AFFO to assess operating performance and its distribution paying capacity,and decisions related to investment in capital assets.A more detailed discussion is provided u

255、nder the section titled“Financial Condition Review of Cash Flows Investing Activities Maintenance of Productive Capacity”in this MD&A.Adjusted Cash Flow From OperationsThe IFRS Accounting Standards measurement most comparable to ACFO is cash flow from operating activities.ACFO is a non-GAAP financia

256、l measure of sustainable economic cash flow available for distributions.ACFO should not be construed as an alternative to cash flow from operating activities as determined under IFRS Accounting Standards.A reconciliation of ACFO to cash flow from operating activities as shown in the Trusts Consolida

257、ted Statements of Cash Flows is also provided under the section titled“Financial Condition Review of Cash Flows Operating Activities”in this MD&A,along with added commentary on the sustainability of Trust Unit distributions.The Trust uses ACFO to assess its distribution paying capacity.Boardwalk REI

258、Ts presentation of FFO,AFFO,and ACFO are materially consistent with the definitions provided by REALPAC.These measurements,however,are not necessarily indicative of cash that is available to fund cash needs and should not be considered alternatives to cash flow as a measure of liquidity.FFO,AFFO,and

259、 ACFO do not represent earnings or cash flow from operating activities as defined by IFRS Accounting Standards.FFO and AFFO should not be construed as an alternative to profit determined in accordance with IFRS Accounting Standards as indicators of Boardwalk REITs performance.In addition,Boardwalk R

260、EITs calculation methodology for FFO,AFFO,and ACFO may differ from that of other real estate companies and trusts.Adjusted Real Estate AssetsThe IFRS Accounting Standards measurement most comparable to Adjusted Real Estate Assets is investment properties.Adjusted Real Estate Assets is comprised of i

261、nvestment properties,equity accounted investment,investment properties related to assets held for sale,loan receivable,and cash and cash equivalents.Adjusted Real Estate Assets is useful in summarizing the real estate assets owned by the Trust and it is used in the calculation of NAV,which managemen

262、t of the Trust believes is a useful measure in estimating the entitys value.The reconciliation from Investment Properties under IFRS Accounting Standards to Adjusted Real Estate Assets can be found under the section titled“Capital Structure and Liquidity Net Asset Value Per Unit”in this MD&A.Adjuste

263、d Real Estate DebtThe IFRS Accounting Standards measurement most comparable to Adjusted Real Estate Debt is total mortgage principal outstanding.Adjusted Real Estate Debt is comprised of total mortgage principal outstanding,mortgages payable related to assets held for sale,total lease liabilities at

264、tributable to land leases,and construction loan payable.It is useful in summarizing the Trusts debt which is attributable to its real estate assets and is used in the calculation of NAV,which management of the Trust believes is a useful measure in estimating the entitys value.The reconciliation from

265、 total mortgage principal outstanding under IFRS Accounting Standards to Adjusted Real Estate Debt can be found under the section titled“Capital Structure and Liquidity Net Asset Value per Unit”in this MD&A.35BOARDWALK REIT|2024 ANNUAL REPORT35Adjusted Real Estate Debt,net of CashAdjusted Real Estat

266、e Debt,net of Cash,is most directly comparable to the IFRS Accounting Standards measure of total mortgage principal outstanding.Adjusted Real Estate Debt,net of Cash is comprised of the sum of total mortgage principal outstanding,mortgages payable related to assets held for sale,total lease liabilit

267、ies attributable to land leases,and construction loan payable,then reduced by cash and cash equivalents.It is useful in summarizing the Trusts debt which is attributable to its real estate assets and is used in the calculation of Debt to EBITDA.Net Asset ValueThe IFRS Accounting Standards measuremen

268、t most comparable to NAV is Unitholders Equity.With real estate entities,NAV is the total value of the entitys investment properties,equity accounted investment,investment properties related to assets held for sale,loan receivable,and cash and cash equivalents minus the total value of the entitys de

269、bt.The Trust determines NAV by taking Adjusted Real Estate Assets and subtracting Adjusted Real Estate Debt,which management of the Trust believes is a useful measure in estimating the entitys value.The reconciliation from Unitholders Equity under IFRS Accounting Standards to NAV can be found under

270、the section titled“Capital Structure and Liquidity Net Asset Value per Unit”in this MD&A.Non-GAAP RatiosThe discussion below outlines the non-GAAP ratios used by the Trust.Each non-GAAP ratio has a non-GAAP financial measure as one or more of its components,and,as a result,does not have a standardiz

271、ed meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar financial measurements presented by other entities.Non-GAAP financial measures should not be construed as alternatives to IFRS Accounting Standards defined measures.FFO per Unit,AFFO per Unit,ACFO per U

272、nit,and NAV per UnitFFO per Unit includes the non-GAAP financial measure FFO as a component in the calculation.The Trust uses FFO per Unit to assess operating performance on a per Unit basis,as well as determining the level of Associate incentive-based compensation.AFFO per Unit includes the non-GAA

273、P financial measure AFFO as a component in the calculation.The Trust uses AFFO per Unit to assess operating performance on a per Unit basis and its distribution paying capacity.ACFO per Unit includes the non-GAAP financial measure ACFO as a component in the calculation.The Trust uses ACFO per Unit t

274、o assess its distribution paying capacity.FFO per Unit,AFFO per Unit,and ACFO per Unit are calculated by taking the non-GAAP ratios corresponding non-GAAP financial measure and dividing by the weighted average Trust Units outstanding for the period on a fully diluted basis,which assumes conversion o

275、f the LP Class B Units and vested deferred units determined in the calculation of diluted per Trust Unit amounts in accordance with IFRS Accounting Standards.NAV per Unit includes the non-GAAP financial measure NAV as a component in the calculation.Management of the Trust believes it is a useful mea

276、sure in estimating the entitys value on a per Unit basis,which an investor can compare to the entitys Trust Unit price which is publicly traded to help with investment decisions.NAV per Unit is calculated as NAV divided by the Trust Units outstanding as at the reporting date on a fully diluted basis

277、 which assumes conversion of the LP Class B Units and vested deferred units outstanding.Debt to EBITDADebt to EBITDA is calculated by dividing Adjusted Real Estate Debt,net of Cash by consolidated EBITDA.The Trust uses Debt to EBITDA to understand its capacity to pay off its debt.Debt to Total Asset

278、sDebt to Total Assets is calculated by dividing Adjusted Real Estate Debt by Total Assets.The Trust uses Debt to Total Assets to determine the proportion of assets which are financed by debt.3636FFO per Unit Future Financial GuidanceFFO per Unit Future Financial Guidance is calculated as FFO Future

279、Financial Guidance divided by the estimated weighted average Trust Units and LP Class B Units outstanding throughout the year.Boardwalk REIT considers FFO per Unit Future Financial Guidance to be an appropriate measurement of the estimated future financial performance based on information currently

280、available to management of the Trust at the date of this MD&A.AFFO per Unit Future Financial GuidanceAFFO per Unit Future Financial Guidance is calculated as AFFO Future Financial Guidance divided by the estimated weighted average Trust Units and LP Class B Units outstanding throughout the year.Boar

281、dwalk REIT considers AFFO per Unit Future Financial Guidance to be an appropriate measurement of the estimated future profitability based on information currently available to management of the Trust at the date of this MD&A.FFO Payout Ratio,AFFO Payout Ratio,and ACFO Payout RatioFFO Payout Ratio,AF

282、FO Payout Ratio,and ACFO Payout Ratio represent the REITs ability to pay distributions.These non-GAAP ratios are computed by dividing regular distributions paid on the Trust Units and LP Class B Units by the non-GAAP financial measure of FFO,AFFO,and ACFO,respectively.Management of the Trust use the

283、se non-GAAP ratios to assess its distribution paying capacity.PERFORMANCE REVIEW OF 2024Boardwalk REIT generates revenues,cash flows,and earnings from two separate sources:primarily rental operations and also the sale of“non-core”real estate properties.Boardwalk REITs most consistent and largest sou

284、rce of income comes from its rental operations.Income from this source is derived from leasing individual suites to customers(referred to as“Resident Members”).Periodically,Boardwalk REIT has generated additional income from the sale of selective non-core real estate properties and utilized the equi

285、ty for the acquisition and/or development of new rental properties and/or for the purchase for cancellation of Trust Units pursuant to its NCIB.The Trust,however,will only proceed with the sale of non-core real estate properties if market conditions justify the dispositions and Boardwalk has an alte

286、rnative use for the net proceeds generated.Performance MeasuresThe Trust intends to continue to pay out,at a minimum,all taxable income to Unitholders in the form of monthly distributions,unless the Board of Trustees,in its absolute discretion,determines a different amount.For 2024,the Board of Trus

287、tees approved an increase to the distribution to$0.1200 per Trust Unit on a monthly basis(or$1.44 on an annualized basis)beginning March 2024.This was an increase of$0.0225 per Trust Unit from the monthly$0.0975 per Trust Unit distributed for January and February 2024.The Trust intends to continue t

288、o redeploy its capital towards long-term value creation,including its suite renovation program,brand diversification initiative,and acquisition and development of new multi-family suites in supply-constrained markets.For the three months and year ended December 31,2024 and 2023,the Trust declared re

289、gular distributions of$19.3 million and$75.1 million(inclusive of distributions paid to holders of the LP Class B Units),respectively(three months and year ended December 31,2023$15.0 million and$58.3 million,respectively),and recorded profit of$65.9 million and$588.2 million,respectively(three mont

290、hs and year ended December 31,2023$173.1 million and$666.1 million,respectively).The FFO Payout Ratio for the three months ended December 31,2024,was 33.1%(three months ended December 31,2023 30.8%).For the year ended December 31,2024,the FFO Payout Ratio was 33.3%(year ended December 31,2023 32.2%)

291、.Please refer to the section titled“Presentation of Non-GAAP Measures”in this MD&A for more information on FFO Payout Ratio.The overall operating performance of the first and fourth quarters tends to generate the highest payout ratio,mainly due to the high seasonality in total rental expenses.In par

292、ticular,these quarters tend to be the highest demand periods for natural gas,a major operational cost for the Trust.It is therefore,important to not simply annualize the reported results of a particular quarter.On a quarterly basis,the Board of Trustees reviews the current level of distributions and

293、 determines if any adjustments to the distributed amount is warranted.On an overall basis,the Trust aims to maintain a consistent and sustainable payout ratio while optimizing its capital allocation strategy,and reviews this with its Board of Trustees.37BOARDWALK REIT|2024 ANNUAL REPORT37FFO per Uni

294、t Reconciliations from 2023 to 2024The following tables show reconciliations of changes in FFO per Unit from December 31,2023,to December 31,2024.As previously noted,we define the calculation of FFO as profit before fair value adjustments,distributions on the LP Class B Units,gains or losses on the

295、sale of the Trusts investment properties,depreciation,deferred income taxes,and certain other non-cash items.A more detailed disclosure of the calculation of FFO is included later in this MD&A.FFO per Unit Reconciliation3 Months12 MonthsFFO per Unit(1)Dec.31,2023$0.96$3.60Same Property Net Operating

296、 Income(“NOI”)(2)0.190.85Non-same Property NOI(2)0.050.12Administration(0.04)(0.13)Financing Costs(0.03)(0.19)Interest Income0.020.18Unit Issuance(0.07)(0.25)FFO per Unit Dec.31,2024$1.08$4.18(1)Please refer to the section titled“Presentation of Non-GAAP Measures”in this MD&A for more information.(2

297、)The definition of same property and non-same property can be found in the section titled“Same Property Results”in this MD&A.FFO and AFFO ReconciliationsIn the following table,Boardwalk REIT provides a reconciliation of FFO to Profit,the most comparable related financial statement measurement,for th

298、e three and 12 months ended December 31,2024 and 2023.Adjustments are explained in the notes below,as appropriate.FFO Reconciliation(In$000s,except per Unit amounts)3 Months Dec.31,2024 3 Months Dec.31,2023%Change 12 Months Dec.31,2024 12 Months Dec.31,2023%ChangeProfit$65,924$173,130$588,218$666,09

299、9Adjustments Other income(1)-(68)-(886)Loss on sale of asset-928-928 Fair value losses(gains),net3,357(127,849)(359,888)(494,877)Fair value gain from equity accounted investment(13,830)-(13,830)-LP Class B Unit distributions1,6031,3096,2355,169 Deferred tax(recovery)expense(12)67075 Depreciation2,32

300、72,2448,3187,921 Principal repayments on lease liabilities(826)(803)(3,275)(3,397)Principal repayments on lease receivable-321FFO(2)(3)$58,543$48,89719.7%$225,848$181,35324.5%FFO per Unit(3)$1.08$0.9612.5%$4.18$3.6016.1%(1)Other income is comprised of capital gains from investment income.(2)This is

301、a non-GAAP financial measure.(3)Please refer to the section titled“Presentation of Non-GAAP Measures”in this MD&A for more information.3838The following table is the calculation of the fully diluted weighted average Trust Units used to calculate the FFO per Unit,AFFO per Unit,and ACFO per Unit amoun

302、ts within this MD&A and includes all items that can be convertible into Trust Units.Fully Diluted Trust Units 3 Months Dec.31,2024 3 Months Dec.31,2023 12 Months Dec.31,2024 12 Months Dec.31,2023Weighted average Trust Units outstanding basic49,415,84046,123,26949,403,96745,824,819Conversion of LP Cl

303、ass B Units4,469,1304,475,0004,473,5254,475,000Unexercised vested deferred units109,46778,829107,06865,330Weighted average Trust Units outstanding fully diluted53,994,43750,677,09853,984,56050,365,149Profit for the fourth quarter of 2024 was$65.9 million compared to a profit of$173.1 million in the

304、fourth quarter of 2023.Profit for the year ended December 31,2024,was$588.2 million,compared to profit of$666.1 million in the prior year.The decrease in profit for the three months and year ended December 31,2024,compared to the same periods in the prior year,is mainly attributable to the fair valu

305、e loss that was recognized on investment properties during the fourth quarter of 2024 compared to the fair value gain recognized in the same period in the prior year.The fair value loss recognized in the fourth quarter of 2024 was a result of new supply entering select markets within the portfolio t

306、hat resulted in increased competition and vacancy,particularly for product at the higher price point.Also contributing to the fair value loss was higher property operating costs as the Trust transitions into its upcoming year budget,as is customary every fourth quarter,where the Trust incorporated i

307、ts 2025 budgeted amounts for property operating costs when determining the forecasted stabilized NOI for the Trusts internal valuation.Throughout 2024,the economy has shown modest growth as well as continued immigration for most of the year,which has allowed market rents to increase and flatten towa

308、rds the end of the year.The weighted average capitalization rates for the Trust were 5.12%and 5.05%as at December 31,2024 and 2023,respectively.For more information on the Trusts capitalization rates,please refer to the section titled“Financial Condition Review of Cash Flows Investing Activities Inv

309、estment Properties”in this MD&A.Overall,Boardwalk REIT earned FFO of$58.5 million for the fourth quarter of 2024 compared to$48.9 million for the same period in 2023.FFO,on a per Unit basis,for the quarter ended December 31,2024,increased approximately 12.5%compared to the same quarter in the prior

310、year from$0.96 to$1.08.Additionally,the Trust earned FFO of$225.8 million for fiscal 2024 compared to$181.4 million for fiscal 2023.FFO per Unit for the year ended December 31,2024,increased approximately 16.1%compared to the prior year from$3.60 to$4.18.The increase for the three and 12 months ende

311、d December 31,2024,was primarily driven by higher occupied rents,lower incentives,and higher interest income,partially offset by an increase in total rental expenses,financing costs,administration,and deferred unit-based compensation.The following table provides a reconciliation of FFO to AFFO:(000s

312、)3 Months Dec.31,2024 3 Months Dec.31,2023 12 Months Dec.31,2024 12 Months Dec.31,2023FFO(1)(2)$58,543$48,897$225,848$181,353Maintenance Capital Expenditures(3)7,7328,65133,57532,255AFFO(1)(2)$50,811$40,246$192,273$149,098FFO per Unit(2)$1.08$0.96$4.18$3.60AFFO per Unit(2)$0.94$0.79$3.56$2.96Regular

313、 Distributions$19,390$15,041$75,152$58,338FFO Payout Ratio(2)33.1%30.8%33.3%32.2%AFFO Payout Ratio(2)38.2%37.4%39.1%39.1%Profit$65,924$173,130$588,218$666,099(1)This is a non-GAAP financial measure.(2)Please refer to the section titled“Presentation of Non-GAAP Measures”in this MD&A for more informat

314、ion.(3)Details of the calculation of Maintenance Capital Expenditures can be found in the section titled“Financial Condition Review of Cash Flows Investing Activities Value-add Capital and Maintenance Capital Expenditures”in this MD&A.39BOARDWALK REIT|2024 ANNUAL REPORT39FINANCIAL PERFORMANCE SUMMAR

315、YAt a Glance(In$000s,except per Unit amounts)20242023%ChangeTotal assets$8,626,490$8,141,8766.0%Rental revenue$603,293$545,65810.6%NOI$382,334$332,98914.8%Profit$588,218$666,099(11.7)%FFO(1)(2)$225,848$181,35324.5%FFO per Unit(2)$4.18$3.6016.1%(1)This is a non-GAAP financial measure.(2)Please refer

316、to the section titled“Presentation of Non-GAAP Measures”in this MD&A for more information.Total assets increased from the amounts reported in the prior year,mainly as a result of fair value gains and investment in capital assets on the Trusts investment properties,new investment property acquisition

317、s that occurred in 2024,and the loan receivable to the joint venture,partially offset by a decrease in cash and cash equivalents.Rental revenue increased by 10.6%,due to higher in-place occupied rents across all regions and lower incentives in Alberta and Saskatchewan.The decrease in profit compared

318、 to the prior year was due to the decrease in fair value gains recognized in the current year and higher expenses attributable to total rental expenses,financing costs,administration,and deferred unit based compensation,partially offset by increases in rental revenue and interest income.Consolidated

319、 Operations and Earnings ReviewOVERALL REVIEWConsolidated Statements of Comprehensive IncomeRental OperationsBoardwalk REITs NOI strategy includes a rental revenue strategy that focuses on enhancing overall rental revenues by balancing market rents,rental incentives,turnovers,and occupancy gains.The

320、 application of this rental revenue strategy is ongoing,on a market-by-market basis,with the focus on obtaining the optimal balance of these variables given existing market conditions.In addition,the NOI strategy focuses on minimizing expenses.(In$000s,except number of suites)3 Months Dec.31,2024 3

321、Months Dec.31,2023%Change 12 Months Dec.31,2024 12 Months Dec.31,2023%ChangeRental revenue$155,565$141,9079.6%$603,293$545,65810.6%Expenses Operating expenses27,48426,3674.2%109,617106,1903.2%Utilities14,91613,8727.5%55,96953,3924.8%Property taxes14,13013,7203.0%55,37353,0874.3%Total rental expenses

322、$56,530$53,9594.8%$220,959$212,6693.9%Net operating income$99,035$87,94812.6%$382,334$332,98914.8%Operating margin(1)63.7%62.0%63.4%61.0%Number of suites at December 31(2)34,22233,84634,22233,846(1)Operating margin is calculated by dividing NOI by rental revenue allowing management to assess the per

323、centage of rental revenue which generated profit.(2)Excludes 183 suites related to the Trusts joint venture in Brampton,Ontario.4040(In$000s,except number of suites)3 Months Dec.31,2024 3 Months Dec.31,2023%Change 12 Months Dec.31,2024 12 Months Dec.31,2023%ChangeGross rental revenue(1)$160,482$146,

324、4689.6%$620,845$570,7038.8%Vacancy loss(2)(2,929)(1,320)121.9%(8,280)(7,397)11.9%Incentives(3)(1,988)(3,241)(38.7)%(9,272)(17,648)(47.5)%Rental revenue$155,565$141,9079.6%$603,293$545,65810.6%(1)Gross rental revenue is a component of rental revenue and represents rental revenue based on 100%occupanc

325、y before adjustments for vacancy loss and incentives.(2)Vacancy loss is a component of rental revenue and represents the estimated loss of gross rental revenue from unoccupied suites during the period.(3)Incentives is a component of rental revenue and represents any suite specific rental discount of

326、fered or initial direct costs incurred in negotiating and arranging an operating lease amortized over the term of the operating lease.Boardwalk REITs rental operations for the three and 12 months ended December 31,2024,reported higher results compared to the same periods in the prior year,with renta

327、l revenue increasing 9.6%and 10.6%,respectively.For the three and 12 months ended December 31,2024,the increase in rental revenue was due to higher in-place occupied rents,lower incentives,as well as the acquisitions in Alberta in January,June,and November 2024.As outlined in the table above,althoug

328、h vacancy loss increased by 11.9%,the Trust was able to reduce incentives by 47.5%year-over-year.The Trust intends to continue to offer selective incentives in certain communities to maintain occupancy levels,with an overall goal of limiting incentives on new leases and decreasing incentives altoget

329、her.For the three and 12 months ended December 31,2024,total rental expenses increased by 4.8%and 3.9%,respectively,compared to the same periods in 2023 due to higher operating expenses,utilities,and property taxes.The Trust continues to track,in detail,the actual work performed by our onsite Associ

330、ates to assist in the operating effectiveness of its overall operations.This program results in overall lower costs while allowing the Trust greater control over the timing of its capital improvement projects,compared to contracting these same projects out to third parties.The Trust has been able to

331、 utilize our Associates to maintain quality customer services as well as to continue normal operations for both our repairs and maintenance as well as capital improvement projects.As with other estimates used by the Trust,key assumptions used in estimating the salaries and wages to be capitalized ar

332、e reviewed on a regular basis and,based on this review,management of the Trust will adjust the amount allocated to more accurately reflect how many internal resources were directed towards specific capital improvements.For the three months ended December 31,2024,operating expenses increased 4.2%comp

333、ared to the same period in the prior year due to higher wages and salaries and higher building repairs and maintenance,partially offset by lower insurance premiums upon renewal in July 2024.For the year ended December 31,2024 operating expenses increased 3.2%compared to the prior year due to higher wages and salaries and building repairs and maintenance,partially offset by lower bad debts expense,