Boardwalk REIT Announces Solid Second Quarter Financial Results; FFO Per Unit up 16.7% and DI Per Unit up 14.8% YOY; and Maintains Monthly Per Unit Distributions for August, September and October 2009

    CALGARY, Aug. 14 /CNW/ - Boardwalk Real Estate Investment Trust ("BEI.UN"
- TSX) - Boardwalk Real Estate Investment Trust ("Boardwalk", "Boardwalk REIT"
or the "Trust") today announced solid financial results for the second quarter
of 2009; Funds From Operations ("FFO") per unit up 16.7% and Distributable
Income ("DI") per unit up 14.8% YOY; and its August, September and October
2009 Distribution. FFO and DI are non-GAAP measures; the reconciliation to Net
Earnings and Total Operating Cash Flows, respectively, can be found in the
Management's Discussion and Analysis (MD&A) for the second quarter and for the
first half of 2009 ended June 30, 2009, under the section titled, "Performance
    For the second quarter ended June 30, 2009, the Trust reported FFO of
$36.8 million and FFO per unit of $0.70 on a diluted basis, compared to FFO of
$32.9 million and FFO per unit of $0.60 for the same period last year. DI for
the quarter was $37.2 million and DI per unit was $0.70 on a diluted basis,
compared to $33.2 million and $0.61 per unit for the same period last year.

    Additional Information

    A more detailed analysis is included in the Management's Discussion and
Analysis and Consolidated Financial Statements, which have been filed on SEDAR
and can be viewed at or on the Trust's website at

    $ million, except per unit amounts
       Highlights of the Trust's Second Quarter 2009 Financial Results
                                               Three       Three
                                              Months      Months
                                            Jun 2009    Jun 2008    % Change

    Rental Revenue                            $107.5      $105.2        2.2%

    Net Operating Income (NOI)                 $72.6       $66.6        8.9%

    Funds From Operations (FFO)                $36.8       $32.9       12.0%

    FFO Per Unit                               $0.70       $0.60       16.7%

    Adjusted Funds from Operations
     (AFFO) Per Unit                           $0.62       $0.53       17.0%

    Distributable Income (DI)                  $37.2       $33.2       11.9%

    DI Per Unit                                $0.70       $0.61       14.8%

    Distributions Declared                     $23.8       $24.7

    Distributions Declared Per Unit            $0.45       $0.45

    (2009 Target $1.80 Per Unit
     on an annualized basis)

    Payout as a % DI                           64.1%       74.2%

    For further detail, please refer to pages 10 & 11 of the MD&A.

              Portfolio Highlights for the Second Quarter 2009
                                            Jun 2009    Dec 2008    Jun 2008

    Average Vacancy (3 Months)                 5.12%       4.68%       4.74%

    Average Monthly Rent (3 Months)             $978        $978        $955

    Average Market Rent (Period Ended)        $1,011      $1,047      $1,068

    Average Occupied Rent (Period Ended)      $1,029      $1,028      $1,008

    Loss-to-Lease ($ million) (Period Ended)   ($7.2)       $8.0       $25.2

    Loss-to-Lease Per Trust Unit
     (Period Ended)                           ($0.14)      $0.15       $0.46

    Debt-to-GBV ("Gross Book Value")
     (Period Ended)                            61.4%       60.5%

                                            % Change
    Same Property Results (3 Months)       Over-Year

    Rental Revenue                              2.2%

    Operating Costs                           -11.7%

    Net Operating Income (NOI)                 10.1%

    For further details, please refer to pages 15-18 & 24 of the MD&A.

    Sequential Revenue Analysis

                                    Q2 2009    Q1 2009    Q4 2008    Q3 2008
    Stabilized            No. of     vs. Q1     vs. Q4     vs. Q3     vs. Q2
     Revenue Growth        Units       2009       2008       2008       2008
    Calgary                4,973      -0.7%      -1.3%      -0.9%       1.3%
    Edmonton              11,825      -1.2%       0.4%      -1.0%       3.5%
    Other Alberta          2,203      -1.6%       0.7%       1.0%       0.3%
    British Columbia         954      -0.2%      -0.8%       2.0%       1.2%
    Ontario                4,265       0.0%       0.3%       0.0%      -1.2%
    Quebec                 6,756       0.7%      -0.2%      -0.5%       2.2%
    Saskatchewan           4,660       3.2%       1.5%       2.8%       5.7%
                          35,636      -0.2%       0.1%      -0.1%       2.4%

    On a sequential basis, stabilized revenues decreased 0.2% from Q1 2009 to
Q2 2009, increased 0.1% from Q4 2008 to Q1 2009, decreased 0.1% from Q3 2008
to Q4 2008, and increased 2.4% from Q2 2008 to Q3 2008.

    Market Fundamentals From Across Canada:

    Unemployment, Migration and Wages

                                     Market Fundamentals
                          BC                Alberta          Saskatchewan
                          --                -------          ------------
                  Jul 2009  Jul 2008  Jul 2009  Jul 2008  Jul 2009  Jul 2008

     Rate             7.8%      4.4%      7.2%      3.6%      4.7%      4.4%

                   Q1 2009   Q1 2008   Q1 2009   Q1 2008   Q1 2009   Q1 2008

    Net Inter-
     Migration         -16     1,844     7,144     2,761       545     1,439

    Net Inter-
     Migration      12,911    11,422     8,801     8,136     1,964     1,194

    Total Net
     Migration      12,895    13,266    15,945    10,897     2,509     2,633

                  May 2008  May 2007  May 2008  May 2007  May 2008  May 2007
                        to        to        to        to        to        to
                  May 2009  May 2008  May 2009  May 2008  May 2009  May 2008

    Average Weekly
     Wages Growth     1.4%      3.1%      5.5%      5.4%      3.7%      5.0%

                            Market Fundamentals
                        Ontario             Quebec
                        -------             ------
                  Jul 2009  Jul 2008  Jul 2009  Jul 2008

     Rate             9.3%      6.4%      9.0%      7.4%

                   Q1 2009   Q1 2008   Q1 2009   Q1 2008

    Net Inter-
     Migration      -5,015    -4,020    -2,016    -1,772

    Net Inter-
     Migration      24,186    24,958    13,027    10,079

    Total Net
     Migration      19,171    20,938    11,011     8,307

                  May 2008  May 2007  May 2008  May 2007
                        to        to        to        to
                  May 2009  May 2008  May 2009  May 2008

    Average Weekly
     Wages Growth     1.3%      2.6%     -0.8%      2.6%

    Source: Statistics Canada

    Western Canada:

    Alberta continued to see an increase in unemployment, reaching 7.2% in
July, and posted a loss of 3,700 jobs. Despite this, the province retained the
third lowest unemployment rate in the country, behind Manitoba and
Saskatchewan. The most recent migration numbers show interprovincial migration
to the province remained strong in the first quarter and Alberta had the
highest population growth rate out of all the provinces. As of June, oil sands
investment was estimated at $136 billion, down from the previous quarter, a
partial result of falling energy prices. Imperial Oil commenced with the first
phase of the Kearl project, and has so far spent $800 million of the $8
billion to be invested in the project. The first phase is expected to create
3,000 jobs in the province. With shareholders approving a $22.5 billion merger
in the second quarter, Petro-Canada and Suncor will become the largest energy
provider in Canada and the fifth-largest in North America, although layoffs
have begun on both sides as the companies streamline operations. Shell Oil is
also expected to complete the expansion of the Athabasca Oil Sands Project
between 2010 and 2011. While Alberta is forecasted to have negative GDP growth
this year, its economy is projected to rebound in 2010.
    Saskatchewan posted the lowest unemployment rate for July, at 4.7%, and
continued to see strong economic growth compared to the rest of Canada. The
province is the only one predicted to have positive GDP growth in 2009,
fuelled by its potash industry, capital investment, and infrastructure
projects. While interprovincial migration to the province for the first
quarter was not as high as in previous quarters, Saskatchewan saw small gains.
The province also set a near record for international migration in the
quarter, contributing to its population growth.
    British Columbia saw a loss of 7,600 jobs in June, but due to a decreased
labour force, the unemployment rate for the province fell to 7.8% in July,
below the national average of 8.6%. While the province posted a loss due to
interprovincial migration to Alberta, British Columbia saw its largest gains
in international migration in over twelve years.

    Eastern Canada:

    The manufacturing and automotive industries have taken a hard hit from
the economic recession, but while Quebec saw employment losses in July,
Ontario saw an increase in employment for the same month due to gains in the
services sector. Ontario gained 13,000 jobs, and the province's unemployment
rate fell to 9.3% in July, from 9.6% the previous month. Due to
interprovincial migration, Ontario lost over 5,000 residents in the first
quarter; however, the province still saw gains from international migration.
Quebec also posted interprovincial migration losses in the first quarter, but
saw gains in international migration for the same period. The province lost
37,000 jobs in July, and its unemployment rate increased to 9.0%, the highest
the province has seen since 2004.

    MLS Housing Prices:

    As the rental market is in direct competition with the housing market,
Boardwalk reports on MLS Housing Prices each quarter. This allows us to
predict how our rental markets will perform based on MLS price trends.

                             MLS Housing Prices
    British Columbia                     Vancouver CMA       Victoria CMA
                                      Jun 2009  Jun 2008  Jun 2009  Jun 2008
      Average Single Family           $701,384  $765,654  $588,186  $580,104
      Average Condo                         na        na  $298,200  $319,943

    Alberta                               Calgary CMA          Edmonton
                                      Jun 2009  Jun 2008  Jun 2009  Jun 2008
      Average Single Family           $447,142  $473,774  $369,859  $381,384
      Average Condo                   $285,595  $315,042  $247,071  $262,365

    Saskatchewan                           Saskatoon            Regina
                                      Jun 2009  Jun 2008  Jun 2009  Jun 2008
      Average Overall                 $276,867  $310,386  $245,097  $239,963

    Ontario                                 London              Windsor
                                      Jun 2009  Jun 2008  Jun 2009  Jun 2008
      Average Single Family           $232,189  $232,145        na        na
      Average Condo                   $149,483  $150,891        na        na
      Average Overall                       na        na  $167,057  $165,055

    Quebec                               Montreal (CMA)
                                    Jun 2009(*) Jun 2008(*)
      Average Overall                 $275,578   $268,152
    Internally generated, NA = Data not available,
    (*) Internally calculated based on volume of sales and total sales as
    provided by the Greater Montreal Real Estate Board. Source: Association
    of Regina REALTORS(R), Calgary Real Estate Board, Canada Mortgage and
    Housing Corporation, Canadian Real Estate Association, Edmonton Real
    Estate Board, Greater Montreal Real Estate Board, London and St. Thomas
    Association of REALTORS(R), Real Estate Board of Greater Vancouver,
    Saskatoon Region Association of REALTORS(R), Victoria Real Estate Board,
    Windsor-Essex County Real Estate Board

    Western Canada:

    Many housing markets in Western Canada have started to show signs of
stabilizing. The sales-to-listings ratio for June increased for both Calgary
and Edmonton and sales were up year-over-year in both centres. Single-family
home prices in Calgary and Edmonton fell by 6% and 3%, respectively, and
condominium prices fell by 9% and 6%, respectively, year-over-year for the
month of June. However, prices in both centres for June were up over the
previous month. In Calgary, the average price for a single family home
remained above $400,000, but lower prices have led to a more limited supply
for home buyers. It is expected prices will remain lower until oil prices and
employment begin to rebound in 2010. In Edmonton, home sales were higher
year-over-year for the first half of 2009, and while home prices for June were
lower year-over-year, prices showed an upward trend compared to previous
months. Saskatoon's housing market continued to balance in June, with
increased sales and decreased inventory, and the average sale price decreased
11% year-over-year. In comparison, Regina saw an increase in its average sale
price of 2% year-over-year and an increased inventory of homes on the market.
Vancouver's housing market is becoming more affordable, with the price of a
single-family home dropping 8% year-over-year, leading to increased sales. In
contrast, Victoria saw a modest price increase in June for single-family homes
as a result of reduced supply.

    Eastern Canada:

    Housing markets in the East have also shown signs of stabilizing. There
was little change in London and Windsor's housing markets for June, as
single-family and condominium prices in London remained the same
year-over-year, while the overall average sale price in Windsor rose by 1% for
the same period. Montreal's housing market showed solid results in June, with
the overall average sale price increasing by 3% year-over-year. Sales in the
Montreal CMA rose by 14% in the same period, despite the price increase. This
is partly attributed to high property values providing an excellent investment
opportunity for home buyers.

    Acquisitions and Dispositions

    In the second quarter of 2009, the Trust closed on the disposition of
Gateway Place in Surrey, British Columbia. The sale of Gateway Place, which
consists of 133 units, was completed on June 18, 2009.
    To date in 2009, the Trust's acquisitions and dispositions are as


    Building Name    City         Type        Units    Price        Cap Rate
    Gateway Place    Surrey, BC   Townhouse   133      $11,000,000     5.23%

    Building Name    $/Unit       $/Sq.Ft.    Closing Date
    Gateway Place    $82,707      $80.34      June 18, 2009

    For further detail, please refer to page 20 of the MD&A.

    Unit Buyback

    In alignment with our financial guidance for 2009, we believed that one
of the best investments we made was the purchase of our Trust Units at
purchase prices ranging from $24.91 to $32.88 per Trust Unit. During the first
half of 2009, the Trust has purchased a total of 620,000 Trust Units for
cancellation at a total purchase price of $17.1 million, or an average of
$27.64 per Trust Unit.
    The present issuer Bid is set to expire on August 17 2009. As a result
the Trust has begun the process of renewing its normal course issuer bid (the
"Bid"), subject to regulatory approval. Boardwalk currently has 48,291,114
issued and outstanding trust units. The Bid, if approved, would allow
Boardwalk to purchase up to 3,936,711 trust units, representing 10% of the
public float of its trust unit capital, through the facilities of The Toronto
Stock Exchange. The average daily trading volume for the six calendar months
prior to the date hereof was 137,714 trust units. The Bid, if approved, is
expected to commence on August 19, 2009 and will terminate one year later, or
at such earlier time as the Bid is complete.
    Boardwalk has purchased 1,391,000 trust units within the past 12 months
at a weighted average price of $29.62. Boardwalk believes that the current and
recent market prices of its trust units do not reflect their underlying value.
Boardwalk will purchase the trust units for cancellation with the intention of
increasing the proportionate interest of all remaining unitholders.

    For further detail, please refer to pages 21 & 22 of the MD&A.

    Continued Financial Strength

    The Trust continued to build on its solid financial position throughout
the second quarter of 2009. Boardwalk REIT's total principal mortgage and debt
outstanding was $2.32 billion as of June 30, 2009, as compared to $2.16
billion as of June 30, 2008. As of June 30, 2009, the Trust's total debt had
an average term maturity of 3 years with a weighted average interest rate of
4.69% and the debt-to-total Gross Book Value ratio was 61.4%.
    Currently, the Trust sits in the strongest liquidity position in its
history. With over $210 million in the bank and access to an additional $198
million committed credit facility, the Trust is well positioned to take
advantage of opportunities that present themselves. The Trust's interest
coverage ratio, excluding gains, for the three-month period ended June 30,
2009 was 2.42 times compared to 2.29 times in the same period last year.

    For further detail, please refer to pages 19, 23 & 24 of the MD&A.

    Outlook and 2009 Financial Guidance

    Each quarter, we review our key assumptions in providing our financial
guidance. Although the first half of the year has posted strong results, we
are expecting to experience some head winds in the latter half of the year,
particularly on the property tax expense side. As a result of this and based
on our review of other key variables, we are maintaining our 2009 financial
guidance range of FFO per Trust Unit between $2.45 - $2.55 (DI between $2.47 -
$2.57). The following table summarizes our 2009 Financial Guidance:

    2009 Financial Guidance

    Description                                Guidance
    Acquisitions                               No new apartment acquisitions
    Stabilized Building NOI growth             4% to 6%
    FFO per Trust Unit                         $2.45 to $2.55
    DI per Trust Unit                          $2.47 to $2.57

    For further detail, please refer to pages 27 & 28 of the MD&A.

    2009 Distributions

    The Trust has declared its distributions in the amount of 15.00 cents per
Trust Unit ($1.80 on an annualized basis) as per the following schedule:

    Month                      Record Date                Distribution Date
    August 2009                August 31, 2009            September 15, 2009
    September 2009             September 30, 2009         October 15, 2009
    October 2009               October 30, 2009           November 16, 2009

    Supplementary Information

    Boardwalk produces the Quarterly Supplemental Information Package that
provides detailed information regarding the Trust's activities during the
quarter. The Second Quarter 2009 Supplemental Information Package is available
on our investor website at

    Teleconference on Second Quarter 2009 Financial Results

    We invite you to participate in the teleconference that will be held to
discuss these results this same morning (August 14, 2009) at 11:00 am EST.
Senior management will speak to the second quarter financial results and
provide an update. Presentation materials will be made available on our
investor website at prior to the call.
    Participation & Registration: Please RSVP to Investor Relations at
403-206-6808 or by email to
    Teleconference: The telephone numbers for the conference are 416-644-3414
(within Toronto) or toll-free 1-800-733-7560 (outside Toronto).
    Webcast: Investors will be able to listen to the call and view our slide
presentation over the Internet by visiting 15 min. prior
to the start of the call. An information page will be provided for any
software needed and system requirements. The live audiocast and presentation
will also be available at
    Replay: An audio recording of the teleconference will be available from
1:00 pm ET on Friday, August 14, 2009 until 11:59 pm ET on Friday, August 21,
2009. You can access it by dialing 416-640-1917 and using the passcode
21308844 followed by the pound (No.) sign.

    Corporate Profile

    Boardwalk REIT is an open-ended real estate investment trust formed to
acquire all of the assets and undertakings of Boardwalk Equities Inc.
Boardwalk REIT's principal objectives are to provide its unitholders with
monthly cash distributions, partially on a Canadian income tax-deferred basis,
and to increase the value of its units through the effective management of its
residential multi-family revenue producing properties and the acquisition of
additional properties. Boardwalk REIT currently owns and operates in excess of
260 properties with 36,652 units totalling approximately 31 million net
rentable square feet, and is Canada's largest owner/operator of multi-family
rental communities. Boardwalk REIT's portfolio is concentrated in the
provinces of Alberta, British Columbia, Saskatchewan, Ontario and Quebec.

    (1) Funds From Operations ("FFO") is a generally accepted measure of
        operating performance of real estate investment trusts and companies;
        however, it is a non-GAAP measure. The Trust calculates FFO by taking
        net earnings after discontinued operations, adjusting for gains or
        losses on disposal of discontinued operation assets and extraordinary
        items, and adding non-cash expenses including future income taxes and
        amortization. The determination of this amount may differ from that
        of other real estate investment trusts and companies. Distributable
        Income ("DI") is calculated based on the definition as set out in the
        Trust's declaration of trust and is computed by taking FFO and adding
        back amortization on any deferred financing charges incurred prior to
        May 3, 2004 as well as adjusting for any discounts or premiums
        relating to the amortization of mark-to-market debt adjustment
        incurred subsequent to the real estate investment trust conversion
        date of May 3, 2004.


    Information in this news release that is not current or historical
factual information may constitute forward-looking information within the
meaning of securities laws. Implicit in this information, particularly in
respect of our objectives for 2009 and future periods, our strategies to
achieve those objectives, as well as statements with respect to management's
beliefs, plans, estimates and intentions, and similar statements concerning
anticipated future events, results, circumstances, performance or
expectations, are estimates and assumptions subject to risks and
uncertainties, including those described in the Management's Discussion &
Analysis of Boardwalk REIT's 2008 Annual Report under the heading "Risks and
Risk Management", which could cause our actual results to differ materially
from the forward looking information contained in this news release.
Specifically we have assumed that the general economy remains stable, interest
rates are relatively stable, acquisition capitalization rates are stable,
competition for acquisition of residential apartments remains intense, and
equity and debt markets continue to provide access to capital. These
assumptions, although considered reasonable by the Trust at the time of
preparation, may prove to be incorrect. For more exhaustive information on
these risks and uncertainties you should refer to our most recently filed
annual information form which is available at Forward-looking
information contained in this news release is based on our current estimates,
expectations and projections, which we believe are reasonable as of the
current date. You should not place undue importance on forward-looking
information and should not rely upon this information as of any other date.
While we may elect to, we are under no obligation and do not undertake to
update this information at any particular time.

    %SEDAR: 00020684E

For further information:

For further information: Boardwalk REIT, Sam Kolias, CEO, (403)
531-9255; Roberto Geremia, President, (403) 531-9255; William Wong, CFO, (403)

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