Q4 2002 CONFERENCE CALL February 21, 2003 416-640-4127 (within Toronto) or 1-800-814-4857 Boardwalk...

Q4 2002 CONFERENCE CALL

February 21, 2003416-640-4127 (within Toronto) or 1-800-814-

4857

Boardwalk Equities Inc.


Q4 2002 Conference Call


Certain statements in this call/ presentation may be considered forward-looking statements within the

meaning of existing securities laws. Although Boardwalk believes that the expectations set forth in

such statements are based on reasonable assumptions, Boardwalk’s future operations and its actual

performance may differ materially from those in any forward – looking statements. Additional information

that could cause actual results to differ materially from these statements are detailed in the earnings press

release and in other publicly filed documents, including Boardwalk’s annual report, Annual Information Form

and quarterly reports.



Topics for Discussion

• Fiscal 2002 and Q4/02 Results - Overview

• Financial and Operations Review• Portfolio Highlights• Operations Review and

Performance• Stabilized Building Analysis• Financial Overview and Summary• Outlook and Guidance

• Q&A



Overview – Fiscal 2002

• 2002 Highlights• Rental revenues of $241.9MM – up 17.8%• NOI of $163.1MM – up 19.1%• Total FFO of $63.1MM - up 9.0%

• Per share $1.26 vs. $1.15 – up 9.6%

• FFO, excluding gains, of $62.1 million – up 24.5%• Per share $1.24 from $0.99 – up 25.3%

• Internal Growth• Same-property revenue up 5.5%; NOI up 7.5% for the year

ended Dec 2002

• External Growth• 2002 entry into Montreal and Quebec City markets• Significant contribution from Nun’s Island acquisition

• Refinancing• Successfully completed over $300MM of mortgage

refinancings and renewals

• Operational and Market Commentary• Outlook



Overview – 4th Quarter

• Q4 Highlights• Rental revenues of $63.9MM – up 19.4%• NOI of $40.2MM – up 18.9%• Total FFO of $13.5MM - up 12.5%

• Per share $0.27 vs. $0.24 – up 12.5%

• FFO, excluding gains, of $13.5 million – up 16.4%• Per share $0.27 from $0.23 – up 17.4%

• Internal Growth• Same-property revenue up 3.6%; NOI up 6.6% for

the 3 months ended Dec 2002

• External Growth• Closed Quebec City acquisition – November 2002

• Refinancing• Completed $152.6MM Nuns’ Island mortgage

refinancing



Portfolio – Unit Growth

8,787

19,480

22,441

24,937 24,821 25,889

29,326 30,455

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

'May 1997 'May 1998 'May 1999 'May 2000 'Dec 2000 'Dec 2001 ' Dec 2002 To Date

Number ofUnits



BEI Market ExpansionRental Universe – in BEI major CMA’s

Source: CMHC

2001 To dateMontreal 464,600 Quebec City 75,700

Ottawa 60,100 Gatineau (Hull) 19,100

619,500

Edmonton 64,200 65,100 Calgary 44,600 43,200 London 38,400 38,900

Kitchener 25,800 26,200 Saskatoon 15,900 15,500 Windsor 15,300 15,200 Regina 11,600 11,400

215,800 215,500

Total 215,800 835,000

Montreal31%

Other44%

Gatineau(Hull)1%

Ottaw a4%

Quebec5%

Regina1%

Windsor1%

Saskatoon1%

Calgary3%

Edmonton4%

Kitchener2%

London3%

Other85%

Windsor1%

Regina1%

Edmonton4%

Calgary3%

London3%Kitchener

2%Saskatoon

1%



BEI Market ExpansionMarkets as a % of Total CMA’s in Canada

2001

To Date

2003 Acquisitions

Parc De La Montagne (42/44/46 Bedard Street), Gatineau (Hull), Quebec

Units: 321

Date Acquired: Jan. 9, 2003

Purchase Price: $13.7 million

Per unit: $42,700

Per sq. ft.: $67 (avg. 636 sq. ft.)

2003 Acquisitions

Domaine d’Iberville Apartments (300/325 Joliette St., 385 Place de la Louisianne, 695 St. Charles St. W.), Montreal (Longueuil), Quebec

Units: 720

Date Acquired: Feb. 4, 2003


Per unit: $47,900


2003 Acquisitions

600 Cote-Vertu Road, Montreal (St. Laurent), Quebec

Units: 88

Date Acquired: Feb. 5, 2003


Per unit: $65,900


Acquisitions Quarterly SummaryQ1 - 2003

Date Acquisition Avg. Price perBuilding Name Acquired City Units Cost Price/Unit Cap Rate Sq.Ft. Sq.FtParc de la Montagne 9-Jan-03 Gatineau 321 13,700,000$ 42,679$ 8.52% 636 67.11$ Domaine d'Iberville 4-Feb-03 Longueuil 720 34,500,000$ 47,917$ 10.13% 779 61.51$ 600 Cote Vertu 5-Feb-03 St. Laurent 88 5,800,000$ 65,909$ 8.46% 770 85.60$

TOTAL 1,129 54,000,000$ 47,830$ 9.54% 738 64.84$



Market Summary by Province

Saskatchewan15.3%

Alberta56.1%

Quebec15.0%

Ontario13.6%





Major Market SummaryUnit Breakdown

Calgary15.3%

Other Alberta6.1%

Saskatoon6.5%

Regina8.8%

London7.4%

Windsor5.1%

Montreal12.8%

Gatineau(Hull)1.1%

Quebec City1.1%

Kitchener1.1%

Edmonton34.8%



Revenue and Funds From Operations(in Millions of dollars)

$249.4

$63.1

$227.3

$57.9 $63.9

$13.5

$57.2

$12.0

$0

$50

$100

$150

$200

$250

Dec-02 Dec-01 Dec 2002 - 3months

Dec 2001 - 3months

Revenue Funds From Operations



Breakdown of Revenue(in Millions of dollars)

$0

$50

$100

$150

$200

$250

Sales from property held forresale

$7.5 $22.0 - $3.7

Other Income $1.8 $1.4 $0.5 $0.4

Rental revenue $240.1 $203.9 $63.4 $53.1

Dec 2002 - 12 Months

Dec 2001 - 12 Months

Dec 2002 - 3 Months

Dec 2001 -3 Months



Breakdown of FFO Per Share(cents per share)

1.24

0.02

0.99

0.16

0.27 0.23

0.01

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Dec 2002 - 12months

Dec 2001 - 12months

Dec 2002 - 3months

Dec 2001 - 3months

Rental Property Sales



Net Operating Income(in Millions of dollars)

163.1

137.0

40.233.8

0

20

40

60

80

100

120

140

160

180

Dec 2002 - 12months

Dec 2001 - 12months

Dec 2002 - 3months

Dec 2001 - 3months



Operational Analysis Per Unit – 12 Months(Monthly Average)

-80

20

120

220

320

420

520

620

720

2002

2001

2002 716 78 71 86 235 481

2001 664 72 65 87 224 440

Rental Revenue

Operating expenses

Property taxes

UtilitiesTotal Op

Exp

Net Operating

Income



Operational Analysis Per Unit – 3 Months(Monthly Average)

-80

20

120

220

320

420

520

620

720

2002

2001

2002 730 87 74 112 273 457

2001 685 70 63 121 254 431

Rental Revenue

Operating expenses

Property taxes

UtilitiesTotal Op

Exp

Net Operating

Income



Monthly Rental Revenue Statistics(Per Unit)

$716

$754

$790

$600

$650

$700

$750

$800

December 2001 - 12 months December 2002 - 12 monthsOccupied rent Per Unit - Dec 2002 Market rent Per Unit / Current

$664



Continued Strengthening of Rental Operations

85.6

69.6

20.3 16.7

0

10

20

30

40

50

60

70

80

90

Dec 2002 -12 months

Dec 2001 -12 months

Dec 2002 - 3months

Dec 2001 - 3months

Net Rental Income - in millions

$1.70

$1.38

$0.40$0.33

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Dec 2002 - 12months

Dec 2001 - 12months

Dec 2002 - 3months

Dec 2001 - 3months

Net Rental Income - per share diluted



Vacancy Rates

Q4 2002 Q4 2001 Q3 2002 Q2 2002 Q1 2002 Q4 2001 Q3 2001 Q2 2001 Q1 2001

Calgary 7.27% 3.36% 6.08% 9.06% 6.20% 3.36% 3.65% 4.58% 5.23%Edmonton 4.90% 4.02% 3.92% 4.50% 3.47% 4.02% 5.00% 5.20% 3.94%Kitchener 2.74% 2.13% 2.53% 3.34% 2.84% 2.13% 2.63% 2.63% 2.74%London 4.43% 4.20% 4.03% 4.57% 4.79% 4.20% 4.87% 7.85% 9.33%Other Alberta 8.46% 5.71% 9.73% 10.79% 7.74% 5.71% 4.75% 5.59% 3.54%Regina 3.07% 3.10% 4.15% 7.81% 5.50% 3.10% 4.56% 9.26% 6.09%Saskatoon 4.09% 3.67% 3.91% 6.50% 5.14% 3.67% 5.40% 11.48% 5.02%Windsor 5.95% 4.17% 5.03% 6.54% 5.05% 4.17% 4.36% 5.01% 4.02%

Montreal 1.71% - 0.86% 0.19% - - - - -

Grand Total 4.89% 3.89% 4.35% 5.90% 4.79% 3.89% 4.63% 6.17% 4.85%

Prior Quarters



Administration Review(in 000’s)

0

1000

2000

3000

4000

5000

6000

Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

Administration

Percentage ofRental revenue



Stabilized Analysis

Units

Stabilized85%

Unstabilized15%

Gross Rental Revenue Analysis

Stabilized89%

Other1%

Unstabilized10%



Stabilized Portfolio Review

Three Month 2002Rental Revenue Operating Expenses NOI

Calgary -0.70% 11.87% -5.74%Edmonton 7.45% -4.65% 15.07%Other Alberta -1.83% 6.43% -5.44%Ontario 2.34% -2.93% 6.56%Saskatchewan 3.39% -8.00% 11.57%

3.61% -1.41% 6.58%

Twelve Month 2002Rental Revenue Operating Expenses NOI

Calgary 2.84% 8.92% 0.73%Edmonton 8.61% -2.54% 13.89%Other Alberta 1.47% 3.69% 0.65%Ontario 5.27% -0.35% 10.04%Saskatchewan 2.91% 3.54% 2.52%

5.45% 1.35% 7.50%



Capital Investment – 12 Months

Building Improvements

30%

Suite Improvements

33%

Elevators / Boilers/ Mech

16%

Other4%

Capitalized Wages and

Salary12%

Hallway Improvements

2%

Appliances3%



Mortgage Maturity Schedule

Weighted Average Interest rate 5.88%

Average maturity – 4.83 years

Fiscal Year Maturity %2003 199,183$ 5.27% 15%2004 97,438$ 6.06% 7%2005 71,548$ 6.28% 5%2006 93,343$ 5.80% 7%2007 226,785$ 5.44% 17%2008 227,024$ 6.14% 17%2009 162,168$ 6.06% 12%2010 62,576$ 6.89% 5%2011 74,974$ 6.23% 6%2012 36,830$ 6.27% 3%2013 22,017$ 5.67% 2%Subsequent 33,291$ 6.21% 3%Total 1,307,177$ 5.88% 100%

Mortgage Balance Dec. 31, 2002 (000's) Interest Rate



2003 – FFO Confirmation of Market Guidance

Rental Property Sales Total

2003 Guidance

Low 1.40$ -$ 1.40$

High 1.44$ -$ 1.44$

Q4 2002 CONFERENCE CALL

February 21, 2003416-640-4127 (within Toronto) or 1-800-814-

4857


Q4 2002 CONFERENCE CALL February 21, 2003 416-640-4127 (within Toronto) or 1-800-814-4857 Boardwalk...

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Transcript of Q4 2002 CONFERENCE CALL February 21, 2003 416-640-4127 (within Toronto) or 1-800-814-4857 Boardwalk...