Boardwalk REIT reports lower NOI in Calgary amid rising property taxes
What happened
Boardwalk Real Estate Investment Trust reported that its same-property net operating income fell 1.1% in the third quarter, despite same-property rental revenue rising 0.9%. The decline was attributed to total rental expenses increasing 5.3%, driven by higher costs such as Alberta education property taxes. The trust also tightened its full-year outlook while maintaining 97% occupancy.
From dailypolitical.com
Why it matters
The results indicate that rising operational costs, specifically property taxes, are outweighing modest rental revenue growth for the trust's portfolio in Calgary. CEO Sam Kolias noted that funds from operations declined largely due to asset sales, although unit repurchases helped limit the decrease in funds from operations per unit.
From dailypolitical.com
Who's involved
- Boardwalk Real Estate Investment TrustReal estate investment trust operating and upgrading its portfolio in Calgary
- Sam KoliasCEO of Boardwalk Real Estate Investment Trust
- James HaPresident of Boardwalk Real Estate Investment Trust
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Boardwalk Real Estate Investment TrustSpeculative
The trust might face pressure on its operating margin and future investment capacity due to increased expenses and a tightened full-year outlook.
- AlbertaSpeculative
Real estate investors in Alberta could see increased operating costs due to higher education property taxes.