Boardwalk REIT (BEI.UN) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: 2.17%
• Average Volume (3M): 111.45K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.86
• Revenue Growth: 9.53%
• EPS Growth: -46.06%
• Country: CA
• Employees: 1,558
• Sector: Real Estate
• Sector Strength: 82
• Industry: REIT - Residential
• EPS (TTM): 2.73
• Shares Outstanding: 48,896,664
• 10 Day Avg. Volume: 102,848
• 30 Day Avg. Volume: 111,446
• PEG Ratio: -0.35
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $79.42
• Price Target Upside: 18.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Boardwalk REIT demonstrates strong financial performance and strategic growth, with robust revenue growth and high profitability margins. The technical indicators show positive short-term momentum, while the valuation remains attractive. Earnings call insights reinforce confidence in the company's strategy and outlook, despite some market challenges. Overall, Boardwalk REIT is well-positioned with a solid financial foundation and strategic focus.

Positive Factors

Capital Strategy

BEI has agreed to sell three properties in Edmonton for $80M, which may offer greater financial flexibility.

Financial Performance

BEI's FFO growth has outperformed Canadian multifamily peers over the past two-plus years, demonstrating strong financial performance.

Occupancy and Rent Strategy

More aggressive pricing on new leases has stabilized occupancy; BEI believes it is well-positioned to push harder on asking rents.

Negative Factors

Competition and Market Conditions

Increased competition from new housing units in Calgary and Edmonton could impact Boardwalk's legacy properties.

Market Supply and Demand

There is concern that demand is slowing during a period of elevated supply which could impact the company's performance.

Revenue Growth

Sequential revenue growth may decelerate more quickly than the market is anticipating, posing a potential challenge for the company.

Boardwalk REIT Business Overview & Revenue Model

Company Description

Boardwalk REIT strives to be Canada's friendliest communities and currently owns and operates more than 200 communities with over 33,000 residential units totaling over 28 million net rentable square feet. Boardwalk's principal objectives are to provide its Residents with the best quality communities and superior customer service, while providing Unitholders with sustainable monthly cash distributions, and increase the value of its trust units through selective acquisitions, dispositions, development, and effective management of its residential multi-family communities. Boardwalk REIT is vertically integrated and is Canada's leading owner/operator of multi-family communities bringing Residents home to properties located in Alberta, Saskatchewan, Ontario, and Quebec. Boardwalk REIT's Trust units are listed on the Toronto Stock Exchange, trading under the symbol BEI.UN.

How the Company Makes Money

Boardwalk REIT primarily generates revenue through rental income from its portfolio of multi-family residential properties. The company leases apartments and residential units to tenants and collects monthly rent payments. This rental income is the core revenue stream for Boardwalk REIT. Additionally, the company may engage in property development and sales activities, contributing to its earnings. Operational efficiencies, strategic property acquisitions, and maintaining high occupancy rates are crucial factors that enhance Boardwalk REIT's profitability. The trust may also benefit from partnerships or joint ventures in the real estate sector, although specific details of such partnerships are not disclosed.

Boardwalk REIT Financial Statement Overview

Summary

Boardwalk REIT shows strong revenue growth and high profitability margins, with a stable balance sheet and improving cash flow generation. Despite the decrease in net income and return on equity, the company maintains financial stability with moderate leverage.

Income Statement

Boardwalk REIT demonstrated a strong revenue growth rate of 10.56% from 2023 to 2024, with a high gross profit margin of 63.36% for 2024. However, net income decreased by 11.68% year-over-year, resulting in a lower net profit margin of 97.50% in 2024. The absence of EBIT due to high depreciation and amortization expenses is a concern. Overall, the company shows robust revenue growth and high profitability, despite fluctuations in net income.

Balance Sheet

The balance sheet indicates a stable debt-to-equity ratio of 0.75 in 2024, with an improved equity ratio of 56.07%, reflecting strong financial stability. The return on equity decreased to 12.16%, highlighting a reduction in profitability on equity. Overall, the company maintains a healthy balance sheet with moderate leverage, though profitability on equity could be improved.

Cash Flow

Operating cash flow increased by 20.72% from 2023 to 2024, while free cash flow grew by 45.96% in the same period. The operating cash flow to net income ratio stands at 0.41, and the free cash flow to net income ratio is 0.18, indicating a reasonable conversion of income to cash. Overall, cash flow generation is strong, with positive growth, although the conversion ratios could be enhanced.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
603.29M	545.66M	494.81M	470.53M	465.57M
	Gross Profit
382.33M	332.99M	288.66M	274.34M	269.14M
	EBIT
323.85M	282.80M	260.14M	122.98M	268.31M
	EBITDA
704.23M	282.80M	267.92M	130.79M	231.87M
	Net Income Common Stockholders
588.22M	666.10M	283.10M	446.27M	-197.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
122.41M	331.20M	52.82M	64.30M	52.96M
	Total Assets
8.63B	8.14B	7.07B	6.66B	6.11B
	Total Debt
3.65B	3.40B	3.29B	3.08B	3.00B
	Net Debt
3.52B	3.06B	3.24B	3.02B	2.95B
	Total Liabilities
3.79B	3.82B	3.60B	3.41B	3.23B
	Stockholders Equity
4.84B	4.32B	3.47B	3.25B	2.88B
Cash Flow		Free Cash Flow
107.77M	73.82M	31.55M	34.86M	136.12M
	Operating Cash Flow
241.20M	199.80M	160.90M	161.86M	141.08M
	Investing Cash Flow
-351.63M	-154.83M	-197.06M	-137.88M	-217.04M
	Financing Cash Flow
-98.37M	233.43M	24.67M	-12.64M	93.75M

Boardwalk REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BEI.UN, the sentiment is Positive. The current price of 66.97 is above the 20-day moving average (MA) of 64.38, above the 50-day MA of 64.67, and below the 200-day MA of 70.71, indicating a neutral trend. The MACD of 0.78 indicates Negative momentum. The RSI at 60.85 is Neutral, neither overbought nor oversold. The STOCH value of 74.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BEI.UN.

Boardwalk REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEQ	79 Outperform	C$1.80B	7.32	15.90%	0.07%	16.22%	39.56%
BEI.UN	76 Outperform	$3.57B	8.07	8.71%	2.17%	9.53%	-46.06%
KMP.UN	75 Outperform	C$2.16B	3.39	22.26%	3.94%	5.77%	108.23%
CAR.UN	70 Outperform	C$6.75B	59.59	1.29%	3.54%	0.93%	―
MI.UN	61 Neutral	C$489.91M	5.38	9.03%	3.99%	-0.29%	―
Sector *	60 Neutral	$2.82B	11.08	0.22%	8543.15%	6.09%	-16.11%
IIP.UN	58 Neutral	C$1.65B	―	-6.27%	3.44%	3.85%	-266.02%

Boardwalk REIT Corporate Events

Boardwalk REIT Reports Robust Q1 2025 Results Amid Strong Demand for Affordable Housing

Boardwalk REIT reported strong financial results for Q1 2025, with an 11.6% increase in Funds From Operations per unit and a 10.3% rise in Net Operating Income compared to the previous year. The company maintained a high occupancy rate and continued to invest in property improvements, enhancing portfolio quality. Strategic capital allocation included the acquisition of new properties and repurchase of trust units, while maintaining a strong balance sheet with significant liquidity. The company’s focus on affordable housing remains a key driver of demand, particularly in its largest market of Edmonton, which benefits from economic diversification and an influx of young workers.

Spark’s Take on TSE:BEI.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:BEI.UN is a Outperform.

Boardwalk REIT shows strong financial performance with robust revenue growth and high profitability margins. The valuation is attractive, with a low P/E ratio and a decent dividend yield. Positive earnings call guidance and strategic growth initiatives further bolster the outlook. However, challenges with operating expenses and interest rates pose potential risks. Overall, the company is well-positioned with a solid financial foundation and strategic focus, meriting an overall score of 78.

To see Spark’s full report on TSE:BEI.UN stock, click here.

Boardwalk REIT Reports Strong Support in 2025 Unitholder Meeting

Boardwalk REIT announced the results of its 2025 annual meeting of unitholders, where all trustee nominees were elected, and Deloitte LLP was reappointed as auditor. The meeting saw a high level of participation with 84.84% of outstanding units represented. The resolutions, including the acceptance of the executive compensation approach, were passed with significant majorities, indicating strong support for the current management and strategic direction. This outcome reinforces Boardwalk’s stable governance and commitment to delivering value to its stakeholders.

Spark’s Take on TSE:BEI.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:BEI.UN is a Outperform.

Boardwalk REIT shows strong financial performance with robust revenue growth and high profitability margins. The valuation is attractive, with a low P/E ratio and a decent dividend yield. Positive earnings call guidance and strategic growth initiatives further bolster the outlook. However, challenges with operating expenses and interest rates pose potential risks. Overall, the company is well-positioned with a solid financial foundation and strategic focus, meriting an overall score of 78.

To see Spark’s full report on TSE:BEI.UN stock, click here.

Boardwalk REIT Expands Portfolio with Strategic Acquisition

Boardwalk REIT has announced the successful acquisition of Elbow 5 Eight, a 255-suite residential community in Calgary, for $93 million. This acquisition is expected to enhance the company’s portfolio by adding a modern, well-located property, potentially increasing value for stakeholders. The company also reported strong occupancy rates and rising rents, indicating robust demand for affordable housing. Boardwalk REIT will release its first-quarter financial results on May 6, 2025, with a teleconference scheduled for the following day to discuss these results.