BOARDWALK REIT REPORTS RESILIENT Q2 2026 RESULTS

CALGARY, AB, July 28, 2026 /PRNewswire/ -- Boardwalk Real Estate Investment Trust (TSX: BEI.UN)

SUMMARY HIGHLIGHTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2026

• STRONG FINANCIAL PERFORMANCE
  FOR THE 3 MONTH PERIOD ENDED JUNE 30, 2026 
  • Funds From Operations ("FFO") of $1.19 per Unit⁽¹⁾⁽²⁾; an increase of 2.6% from Q2 2025
  • Net Operating Income ("NOI") of $107.2 million; an increase of 2.9% from Q2 2025
  • Same Property⁽³⁾ Net Operating Income ("Same Property NOI") of $101.2 million; an increase of 1.7% from Q2 2025
  • Operating Margin of 66.6%; an increase of 40 basis points ("bps") from Q2 2025
  • Same Property Rental Revenue growth of 1.7% from Q2 2025
  • Same Property Occupancy of 97.0% in Q2 2026
    
    
• FOR THE 6 MONTH PERIOD ENDED JUNE 30, 2026
  • Funds From Operations of $2.33 per Unit⁽¹⁾⁽²⁾; an increase of 5.0% from the same period a year ago
  • Net Operating Income of $213.4 million; an increase of 6.3% from the same period a year ago
  • Same Property⁽³⁾ NOI of $200.1 million; an increase of 4.1% from the same period a year ago
  • Operating Margin of 65.7%; an increase of 160 bps from the same period a year ago
  • Same Property Rental Revenue growth of 2.3% from a year ago
    
    
• AFFORDABILITY REMAINS IN HIGH DEMAND 
  • Demand remains highest at affordable price points
  • Rents in Edmonton, the Trust's largest market, remain some of the most affordable amongst major cities in Canada
  • Affordability, economic out performance and lifestyle continue to support the Alberta Advantage
  • The Trust has cumulatively re-invested in common area improvements representing approximately 69% of its portfolio since 2017, improving portfolio quality and resilience across market conditions
    
    
• RE-ITERATING 2026 FINANCIAL GUIDANCE
  • FFO range of $4.60 to $4.80 per Unit⁽¹⁾⁽²⁾
  • Same Property NOI growth range of +1.0% to +3.5 %
    
    
• STRATEGIC CAPITAL ALLOCATION
  • During Q2 2026, closed previously announced sales of nine non-core communities in Edmonton, Alberta, Regina, Saskatchewan, Saskatoon, Saskatchewan, and Québec City, Québec totaling 1,096 suites for gross proceeds of $222.0 million (approximately $115.1 million net of existing mortgages)
  • Subsequent to quarter end, the Trust finalized the sale of two additional communities in London, Ontario totaling 201 suites for gross proceeds of $40.0 million (approximately $26.5 million net of existing mortgages)
  • Year-to-date through July 24, 2026, the Trust has invested $203.5 million into the repurchase and cancellation of 3,106,600 Trust Units at a weighted average price of $65.51
  • Management continues to prioritize unit repurchases at current unit price level under its Normal Course Issuer Bid ("NCIB")
  • Strategic higher cash positioning for opportunistic deployment in environment that favors community providers with established operating platforms
    
    
• STRATEGIC CO-OWNERSHIP
  • Subsequent to quarter end, the Trust finalized a strategic co-ownership with DGAM Canadian Private Real Estate Fund, L.P., managed by DGAM Global Asset Management, ("DGAM Real Estate Fund"), providing well-capitalized partner for the REIT for future growth opportunities in Western Canada while incrementally supplementing yields for the Trust by leveraging Boardwalk's best-in-class management platform
  • Boardwalk vending in a 50% interest in four communities in Calgary, Alberta and Victoria, British Columbia totaling 328 suites on a proportionate interest basis for gross proceeds of $146.0 million (approximately $86.5 million net of existing mortgages)
    
    
• EXCEPTIONAL VALUE
  • At current unit price of approximately $65, Boardwalk's implied value is approximately $194,000 per suite, equating to an attractive 6.5% cap rate on trailing NOI
    
    
• STRONG AND FLEXIBLE BALANCE SHEET
  • Approximately $374.8 million of total available liquidity at the end of the quarter
  • 99% of Boardwalk's mortgages carry CMHC-insurance
  • Unitholders' Equity of $4.7 billion
  • Fair value capitalization rate of 5.25%, an increase of 6 bps from Q4 2025
  • Net Asset Value of $96.37 per Unit⁽¹⁾⁽²⁾, a slight increase relative to Q4 2025 and Q1 2026
  • Debt to EBITDA⁽¹⁾ of 9.34x, compared to 9.99x for the year ended December 31, 2025
  • Debt to Total Assets⁽¹⁾ of 43.0%, compared to 42.3% as at December 31, 2025
    
    
• REGULAR DISTRIBUTION OF $1.80 PER TRUST UNIT ON AN ANNUALIZED BASIS CONFIRMED FOR THE MONTHS OF SEPTEMBER, OCTOBER, AND NOVEMBER 2026

Boardwalk Real Estate Investment Trust ("Boardwalk", the "REIT" or the "Trust") today announced its financial results for the second quarter of 2026.

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

"We are pleased to have delivered another solid quarter, with Funds From Operations of $1.19 per Unit, up 2.6% year-over-year, and Net Operating Income of $107.2 million, up 2.9% from Q2 2025. These results reflect the resilience of affordable housing across all points in the housing cycle, the irreplaceable value of our vertically integrated operating platform, and our team's focus on retention and ability to maintain occupancy above market-wide levels. Same property occupancy remained high at 97.0% in Q2 2026, while our average occupied rent of $1,612 continues to provide exceptional relative value for the quality, service and lifestyle offered across our communities.

Alberta continues to lead the country in population growth, as a result of positive interprovincial migration and natural population growth resulting from a relatively younger population. The future outlook is bright for the province, with economic growth that is expected to lead the country, and momentum gathering as a result of various positive announcements supporting future job creation across multiple sectors. Year-over-year declines in Alberta construction starts are expected to moderate future new supply over the medium term, which, together with Alberta's affordability advantage and lifestyle offering, supports the long-term fundamentals for well-located, affordable rental housing.

We remain committed to disciplined capital allocation and maintaining a strong and flexible balance sheet. We are pleased with the continued improvement in our Debt to EBITDA ratio to 9.3x, compared to 10.0x at year-end 2025. Our investments team remains active in sourcing capital from asset sales, and the newly established co-ownership with DGAM Real Estate Fund provides Boardwalk with another avenue to support accretive growth over the medium term. At current discounted unit price levels, we are counter-cyclically repurchasing Units under our Normal Course Issuer Bid to maximize risk-adjusted returns for our unitholders while incrementally improving the overall quality of our portfolio through our active capital recycling initiatives.

We are well positioned for the remainder of 2026 and remain focused on delivering strong operating results, preserving financial flexibility, further compounding cash flow per unit growth for unitholders, and creating long-term value for all our stakeholders."

SECOND QUARTER FINANCIAL HIGHLIGHTS

In Q2 2026, same property operating margin decreased slightly compared to the same period in the prior year as the Trust's same property rental revenue growth and same property expense growth were relatively in line with each other, and both slightly below inflation as the Trust remain focused on retention in an environment that continues to reflect temporarily moderated demand in 2026 and 2027 resulting from the current federal Immigration Levels Plan.

The Trust's fair value of its investment properties as at June 30, 2026, decreased from year end, primarily attributable to a decrease in market rents in Calgary, a slight increase to cap rates and the Trust's dispositions activity year-to-date. The Trust's stabilized capitalization rate ("Cap Rate") increased to 5.25% for Q2 2026 compared to 5.19% at year end and was flat compared to Q1 2026. The Cap Rate ranges utilized continue to be in line with recently published third party quarterly Cap Rate reports.

SOLID OPERATIONAL RESULTS

The Trust retained high occupancy during Q2 2026 by focusing on retention and by leveraging its vertically-integrated operating platform to limit the time to complete unit turnovers. The Trust's approach to strategically moderate its lease renewal rates over the last number of years, while markets were heavily undersupplied, also contributes to maintaining higher occupancy in a more balanced market. Positive market rent adjustments were implemented in some communities where rental market fundamentals were strong. In other communities, market rents were adjusted downward in pockets that have experienced higher deliveries of new supply and where rents were on the higher end of the price spectrum. Overall, demand remains strong for affordable housing. Average occupied rent increased sequentially, and when compared to the same period a year ago. The Trust continues to focus on maintaining high occupancy, reducing or eliminating past incentives on lease renewals, leasing at market rents for new leases and adjusting market rents in communities where appropriate.

For the second quarter of 2026, same property rental revenue increased 1.7% while same property total rental expense increased by 1.9%, resulting in same property NOI growth of 1.7% in comparison to the same quarter in the prior year. Same property rental revenue increased due to higher in-place occupied rents and lower incentives, partially offset by a higher vacancy loss.

In Edmonton, same property NOI growth was 2.2% for the second quarter of 2026 compared to the same period in the prior year. The overall growth was driven by higher in-place occupied rents and lower incentives, lower insurance premiums and property taxes, partially offset by higher vacancy loss coupled with higher building repairs and maintenance and bad debts.

In Calgary, same property NOI decreased by 1.2% for the second quarter of 2026 compared to the same period in the prior year. Higher vacancy loss and lower in-place rents contributed to slightly lower revenue of 0.5% compared to the same period in the prior year.

On a same property basis, Saskatchewan's NOI for Q2 2026 was consistent with the same period in the prior year. Increases in revenue growth due to higher in-place occupied rents, partially offset by higher vacancy losses, are offset by higher operating expenses mainly from higher building repairs and maintenance costs, and bad debts, partially offset by lower utilities.

In Ontario, same property NOI growth was 5.1% in the second quarter of 2026 compared to the second quarter of 2025. The mark-to-market opportunity on turnover contributed to same property rental revenue growth of 2.3% coupled with a 2.8% decrease in total rental expenses driven by lower utilities costs, which was partially offset by increases in property taxes.

In Quebec, same property NOI growth was 4.9% compared to the same quarter in the prior year. The overall growth was driven by increases in occupied rents as well as lower insurance, partially offset by higher utilities.

In British Columbia, a decrease in same property rental revenue of 0.2% and total rental expenses increase of 27.2%, resulted in a decrease in same property NOI of 6.3% in the second quarter of 2026 compared to the second quarter of 2025. The increase in total rental expenses was a result of higher property taxes, increased water and sewer costs and leasing commissions associated with commercial space at the Vue.

STRONG LIQUIDITY POSITION

In the second quarter of 2026, Boardwalk renewed $111.5 million of its maturing mortgages at a weighted average interest rate of 3.71% while extending the term of these mortgages by an average of 3.2 years. Year-to-date, the Trust paid out $59.5 million of mortgages, excluding mortgages that were paid out relating to sales. The mortgages had a combined weighted average interest rate of 4.74%. All three mortgages were conventional mortgages.

For the remainder of 2026, the Trust anticipates $343.4 million of mortgages payable maturing with an average in-place interest rate of 2.14%. Current market 5 and 10-year CMHC financing rates are estimated to be approximately 3.80% and 4.20%, respectively. To date, the Trust has renewed or forward-locked the interest rate on $457.3 million or 56.1% of its maturing mortgages in 2026 at an average interest rate of 3.78% and an average term of 6.3 years. Including mortgages paid out to date, the Trust has completed 63.4% of its 2026 mortgage maturities. The Trust remains well positioned with a 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.

STRATEGIC CAPITAL ALLOCATION

The Trust remains active sourcing additional capital from asset sales to re-deploy toward opportunities that will enhance the Trust's cash flow per unit and maximize risk-adjusted returns.

During the second quarter, the Trust closed on the sales of nine properties comprising 1,096 suites in Edmonton (Capital View Tower, Kingsway Tower, The Edge, Valley Ridge Tower), Regina (Lockwood Arms Apartments), Saskatoon (Lawson Village), Québec City (Place Charlesbourg, Place Chamonix, Place Samuel de Champlain) for a combined gross sales price of $222.0 million.

Subsequent to quarter end, the Trust finalized two additional sales. The first sale includes two communities in London, Ontario (Sandford Apartments and Noel Meadows) for a combined gross sales price of $40.0 million.

The Trust has also finalized the sale of a 50% interest in four communities (Elbow 5 Eight, BRIO, Aurora, and The Vue) in Calgary, Alberta and Victoria, British Columbia, to DGAM Real Estate Fund for a combined gross sales price of $146.0 million on a proportionate interest basis, which is in line with the Trust's fair value for the four communities. The co-ownership provides the Trust with a strong capital partner to opportunistically pursue additional growth opportunities in the Trust's Western markets. The Trust will provide property management and other services to the co-ownership, allowing it to incrementally improve its returns on future investments through property management and administration fees.

A full breakdown of the Trust's 2026 disposition activities year-to-date is provided below:

At its current valuation, the Trust continues to prioritize the repurchase of Trust Units through the Trust's Normal Course Issuer Bid ("NCIB") program, taking the opportunity to counter-cyclically invest in its own high-quality portfolio at a significant discount to private market valuations. Year-to-date through July 24, 2026, the Trust has invested $203.5 million into the repurchase and cancellation of 3,106,600 Trust Units at a weighted average price of $65.51. With the Trust's significant liquidity available, the Trust continues to invest in its own undervalued portfolio while retaining optionality to capitalize on external growth opportunities that may present in a more competitive leasing environment.

RE-ITERATING 2026 FINANCIAL GUIDANCE

Boardwalk's outlook for the remainder of 2026 is for positive same property NOI growth across the majority of its portfolio as demand for affordable multi-family housing remains resilient. The Trust will continue to prioritize occupancy and anticipates blended leasing spreads to be slightly positive overall throughout the remainder of 2026.

Our performance to date remains within our expectations with revenue tracking toward the lower bound of our forecast range offset by anticipated lower insurance, utilities, and other operating costs. In addition, The Trust has also factored in the net impact of sales activity announced to date and the active redeployment of the proceeds into our normal course issuer bid.

With Q2 finalized, the Trust is re-iterating its guidance range as follows:

The reader is cautioned that this information is forward-looking and actual results may vary from those forecasted. The Trust reviews the assumptions used to derive its forecast quarterly, and based on this review, may adjust its outlook accordingly.

EXCEPTIONAL VALUE

The Trust's current trading price represents exceptional value relative to the quality of the underlying real estate and replacement costs.

Recent private market sales transactions of apartment buildings in our core markets have occurred at prices in line with or above Boardwalk's fair value of its assets of approximately $243,000 per suite, when adjusted for suite mix and asset quality. This valuation represents approximately a trailing 5.2% cap rate on Boardwalk's most recent 12 months of NOI.

At the current unit price of $65 per Trust Unit, Boardwalk's implied value is approximately $194,000 per suite and represents an attractive 6.5% cap rate on trailing NOI.

SECOND QUARTER REGULAR MONTHLY DISTRIBUTION ANNOUNCEMENT

The Trust has confirmed its monthly cash distribution for the months of September, October, and November 2026 as follows:

In line with Boardwalk's distribution policy of maximum re-investment, the Trust's payout ratio remains conservative at 37.6% of Q2 2026 FFO; and 35.0% of the last 12 months FFO, excluding non-cash distributions. 

Boardwalk's regular monthly distribution provides a stable and attractive yield for the Trust's Unitholders.

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, and a continued focus on governance and oversight. Boardwalk published its seventh annual ESG report in May 2026. The ESG report is available digitally on the Trust's website at bwalk.com/en-ca/investors/esg.

FINANCIAL INFORMATION

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

TELECONFERENCE ON SECOND QUARTER 2026 FINANCIAL RESULTS
Boardwalk invites you to participate in the teleconference that will be held to discuss these results tomorrow (July 29, 2026) at 1:00 pm Eastern Time (11:00 am Mountain Time). 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: To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4xQ9WQY to receive an instant automated call back.

Alternatively, you can also dial direct to be entered into the call by an operator using the traditional conference call instructions below.

The telephone numbers for the conference are 1-437-900-0527 (local/international callers) or toll-free 1-888-510-2154 (within North America).

Note: Please provide the operator with the below Conference Call ID or Topic when dialing in to the call.
Conference ID: 10348
Topic: Boardwalk Real Estate Investment Trust, 2026 Second 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 Second 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 the first choice in multi-family communities to work, invest, and call home with our Boardwalk Family Forever. Providing homes in more than 200 communities, with approximately 33,000 residential suites totaling 29 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 have evolved to capture the life cycle of all Resident Family 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 Family Member experiences. Differentiated by its peak performance culture, Boardwalk is committed to delivering exceptional service, product quality and experience to our Resident Family 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® Accounting Standards, as issued by the International Accounting Standards Board ("IFRS Accounting Standards"). As they do not have standardized meanings prescribed by IFRS Accounting Standards, they therefore may not be comparable to similar measurements presented by other entities and should not be construed as an alternative to IFRS Accounting Standards defined measures. Below are the non-GAAP financial measures referred to in this news release.

Funds From Operations
The IFRS Accounting Standards 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. Consistent with REALPAC, 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. The reconciliation from profit under IFRS Accounting Standards 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 six months ended June 30, 2026 and 2025.

Adjusted Funds From Operations
Similar to FFO, the IFRS Accounting Standards 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.

Adjusted Real Estate Assets
The IFRS Accounting Standards measurement most comparable to Adjusted Real Estate Assets is investment properties. Adjusted Real Estate Assets is comprised of investment properties, equity accounted investment, properties related to assets held for sale, 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 Accounting Standards to Adjusted Real Estate Assets can be found on the following page, under NAV.

Adjusted Real Estate Debt
The IFRS Accounting Standards measurement most comparable to Adjusted Real Estate Debt is total mortgage principal outstanding. Adjusted Real Estate Debt is comprised of total mortgage principal outstanding, mortgage principal outstanding related to assets held for sale, 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 Accounting Standards to Adjusted Real Estate Debt can be found on the following page, under NAV.

Adjusted Real Estate Debt, net of Cash
Adjusted Real Estate Debt, net of Cash, is most directly comparable to the IFRS Accounting Standards measure of total mortgage principal outstanding. Adjusted Real Estate Debt, net of Cash is comprised of the sum of total mortgage principal outstanding, mortgage principal outstanding related to assets held for sale, total lease liabilities attributable to land leases, and construction loan payable, then reduced by cash and cash equivalents. It is useful in summarizing the Trust's debt which is attributable to its real estate assets and is used in the calculation of Debt to EBITDA.

Net Asset Value
The IFRS Accounting Standards measurement most comparable to NAV is Unitholders' Equity. With real estate entities, NAV is the total value of the entity's investment properties, equity accounted investment, investment properties related to assets held for sale, and cash and cash equivalents 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 Accounting Standards to Net Asset Value is below.

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 Accounting Standards 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 Accounting Standards 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 Accounting Standards.

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.

Debt to EBITDA
Debt to EBITDA is calculated by dividing Adjusted Real Estate Debt, net of Cash by consolidated EBITDA. The Trust uses Debt to EBITDA to understand its capacity to pay off its debt.

Debt to Total Assets
Debt to Total Assets is calculated by dividing Adjusted Real Estate Debt by Total Assets. The Trust uses Debt to Total Assets to determine the proportion of assets which are financed by debt.

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 news 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 news 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 2026, Boardwalk's ability to accelerate organic growth in 2026, expected distributions for September, October, and November 2026, expectations regarding mortgages payable maturing and its intention to renew these mortgages, Boardwalk's commitment to its capital allocation strategy, accretive capital recycling opportunities, strengthening its long-term development plan in Victoria, BC, and Boardwalk's commitment to ESG initiatives. 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 "Risks 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, Boardwalk's future growth potential, prospects and opportunities, 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, the impact of accounting principles under IFRS Accounting Standards, general industry conditions and trends, changes in laws and regulations including, without limitation, changes in tax laws, 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 2026. 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, 2025 under the headings "Risks and Risk Management" and "Challenges and Risks", respectively, which are available at www.sedarplus.ca. 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.

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SOURCE Boardwalk Real Estate Investment Trust