BOARDWALK REIT REPORTS SOLID THIRD QUARTER RESULTS WITH CONTINUED STRONG QUARTERLY SEQUENTIAL REVENUE GROWTH

SUMMARY HIGHLIGHTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022

• STRONG FINANCIAL PERFORMANCE
             FOR THE 3 MONTH PERIOD ENDED SEPTEMBER 30, 2022
• Profit of $47.0 million
• Funds From Operations ("FFO") of $0.85 per Unit⁽¹⁾; an increase of 7.6% from Q3 2021
  FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 30, 2022
• Profit of $269.0 million
• FFO of $2.33 per Unit⁽¹⁾; an increase of 6.4% from the same period a year ago
  
  
• SOLID OPERATIONAL PERFORMANCE DRIVEN BY IMPROVING SAME PROPERTY⁽²⁾ REVENUE GROWTH IN Q3 2022
• Sequential revenue growth of 2.3% from the prior quarter
• Rental revenue growth of 4.9% from a year ago
• Net Operating Income ("NOI") of $75.6 million; an increase of 5.2% from a year ago
• Occupancy of 97.2%; an increase of 115 basis points from last year
• Incentives declined 20.5% and market rents increased by 1.6% from a year ago
• Occupied rent increased to $1,252 in September of 2022, a $49 improvement from December 2021

• LEASING MOMENTUM CONTINUES
• Occupancy strong heading into the winter
• November 2022 preliminary occupancy of 97.9%, an increase of 227 basis points from January 2022
• New and renewal leasing spreads accelerating to 9.7% and 5.7% in Alberta, respectively, with declining incentives and growth in market rental rates
• Despite recent strong leasing spreads, rents in Alberta relative to income levels remain some of the most affordable in Canada

• STRONG AND FLEXIBLE FINANCIAL POSITION
• Approximately $228.8 million of total available liquidity
• 95% of Boardwalk's mortgages carry CMHC-insurance
• Unitholders' Equity of $3.5 billion
• Fair value capitalization rate of 4.91% on a same property basis unchanged quarter over quarter, and inline with recently published third-party capitalization rate reports
• The Trust's current fair value capitalization rate remains at a positive spread to interest rates and management will continue to review any necessary adjustments quarterly
• Net Asset Value increase, primarily a result of higher market rental rates, to $71.09 per Unit⁽¹⁾

• ACCRETIVE AND STRATEGIC CAPITAL ALLOCATION
• Invested $2.8 million in the repurchase and cancellation of 62,500 Trust Units in the third quarter
• Completed acquisition of previously announced 158-suite apartment community in Calgary, AB

• UPDATE TO 2022 FINANCIAL GUIDANCE
• Increased the bottom end of FFO per Unit estimate to a revised range of $3.08 to $3.15 per Unit⁽¹⁾
• Increased the bottom end of the Same Property NOI growth range to +3.0% to +5.0%

• DISTRIBUTION OF $1.08 PER TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF NOVEMBER 2022, DECEMBER 2022, JANUARY 2023, and FEBRUARY 2023.

^(1)	Please refer to the section titled "Presentation of Non-GAAP Measures" in this Earnings Release for more information.
^(2)	Same property figures exclude un-stabilized properties (properties which have been owned for less than 24 months) and sold assets.

CALGARY, AB, Nov. 8, 2022 /CNW/ - Boardwalk Real Estate Investment Trust (TSX: BEI.UN)

Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT" or the "Trust") today announced its financial results for the third quarter of 2022.

Sam Kolias; Chairman and Chief Executive Officer of Boardwalk REIT commented:

"We are pleased to report on another solid quarter, with growth in Net Operating Income ("NOI") and Funds From Operations ("FFO") through our summer and autumn leasing season. 

As we look forward to the remainder of the year, we are well-positioned with higher portfolio occupancy of 97.9% as of early November. Leasing spreads on both renewals and new leases have seen continued improvement. In our largest market of Alberta, new and renewal lease spreads increased to 9.7% and 5.7%, respectively, in the month of October, which reflects a continued improvement in our core markets.  Our Edmonton and Calgary portfolios are seeing limited incentives on new leases, while our sustainable approach on lease renewals continues to provide coverage for the inflation in our expenses.  Market rent growth is occurring in markets where affordability remains high. Rents in Alberta relative to income levels remain some of the most affordable in Canada.      

Higher cost inflation and interest rates have provided a headwind to community providers to-date in 2022. However, our Team continues to focus on controlling costs while our portfolio of affordable, non-price controlled, and high-quality apartment communities remains positioned to produce sustainable rental rate adjustments that allow Boardwalk to further build on our strong financial foundation. Financial sustainability is essential to provide our Resident Members with the best product quality, service and experience."

THIRD QUARTER FINANCIAL HIGHLIGHTS

$ millions, except per unit amounts
Highlights of the Trust's Third Quarter 2022 Financial Results
	3 Months Sep. 30, 2022	3 Months Sep. 30, 2021	% Change	9 Months Sep. 30, 2022	9 Months Sep. 30, 2021	% Change
Operational Highlights
Rental Revenue	$              125.5	$              118.4	5.9 %	$              366.0	$              351.8	4.0 %
Same Property Rental Revenue	$              122.1	$              116.3	4.9 %	$              358.0	$              345.9	3.5 %
Net Operating Income (NOI)	$                76.3	$                71.8	6.4 %	$              213.9	$              205.3	4.2 %
Same Property NOI	$                75.6	$                71.7	5.2 %	$              212.9	$              206.2	3.2 %
Operating Margin ^(1)	60.8 %	60.6 %		58.4 %	58.4 %
Same Property Operating Margin	61.9 %	61.7 %		59.5 %	59.6 %
Financial Highlights
Funds From Operations (FFO)^(2)(3)	$                42.7	$                40.5	5.4 %	$              117.5	$              111.9	5.0 %
Adjusted Funds From Operations (AFFO) ^(2)(3)	$                34.6	$                32.2	7.5 %	$                93.2	$                86.7	7.5 %
Profit	$                47.0	$              235.5	(80.0) %	$              269.0	$              315.1	(14.7) %
FFO per Unit ^(3)	$                0.85	$                0.79	7.6 %	$                2.33	$                2.19	6.4 %
AFFO per Unit ^(3)	$                0.69	$                0.63	9.5 %	$                1.85	$                1.70	8.8 %
Regular Distributions Declared (Trust Units & LP Class B Units)	$                13.6	$                12.8	6.2 %	$                40.1	$                38.3	4.7 %
Regular Distributions Declared Per Unit (Trust Units & LP Class B Units)	$              0.270	$              0.250	7.9 %	$              0.797	$              0.751	6.2 %
FFO Payout Ratio ^(3)	31.8 %	31.5 %		34.2 %	34.2 %
Stabilized Apartment Suites				33,069	32,885
Un-Stabilized Suites				653	558
Total Apartment Suites				33,722	33,443

^(1)	Operating margin is calculated by dividing NOI by rental revenue allowing management to assess the percentage of rental revenue which generated profit.
^(2)	This is a non-GAAP financial measure.
^(3)	Please refer to the section titled "Presentation of Non-GAAP Measures" in this Earnings Release for more information.

Continued Highlights of the Trust's Third Quarter 2022 Financial Results
					Sep. 30, 2022	Dec. 31, 2021
Equity
Unitholders' Equity					$    3,465,210	$    3,253,178
Net Asset Value
Net asset value^(1)(2)					$    3,570,427	$    3,412,130
Net asset value per Unit^(2)					$           71.09	$           66.87
Liquidity, Debt and Distributions
Cash and cash equivalents					$         21,527
Subsequent committed/funded financing					$         11,173
Unused committed revolving credit facility					$       196,134
Total Available Liquidity					$       228,834
Total mortgage principal outstanding					$    3,288,744	$    3,088,978
Interest Coverage Ratio (Rolling 4 quarters)					2.98	2.97

^(1)	This is a non-GAAP financial measure.
^(2)	Please refer to the section titled "Presentation of Non-GAAP Measures" in this Earnings Release for more information.

The Trust's IFRS fair value of its investment properties as at September 30, 2022 increased slightly from the previous quarter and year end, primarily as a result of increased market rents in some of its markets reflecting improving rental fundamentals. During the third quarter, the Trust also increased some of its utilities expense assumptions in its estimate of fair value to account for the higher costs associated with the rollover of some of its expiring fixed price contracts. The Trust's stabilized cap rate was unchanged from the prior quarter, and the capitalization rate ranges utilized continue to be in-line with recently published third party quarterly cap rate reports. The Trust's current fair value capitalization rate remains at a positive spread to interest rates. Management will continue to review any necessary adjustments quarterly.

SOLID OPERATIONAL RESULTS

Portfolio Highlights for the Third Quarter of 2022
	Sep-22	Sep-21
Average Occupancy (Quarter Average) ^(1)	97.23 %	96.08 %
Average Monthly Rent (Period Ended)	$                 1,223	$                       1,150
Average Market Rent (Period Ended) ^(2)	$                 1,395	$                       1,339
Average Occupied Rent (Period Ended) ^(3)	$                 1,252	$                       1,195
Loss-to-Lease (Period Ended) ($ millions)	$                    55.7	$                          54.9
Loss-to-Lease Per Trust Unit (Period Ended)	$                    1.10	$                          1.08

^(1)	Average occupancy is adjusted to be on a same property basis.
^(2)	Market rent is a component of rental revenue as calculated in accordance with IFRS and is calculated as of the first day of each month as the average rental revenue amount a willing landlord might reasonably expect to receive, and a willing tenant might reasonably expect to pay, for a tenancy, before adjustments for other rental revenue items such as incentives, vacancy loss, fees, specific recoveries, and revenue from commercial tenants.
^(3)	Occupied rent is a component of rental revenue as calculated in accordance with IFRS and is calculated for occupied suites as of the first day of each month as the average rental revenue, adjusted for other rental revenue items such as fees, specific recoveries, and revenue from commercial tenants.

	Oct-21	Nov-21	Dec-21	Jan-22	Feb-22	Mar-22	Apr-22	May-22	Jun-22	Jul-22	Aug-22	Sep-22	Oct-22	Nov-22
Stabilized Property Portfolio Occupancy	96.1 %	95.7 %	95.7 %	95.6 %	95.5 %	95.4 %	95.8 %	96.6 %	96.9 %	97.0 %	97.1 %	97.6 %	98.1 %	97.9 %

The Trust improved occupancy compared to the same period a year ago by focusing on gaining market share and retention.  Market rents were adjusted in communities within some of the Trust's markets where rental market fundamentals continue to improve. Average occupied rent increased sequentially, and when compared to the same period a year ago, as the Trust focuses on reducing incentives on lease renewals, minimizing incentives on new leases and adjusting market rents where fundamentals are strong.

For the third quarter of 2022, a same property rental revenue increase of 4.9% combined with same property total rental expense increase of 4.3%, resulted in same property NOI growth of 5.2%.

During the quarter, lower vacancy loss and incentives, along with positive market rent adjustments and slightly lower utilities costs, supported Boardwalk's Calgary portfolio increase in same property NOI of 8.9%. In Edmonton, lower vacancy loss and incentives were mostly offset by higher property taxes and operating expenses resulting in slightly positive NOI growth for the third quarter of 2022 compared to the third quarter of 2021.  With the increased rental demand in Edmonton during the summer and autumn leasing season, the Trust incurred slightly higher operating expenses to meet demand, and higher property taxes in the third quarter compared to the same period a year ago.  The Trust is well positioned in our Edmonton market with higher occupancy moving into the fall and early part of winter. Saskatchewan's market remains strong with the Trust's portfolio realizing 8.4% same property NOI growth in the third quarter of 2022 versus the same period last year, as a result of strong same property revenue growth and a reduction in expenses related to TV and internet services provided to Boardwalk's Resident Members in the province.  In Ontario, the mark-to-market opportunity on turnover, along with a one-time refund in utilities, contributed to same property NOI growth of 8.0%, in the third quarter of 2022 compared to the third quarter of 2021.  In Quebec, increasing revenues and decreasing controllable expenses, along with the lease-up of its L'Astre community which was transitioned from a seniors' community, resulted in same property NOI increasing by 7.4% in the third quarter of 2022 compared to the third quarter of 2021.   

Sep. 30 2022 - 3 M	# of Suites	% Rental Revenue Growth	% Total Rental Expenses Growth	% Net Operating Income Growth	% of NOI
Edmonton	12,882	3.5 %	8.2 %	0.2 %	34.2 %
Calgary	5,879	6.9 %	3.2 %	8.9 %	22.2 %
Red Deer	939	5.5 %	0.9 %	9.2 %	2.4 %
Grande Prairie	645	3.1 %	-0.6 %	6.2 %	1.4 %
Fort McMurray	352	4.7 %	4.3 %	4.9 %	1.0 %
Alberta	20,697	4.7 %	5.8 %	3.7 %	61.2 %
Quebec	6,000	5.1 %	0.5 %	7.4 %	19.6 %
Saskatchewan	3,505	5.9 %	2.1 %	8.4 %	10.9 %
Ontario	2,867	4.5 %	-0.8 %	8.0 %	8.3 %
	33,069	4.9 %	4.3 %	5.2 %	100.0 %
Sep. 30 2022 - 9 M	# of Suites	% Rental Revenue Growth	% Total Rental Expenses Growth	% Net Operating Income Growth	% of NOI
Edmonton	12,882	1.8 %	4.2 %	-0.2 %	33.8 %
Calgary	5,879	5.7 %	2.3 %	7.7 %	22.3 %
Red Deer	939	4.1 %	1.5 %	6.4 %	2.3 %
Grande Prairie	645	-1.0 %	2.6 %	-4.1 %	1.4 %
Fort McMurray	352	2.6 %	3.0 %	2.2 %	1.0 %
Alberta	20,697	3.1 %	3.6 %	2.8 %	60.8 %
Quebec	6,000	3.1 %	9.6 %	-0.1 %	19.1 %
Saskatchewan	3,505	5.2 %	-2.2 %	10.4 %	11.4 %
Ontario	2,867	4.8 %	5.0 %	4.7 %	8.7 %
	33,069	3.5 %	3.9 %	3.2 %	100.0 %

STRONG LIQUIDITY POSITION

In the third quarter, Boardwalk renewed $86.2 million of its maturing mortgages at a weighted average interest rate of 4.26% while extending the term of these mortgages by an average of 7.9 years. 

In the fourth quarter of 2022, the Trust anticipates $161.5 million of mortgages payable maturing with an average in-place interest rate of 3.19% and will continue to renew these mortgages as they mature.  Current market 5 and 10-year CMHC financing rates are estimated to be 4.50% and 4.30%, respectively. While interest rates have increased significantly since the beginning of March, the Trust remains positioned with a balanced laddered maturity schedule within its mortgage program, a disciplined capital allocation program and continued use of CMHC funding, which decreases the renewal risk on its existing mortgages.

ACCRETIVE AND STRATEGIC CAPITAL ALLOCATION

The Trust remains committed to its capital allocation strategy of re-investing retained cashflow and the net proceeds from the sale of non-core assets toward opportunities that are both accretive to FFO per Unit in the near-term and significantly enhance the NAV per Unit of the Trust over the intermediate term.

During the third quarter, and as previously announced, on August 8, 2022, the Trust acquired a property in Calgary, Alberta comprised of 158 suites.  The purchase price was $41.9 million (excluding transaction costs) representing an approximate 4.75% cap rate and was financed with cash on hand and the assumption of a mortgage for $29.2 million at an interest rate of 3.18%. The acquisition provides immediate FFO per Unit accretion and strengthens the Trust's presence in the rapidly growingly neighbourhood of Seton. The Level is an A-class community that was completed in 2020 featuring modern finishes, stainless steel appliances and in-suite washer and dryer. The Level is fully occupied and is located in close proximity to the Trust's existing Auburn Landing community, providing operational efficiencies for the portfolio in the region.

The Trust commenced a normal course issuer bid ("NCIB") in November 2021 which expires on November 21, 2022. The Trust intends to apply to the Toronto Stock Exchange ("TSX") to renew its NCIB, which will be subject to TSX approval. Boardwalk continues to view its own portfolio as offering un-paralleled value in the multi-family sector and believes its current unit price represents an attractive opportunity for re-investment. During the third quarter, the Trust re-purchased 62,500 Trust Units at a volume-weighted average price of $44.63 for a total price of approximately $2.8 million. 

Since the inception of the current NCIB, the Trust has invested approximately $45.7 million to re-purchase and cancel 878,400 Trust Units at a volume-weighted average price of $52.05.

UPDATE TO 2022 FINANCIAL GUIDANCE

Leasing activity has remained strong through the third quarter. With a significant portion of our 2022 mortgage maturities now completed, the Trust is providing an update to its 2022 financial guidance as follows:

Description	2022 Updated Guidance	2022 Previous Guidance	2021 Actual (in $ thousands except per unit)
Same Property NOI Growth	3.0% - 5.0%	2.0% - 5.0%	0.1 %
Profit	N/A	N/A	$446,267
FFO^(1)(2)	N/A	N/A	$150,207
AFFO^(1)(2)(3)	N/A	N/A	$117,920
FFO Per Unit^(2)	$3.08 to $3.15	$3.00 to $3.15	$2.94
AFFO Per Unit^(2)(3)	$2.44 to $2.51	$2.36 to $2.51	$2.31

^(1)	This is a non-GAAP financial measure.
^(2)	Please refer to the section titled "Presentation of Non-GAAP Measures" in this Earnings Release for more information.
^(3)	Utilizing a Maintenance CAPEX of $965/suite/year.

THIRD QUARTER REGULAR MONTHLY DISTRIBUTION ANNOUNCEMENT

The Trust has confirmed its regular monthly distributions for the four months of November 2022, December 2022, January 2023, and February 2023 as follows:

Month	Per Unit	Annualized	Record Date	Distribution Date
Nov-22	$                              0.0900	$                                    1.08	30-Nov-22	15-Dec-22
Dec-22	$                              0.0900	$                                    1.08	30-Dec-22	16-Jan-23
Jan-23	$                              0.0900	$                                    1.08	31-Jan-23	15-Feb-23
Feb-23	$                              0.0900	$                                    1.08	28-Feb-23	15-Mar-23

In line with Boardwalk's distribution policy of maximum re-investment, the Trust's payout ratio remains conservative at 31.8% of Q3 2022 FFO; and 43.5% of the last 12 months FFO. 

Boardwalk's regular monthly distribution was increased by 8% in March of 2022 and provides a stable and attractive yield for the Trust's Unitholders. 

THIRD ANNUAL ESG REPORT

The Trust is committed to environmental, social and governance ("ESG") objectives and initiatives, including working towards reducing greenhouse gas emissions and electricity and natural gas consumption, water conservation, waste minimization, maintaining or increasing Resident Member satisfaction and a continued focus on governance and oversight.  In March, Boardwalk published its third annual ESG report.  The ESG report, along with the Trust's Annual report, are available digitally on Boardwalk's website and under the Trust's profile at www.sedar.com.

FINANCIAL AND SUPPLEMENTARY INFORMATION

Boardwalk produces quarterly financial statements, management's discussion and analysis, and a supplemental information package that provides detailed information regarding the Trust's activities during the quarter.  Financial and supplementary information is available on Boardwalk's investor website at www.bwalk.com/investors.

TELECONFERENCE ON THIRD QUARTER 2022 FINANCIAL RESULTS

Boardwalk invites you to participate in the teleconference that will be held to discuss these results tomorrow (November 9, 2022) at 1:00 pm Eastern Time (11:00 am Mountain). Senior management will speak to the period's results and provide an update. Presentation materials will be made available on Boardwalk's investor website at www.bwalk.com/investors prior to the call.

Teleconference: The telephone numbers for the conference are 416-764-8650 (local/international callers) or toll-free 1-888-664-6383 (within North America).

Note: Please provide the operator with the below Conference Call ID or Topic when dialing in to the call.

Conference ID: 50233156
Topic: Boardwalk Real Estate Investment Trust, 2022 Third Quarter Results

Webcast: Investors will be able to listen to the call and view Boardwalk's slide presentation by visiting www.bwalk.com/investors prior to the start of the call. 

An information page will be provided for any software needed and system requirements.  The webcast and slide presentation will also be available at:

Boardwalk REIT Third Quarter Results Webcast Link

Replay: An audio recording of the teleconference will be available on the Trust's website: 
www.bwalk.com/investors 

CORPORATE PROFILE

Boardwalk REIT strives to be Canada's friendliest community provider and is a leading owner/operator of multi-family rental communities.  Providing homes in more than 200 communities, with over 33,000 residential suites totaling over 28 million net rentable square feet, Boardwalk has a proven long-term track record of building better communities, where love always lives^tm.  Our three-tiered and distinct brands: Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, cater to a large diverse demographic and has evolved to capture the life cycle of all Resident Members.  Boardwalk's 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 Resident 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 and investment returns, stable monthly distributions, and value creation for all our stakeholders.

Boardwalk REIT's 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 Trust's website at www.bwalk.com/investors.

PRESENTATION OF NON-GAAP MEASURES

Non-GAAP Financial Measures
Boardwalk believes non-GAAP financial measures are meaningful and useful measures of real estate organizations operating performance, however, are not measures defined by IFRS.  As they do not have standardized meanings prescribed by IFRS, they therefore may not be comparable to similar measurements presented by other entities and should not be construed as an alternative to IFRS defined measures.  Below are the non-GAAP financial measures referred to in this Earnings Release.

Funds From Operations
The IFRS 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 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.  We define FFO as adjustments to profit for fair value gains or losses, distributions on the LP Class B Units, gains or losses on the sale of the Trust's 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 the principal repayment on lease receivable.  The reconciliation from profit under IFRS to FFO can be found below.  The Trust uses FFO to assess operating performance and its distribution paying capacity, determine 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 presented in the condensed consolidated interim financial statements for the three and nine months ended September 30, 2022 and 2021.

FFO Reconciliation	3 Months	3 Months	% Change	9 Months	9 Months	% Change
	Sep. 30, 2022	Sep. 30, 2021		Sep. 30, 2022	Sep. 30, 2021
(In $000's, except per Unit amounts)
Profit	$47,043	$235,539		$268,959	$315,127
Adjustments
Other income ^(1)	1,106	-		(4,409)	-
Loss on sale of assets	-	734		-	837
Fair value (gains) losses	(7,804)	(198,026)		(153,943)	(210,596)
LP Class B Unit distributions	1,209	1,120		3,566	3,360
Income tax expense (recovery)	(1)	(51)		66	(78)
Depreciation	1,976	1,999		5,713	5,620
Principal repayments on lease liabilities	(1,010)	(959)		(3,020)	(2,863)
Principal repayments on lease receivable	186	166		542	485
FFO	$42,705	$40,522	5.4 %	$117,474	$111,892	5.0 %
FFO per Unit	$0.85	$0.79	7.6 %	$2.33	$2.19	6.4 %

^(1)	Other income is comprised of capital gains from investment income and an unrealized gain on the investment in private technology venture fund.

Adjusted Funds From Operations

Similar to FFO, the IFRS measurement most comparable to AFFO is profit.  Boardwalk REIT considers AFFO to be an appropriate measurement of a 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 "Maintenance Capital Expenditures". Maintenance Capital Expenditures are referred to as 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 reconciliation of AFFO can be found below.  The Trust uses AFFO to assess operating performance and its distribution paying capacity, and decisions related to investment in capital assets.

(000's)	3 Months	3 Months	9 Months	9 Months
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
FFO	$42,705	$40,522	$117,474	$111,892
Maintenance Capital Expenditures	8,123	8,364	24,269	25,196
AFFO	$34,582	$32,158	$93,205	$86,696

Adjusted Real Estate Assets

The IFRS measurement most comparable to Adjusted Real Estate Assets is investment properties.  Adjusted Real Estate Assets is comprised of investment properties, equity accounted investment, 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 management of the Trust believes is a useful measure in estimating the entity's value.  The reconciliation from Investment Properties under IFRS to Adjusted Real Estate Assets can be found on the following page, under Net Asset Value.

Adjusted Real Estate Debt

The IFRS measurement most comparable to Adjusted Real Estate Debt is total mortgage principal outstanding. Adjusted Real Estate Debt is comprised of total mortgage principal outstanding, total lease liabilities attributable to land leases, and construction loan payable.  It is useful in summarizing the Trust's 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 entity's value.  The reconciliation from total mortgage principal outstanding under IFRS to Adjusted Real Estate Debt can be found below under Net Asset Value.

Net Asset Value

The IFRS measurement most comparable to NAV is Unitholders' equity.  With real estate entities, NAV is the total value of the entity's investment properties and cash minus the total value of the entity's debt.  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 entity's value.  The reconciliation from Unitholders' equity under IFRS to Net Asset Value is below.

	Sep. 30, 2022	Dec. 31, 2021
Investment properties	$                            6,871,424	$                           6,492,969
Equity accounted investment	41,118	41,118
Cash and cash equivalents	21,527	64,300
Adjusted Real Estate Assets	$                            6,934,069	$                           6,598,387
Total mortgage principal outstanding	$                           (3,288,744)	$                          (3,088,978)
Total lease liabilities attributable to land leases	(74,898)	(76,092)
Construction loan payable	-	(21,187)
Adjusted Real Estate Debt	$                           (3,363,642)	$                          (3,186,257)
Net Asset Value	$                            3,570,427	$                           3,412,130
Net Asset Value per Unit	$                                   71.09	$                                  66.87

Reconciliation of Unitholders' Equity to Net Asset Value	Sep. 30, 2022	Dec. 31, 2021
Unitholders' Equity	$                            3,465,210	$                           3,253,178
Total Assets	(7,006,375)	(6,660,653)
Investment properties	6,871,424	6,492,969
Equity accounted investment	41,118	41,118
Cash and cash equivalents	21,527	64,300
Total Liabilities	3,541,165	3,407,475
Total mortgage principal outstanding	(3,288,744)	(3,088,978)
Total lease liabilities attributable to land leases ^(1)	(74,898)	(76,092)
Construction loan payable	-	(21,187)
Net Asset Value	$                            3,570,427	$                           3,412,130

^(1)	Total lease liability attributable to land leases is a component of lease liabilities as calculated in accordance with IFRS.

Non-GAAP Ratios

The 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, do not have standardized meanings prescribed by IFRS 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 defined measures.

FFO per Unit, AFFO per Unit, and NAV per Unit

FFO 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-GAAP 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.

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 measure in estimating the entity's value on a per Unit basis, which an investor can compare to the entity's Trust Unit price which is publicly traded to help with investment decisions.

FFO per Unit and AFFO per Unit, are calculated by taking the non-GAAP ratio's 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 of the LP Class B Units and vested deferred units determined in the calculation of diluted per Trust Unit amounts in accordance with IFRS.

NAV per Unit is calculated as NAV divided by the Trust Units outstanding as at the reporting date on a fully diluted basis which assumes conversion of the LP Class B Units and vested deferred units outstanding.

FFO per Unit Future Financial Guidance

FFO per Unit Future Financial Guidance is calculated as FFO Future 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 available to management of the Trust at the date of this Earnings Release.

AFFO per Unit Future Financial Guidance

AFFO 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.  Boardwalk 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 Earnings Release.

FFO Payout Ratio

FFO Payout Ratio represents the REIT's ability to pay distributions.  This non-GAAP ratio is computed by dividing regular distributions paid on the Trust Units and LP Class B Units by the non-GAAP financial measure of FFO.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

Information in this news release that is not current or historical factual information may constitute forward-looking statements and information (collectively, "forward-looking statements") within the meaning of securities laws.  The use of any of the words "expect", "anticipate", "may", "will", "should", "believe", "intend" and similar expressions are intended to identify forward-looking statements.  Forward-looking statements contained in this press release include Boardwalk's financial guidance for fiscal 2022, expected distributions for November 2022, December 2022, January 2023, and February 2023, and accretive capital recycling opportunities.  Implicit in these forward-looking statements, particularly in respect of Boardwalk's objectives for its current and future periods, Boardwalk's strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, assumptions, 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 its Management's Discussion & Analysis of Boardwalk under the heading "Risk and Risk Management", which could cause Boardwalk's actual results to differ materially from the forward-looking statements contained in this news release. Specifically, Boardwalk has made assumptions surrounding the impact of economic conditions in Canada and globally including as a result of the COVID-19 pandemic, Boardwalk's future growth potential, prospects and opportunities, the rental environment compared to several years ago, relatively stable interest costs, access to equity 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, general industry conditions and trends, changes in laws and regulations including, without limitation, changes in tax laws, mortgage rules and other temporary legislative changes in light of the COVID-19 pandemic, increased competition, the availability of qualified personnel, fluctuations in foreign exchange or interest rates, and stock market volatility.  These assumptions, although considered reasonable by the Trust at the time of preparation, may prove to be incorrect.

This news release also contains future-oriented financial information and financial outlook information (collectively "FOFI") about Boardwalk's same property NOI growth, FFO per Unit, and AFFO per Unit guidance for fiscal 2022. Boardwalk has included the FOFI for the purpose of providing further information about the Trust's anticipated future business operation.

For more exhaustive information on the risks and uncertainties in respect of forward-looking statements and FOFI you should refer to Boardwalk's Management's Discussion & Analysis and Annual Information Form for the year ended December 31, 2021 under the headings "Risk and Risk Management" and "Challenges and Risks", respectively, which are available at www.sedar.com. Forward-looking statements and FOFI contained in this news release are made as of the date of this news release and are based on Boardwalk's current estimates, expectations and projections, which Boardwalk believes are reasonable as of the current date.  You should not place undue importance on forward-looking statements or FOFI and should not rely upon forward-looking statements or FOFI as of any other date.  Except as required by applicable law, Boardwalk undertakes no obligation to publicly update or revise any forward-looking statement or FOFI, whether a result of new information, future events, or otherwise.

SOURCE Boardwalk Real Estate Investment Trust

Boardwalk REIT, Investor Relations, [phone], [email protected]