Boardwalk REIT Announces Fourth Quarter and Fiscal 2017 Financial Results

CALGARY, Feb. 26, 2018

Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT" or the "Trust") today announced its fourth quarter and 2017 fiscal year financial results.

"2017 was a transitional year for Boardwalk, as a bottoming in our core markets allowed us to take advantage of historically high market vacancy rates to further enhance our product quality and service by investing in suite renovations, brand diversification and community re-positioning.  This investment initially exacerbated our vacancy loss as many suites were undergoing renovation, however the refinement of our renovation production process towards the latter part of 2017 allowed the Trust to complete the majority of these suites in the last six months of 2017.  The full absorption of these renovated units in the fourth quarter and January of 2018 has resulted in a significant improvement in overall occupancy and reflects the positive long-term benefit that outweigh the short-term sacrifice in higher vacancy.  Our high-graded suites and longer lasting specifications (20+ year warranty on flooring as an example), have positioned the Trust to create superior results going forward," said Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT. 

"We are increasingly optimistic as we enter 2018.  To begin re-capturing significant revenues, Boardwalk's focus in early 2018 is on occupancy.  Our team has already exceeded our year-end goal of 95% occupancy, and are ahead of schedule for accomplishing a further goal of 97% occupancy before the upcoming spring turnover season."

"An improved macro-economic environment in Boardwalk's core market of Alberta has accelerated the Trust's recovery as key indicators have positively impacted the near-term visibility of Boardwalk's operating environment:

• Positive inter-provincial migration in the second half of 2017, combined with consistent international migration into the province
• Increase in both jobs and job vacancies in Alberta
• Decreasing unemployment rate
• Stabilized world oil prices
• New construction of purpose-built rental has moderated

With significant economic torque upcoming in our core markets, the Trust is focused on maximizing the value of its investments and re-capturing significant operating revenues over the short-term.  Over the long-term, the Trust remains committed to its strategic goal to grow its portfolio by ten to fifteen thousand apartment units in under-supplied, high-growth markets which will provide Net Asset Value creation and offer diversification amongst its portfolio over the next ten to fifteen years."

Mr. Kolias concluded: "The investments we have made to preserve and enhance our communities have positioned Boardwalk to excel in 2018 and beyond.  Over our 33-year history, we have learned to evolve, successfully creating value for all of our stakeholders, and with this timeless evolution, we are positioned, again, to enhance value and growth for all of our stakeholders."