Q1 2020 Earnings Call
[music].
Good morning, ladies and gentlemen, and welcome to the Boardwalk Boardwalk real estate investment trusts first quarter 2020 earnings conference call. At this time note that all lines and they listen only mode, but following the presentation. We will conduct a question and answer session. If at any time during the call you require needed assistance. Please press star.
Zero for the operator also note that this call is being recorded on May 15th 2020 at this time I would like to try to conference over to Mr. James. Please go ahead Sir.
Thank you so the and welcome to the Boardwalk reached 2021st quarter results Conference call.
With me here today is Sam Coleus, Chief Executive Officer basis manage seem to be Chief Financial Officer, Mr. Russell Senior Vice President of corporate development, and Leonora Davis, Vice President of operations.
This call is being broadly disseminated by way of webcast. If you have not done so already please visit the walk dot com slush investors, where you will find a link to today's presentation as well as PDF files with the trust financial statements Mdna infinite and supplemental information package.
Starting on slide you, we'd like to remind our listeners that certain statements in this call and presentation, maybe considered forward looking statements. Although the expectations set forth in such statements are based on reasonable assumptions boardwalks future operation 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 boardwalks publicly filed documents.
I think inclusion of today's presentation, we will we will be opening up the phone lines for questions I'd like to now turn the call over to sample. Please. Thank you James and thank you everyone for joining us. This morning, we'd like to open by sharing our deepest gratitude for boardwalk family and this time, where a world is adapting to a new way of living have increased uncertainty in chain.
Our team our family has continued to deliver on our promise in mission to serve and provider resident members with quality rental communities.
Our top priority remains the health and safety a both our resident members and our team of heroes and we cannot thank our team and boardwalk family enough for their performance and resilience our purpose remains to bringing home to a safe and happy place where love always lifts our results reflect how we continue to go.
Gain market share and our choice housing provider.
We have upheld and created new and long lasting relationships with our residents who have rewarded us was even higher net promoter scores higher retention and higher occupancy, which positions us well into the future as our government's begin to ease restrictions you.
Communication has been significantly enhanced allowing us to connect while we maintain our safe physical distance.
Together, we have launched be walk dot info to provide both resident and team members with up to date information on covert 19 supports and information to help our residents and team navigate through accessing essential needs, including a safe place to call home.
Slide four illustrates many of the initiatives underway, helping us not only.
To get through the pandemic, but emerge as a stronger rental provider and community builder.
For example, together with you who we've enhanced our virtual platform, enabling us to reach resident members digitally while keeping our frontline associates safe.
We have also accelerated our virtual leasing and showing capabilities.
Other protocols, such as more frequent cleaning <unk> sanitizing as well as physical distancing measures have been implemented seamlessly to ensure our residents feel safe at home.
During this time, we have also stay true to our core value of love always by continuing to support a communities and residents in need including our frontline workers, who we are so honored to serve and bring home.
Continuing on to slide five taking this opportunity to provide a high level overview of both our geographic and product diversification.
Boardwalks 33344 apartment units, 63% are based in Alberta, 11% and says catch one eight present in Ontario, and 18% in Quebec with an average occupancy across our portfolio of 96.6% and an average occupancy occupied rent coverage 1100 80.
$5 Boardwalk remains an affordable choice for many Canadian.
To capture more diverse rental audience boardwalk diversified our product base several years ago and introduced three different branded communities or lock living affordable value boardwalk communities enhance value and boardwalk lifestyle affordable luxury currently we have approximately six point.
Sent lifestyle, 44% communities and 50% living suites across our portfolio. Our results continue to reflect the success of the reengineering of our service product quality diversity and experience led by our design team and executed with all hands on.
Deck approach with our entire team.
Moving on to slide six which illustrates the fundamentals in the markets we operate in.
Boardwalk strives to create value through all stages of the rental market cycle.
With rising uncertainty from code at 19 as well as the current global oil crisis Boardwalk is focused in on retention and continues to offer short term incentive to its new and existing residents to increase and maintain overall occupancy.
Together with our governments, we have applied rental rate freezes and suspended evictions for nonpayment of rent due to coded 19 related hardships our government support at this time has been invaluable. The federal government has provided financial supports helping decreased the financial burden.
For our resident members and continues to provide a resident members with an essential safe an affordable place to call home.
The demand for safe and affordable housing and all our markets remains high.
Our portfolio provide some of the most affordable housing across Canada, while maintaining our focus on providing the best quality product service and experience to our resident members.
Grand Prairie continues to remain in a strong rental market almost fully occupied with a strong demand for rental.
Fort Mcmurray remains in a soft rental market and is 1% of our portfolio.
Or mcmurray shows great resilience with a combination of oil price collapse flood and pandemic all together.
Our Fort Mcmurray strong team is seen an increase in occupancy over this last month as our communities were not affected by the flooding and we are seeing an increase in demand for rental housing in Fort Mcmurray.
Slightly higher incentives are being used and offset the net gains.
Red deer, seeing better quality credit applications due to the significant value add investments we have completed in this region.
We have included utilities in some of our communities, which has increased the cost and decreased and aligned.
We are seeing occupancy increase in this and last month as a result of these changes which are offsetting.
Edmonton and Calgary rental market fundamentals continue to improve and stabilized NOI growth remained strong as we complete our eyedropper approach to more selective value add upgrades and focus in on gaining occupancy.
Our says catch one region continues to remain in a softer rental market with green shoots up higher occupancy revenue and recent quarter and Hawaii increase.
In this region, we continue to focus in on gaining market share with targeted value add capital improvements and increasing our operating efficiencies.
Ontario, and Quebec represent over 25% of Boardwalk portfolio with both province is showing continued strong performance.
Our focus on a carrying peak performance culture, along with significant value add capital investment continues to deliver significant gains in market share and and NOI.
Our value add lessons learned in our Calgary market are helping us better allocate value add investments with our eyedropper into all our other markets.
Slide seven in a period of uncertainty we continue building on our commitment to deliver increased value.
These charts demonstrate our key performance indicators continuing to track positively.
Occupancy has increased our incentives in this environment have remained relatively flat, which have led to increasing overall revenue levels.
Our results reflect our focus on our peak performing team and culture is working to optimize staffing levels and keep delivering great service product quality experience and results.
Slide eight further demonstrates rental trends remain in line with expectations, leading into mid March as well as the effective self imposed rental increase limits from the cobot 19 pandemic.
The months of January February and March reflects our increasing flexibility with incentives for some of our residents and focusing on increasing our occupancy to offset these incentives.
Slide nine illustrates our significant investment in value add improvements and repositioning today.
This is a key driver that has resulted in increasing our market share relative to our competitors by providing more value throughout our portfolio for all our resident members. We continued to build on our strategy to reposition our assets and carefully deploy capital where it.
Makes the greatest difference and realizes the best returns.
Slide 10 shows the building of our track record with our eighth consecutive quarter of growth and F. O per unit, delivering 10.7% growth and FFO per trust unit for the first quarter, 16.1% excluding retirement costs.
Rental market fundamentals and demand for affordable housing in our core Alberta markets continue to improve and our team continues to deliver exceptional product quality service and experience.
Slide 11, as previously mentioned, we're layering exciting new initiatives to further drive and improve on our service product quality and experience we are providing to our resident members. While also delivering solid financial results for all our stakeholders.
Boardwalk is proud to launch in partnership with Yahoo, a new online resident portal to all our resident members.
This new portal will provide more self serve options to our residents, allowing for direct online payments online maintenance request and real time chat feature amenity bookings and much more by creating more optionality in the way of our resident resonance experience their homes the trust.
Believes that further efficiency in 24, seven self service can be gained while also creating new resident friendly forms of communication.
Additionally, boardwalk has had great success in Alberta, partnering and selling boardwalk exclusively priced internet and TV services with our partner tell us.
This program began in our Alberta portfolio in Q2, 2019 has seen strong penetration to date.
Slide 12 Boardwalk continues to offer an unprecedented combination of growth and value boardwalk focus on delivering strong in Hawaii growth has resulted in strong growth in AFFO per unit.
The trust current IRS net asset value of $62.24 is significantly higher than our current unit trading price, representing an exceptional opportunity for our investors.
Boardwalks high quality overall portfolio equates to approximately 124000 per apartment door at our current unit price.
Recent transactions in Calgary, and Edmonton have averaged over $200000 to door.
Furthermore, replacement costs are significantly higher than these apartment trading prices are exceptional value provides for a very unique opportunity for our partners and stakeholders as we continue to focus in on delivering solid growth.
I will now introduce leases that manage our incoming chief financial officer to discuss our financial results Lisa.
Thank you Sam.
Slide 13, distressed delivered strong FSRU and AFFO growth with FFO, increasing by 11.4% from 28.2 million to 31.5 million.
FFO increased by 18.5% from 22.3 million to 26.4 million using an annualized maintenance Capex estimates at 613 per apartment units as Sam previously mentioned is included in our Q1 2020, AFFO and AFFO per unit results. It's three cents terms.
Time at cost is expected that in Q2 2020, the trust will incur an additional four cents per units for severance costs associated with executive retirement.
Moving to slide 14, Boardwalk same property results highlighted and NOI growth of 8.1% driven by revenue growth of 3.8% and coupled with operating expense savings of 1.5%.
The first quarter of 2020 was highlighted by strong performance.
Alberta posted and alike growth at 7.9% largely a result of revenue growth of 3.9%.
Our eastern markets, what's represent 25% of Boardwalk total NOI also delivered year over year growth.
Ontario posted revenue growth of 6.9%, let's let's say in a wide growth of 10.5% welcome back achieved operating expense savings, resulting in an NOI growth of 11.4%.
Slide 15 shows boardwalks quarterly sequential revenue growth the sequential revenue revenue growth of 0.5% for the first quarter of 2020.
Lets boardwalk self imposed thing along with most of national governments, having imposed rental increase freezes during the pandemic sequential revenue growth will be driven by occupancy and turnover in the coming month.
Slide 16 summarized the trust revenue collection feminist resident members for the month of April 97.5% April revenue, let's collected in April as compared to a historic monthly run rate slightly above 98%.
Each province exceeded revenue collection of 96.5% for the month of April let's some reason is almost reaching 99% collected.
We are required the trusted offered a rental deferral program to its resident members with a current participation rate of approximately 0.5% of revenue.
To date in May collections are tracking slightly above April 2020.
Slide 17 focuses on the payment types used by resident members to pay ranks as the trust continue to promote social distancing along with the ease of use of its resident member portal through you do we have seen an increase in online payments to 30% coupled with a decrease in office payments to 31%.
I would now like to turn the call to lease the Russell will provide an update on our development projects.
Thank you Lisa on Slide 18, we're proud to announce the completion of Breo EUR 162 unit premium mixed used development in Calgary.
Boardwalk is a 50% partner in this asset and is the property manager for the residential component of this community.
We received the occupancy permit on February 21st and our first resident members moved in on April 1st 2020.
As of early me, we have leased 17 units at renewal rate at or above our original for pharma.
We anticipate receptor continue to progress over the next 12 months.
Total construction costs for Breo are subject to final adjustments. However, we anticipate that final project costs to be towards the lower end of our $75 million to $80 million range, our estimated stabilized yields for the project ranges from 4% to 5%.
With net net rental rates at $2 on 45 cents to $2.75 per square foot.
Slide 19 provides a brief update on or other active development projects.
Construction at 45 Railroad continues and we hope it 19 with their site team, taking extra precautions, including lowering staffing level, which allows for adequate physical distancing.
Despite is still expected to be at great. In Q3 of 2020 estimated completion of this to tower 365 unit development remains flat for 2022 and 2023, respectively.
Data with square in Mississauga, Ontario is our second joint venture partnership with real Cam our initial donning applications for 16, and 25 storey mixed use development once received positively and our subsequent Tony Resubmission was submitted in early March we anticipate construction to begin in 2021.
The timing of Boardwalk current development projects are well staggered to that balance or resources.
Our plan developments and appeal region provide an attractive entry into the DTA, allowing boardwalk to enter high growth Undersupplied markets, providing continued progress towards our long term strategic plan.
I would now like to turn the call over to James James. Thank you Lisa Slide 20 provides a summary of boardwalks available liquidity to trust is well positioned with over $101 million in cash and recently committed financing as well as an undrawn 200 million dollar operating like.
The $300 million and liquidity provides boardwalk with a flexible financial position to whether the current environment as well as take advantage of opportunities as visibility improves.
Slide 21 shares boardwalks mortgage maturity schedule, our mortgages are well staggered with approximately 99% of our mortgages carrying any change earns through Canada mortgage and housing Corporation.
This insurance remains in full force for the full amortization of the mortgage and in addition to carrying the government. Canada's backing provides access to low cost financing with current estimated five and 10 year CMHC mortgage rates of one and a half and 2% respectively.
Trust debt metrics have seen a steady improvement highlighted by our interest coverage, reaching 2.78 times this quarter.
Our progress on our 2020 mortgage maturities are presented on slide 22.
For government in partnership with see me see were quick to respond to the cobot situation in March by injecting and investing liquidity into the market, creating strong availability of funds for CMHC and shared goals.
Boardwalk has an actively taking advantage of this current low interest rate environment to renew boardwalk as well as secure additional up financing from our mortgage portfolio.
Today, we have renewed or forward locked approximately 40% of where 2020 mortgage maturities as well as secured in addition, an additional $98.7 million in new financings with her most recent commitments completed record low interest rates.
Her in underwriting criteria and most in our most recent submissions to see me see and our lenders have remained in line with her historically conservative estimates.
We continue to work towards further forward looking at upcoming mortgage renewals in the coming weeks and months.
On Slide 23, the trust is confirmed its regular monthly distribution of eight and 30 cents per trust unit for the next three months boardwalks distribution of $1 per trustee unit on annualized basis provide sustainable monthly cash flow to our unit holders at an attractive yield while also maintaining a low payout ratio consistent with our distribution policy of maximum reinvestment of cash flow.
And finally on slide 24, we detail a summary of boardwalk CSG initiatives.
The next Golden Foundation on which we have always operated aligns well with modern day U.S.G.
We look forward to participating in our first grasping assessment later this year and are proud to have published or first yes, Yes, you report, which is now available on our website.
This now concludes the formal portion of recall and we would like to open up the phone lines for questions Sylvie.
Thank you.
Ladies and gentlemen, if you do have a question at this time. Please press star followed by one on your Touchtone phone you will hear a threed tomo prompts acknowledging you request.
It should you wish to withdraw your question simply press star followed by too and if you're using a speaker phone. We do assets you. Please lift the handset before pressing any Keith. Please go ahead and press Star one now if you have any questions.
And your first question will be from Jonathan culture at TD Securities. Please go ahead.
Thanks. Good morning first question just on me the renewals I guess, we could expect it will be.
Flat.
Q2, but just but coming out of that how little bit candidates work on out if you use side and in July two I'm sort of give give increases on renewals.
John It's Sam.
Coming out we're going to continue as the economy recovers and gets back to a new normal on reducing discounts and that that really is the focus that we were pre.
Coded and getting back to rental levels gradually and sustainably.
To where where we were several years ago and so that.
We will remain the same we've got a significant amount of discounts that are residents continued to enjoy and benefit from.
And thank God, they do and we're very happy about it.
Investors aren't as happy about that obviously and we've got lots of masters to serve and we try to balance the different a different interests of all our stakeholder groups, but our residents and our team as everybody can agree remain are our most important.
Yes.
Okay, but.
I guess, what I'm trying to go to the all the people where you don't give renewals to April may and June will will july's sort of be really assuming it started July will july be a really big.
<unk> renewal month, everybody for the last three months, we'll get full noticed mills.
Sorry, sorry, I never understood. Your question. So what we're doing is we're offering our residents much more flexibility in the renewals so because of the uncertainty some residents only want to renew three months and we're going ahead with the three months and.
We're doing what we call lease over lease what we're prorating the same incentive even for a short three month period.
With our residents that need more flexibility and lesser lease term for residents that continue to want to live with us and have more certainty. We're renewing leased over lease 12 month leases for the existing residents and we're happy to do so because our focus is retention and keeping everybody.
In a safe and affordable home and so we're going to have regular renewals in July and August except for the three month terms that were accepting our right now that we can revisit and three months.
Okay. That's helpful. And then just secondly, the your associate Count was down about 100 people in April versus January. So it's sort of 15 50 50, maybe level. The one you're you're aiming for it and how much savings it off.
Regions will not be in Q2.
That.
This is yet to be German because there was an increased focus in on cleaning over this period as everybody can understand and ER cleaning.
Is is is an expense obviously and so the savings will be offset a with the extra cleaning attention about our landscapers are doing and to do be quite honest all hands on Dec were all pitching on that because of the current situation and and so we are.
Though constantly looking at every single a line item in our expense.
A statement and not we're always asking how do we do what we're doing better.
With you know with with fewer and less expenses and and we're constantly reviewing that and we're finding because of the current situation ways to do things as we have always.
Learnt that necessity is the mother of invention and so this current situation, it's really accelerating the ways. We are doing things that are much more efficient because of the necessity due to do things with less people that had to stay at home because of daycare closures in school closures. So.
Necessity is essentially accelerated our our efficiencies and forced us to become more efficient and and so we do see savings and and I will continue to going forward as as a result up this situation in the innovation and new.
Ways, we're doing things that that cost us last.
Okay. Thanks, that's a that's helpful.
Thanks, John It up just a just an AD technology is really helping in our partnership.
With technology partners like you who and.
For the smart rents our investment in real estate technology ventures, with a king SAP is the only other Canadian investor in it and and about a million apartment units in United States and the apartment Reits like ethics and UTI our.
We're we're seeing some really exciting efficiencies on self showing and.
Automated lock security and Super Affordable prices and Amazon is partnered up with a rent smart.
To to help a co develop this apartment.
Smart suite solution. So we're very excited about that too.
Thank you.
Ladies and gentlemen, once again, if you do have a question at this time. Please press star followed by one on your Touchtone phone and remember to lift the handset if you on speakerphone.
The next question will be from Howard Liang at that time. Please go ahead.
Thanks, and good morning, I wanted to kind of catch on the pre authorized payment rate.
So I think last month, the update was 51% depends had paid and assuming the rest the month that a in April there was no preoccupies payments then overall for the month I guess since you collected nine seven and a half.
46% dependents would have been on pre authorized payment.
Then I think this update you mentioned that the overall rate appropriate my sense was 40% for both April or may so far so it just sounds like.
There were some tenants maybe who pay off.
I've been as bands in April or doing so in may.
What was the what's the reasoning behind that are you seeing like checks bouncing or sometimes withdrawing therapy authorize payment rates.
Hi, Howard at least mismanaged. Thank you for the question important to note that so that's 51% calculation that was based on revenue collected not even midway through the month. So as you highlighted as the months would have gone on the only means that they could use to pay would be other forms 10-K T. Because if he is only drawn on the first so the month so consistent with.
Previous rates are P.P. as a percentage of revenue has stayed approximately the same and no. We did not see a large opt out if people paying by P. P. P and me if anything it's the percentage stayed the same so that changing percentage is largely just a function of how people pay their rents over the course of the maps.
Okay that makes sense. Thanks to the clarification and then just on on the same sort of topic I guess any idea of how many tenants or what percentage of your tenants are accessing government assistance I know, it's a it maybe a bit of a touchy subject and maybe something you don't have but just wondering if you have any rough idea.
Oh, we don't ask a after our residents.
Our approved in their applications approved we don't past four.
Our income verification and that that is a big debate that we continue to ask whether.
We should ask for that a similar to mortgage renewals I guess are similar rent is a form of credit extension and so that is a discussion where we're having what we are seeing Howard isn't increased demand in more affordable units and so more of our class.
Quick units and our living units are in higher demand were hardly renovating any full renovations anymore because of the flight to affordability is is higher and more pronounced we are accepting.
Renters, who are on government supports.
Historically, we we didn't always accept all applications that were on some kinda governor government support unless we partnered up with not for profit agencies and and so now we are accepting.
Resident on you lie and and cope it.
Payments to help.
House.
Canadians and this really exceptional situation, we find ourselves in and that.
It's building.
More goodwill.
And it really is a.
A big Big reason why are occupancy is rising our rentals for me.
Our.
Remarkable.
It's it's really heartwarming to see the demand pick up and when we ask our sites, where our new residents coming from.
A lot are coming from other communities a lot are coming from other communities with the comments where.
They they looked at boardwalk, a year ago and they are sorry, they never rent to that boardwalk and now they are coming home and and that really really warms, our hearts and confirms we're doing the right things in bringing everybody home too happy place, where love always lives and.
What's more important than than a great great place to call home, where we're family and love always let's really it's it's real Testament of our team doing such a remarkable job we can't bank our team enough.
For the extraordinary service that tend the above and beyond we got so many.
Complements from our residents and we can't tank cars, our residents who serve who are so supportive and where we're getting inundated with customer satisfaction surveys Google results. It's it's so heart warming to see the gratitude.
And the love always if it's awesome okay.
Right Yeah, no that no that's a little from when you're talking about that seemed really important to do at this time, just kind of provide housing options.
For people in trouble.
And so you know for it because it for the new leases in April and May. It would you say a significant portion of them are when you did income check at that point that said they were on on government programs.
Not the new applicants, we're seeing new applicants and we're asking.
Our family members living in more expensive cities.
Like Drano, Hey, what's going on and Toronto well.
People are moving out to more affordable places and moving back home and and we're seeing folks.
From Vancouver for example.
A health care practitioner moved into Breo.
On Breo is our brand new community and our rents are.
Our over $2000, there and and she's a health worker and and we are extending discounts to our health workers.
Straight across the board and so that's one example lot it a lot of.
Folks that are still working are out there.
Employment rate is still over 80%.
It's it or 90% approximately so most people are still employed.
Hey, great that's going to keep in mind.
I guess my final question has to do with the Capex budget. It looks like a I think earlier in the last quarter update or the guidance was kind of between you know I think 100 134 million and out of the the budget is out it's at the high end hundred 30, or a and b.
Because it's a big part of it spending it's kind of an area of the buildings Wes I.
I I guess, you know I was little surprised that it's a bit higher end is there any kind of I guess crucial capex that you probably you have to do this year and and put off.
So Howard we continue to use our eyedropper to apply our capex and as our Investor Tour last year, we've realized huge success with the reengineering and redesign of our experience centers. It it's been a.
A huge win for US led again by our design team and design matters. A good example, as the is the design focus of Apple versus.
Blackberry that a apple really focuses in on design and and with the.
Full time since our Chief design Officer came back five years ago, full time and became an empty nester and with our hands on deck and and our entire team really.
Coming together in a brand new.
Engineered.
Design in experience for our residents. It's it really is remarkable because our experience centers create an experience of going to a brand new developed community and and every detail is.
It is is designed.
And and carefully selected and it really is helping occupancy for example, Regal towers and Saskatoon for the longest time and Saskatoon Regal had chronic high vacancy of close to double digit or 10% and it hardly has 1%.
They can see anymore. So so the the investment in that just in the experience center in that community.
Everybody loves Blink.
Chris still chandelier reason and loves a loves to live in a really beautiful place and and now more than ever that are places are really important or size is really important because we have older communities that are that a repositioned we have large unit sizes, that's a really big plus two.
And and space is really important as and getting more important as we're all learning.
And so those investments are continuing.
The full renovations were cutting back significantly because everybody's more comfortable with a classic what we call classic apartment with a traditional colors like the classic Coca Cola I guess.
We believe were more of the real thing when Coke is anyone black sugar water, but [laughter], but I have enough a great clean safe place to live as is essential and and being able to provide that in an affordable way.
It is too and so that is reducing our our capital spend in our suite capital.
That's what we're seeing and again were were looking at every single Penny we can't emphasize that enough.
Regardless of the situation, we're going to be really disciplined really responsible with every single Penny of capital we have we fully understand.
How essential it is to be disciplined and and conservative with our capital and so I'll pass it on to lease the Russell to talk about our capital with new developments okay. Thanks.
Well I found just said we are super focused on our capital allocation and watching every penny Oh, we have the ability on the development side to reduced our add 2020 development spend by about $30 million and defer those costs into 2021 for future years.
Again, just to reiterate we continue to monitor all our projects and ensure that we're maintaining a strong balance sheet.
Sure Joe that had.
Sorry, Howard just to add our retention has increased significantly and and are our ran those have reduced in cost significantly we brought the cost of our renovations down by approximately 50% because.
As of the access seen too much more cost effective materials the other big.
Benefit we're realizing is the flooring that we're replacing carpets with the laminate is a lifetime guaranteed product. So the turnover is with our laminate are much quicker and weigh less cost as well so the extra upfront investment, we're making and the extra cost for our.
Flooring and our materials like our cabinetry are having a long term benefit and will in the long term reduce our capex spend.
Right right now thanks for thanks for all that that was really helpful.
I'll turn it back.
Thank you.
Your next question will be from yes, Sankpal I've learnt from bank. Please go ahead.
Good morning.
Good morning, yes.
How much was the you're committed to rebrand and come back.
Oh, Hey, Asher was a it was a fairly small number is $160000 I believe for the first quarter and that's a onetime nonrecurring.
Okay I thought it was a bigger number so okay. That's good to know it's non or that's just the that bill 33 rebates for 34 rebate pardon me and come back and yet so that's that was $160000.
Okay.
How how is the new leasing going right now on are you seeing and half of your competitors offering incentives.
[noise] up our new leasing is.
This is is going.
Better than it was last year in May.
And so it's a reflection.
That we're gaining market share.
And and and and the overall market statistics are flat to slightly negative and some in some areas like.
Two bedrooms for example, in Calgary or slightly down and Patmax pad map or provides.
Current information of asking rents what we find is when we offer for new residents less incentive and better value proposition and and renovations.
We get we get better rentals.
Our qualifying residence and and.
And we use less incentives as a result, and and so the value proposition is really really important and what really is making a difference is the product diversification. We essentially can can serve every need of every resident that comes in our door.
And essentially what what tech.
The company's called ecosystem, when or what not lead comes into the Boardwalk family. We have a home for everyone. If you're looking for a brand new home. We've got that if you're looking for an affordable home, we got that if you're looking for a newly renovated a.
Home across the street from a elementary or or Junior High school that your kids are going to we've got that to the cross selling out we're benefiting from is really exceptional and we're working more than ever as one and and so any rental in any one of our can you.
Studies is a win for everybody and we have really come together like we've never come together.
And we just again, we just can't.
Well, we just can't thank everybody enough. We you know we send out thank you.
To our team and we're we're on the sites and we're we're seeing a benefit because we're still there where we're showing up to work and our team of heroes and we've got 300 associates that haven't missed a day of work since Cove it.
That that's remarkable not one day off not one.
Vacation day, and and on our associates are there.
Given the current situation and words out.
If if if theres, a place that safe that supportive and and and and theirs.
And there's people there that are cleaning and caring about how about keeping a phenomenal community safe and clean.
Whereas a place to go.
That's great so time well more abroad question.
When you compare the columnist attrition with the 215 crash Oh, how do you see the rental market Uh huh.
Behave this time as compared to the last time.
The rental market is is still a far ways off from where the rental levels were in 2015.
Providing incredible value for residents and a big barrier to to new development, it's getting really really hard to build new and justify it because the demand for higher rentals priced rentals is deferred is different and much less.
Then affordable rentals.
Affordability price is an essential factor in the law of supply and demand so to the position we have in in lower Iran. With a much higher value proposition has proved has positioned us much much better than 2015 going in.
Into 2015, we had no incentives we had no real significant investment in in value add we we had no focus in on design in his experience.
There was very little discussion about culture and building brand very very little if any discussion.
And focusing on that because we were delivering exceptional results without reinventing rijn redesigning our entire company and so necessity is the mother of invention and because of the downturn in oil we've been in a really really tough tough economy for five.
Five years. So so this has really.
This is really a stress.
Truth, what doesn't kill us makes us stronger.
We are a lot stronger because of the last five years and and as a result were so much better position Fort Mcmurray God bless them, our Fort Mcmurray team oil crisis.
Added to the pandemic and add to that slot.
Like all three disasters in one and and we reached out to our Fort Mac team and our format.
Sam we're Fort Mcmurray strong like where we're we're on this we're handling this and our Fort Mac team, we can't thank enough and there's a really really a inspiring example of resiliency and end up we can do anything we interviewed one of our landscapers in Edmonton.
<unk> mcgloin and he battled with with his family and White cancer, and we ask that Elliot's. The happiest guy on the planet and we have to Elliot you know you're you're going to cancer. This is this is a big disaster set Sam cancer like you know it looks like a mountain, but it's a speed bump worked.
We're just getting through it and you know what we're getting through it we're fine now and and we'd be that and mountains or illusions their speed bumps and that's our that's our landscape are in in Edmonton, the happiest happiest associated in our team how inspiring is that right.
Like our attitude our culture eats strategy for breakfast.
It is really.
Peter Drucker.
Great Great Great business, a leader as well so little sorry, I'm too excited maybe I'm getting too far off.
All right just one last question.
So you wouldn't want to Santa Monica then what your competitors are doing and you would experience do you think youre either in occupancy would be higher or lower than what it is right now.
It is higher already there you know the.
Hi, Thank God, we trust everybody else bring data our occupancy is rising as we speak in the middle of a pandemic.
I'm talking about 20 to 20 <unk> Yeah then.
We we.
We will continue we believe.
That there's inalienable cruise.
And that our ability to adapt.
Better than ever will continue to position us better than ever going forward, as well and and and and that's that's what we're going to continue to focus in on.
Our our principles that carry us through every single situation of change and our continued focus in our culture, our brand and our value proposition.
We'll continue to serve all of us well and and we started.
Reengineering five years ago, and re adapting five years ago and we've.
We've delivered some phenomenal results through already some really tough situation. So so.
We are better positioned than we've ever been.
That's it thank you.
Thanks, Ashley Thank you.
Next question will be from Mike mosquitoes at their shopping. Please go ahead.
Oh, Thanks, everybody just a quick one for me.
The the moved to the three month.
Renewals.
Do you give us a little bit of color in terms of how what the uptick spin on that percentage.
[noise] or not so sure time period, and then secondly are you doing the same thing on new leases or is it strictly on rules.
<unk>.
Hi, just James on renewals for three months renewals is really part of our maximum flexibility that we're offering our residents are there just part of our retention strategy and and really for lease renewals were it's just it's generally a small percentage of the renewals that we're doing the majority of our leases are still on 12 month lease rentals.
In terms of new leases, we're primarily doing 12 months, a new leases there are some shorter term leases nowhere near the three months. So on occasion will do six month eight months leases, but it's all about flexibility. So that we can continue to gain occupancy and win market share as Sam was sample, suggesting and.
And then was mentioning to yes, really our revenue strategy I mean occupancy is one part of it.
Second part of it is a market rent third part because intensities incentives and balancing out with turnovers on costs and.
I think we're looking at our revenue strategy holistic.
And so for us again.
Providing maximum flexibility to our residents today is helping us gain market share and increase occupancy today.
Thank you.
Thank you.
And at this time I would like to turn the call back over to Mr. Coleus. Please go ahead Sir.
Thank you Sylvie, we'd like to end this call by thanking our amazing team of heroes.
Oil residents and all our stakeholders, we're pleased with the improving rental market fundamentals. The exceptional value. We continue to provider residents are investors and for their continued great service from our team.
Thank you again, everyone for joining us this morning.
With our love always God bless.
Thank you, Sir ladies and gentlemen, this does conclude your conference call for today. Once again, thank you for attending and at this time, we do after two please disconnect your lines have a good weekend.
[noise].