# Boardwalk REIT



## dime (Jun 20, 2013)

What's the deal with BEI.un? Anyone know what's going on there? It's dropped over 6.5% in two days. It's lost almost 12% in a month and it was one of the better rated REITS from what I remember.


----------



## Just a Guy (Mar 27, 2012)

I have a lot of tenants who came from Boardwalk...they have horror stories galore...

On the commercial side, I know several business owners who report their properties aren't maintained properly and are now in need of major renovations and repairs, but Boardwalk is only doing chewing gum and duct tape repairs...

It's probably starting to catch up with them. 

One of the reasons I avoid REITs is the ability of management to run them in the ground.


----------



## Spudd (Oct 11, 2011)

I read somewhere that they have a lot of their properties in Alberta so it's due to the oil price falling, they think demand will go down.


----------



## dime (Jun 20, 2013)

@spudd good call, makes sense. I'll speculate then thats why there's also heavy selling in Stantec and Canadian Western Bank. Maybe investors see a connection to Alberta and the drop in oil prices.


----------



## JosephK (Nov 7, 2012)

Anyone know wtf was going on with this yesterday? Anyone quick enough to get in on it? 



> Date Open	High Low Close Volume Chg	*% Chg*
> 01/22/2015 63.10	64.46 62.35	63.65 614,013 7.06	*12.48%*
> 01/21/2015 62.40	63.00 56.59	56.59 569,010 -5.84	*-9.35%*


----------



## HaroldCrump (Jun 10, 2009)

JosephK said:


> Anyone know wtf was going on with this yesterday?


Yeah, some talking head on BNN was pumping this up a lot yesterday (or the day before).
I watched a few mins. of that.
REITs are very sensitive to talking head recommendations, since there are only a handful.


----------



## thepitchedlinkagain (Jul 4, 2016)

*BEI.un, Boardwalk REIT*

Is there one for this REIT? Could some one link me to it please., or I guess start one...big drop on Thursday

thanks

OK, well I guess I will start a thread for it then....Mods if there is one please merge the threads or delete this one and direst me to an original thread, but I could not find one


----------



## thepitchedlinkagain (Jul 4, 2016)

OK, any body own this one? any thoughts ? I've owned if for a year or so, wondering about the 5$ drop last week....


----------



## kelaa (Apr 5, 2016)

Who is your broker? Do they have analyst coverage on Boardwalk? They posted a net decline in quarterly numbers, with Alberta portfolio down double digits. Payout ratio is now over 100%. Management doesn't want to cut distribution yet; they would rather let it ride for some time and income will hopefully grow to cover it. They also mentioned spending more to upgrade units to a higher level (Boardwalk Lifestyles?). At $42, I don't think it's a bad entry for newcomers. $48 was a bit rich in my mind.


----------



## thepitchedlinkagain (Jul 4, 2016)

I'm my broker. I think 42 is decent as well, just wondering what others think at this time...


----------



## humble_pie (Jun 7, 2009)

thepitchedlinkagain said:


> Is there one for this REIT? Could some one link me to it please., or I guess start one...big drop on Thursday
> 
> thanks
> 
> OK, well I guess I will start a thread for it then....Mods if there is one please merge the threads or delete this one and direst me to an original thread, but I could not find one



thankx for taking the trouble to search for an existing thread .each:

i'm having a lazy week ... has anyone compared BEI dot UN & CAR dot un & is willing to share? theoretically apartment REITs are among stocks that are resistant to down markets

CAR is doing well on the day


.


----------



## thepitchedlinkagain (Jul 4, 2016)

Hey Humble, I hope I search for it properly....sometimes these search engines don't work very well, but I didn't find much

Ya, CAR is up, and BEI took this good nose dive...I'm guessing just based on the quarterly numbers being down


----------



## james4beach (Nov 15, 2012)

I found an old Boardwalk thread and merged the threads.

Here's a 5 year chart of of BEI.UN (green) and ZRE (black), net of distributions
http://stockcharts.com/h-sc/ui?s=BEI/UN.TO&p=D&yr=5&mn=0&dy=0&id=p18656061147


----------



## thepitchedlinkagain (Jul 4, 2016)

sweet J4B, thanks

So what's going on here??


----------



## thepitchedlinkagain (Jul 4, 2016)

kelaa said:


> Who is your broker? Do they have analyst coverage on Boardwalk? They posted a net decline in quarterly numbers, with Alberta portfolio down double digits. Payout ratio is now over 100%. Management doesn't want to cut distribution yet; they would rather let it ride for some time and income will hopefully grow to cover it. They also mentioned spending more to upgrade units to a higher level (Boardwalk Lifestyles?). At $42, I don't think it's a bad entry for newcomers. $48 was a bit rich in my mind.


Sorry Kelaa, I miss read your reply. My broker is Itrade


----------



## doctrine (Sep 30, 2011)

Boardwalk REIT is primarily Alberta exposed, and are estimating a 20% drop in NOI (net operating income). The stock has been hammered. The payout ratio has now exceeded 100% (~105-107%). Net asset value per share has been declining. In short, it's all bad for Boardwalk REIT. A lot of building capacity is still coming on in Alberta, so even a return to growth won't immediately help them. Probably, they should reduce distributions to the new reality. Whether they cut them or not, the stock price will adjust anyway to their situation, and eventually the company will follow.


----------



## OnlyMyOpinion (Sep 1, 2013)

Yesterday's news release. It includes a reduction in the monthly distribution to retain capital for investment opportunities to 'maximize value for all unitholders'. The distribution of $0.1875 in Dec. will become $0.0834 in Jan (just 44% of Dec's distr)
I don't think this is a move of total desperation, but it is bad news for an income oriented investor. I'm out.

https://www.bwalk.com/en-CA/Investors/GetInvestorDocument/290


----------



## AltaRed (Jun 8, 2009)

OMO, you know total return is the appropriate measure. That said, REITs are not assets that come to mind when thinking total return. 

I suspected Boardwalk would have to cut the dividend given their 2Q results and 'plans' for capital growth. But this is a major haircut. Time will tell if the market 'adjusts' to this strategy. It'll be a multi-year process though.


----------



## doctrine (Sep 30, 2011)

Wow, I read the quarterly report. For a company that is so optimistic that they have turned around, they sure cut the dividend. A good example that real estate isn't necessarily a safe or even a good investment. I believe Boardwalk didn't even have that high of a payout just a few years ago, so it wasn't like it was a 90-100% payout like other REITs.


----------



## OnlyMyOpinion (Sep 1, 2013)

I was hopeful that they wouldn't need to cut. They've been looking after their local knitting but it isn't enough (I see 29 rentfaster listings of new condos in Calgary's East Village alone). Their plan to diversify across the country will probably work out but it will be a multi-year process as you note. They're doing the right thing cutting the distribution while they're already in the penalty box anyway.

TD's Action Notes today upgraded BEI to a buy and raised their one year target to $52. So contrarian investors or those continuing to hold may well pick up some stellar gains over the next year. It looks like I'll still own a few dozen units because it paid a drip'd distribution today that hadn't yet rolled into my sell total.

I've been with BEI for many years, crystalizing an acb in the $20's, so my total return was ok in spite of the last 3 years of downdraft. The revised yield at today's price is around 2.5% so that opens up other companies to compete on both yield and growth.


----------



## AltaRed (Jun 8, 2009)

Their capital plans necessitated keeping more cash to fund things like their Brentwood JV with RioCan in Calgary. They are adverse to excessive debt leverage, and going to the market for more equity at depressed market prices (well below NAV) would have angered existing unitholders. Remember that management owns a very substantial stake in the company so their interests are aligned with the rest of us.

So the smart response was to keep more internally generated cash and grow organically. I am just suprised the cut was as deep as it was, but I suppose if you are going to cut, better to take a machete rather than cuts of many knives.

I suspect this strategy will eventually be seen as a smart move regardless of near term pain as income investors flee. I remain a shareholder and will continue to hold.


----------



## doctrine (Sep 30, 2011)

I guess my point is, not that it's not a bad idea to cut distributions, it's just that the quarterly report reads like a sell job. They totally underreported the bad news, which is operating earnings are tanking and are down something like 19% for the trailing 9 months year over year; 2017 has not been a good year and it is not turning around yet. That is why they are cutting distributions, not for reinvestment purposes like they propose, otherwise they wouldn't cut them because they know it will hurt their share price which simultaneously limits their access to raise capital without extra dilution. The best they can say, honestly, in my opinion, is that they are still bleeding heavily, but they might not be bleeding as heavily at the moment. The sell job is what is annoying. It makes it that much harder to get an honest assessment.


----------



## My Own Advisor (Sep 24, 2012)

The cut is the right thing to do...stop some bleeding as you say. I own a few shares and it's a long term hold for me.


----------

