TORONTO — Boardwalk Real Estate Investment Trust said Thursday its funds from operations, a key measure of performance for real estate companies, rose 13 per cent in the second quarter as economic strength in Western Canada helped lift rental revenues.
The REIT reported FFO of $32.9-million, or 60 cents a diluted unit, for the three months ended June 30, compared with $29.8-million, or 53 cents a diluted unit, in the year-earlier period.
Analysts had forecast FFO of 61 cents a unit, according to Reuters Estimates.
The Calgary, Alberta-based trust said its net operating income for the quarter was $66.7-million, up 13.6 per cent from $58.7-million in the same period last year.
The average monthly rent in the trust's portfolio was $1,068 per suite, up from $1,008 per suite in the year-before period. Rental revenues rose 9.6 per cent to $105.5-million.
Boardwalk lowered the top end of its outlook range for FFO to $2.35 to $2.45 a unit from $2.35 to $2.50 a unit. It said it made the adjustment to account for higher than expected utility costs and lower than anticipated acquisitions.
The REIT declared an August distribution of 15 cents per unit, payable on Sept. 15, to unitholders of record on Aug. 29.
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