CALGARY, AB, December 21, 2021 / CNW / – Boardwalk Real Estate Investment Trust (TSX: BEI.UN)
Boardwalk Real Estate Investment Trust (“Boardwalk”, the “REIT” or the “Trust”) announces that the December 15, 2021, the Trust closed on the sale of a non-core asset of 180 units in Saskatoon, Saskatchewan. Reid Park is a 3 story wood-frame elevator-free community located in the southwest of Saskatoon. The selling price of $ 25.0 million, Where $ 138,800 per apartment door, was in accordance with the IFRS fair value of the Trust’s assets.
Throughout fiscal 2021, the Trust sold non-core assets at the Trust’s IFRS fair value or above while continuing to increase its funds from operations (FFOs). This continued growth of FFOs, combined with Boardwalk’s minimum distribution policy, resulted in estimated total taxable income for fiscal 2021 (representing capital gains and other income) in excess of distributions paid.
Boardwalk further announces that it has declared a special non-cash distribution of $ 0.325 per trust unit, payable on December 31, 2021 to unitholders of record at the close of business on December 31, 2021 (the “Special Distribution”). The special non-cash distribution is primarily intended to distribute to unitholders a portion of the capital gain realized by the Trust on transactions entered into during the twelve month period ended. the 31st of December, 2021. Therefore, the special distribution will take the form of a capital gain for Canadian income tax purposes.
Canadian resident Unitholders will generally be required to include their pro rata share of the income and net taxable capital gain of the Trust for the 2021 taxation year, as allocated and designated by the Trust, in the calculation. of their respective income for the 2021 tax year. Subject to finalization, the Trust expects that after the special non-cash distribution, unitholder tax payable on distributions in 2021 is expected to be comparable to the tax paid on distributions in 2020.
The special non-cash distribution will be paid at the close of business on December 31, 2021 by issuing additional trust units which will have a fair market value equal to the dollar amount of the special distribution and which will be based on the closing price of the trust units on the Toronto Stock Exchange on the 31st of December, 2021. Immediately after the payment of the special distribution, the issued and outstanding trust units will be consolidated such that the total number of issued and outstanding trust units immediately after the special distribution will be the same as immediately before the distribution. special. The amount of the special distribution will increase the adjusted cost base of unitholders’ consolidated trust units. Unitholders who are not residents of Canada for Canadian federal income tax purposes may be subject to applicable withholding taxes in connection with the payment of the special distribution.
The Trust cautions that the foregoing comments are not intended to be, and should not be construed as, legal or tax advice to any Unitholder. The Trust recommends that Unitholders consult their own tax advisers with respect to the tax consequences to them of this planned special distribution and the related consolidation of Units.
NON-GAAP FINANCIAL MEASURES
Boardwalk believes that non-GAAP financial measures are meaningful and useful measures of the operational performance of real estate organizations, but are not measures defined by IFRS. As they do not have a standardized meaning prescribed by IFRS, they may therefore not be comparable to similar measures presented by other entities and should not be interpreted as an alternative to measures defined by IFRS. The most comparable IFRS measure to FFOs is profit (loss). We define FFOs as income before fair value adjustments, distributions on Class B limited partnership units, gains or losses on the sale of the Trust’s investment properties, depreciation, amortization, deferred income tax and certain other non-cash adjustments, if applicable, but after deducting principal from rental debts and adding principal from rental receivables. The reconciliation between IFRS profit (loss) and cash flow from operations can be found in the REIT’s MD&A for the three and nine months ended. September 30, 2021 (the “MD&A”) under the section entitled “Performance Review – FFO and AFFO Reconciliations”. Boardwalk views FFOs as an appropriate measure of the performance of a publicly traded multi-family residential entity. In order to facilitate a clear understanding of Boardwalk’s combined historical operating results, management believes that cash flows from operations should be considered in conjunction with profit (loss) as presented in the interim consolidated financial statements. summaries for the three and nine months ended September 30, 2021.
This press release contains certain forward-looking statements. The use of any of the words “expect”, “anticipate”, “may”, “will”, “should”, “believe”, “intention” and similar expressions are intended to identify statements prospective. Forward-looking statements contained in this press release include our continued growth of FFOs, that estimated total taxable profit for fiscal 2021 will exceed distributions paid, as well as the anticipated special distribution, including the timing of its payment and its processing. tax.
With respect to the forward-looking statements contained in this press release, we have made several assumptions, including expected total taxable profit for 2021, the continued growth of FFOs and those described in detail in our MD&A and Annual Information Form for the Company. period closed. December 31, 2020. Readers and investors are cautioned that the assumptions used in the preparation of these forward-looking statements, although believed to be reasonable at the time of preparation, may prove to be imprecise and, as such, one should not place undue reliance on forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed or implied by these forward-looking statements. We cannot guarantee that any of the anticipated events will or will occur, or if any of them do, what benefit we will derive from them.
By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control, including the impact of general economic conditions, industry conditions, volatility in commodity prices and the stock market volatility. The foregoing and other risks are described in more detail in the REIT’s MD&A and in the Annual Information Form for the period ended. December 31, 2020, each of which is available at www.sedar.com.
In addition, any forward-looking statements are made only as of the date of this press release, and the REIT does not undertake to update or revise any forward-looking statements or statements to reflect events or circumstances after the release. date on which such statement is made or to reflect the occurrence of unforeseen events, except as required by applicable securities laws. New factors emerge from time to time and it is not possible for the REIT to predict all of these factors or to assess in advance the impact of each of these factors on the REIT’s business or the extent to which one factor, or a combination of factors, can cause actual results to differ materially from those contained in forward-looking statements.
The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Boardwalk REIT strives to be from Canada the friendliest multi-family community provider and is a leading owner / operator of multi-family rental communities. Providing homes in over 200 communities, with over 33,000 residential units totaling over 28 million net rentable square feet, Boardwalk has a long-term track record of building better communities where love still livestm. Our distinct three-tiered brands: Boardwalk Living, Boardwalk Communities and Boardwalk Lifestyle, cater to a large and diverse population and have evolved to capture the lifecycle of all resident members. Boardwalk’s disciplined approach to capital allocation, acquisition, development, targeted repositioning and management of apartment communities enables the Trust to deliver its community brand through Canada create exceptional experiences for resident members. Differentiated by its cutting-edge performance culture, Boardwalk is committed to providing 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 free cash flow and higher returns on investment, stable monthly distributions and value creation for all of our stakeholders.
Units of Boardwalk REIT Trust are listed on the Toronto Stock Exchange and trade under the symbol BEI.UN. Additional information about Boardwalk REIT is available on the Trust’s website at www.bwalk.com/investisseurs.
Boardwalk SOURCE Real Estate Investment Trust
For further information: Boardwalk REIT: Investor Relations, (403) 531-9255, [email protected]