Q1 2024 Boardwalk Real Estate Investment Trust Earnings Call

Operator: Good afternoon, ladies and gentlemen. Welcome to the Boardwalk Real Estate Investment Trust first quarter 2024 earnings conference call. At this time, all lines are in a listen-only mode.

Good afternoon, ladies and gentlemen, welcome to the Boardwalk Real estate investment Trust first quarter 2024 earnings Conference call.

Operator: Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on May 8, 2024. I would now like to turn the conference over to Eric Bowers, VP of Finance and Investor Relations. Please go ahead.

Operator: At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time during the call you require immediate assistance. Please press star zero for the operator.

Eric Bowers: This call is being recorded on May eight 2024, I would now like to turn the conference over to Eric powers VP of Finance and Investor Relations. Please go ahead.

Eric Bowers: Thank you, Ludi, and welcome to the Boardwalk REIT 2024 First Quarter Results Conference Call. With me here today are Sam Kolias, Chief Executive Officer, James Ha, President, Lisa Smandych, Chief Financial Officer, Samantha Kolias-Gunn, Senior VP of Corporate Development and Governance, and Samantha Adams, Senior VP of Investment. We would like to acknowledge, on behalf of Boardwalk, the treaties and traditional territories across our operations and express gratitude and respect for the land we are gathered on today and which we now know as Canada.

Eric Bowers: Thank you <unk> and welcome to the Boardwalk Creek 2024 first quarter results conference call.

Eric Bowers: With me here today are Sam Coleus, Chief Executive Officer, James Hoff, President, Lisa <unk>, Chief Financial Officer, Samantha Coleus gun senior VP of corporate development and governance, and Samantha Adams senior VP of investments, we would like to acknowledge on behalf of boardwalk.

Eric Bowers: Treaties and traditional territories across our operations and express gratitude and respect for the land. We are gathered on today and we now know as Canada, we respect indigenous peoples and communities as the original stewards of this land.

Eric Bowers: We respect Indigenous peoples and communities as the original stewards of this land. We come with respect for this land that we are on today, for all the people who have and continue to reside here, and for the rich diversity of First Nations, Inuit, and Métis peoples.

Eric Bowers: We come with respect for this plant that we are on today for all the people who have and continue to reside here and the rich diversity of first nation in Europe.

Eric Bowers: In May <unk> peoples.

Eric Bowers: Before we get to our results, please note that this call is being broadly distributed by way of a webcast. If you have not already done so, please visit bwalk.com slash investors, where you will find the link to today's presentation as well as PDF files of the Trust's financial statements, MD&A, and quarterly reports. Starting on slide two, we would like to remind our listeners that certain statements in this call and presentation may be considered forward-looking statements.

Eric Bowers: Before we get to our results. Please note that this call is being broadly distributed by way of webcast.

Eric Bowers: If you have not already done so please visit <unk> dot com slash investors, where you will find the link to today's presentation as well as PDF files of the Trust's financial statements MD&A and quarterly report.

Eric Bowers: Starting on slide two we'd like to remind our listeners that certain statements in this call and presentation may be considered forward looking statements. Although the expectations set forth in such statements are based on reasonable assumptions boardwalks future operations and its actual performance may differ materially from those in any forward looking.

Eric Bowers: Although the expectations set forth in such statements are based on reasonable assumptions, Boardwalk's future operation and its actual performance may differ materially from those in any forward-looking statement. Additional information that could cause actual results to differ materially from these statements is detailed in Boardwalk's publicly filed documents.

Eric Bowers: Statements additional.

Eric Bowers: Information that could cause actual results to differ materially from these statements are detailed in boardwalks publicly filed documents.

Eric Bowers: I would like to now turn the call over to Sam Kolias. Thank you, Eric, and welcome everyone to our Q1 2024 conference call, and especially a very warm welcome to our new Senior Vice President of Investments, Samantha Adams, and our new Corporate Counsel, Nandini Somayeshi. Starting on slide 4, our continued strong performance with our GAAP and non-GAAP measures of FFO per unit, profit, and net asset value, and unit holders' equity, seen in an increase in FFO per unit.

Eric Bowers: I would like to now turn the call over to Sam Coleus. Thank you, Eric and welcome everyone to our Q1 2024 conference call and especially a very warm welcome to our new senior Vice President investments, She math Adams, and our new corporate counsel and Denis <unk>.

Eric Bowers: Starting on slide four our continued strong performance with our GAAP and non-GAAP measures about that BOE per unit profit and net asset value and unit holders equity <unk> seen an increase.

Eric Bowers: Slide five, our culture. From our humble beginnings 40 years ago in 1984, our resident members are at the top of our organization. Our leaders put our team first, and our team puts our resident members first. Guided by the Golden Rule, we have a peak performing customer service culture that creates exceptional results. I would like to now pass this over to Samantha Kolias.

Eric Bowers: Slide five our culture from our humble beginnings 40 years ago and 1984, our resident members are at the top of our organization our leaders put our team first and our team puts a resident members first got it by the Golden rule, we haven't peak performing customer service culture that create.

Samantha Kolias: <unk> exceptional results I would like to now pass it over to Samantha Colby Scott. Thank.

Sam Kolias: Thank you so much, Sam, and congratulations to our team, our Boardwalk family, on the huge accomplishment of our 40-year anniversary, celebrating 40 years of Love Always. Continuing on to slide 6, our strategy to create value for our stakeholders begins with our people. We are extremely grateful for our extraordinary team who continue to innovate and deliver our places home for our resident members where love always lives. Our strategic focuses are best-in-class organic growth from our strategic decision made several years ago to implement a distribution policy that maximizes free cash flow, reinvestment back into our communities, and leverages our proven team and platform to deliver the best service and value to our resident members, which results in optimized NOI growth.

Samantha Kolias: Thank you so much Dan and congratulations to our team our boardwalk family.

Sam Kolias: Huge accomplishment of our 40 year anniversary celebrating 40 years of love always continuing on to slide six our strategy to create value for our stakeholders begins with our people. We are extremely grateful for our extraordinary team, who continue to innovate and deliver our place.

Speaker Change: Hey, we're a resident members wed love always let.

Sam Kolias: Our strategic focus is our best in class organic growth from our strategic decision made several years ago to implement at distribution policy, which maximizes free cash flow reinvestment back into our communities Leverages, our proven team and platform to deliver the best service and value to our resident members, which.

Sam Kolias: And optimized NOI growth when we pair all of this with the improvement in apartment rental market fundamentals in our core not non price controlled markets on a solid foundation of some of the most affordable rents in Canada, we are well positioned to continue to deliver best in class organic growth.

Sam Kolias: When we pair all of this with the improvement in apartment rental market fundamentals in our core non-price-controlled markets on a solid foundation of some of the most affordable rents in Canada, we are well positioned to continue to deliver best-in-class organic growth. Accretive Capital Recycling focuses on opportunistic investment into acquisitions, dispositions, or sale of non-core assets, development, and investment into our own high-quality existing portfolio with a tactical unit buyback, when appropriate, to also increase free cash flow.

Sam Kolias: Accretive capital recycling and focuses on opportunistic investment into acquisition dispositions, our sale of noncore assets development and investment into our own high quality existing portfolio with the tactical unit buyback when appropriate to also increase free cash flow.

Samantha Kolias: Our solid financial foundation provides flexibility on our balance sheet. With our laddered mortgage renewal approach and CMHC insurance on 96% of our financings, this continues to provide us stability and access to low-cost mortgage capital with reduced renewal risk. Compelling value from our strategic decision to diversify our product offering into three distinct brands: Affordable Living, Enhanced Value Community, and Affordable Luxury Lifestyle. Slide 7.

Sam Kolias: Our solid financial foundation provides flexibility on our balance sheet with our ladder mortgage granola approach and Steve meets the insurance on 96% of our financings. This continues to provide us stability and access to low cost mortgage capital with reduced renew old breath compelling value from our strategic decision did.

Samantha Kolias: Diversifying our product offerings into three distinct brand.

Samantha Kolias: Sort of a living enhanced value community and affordable luxury lifestyle.

Samantha Kolias: We continue to deliver leading growth. Boardwalk's existing exposure to strong rental demand, non-price-controlled markets, with record migration and significant organic growth, has Alberta has some of the most affordable rental rates in the country, with limited new supply versus demand from both international and inter-provincial migration. Our solid financial foundation and partnership with CMHC allows us to provide some of the most affordable rents in Canada, with rising interest rates making home ownership more expensive and rising construction costs, all widening the gap between our replacement costs of our assets and our current valuation.

Samantha Kolias: Slide seven we continue to deliver leading growth boardwalk existing exposure to strong rental demand non price control markets with record migration significant organic growth has Alberta had some of the most affordable rental rates in the country with limited new supply versus demand from both international and inner prevention of migraine.

Samantha Kolias: Sure.

Samantha Kolias: Our solid financial foundation in partnership with they May see allows us to provide some of the most affordable rents in Canada with rising interest rates, making homeownership more expensive and rising construction costs all widening the gap between our replacement cost of our assets and our current evaluation construction levels in our core markets remain low relative to anticipate.

Samantha Kolias: Construction levels in our core markets remain low relative to anticipated household formation, with record-high migration into our core Alberta markets. All of our apartment rental fundamentals continue to improve, with higher revenues as a result of our value-add program and inflationary adjustments, coupled with essentially no new incentives on new and renewing leases. All of our markets have near 99% occupancy, with increasing operating income.

Samantha Kolias: Household formation with record high in migration into our core Alberta market.

Samantha Kolias: All of our apartment rental fundamentals continue to improve with higher revenues as a result of our value add program and inflationary adjustment coupled with essentially no new incentives on new and renewing leases.

Samantha Kolias: All of our markets have near 99% occupancy with increasing operating income.

Samantha Kolias: Slide 8 shows the significant magnitude and scale, on a historic level, of continued all-time record-high migration into our largest region, Alberta, from both interprovincial and international migrants. This significant migration reflects the affordability that Alberta provides relative to other provinces. Slide 9 shows inter-provincial migration sources into Alberta for the current year 2016 and 2006. Most inter-provincial migrants are coming from Ontario and Quebec, with a big increase from B.C., reflecting a migration into more affordable housing in Alberta from higher housing costs in Ontario and British Columbia.

Samantha Kolias: Slide eight shows the significant magnitude and scale on a historic level have continued all time record high migration into our largest REIT in Alberta from both inter provincial and international migrants. This significant migration reflects the affordability that Alberta provides relative to other provinces.

Samantha Kolias: Slide 10 shows continued strong overall employment growth in Alberta along with how diversified new jobs are helping with the diversification of the Alberta economy. Alberta continues to provide outsized employment growth relative to other Canadian markets. Slide 11 shows Alberta's leading economic growth, resulting in significant increases in provincial revenue, placing Alberta in one of the strongest fiscal budget positions in the country. Slide 12 shows our large presence in affordable and non-price-controlled markets, with Alberta and Saskatchewan representing 62.3% and 10.2% of our portfolio, respectively.

Samantha Kolias: Slide nine shows Interprovincial migration sources into Alberta for the current year 2016, and 2006, most in a provincial migrants are coming from Ontario, and Quebec with a big increase from B C, reflecting in migration into more affordable housing in Alberta from higher housing costs in Ontario, and British Columbia.

Samantha Kolias: Slide 10 shows continued strong overall employment growth in Alberta, along with how diversified new jobs are helping with the diversification of the Alberta economy, Alberta continues to provide outsized employment growth relative to other Canadian market.

Samantha Kolias: Slide 11 shows, Alberta, leading economic growth, resulting in significant increases in provincial revenue, placing Alberta, and one of the strongest fiscal budget positions in the country.

Samantha Kolias: Slide 12 shows our large presence in affordable and non price controlled market.

Samantha Kolias: Alberta, and Saskatchewan, representing 62, 3% and 10, 2% of our portfolio, respectively. Boardwalk has the highest Canadian concentration of non price control department amongst our public REIT peers Boardwalk current mark to market, which includes the reduction of incentive averages $202 per suite.

Samantha Kolias: Boardwalk has the highest Canadian concentration of non-price-controlled apartments amongst our public REIT peers. Boardwalk's current marked market, which includes the reduction of incentives, averages $202 per suite and equates to approximately an $80.2 million revenue opportunity.

Samantha Kolias: That equates to approximately an $82 million revenue opportunity side.

Samantha Kolias: Slide 13 shows our high affordability, as defined by CMHC, in our core Edmonton and Calgary markets, with rents still below 30% of median rental household income. To the right of the affordability chart is a graph which shows the relative higher affordability in Alberta versus Canada and Canadian CPI indexed inflation. Slide 14 reflects supply constraints relative to demand. The graph on the left shows the significant imbalance between strong demand or population growth versus supply or new builds in the yellow, black, and grey areas, with demand or migration accelerating further in our core Edmonton and Calgary marketplaces, far outstripping new supply.

Samantha Kolias: Slide 13 shows our high affordability has defined by seem H C. In our core Edmonton and Calgary markets with rent still below 30% of median rental household income to the right of the affordability charges, the graph, which shows the relative higher affordability in Alberta versus Canada, and Canadian CPI index to inflation.

Samantha Kolias: Slide 14 reflects supply constraints relative to demand in the graph on the left shows the significant imbalance between strong demand or population growth versus supply or new builds in the yellow black and grey with demand or migration accelerating further in our core Edmonton and Calgary marketplace. It far outstripping new supply the green.

Samantha Kolias: The green circle on the graph represents estimated demand equilibrium for the current 37,000 total housing units under construction. To the right, another graph shows how high construction costs remain along persistent higher interest rates. Slide 15 shows a continued downward trend on year-over-year turnovers.

Samantha Kolias: On the graph represents estimated demand equilibrium for the current 37000 total housing units under construction.

Samantha Kolias: To the right another graph showing how high construction costs remain a long persistent higher interest rates.

Samantha Kolias: Slide 15 shows the continued downward trend on year over year turnovers occupancy continues close to 99% as a result of strong apartment rental fundamentals and our leading diversified product offering in all our key markets.

Samantha Kolias: Occupancy continues to be close to 99% as a result of strong apartment rental fundamentals and our leading diversified product offering in all our key markets. Slide 16 shows our key operational metrics with high occupancy, much lower incentives versus last year, higher occupied rents, resulting in higher revenues for the quarter, reflecting our key strategic decisions made to maximize free cash flow and diversify our product offering, yielding significant financial performance. Slide 17 shows steady net new and renewal rental rates within our self-regulated, resident-friendly-centric renewal rate band, keeping retention high, and our turnover and expenses low.

Samantha Kolias: Slide 16 shows our key operational metrics with high occupancy notch lower incentives versus last year higher occupied rents, resulting in higher revenues for the quarter, reflecting our key strategic decisions made to maximize free cash flow and diversify our product offering yielding significant financial performance slide 17.

Samantha Kolias: So steady net new and renewal rental rates within our self regulated resident friendly centric renewal rate that keeping retention high our turnover in expenses year over year, we have seen a significant improvement existing lease spreads or renewals are strategically moderated to keep providing resident friendly affordable.

Samantha Kolias: Slide 18 shows our key operational metrics with high occupancy, much lower incentives versus last year, and higher occupancy rents, resulting in higher revenues for the quarter, reflecting our key strategic decisions made to maximize free cash flow and diversify our product offering, yielding significant financial performance. Slide 18 shows a strong 1.8% sequential quarterly revenue gain compared to a 1.6% sequential quarterly revenue gain last year. We would like to now pass the call on to Lisa Smandych, who will provide us with an overview of our portfolio performance and balance sheets.

Lisa Smandych: Housing options in our core markets, while lowering our cost and getting operational result, a win win for all our stakeholders.

Lisa Smandych: Slide 18 shows a strong 1.8% sequential quarterly revenue gain compared to a 1.6 sequential quarterly revenue gains last year.

Lisa Smandych: Thank you, Samantha. Moving on to slide 19. For Q1 2024, same property net operating income increased by 13.5% as compared to Q1 2023, with revenue growth of 9.4%. Alberta, the trust's largest region, saw revenue growth of 11.1% as compared to Q1 2023. Operating expenses increased by 3.5% in Q1 2024, primarily due to higher wages and salaries as a result of inflationary adjustments at the beginning of the calendar year and higher utilities due to an increase in utility rates.

Lisa Smandych: We would like to now pass the call onto leases mandates, who will provide us with an overview of our portfolio performance and balance sheet Lisa.

Lisa Smandych: Thank you Samantha moving to slide 19 for Q1 2020 for same property net operating income increased by 13, 5% as compared to Q1 2023 with revenue growth of nine 4%.

Lisa Smandych: Alberto the trusts largest region saw revenue growth of 11, 1% as compared to Q1 2023.

Lisa Smandych: Operating expenses increased by three 5% in Q1, 2024, primarily due to higher wages and salaries as a result of inflationary adjustments at the beginning of the calendar year and higher utilities from an increase in utility rates.

Lisa Smandych: Of note, the cold spell experienced in Alberta during January 2024 did result in additional overtime hours for Boardwalk's associates, as well as some repairs and maintenance charges. However, the team remains committed to ensuring focus and discipline when managing controllable operating expenses.

Lisa Smandych: The cold spell experienced in Alberta. During January 2024 did result in additional overtime hours for boardwalks associates as well as some repairs and maintenance charges. The team remains committed to ensuring its focus and discipline when managing controllable operating expenses.

Lisa Smandych: Slide 20. Administration costs increased just over $400,000 as compared to Q1 2023 and were approximately flat to Q4 2023. The increase was driven by inflationary wage adjustments at the beginning of the year, an increase in software costs, including cyber security, as well as increases in professional services such as legal, tax, and government relations.

Lisa Smandych: Slide 20 administration cost increased just over 400000 as compared to Q1 2023 and were approximately flat to Q4 2023. The increase was driven by inflationary wage adjustments at the beginning of the year and an increase in software costs, including cyber security as well as increases in professional.

Lisa Smandych: Services, such as legal tax and government relations deferred unit based compensation increase due to an increase in the number of participants as well as the cost of the program.

Lisa Smandych: Deferred unit-based compensation increased due to an increase in the number of participants as well as the cost of the program. Slide 21 illustrates Boardwalk's mortgage maturity schedule. Our mortgages are well staggered, with approximately 96% of our mortgage balance carrying NHA insurance through the Canada Mortgage and Housing Corporation. This insurance remains in effect for the full amortization of the mortgage, and in addition to carrying the Government of Canada's backing, provides access to financing at rates lower than conventional mortgages. With current estimated 5-year and 10-year CMHC rates of 4.4% and 4.5%, respectively.

Lisa Smandych: Slide 21 illustrates boardwalks mortgage maturity schedule, our mortgages are well staggered with approximately 96% of our mortgage balance carrying N H a insurance through the Canada mortgage and housing Corporation. This insurance remains in effect for the full amortization of the mortgage and in addition to carrying the government of Canada's backing provide.

Lisa Smandych: Access to financing at rates lower than conventional mortgages with a current estimated five year and 10 years. So you may see rates of four 4% and four 5% respectively.

Lisa Smandych: Though current interest rates are above the trust maturing rates, the trust maturity curve remains staggered, reducing the renewal amount in any particular year. Lastly, the trust has an interest coverage of 2.84 percent in the current quarter. Slide 22 highlights our 2024 mortgage program, which includes approximately $18.8 million, which was overheld from December 2023 at the previously in-place interest rate. To date, we have renewed or forward locked $152.5 million at an average rate of 4.5% and an average term of 5 years. Current underwriting criteria in our most recent submissions to CMHC and our lenders have remained in line with our historically conservative estimates.

Lisa Smandych: So current interest rates are above the trust maturing rates the trust maturity curve remains staggered, reducing the renewal amount in any particular year.

Lisa Smandych: Lastly, the trust has an interest coverage of 284 in the current quarter.

Lisa Smandych: Slide 22 highlights our 2024 mortgage program, which includes approximately $18 8 million, which was overhauled from December 2023 at the previously in place interest rate to date, we have renewed or forward locked $152 5 million at an average rate of four 5% and an average term of five years.

Lisa Smandych: Current underwriting criteria in our most recent submissions to see make C and our lenders has remained in line with our historically conservative estimates moving.

Lisa Smandych: Moving to the right of the slide, we provide a summary of Boardwalk's available liquidity. The Trust is well positioned with approximately $183 million in cash and subsequently funded financing, as well as an undrawn $196 million operating line. This approximate $379 million in liquidity provides the Trust with a flexible financial position. Slide 23 illustrates the trust-estimated fair value of its investment properties, excluding adjustments for IFRS 16, which totals $8 billion as of March 31, 2024, as compared to $7.6 billion as of December 31, 2023.

Lisa Smandych: Moving to the right of the slide we provide a summary of boardwalks available liquidity. The trust is well positioned with approximately $183 million in cash and subsequently funded financings as well as an undrawn $196 million operating life, just approximate 379 million in liquidity provides the trust with a flexible financial.

Lisa Smandych: <unk>.

Lisa Smandych: The increase in overall fair value is the result of increases in market rents at select sites and communities, as market fundamentals improve, as well as the acquisition of The Circle and Calgary, Alberta, while all being offset slightly by an increase to capitalization rates. However, the current estimated fair value of approximately $231,000 per apartment door remains below replacement costs.

Lisa Smandych: Slide 23 illustrates the trust estimated fair value of its investment properties, excluding adjustments for our first 16, which totaled 8 billion as at March 31, 2024, as compared to $7 6 billion as at December 31, 2023, the increase in overall fair value is the result of increases in market rents at select sites.

Lisa Smandych: And communities as market fundamentals improve as well as the acquisition of the circle in Calgary, Alberta, well, all being offset slightly by an increase to capitalization rates current estimated fair value of approximately 231000 per apartment door remains below replacement cost.

Lisa Smandych: Moving to slide 24. In consultation with our external appraisers, the capitalization rates or cap rates used in determining Q1 2024 fair value were increased from Q4 2023. Upward adjustments were made to the Trust's Ontario assets in London, Kitchener, and KWC. As it does every quarter, the Trust will continue to review completed asset sales transactions and market reports to determine if adjustments to cap rates are necessary. Most recent published cap rate reports suggest the cap rates being utilized by the Trust for calculating fair value are within their estimated ranges. Next slide.

Lisa Smandych: Moving to slide 24 in consultation with our external appraisers, the capitalization rates or cap rates used in determining Q1 2020 for fair value were increased from Q4 2023.

Lisa Smandych: What adjustments remains the trust, Ontario assets in London, Kitchener, and kw C. As it does every quarter. The trust will continue to review completed asset sales transactions and market reports to determine if adjustments to cap rates are necessary.

Lisa Smandych: Recent published cap rate reports suggest the cap rates being utilized by the trust for calculating fair value are within their estimated ranges.

Lisa Smandych: In addition to seeking external growth opportunities through strategic accretive acquisitions and the continuation of our development pipeline in undersupplied housing markets, our value-add capital program is increasing our organic growth opportunities. Slide 25 provides an update on our capital deployment specific to our Value Add, Repositioning, and Renovation programs. Our common area and amenity renovations position our communities to offer the best value, service, and experience to our resident members and are a key contributor to Boardwalk's success in both tight as well as competitive market conditions.

Lisa Smandych: Next slide in addition to seeking external growth opportunities through strategic accretive acquisitions, and the continuation of our development pipeline and under supply of housing markets. Our value add capital program is increasing our organic growth opportunity Slide 25 provides an update on our capital deployment specific to our value add re.

Lisa Smandych: Positioning and renovation program.

Lisa Smandych: Our common area and amenity renovations position our communities to offer the best value service and experience to our resident members and are a key contributor to boardwalk success in both tight as well as competitive market conditions.

Lisa Smandych: For 2024, our team is planning to complete 19 common area and amenity refresh projects. Our suite renovations are used opportunistically, as our focus has increased to more back-to-back turnovers, where suites that are vacated on the last day of the month are turned and ready for a new resident member within 24 hours. By focusing on completing more back-to-backs, we eliminate vacancy and ensure that housing is immediately available in markets where it is needed the most. This past month end, our team successfully completed over 200 back-to-backs.

Lisa Smandych: For 2020 for our team is planning to COVID-19 common area and amenity refresh projects or sweep renovations are used opportunistically as our focus has increased to more back to back turnovers, where suites that are vacated on the last day of the month are turned and ready for a new restaurant remember within 24 hours.

Lisa Smandych: By focusing on completing more back to backs, we eliminate vacancy and ensure that housing is immediately available in markets, where it is needed. The most this past this past month and our team successfully completed over 200 Doctor backs.

Lisa Smandych: With low availability in our markets, our teams are also making progress on the creation of suites from existing storage and administrative spaces. To date, we have added 24 suites to the market and are currently under construction for an additional 19 suites. Our recent equity raise in December provides the Trust with strong liquidity and the opportunity to accretively deploy capital to create and compound value for our stakeholders. On slide 26, we summarize the use of our $240 million net proceeds.

Lisa Smandych: With low availability in our markets. Our teams are also making progress on the accretion of sweets from existing stores and administrative spaces to date, we have added 24 suites the market and are currently under construction for an additional 19 suites.

Lisa Smandych: Our recent equity raise in December provides the trust with strong liquidity and the opportunity to accretively deploy capital to create and compound value for our stakeholders.

Lisa Smandych: On slide 26, we summarized the use of our 240 million net proceeds.

Lisa Smandych: First, we utilized approximately $70 million to close our acquisition of The Circle in Calgary, which was announced in conjunction with our capital raise. The Circle is a recently constructed 295 suite community located near the Calgary South Health Campus and provides increased operating synergies for our cluster of assets in the area. The Circle has an ideal suite mix and includes large unit sizes.

Lisa Smandych: First we utilized approximately 70 million to close our acquisition of the circle in Calgary, which was announced in conjunction with our capital raise the circle is a recently constructed 295 suite community located near the Calgary Self Health campus and provides increased operating synergies for our cluster of assets in the area.

Lisa Smandych: The circle has an ideal sweet mix and includes large unit sizes.

Lisa Smandych: We negotiated the forward sale of this community in May 2022 for a purchase price of $263,000 per apartment door and are now at 94% occupancy. We are anticipating a 7.75% stabilized cap rate on this community. In addition to the $70 million investment in the Circle, approximately $57 million was deployed toward the repayment, in full, of Boardwalk's portion of its construction facility related to the 45 Railroad development in Brampton. The trust interest rate on the construction facility was approximately 6.6% in the period prior to our repayment.

Lisa Smandych: We negotiated the forward sale of this community in May 2022 for a purchase price of 263000 per apartment door and are now at 94% occupancy.

Lisa Smandych: We are anticipating a 775% stabilized cap rate on this community.

Lisa Smandych: In addition to the $70 million investment in the circle approximately 57 million was deployed toward the repayment in full of boardwalks portion of its construction facility related to the 45 railroad development in Brampton the.

Lisa Smandych: The trust interest rate on the construction facility was approximately six 6% in the period prior to our repayments the balance of proceeds from our capital raised have been invested in short duration term deposits that are currently yielding over 5% and as such earning interest while the trust is actively negotiating accretive acquisition opportunities.

Lisa Smandych: The balance of proceeds from our capital raise have been invested in short-duration term deposits that are currently yielding over 5% and, as such, earning interest while the Trust is actively negotiating accretive acquisition opportunities. We look forward to sharing an update on these in the coming months. I would now like to pass the call to Samantha Adams to discuss our development pipeline.

Samantha Kolias: We look forward to sharing an update on these in the coming months.

Samantha Kolias: Thank you, Lisa. On slide 27, we provide an update to our ongoing development pipeline to add housing in supply-constrained markets. We are pleased to share that the lease up of the second tower of our 45 railroad development is progressing well, with over 50% of units in the second tower now leased. This project was delivered on time and on budget, and we are projecting a stabilized yield at the upper end of our forecasted range.

Lisa Smandych: I'd now like to pass the call to Samantha Adams to discuss our development pipeline Samantha.

Speaker Change: Thank you Lisa.

Samantha Kolias: On slide 27, we provide an update to our ongoing development pipeline at housing in supply constrained markets.

Samantha Kolias: We are pleased to share that the lease up of the second tower of our 45 Railroad development is progressing well with over 50% of units in the second tower now leased.

Samantha Kolias: This project was delivered on time and on budget and we are projecting a stabilized yield at the upper end of our forecasted range.

Samantha Kolias: With 45 Railroad nearing completion and stabilization, we are pleased to announce the acquisition of a land development site located in Mardaloop, Calgary. Marta Loof is one of Calgary's most desirable and amenity-rich neighborhoods, and this site is located in the heart of the community.

Samantha Kolias: With 45 railroad nearing completion and stabilization. We are pleased to announce the acquisition of a land development site located in Martin loop in Calgary.

Samantha Kolias: Martin Luther with one of Calgary, most desirable and amenity rich neighborhoods and this site is located in the heart of the community.

Samantha Kolias: We have waived our conditions and are anticipating closing on the land in mid-June for a purchase price of $12 million, or approximately $80 per buildable square foot. Our concept plan will feature the cost benefit of wood frame construction with larger suites and will provide a differentiated product in the MARTA loop node that will attract strong rental rates. For our Victoria Development Pipeline, Aspire is the first of three projects, and we are proceeding to framing on the 234-unit development, which is located adjacent to our existing Aurora community that remains fully occupied.

Samantha Kolias: We've waived our conditions and are anticipating closing on the land in mid June for a purchase price of $12 million or approximately $80 per buildable square foot.

Samantha Kolias: Our concept plan will feature the cost benefit of wood frame construction with larger suites and will provide a differentiated product in the marder Loeb node that will attract strong rental rates.

Samantha Kolias: For Victoria development pipeline Aspire is the first of three projects and we are proceeding to framing on the 234 unit development, which is located adjacent to our existing where our community that remains fully occupied.

Samantha Kolias: The ASPIRE development is progressing on budget and will allow us to continue to scale our Victoria project. As we consider our current portfolio and development opportunities, slide 28 highlights the exceptional growth and value that Boardwalk's trust units represent. Boardwalk's current trading price equates to approximately $200,000 per apartment door and compares favorably to recent transactions and remains well below the increasing cost of replacement.

Samantha Kolias: Aspire development is progressing on budget and will allow us to continue to scale, our Victoria presence.

Samantha Kolias: As we consider our current portfolio and development opportunities slide 28 highlights the exceptional growth in value that boardwalks trust units represent.

Samantha Kolias: Boardwalks current trading price equates to approximately $200000 per apartment door and compares favorably to recent transactions and remains well below the increase in cost of replacement.

James Ha: I would now like to turn the call over to James.

Samantha Kolias: I would now like to turn the call over to James.

James Ha: Thank you, and welcome to our team, Samantha. Our current valuation represents exceptional value alongside our strong runway for continued earnings growth. With favorable fundamentals, strong leasing trends, and leading NOI growth, we are pleased to update our guidance on slide 29. Our performance in the first quarter was on the upper end of our expectations and is a reflection of all our team's dedication and efforts in creating value for all our stakeholders. With leasing spreads continuing to be within our targeted range and our focus on maintaining high occupancy into the summer months, we are pleased to revise upwards the bottom and top end of our same property NOI range to 11 and 14 percent and FFO per unit range to $4 and $4.20 per trust unit.

James Ha: Thank you and welcome to our team Samantha our.

James Ha: Our current valuation represents exceptional value alongside a strong runway for continued earnings growth.

James Ha: With favorable fundamentals strong leasing trends and leading NOI growth. We are pleased to update our guidance on slide 29.

James Ha: Our performance in the first quarter was on the upper end of our expectations and a reflection of all our teams dedication and efforts in creating value for all our stakeholders.

James Ha: With leasing spreads continuing to be within our targeted range and our focus on maintaining high occupancy into the summer months.

James Ha: To revise upwards, the bottom and top end of our same property NOI range to 11, and 14% and ethical per unit range to $4 and $4 20 per trust unit.

James Ha: As always, we intend to further update and tighten our guidance range as the year progresses. Our team is committed to leading in transparency and will continue to update our stakeholders in the event of any change in conditions that may materially impact our forecast. On slide 30, we have confirmed our next three months' distributions, which are a 23% increase from the same period last year. Our distributions have increased alongside our growing cash flow while maintaining our industry-low payout ratio, providing significant reinvestment for growth. We continue to maintain our minimum distribution policy with our payout ratio of 33%, representing one of the lowest in the sector.

James Ha: As always we intend to further update and tightened our guidance range as the year progresses.

James Ha: Our team is committed to leading in transparency and we will continue to update our stakeholders in the event of any change in conditions that may materially impact our forecast.

James Ha: On slide 30, we have confirmed our next three months distributions, which were 23% increase from the same period last year.

James Ha: Our distributions have increased alongside our growing cash flow, while maintaining our industry low payout ratio, providing significant reinvestment for growth.

James Ha: We continue to maintain our minimum distribution policy with our payout ratio of 33% representing one of the lowest in the sector.

James Ha: Lastly, on slide 31, we are proud to have published our 2023 ESG report. Highlights include over $16 million invested in energy efficiency upgrades, as well as a 15.8% reduction in our Scope 1 and Scope 2 emissions from 2019. Our social initiatives continue to focus on enhancing experiences in the communities we serve. Our governance continues to be recognized for our leadership in transparency and disclosure. We cannot thank all our stakeholders enough for a great start to 2024, and thank you again to our Boardwalk team for your continued dedication and commitment to serving all our stakeholders. Thank you, and we would be happy to answer any questions, operator.

James Ha: Lastly on slide 31, we are proud to have published our 2023 ESG report.

James Ha: Alights include over $16 million invested in energy efficiency upgrades as well as a 15, 8% reduction in our scope one and scope two emissions from 2019.

James Ha: Our social initiatives continue to focus on enhancing experience in the communities, we serve and our government governance continues to be recognized for our leadership in transparency and disclosure.

James Ha: We cannot thank all our stakeholders enough for a great start to 2024 and thank you again to our boardwalk team for your continued dedication and commitment in serving all our stakeholders.

Speaker Change: Thank you and we would be happy to answer any questions operator.

Operator: Thank you. And, ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number two on your telephone keypad. One moment, please, for your first question. Your first question comes from the line of Jonathan Kelcher with TD Cowen. Your line is open.

Speaker Change: Thank you and ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If he would like to withdraw your question. Please press the star.

Jonathan Kelcher: Followed by the number two laundry telephone keypad one moment. Please for your first question.

Jonathan Kelcher: Your first question comes from the line of Jonathan Culture with TD Colin Your line is open.

Jonathan Kelcher: Thanks, good morning. First question: just on acquisitions, you guys obviously have lots of liquidity, and I think Lisa touched on that you guys are negotiating. What are you seeing in terms of opportunities, and what markets are you most looking at?

Jonathan Kelcher: Thanks, Good morning.

Jonathan Kelcher: First question just on acquisitions, you guys, obviously have.

Jonathan Kelcher: Lots of liquidity.

Jonathan Kelcher: I think Lisa you touched on that you guys are negotiating.

Jonathan Kelcher: What are you seeing in terms of opportunities and what markets are you are you most looking at.

James Ha: Hey, Jonathan, it's James here. You know, from an acquisition standpoint, as, as Lisa had in her prepared remarks, we are focused on looking for unique opportunities, not dissimilar to the deals that we've done, you know, fairly recently, if you look at the acquisitions that we've made, you know, over the last few years, they've all been similar or have rhymed in that it's been primarily newer products, where we've been able to bring in our value-add, whether that's through taking duration or taking lease-up, but in exchange for that, buying great assets that are in great locations with great cap rates.

Jonathan Kelcher: Hey, Jonathan it's James here.

James Ha: From an acquisition standpoint is as we had in our prepared remarks. We are now focused on looking for unique opportunities not dissimilar to the deals that we've done you know fairly recently if you look at the acquisitions that we've made over the last few years, they've all been similar or have primed and that date, it's been primarily viewer.

James Ha: <unk>.

James Ha: Where we've been able to bring in our value add whether that's through taking duration or taking lease up.

James Ha: But in exchange for that buying great assets are in great locations with great cap rates and so we.

James Ha: And so, we continue to be active in negotiating and sourcing these acquisition opportunities, and we look forward to providing and sharing an update with our stakeholders as we move from negotiation into an unconditional, from negotiation to a non-conditional.

James Ha: We continue to be active in negotiating and sourcing these acquisition opportunities and we look forward to.

James Ha: Providing and sharing an update with our stakeholders as we move from negotiation into an unconditional.

James Ha: From an from a negotiation to an unconditional step.

Jonathan Kelcher: Okay, and the geographic market.

Speaker Change: Okay and geographic markets.

James Ha: If you look at our results and look at our results across various geographies, it is clear where we are seeing the best opportunities. And that best opportunity right now is in Western Canada and specifically in highly affordable, non-price-controlled markets. And so with the platform that we have, a platform that is built to optimize in that type of environment, we absolutely like markets like Alberta and Saskatchewan. Again, not dissimilar to our most recent acquisition.

Speaker Change: Yeah look if.

James Ha: If you look at our results and look at our results across various geographies. It is clear where we are seeing the best opportunities and that best opportunity right now is in Western Canada, and specifically in highly affordable non price control markets and.

James Ha: And so it's a platform that we have a platform that is built to optimize in that type of environment.

James Ha: We like markets like Alberta, and Saskatchewan again, not dissimilar to our most recent acquisitions.

Jonathan Kelcher: Okay, and then just turning to development. I guess when Marta Loop closes, you'll have three potential new ones. Do you expect to break ground on any of them this year?

Speaker Change: Okay, and then just turning to development.

Jonathan Kelcher: I guess, what Marta loop closes you'll have three potential new ones do you expect to break ground on any of the three this year.

James Ha: We continue to go through the entitlement processes, so that's the Marin and Island Highway, we continue to progress through Aspire, but, as our stakeholders are aware, our 45 railroad project is pretty well complete. We are going to release it, and that is going to fall off of the development pipeline and move it into our stabilized portfolio. Our development pipeline. We want to remain consistent. We have the right platform to keep one or two developments on the go at any given time, and that will be our continued focus here. And so as we get through entitlements, we will decide on the economics and when the appropriate start date on those will be once that time comes.

Jonathan Kelcher: Yeah, we continue to go through the entitlement processes.

James Ha: Yeah right. So that's the Marin in island Highway we continue to progress through aspire.

James Ha: But as our stakeholders are aware our 45 relevant road project is pretty well complete we are going through lease up and that is going to fall off of.

James Ha: All of our pipeline and moving into our stabilized portfolio.

James Ha: Our development pipeline, we want to remain consistent we have the right platform to keep one or two developments on the go at any given time and that'll be our continued focus here and so as we get through entitlements.

James Ha: We will decide.

James Ha: On the economics and when the appropriate start date on those will be once that time comes Jonathan.

James Ha: We're really excited about Marta Lupe. For people who don't know, Marta Lupe is an absolute A-plus location in Calgary. It's five minutes downtown.

James Ha: We're really excited about models.

James Ha: Who doesn't know auto is.

James Ha: In absolute a plus location in Calgary in five minutes downtown.

James Ha: There are other opportunities there that we've looked at it in the past, but sadly I.

James Ha: I haven't had the right type of product that's been built that suits them.

James Ha: There are other opportunities there that we've looked at in the past, but sadly, we haven't had the right type of product that's been built that suits what we believe would be the best product for longevity, and so we are looking to build larger units in Martaloop and bring a unique product to that sub-market. Not unlike what we did in Northwest Calgary with Braille. That has been a very successful project for us, I think.

James Ha: What we believe would be the best product for longevity and so we are looking to build larger units tomorrow loop and bring a unique product to that sub market not unlike what we did in northwest Calgary with Breo that it's been a very successful project for us and we've shared this with our stakeholders in the past for development, where it could be very.

James Ha: And we've shared this with our stakeholders in the past for development where it could be very attractive is when we can combine the unique attributes of having wood frame construction costs with concrete-like rents. Martaloop is one of those unique locations in Calgary where we can.

James Ha: Attractive is when we can combine the unique attributes of having wood frame construction costs with concrete like rents Marta loop is one of those unique locations in Calgary, where we can provide that.

Jonathan Kelcher: Do you have a rough estimate of what the cost per unit might be on a wood frame right now in Calgary?

James Ha: Do you have a rough.

James Ha: Estimate of what.

Jonathan Kelcher: Cost per unit.

Jonathan Kelcher: Might be on a wood frame right now in Calgary.

James Ha: You know, it's really early, Jonathan, and our team is going through massing and planning as we speak. We hope to be able to share that in the coming months. It's a little bit too early for us to pin that number.

Jonathan Kelcher: It's really early Jonathan in our teams going through massing and planning as we speak we hope to be able to share that in our in the coming months its a little bit too early for us to pin that number disjuncture Jonathan.

Jonathan Kelcher: Okay, I'll turn it back on. Thanks.

Speaker Change: Okay I'll turn it back thanks. Thank.

Speaker Change: Thank you.

Operator: Your next question comes from the line of Mike Markidis from BMO Capital Markets. Please go ahead.

Speaker Change: Your next question comes from the line of Mike <unk> from BMO capital markets. Please go ahead.

Michael Markidis: Thanks, Operator. Good afternoon, Team Boardwalk. The revised same property growth at a rate of 11 to 14%. Would you be able to give us some guideposts between the revenue and OPEX components of that, please?

Michael Markidis: Thanks, operator, good afternoon team boardwalk.

Speaker Change: Just firstly on the.

Michael Markidis: The revised same property growth outlook of 11% to 14%.

Michael Markidis: Are you able to give us some guideposts between the revenue and Opex components of that please.

Lisa Smandych: Hi Mike, it's Lisa. I hope you're well.

Michael Markidis: Hi, Mike, It's Lisa I hope, you're well certainly from from a revenues perspective, we would be looking more in comparison to our original guidance, we would probably be performing closer to the mid to higher end of our guidance and so that we're likely looking at revenue growth sort of in the high 8% to perhaps the mid 9% from our guidance.

Lisa Smandych: Certainly from a revenue perspective, we would probably be looking more, in comparison to our original guidance, closer to the mid to higher end of our guidance. And so we're likely looking at revenue growth sort of in the high 8% to perhaps the mid 9% from a guidance perspective. From an operating expense side, appreciating some of the expenses that we did see in Q1 coming from that cold spell in Alberta, our expense range for all of our expenses would be sort of that 2% to 5%, roughly in line with where we started the year out.

Lisa Smandych: Respective from an.

Lisa Smandych: On the operating expense side I'm appreciating some of the the expenses that we did see in Q1 coming from that cold spell in Alberta, our expense range for all of our expenses would be sort of that 2% to 5% roughly in line with where we started the year out.

Michael Markidis: Okay, so high 8s to mid 9s on REB, 2 to 5 on OPEX are the parameters.

Speaker Change: Okay. So hi age the mid nines on Rab two to five on Opex as the parameters.

Lisa Smandych: Approximately

Michael Markidis: Approximately.

Michael Markidis: Yeah, roughly. Okay, gotcha, gotcha.

Speaker Change: Yes, roughly okay gotcha gotcha.

James Ha: Okay, so I mean, just looking at your expanded market to market, and it seems like lent growth, market lent growth in certain markets, particularly Edmonton, stands out as sort of catching up, maybe lagging a little bit here. I know you've got to get through the summer leasing season, and I know we're still focused on 2024. But I guess my question is, based on what you guys are seeing today, if you look out to 2025, is there, you know, what are your thoughts with respect to whether or not your ability to drive a similar level of revenue growth will sustain itself, or whether or not that starts to moderate? Hi Mike, it's James here again. I think, you know, our moderated approach certainly has the goal of elongating this similar path that we've been taking, right?

Michael Markidis: Okay. So I mean I'm just looking at your expanded mark to market and it seems like rent growth market rent growth in certain markets, particularly the mental stands out as sort of catching up maybe lagging a little bit here.

James Ha: I know you've got to get through the summer we can see some and I know, we're still focused on 2024.

James Ha: Yes. My question is based on what you guys are seeing today. If you look out to 2025 is there.

James Ha: What are your thoughts with respect to whether or not the your ability to drive a similar level of revenue growth.

James Ha: We will sustain itself or whether or not that starts to cooperate.

James Ha: Hi, Mike It's James here again, I think we certainly are moderated approach.

James Ha: Does that goal of Elong gating. This similar path that we've been taking rate and so if you look at.

James Ha: And so if you look at, you know, last year, on the revenue front, or certainly on the leasing spread front, it's fairly similar to what we're delivering here now today. And so when we're targeting seven to nine on renewals, when we're targeting 10 to 15 on new leases, and recognizing that, I think it was in Samantha's prepared remarks. We certainly are seeing strong population growth in Alberta. So with that in mind, we certainly are targeting similar...

James Ha: Last year.

James Ha: On the revenue front certainly on the leasing spread front, it's fairly similar to what were delivering here now today and so when we're targeting seven to nine on renewals where were targeting 10 to 15 on new leases.

James Ha: And recognizing that I think it was in <unk> prepared remarks.

James Ha: We certainly are seeing strong population growth into Alberta and were seeing some constraint on supply.

James Ha: So with that and with that in mind, we certainly are targeting similar leasing spreads moving into 2025 at this juncture.

James Ha: When we look at the supply picture and what's under construction today, again, I, you know, we have 37,000 total housing units under construction right now in Calgary and Edmonton. I'm not sure that that's all going to get delivered this year, but even in spite of that, our population growth continues to far exceed that, and so that should continue to provide us the ability for these more sustainable agendas.

James Ha: When we look at the supply picture and what's under construction today again, I think consistent Smith his prepared remarks.

James Ha: We have 37000 total housing units under construction right now in Calgary and Edmonton.

James Ha: I'm not sure that that's all going to get delivered this year, but you know and.

James Ha: Even in spite of that our population growth continues to.

James Ha: Far exceeds that and so.

James Ha: That should continue to provide us the ability for these more sustainable adjustments that we've been providing last year that we're providing this year and that will aim to provide for next year as well.

Michael Markidis: Affordability continues to be extremely high, Mike, as well. Sorry, Mike, I was just going to add that affordability continues to be extremely high. Rent relative to income is in the mid-twenties, and again, that is some of the lowest in the country. And so certainly being able to balance both of those provides us with that ability to continue this strong. Thanks for that. Okay, last one for me. I just want to make sure I'm understanding the accounting and, I guess, the potential flip in contribution from 45 Railroad. So with the repayment of your portion of the construction facility, was that

James Ha: Affordability.

James Ha: Going back as well sorry, Mike I was just going to add affordability continues to be extremely high.

Michael Markidis: Rent relative to incomes are in the mid Twenty's a game that is some of the lowest in the country and so.

Michael Markidis: Certainly being able to balance both of those provides us that ability to continue this strong revenue path.

Speaker Change: Got it thanks for that Okay last one for me just want to make sure I'm understanding.

Michael Markidis: The accounting and I guess the potential slipping contribution from 45 railroad so with the repayment of the <unk>.

Michael Markidis: Your portion of the construction facility was that.

Michael Markidis: Was that a pay down at the JV level, or did you guys basically take back a win?

Speaker Change: Was that a pay down at the JV level or did you guys.

Lisa Smandych: A note to offset that impact in your income statement elsewhere.

Michael Markidis: Basically take back a note to offset that impact in your income statement elsewhere.

Lisa Smandych: It's going to be the latter, Mike. So basically, everything is being accounted for gross. So the equity-accounted investment is the actual partnership itself. The partnership itself still has the full debt, which then Boardwalk reports 50% of. And then we then have in the interest income on the balance sheet the loan receivable for the amount being paid by the partnership back to us, which results in that related party note as well.

Speaker Change: It's going to be the latter Mike. So so basically everything is accounted for growth will be equity accounted investment in the actual partnership itself. The partnership it still itself still has the full debt, which then boardwalk reports 50 per center and then on the we then have and the interest income on the balance sheet the loan receivable for the amount being paid by the partnership back to.

Lisa Smandych: Which.

Lisa Smandych: It results in that related party note as well.

Michael Markidis: Got it. Okay. And that, was that, um, did that take effect, was that in effect for the entire quarter, or was it not?

Mike: Got it okay and that was that did that take effect was that in effect for the entire quarter or was it a partial quarter.

Lisa Smandych: More or less, yeah, I think we paid it off by January 7th and 6th, so yeah, pretty much the whole quarter. Okay.

Speaker Change: More or less yeah, I think we paid it off January 7th January six Oh, yeah pretty much the whole quarter.

Michael Markidis: Okay, gotcha. And then just from an NOI perspective, I know the interest cost would definitely lead into the contribution from the JV, and I know it's an offset, so we'll have to dig into that. But just from an NOI perspective, when you look at where 45 Railroad is currently versus where there's upside in the rest of the lease up, what would sort of be that Delta right now.

Speaker Change: Okay got you and then just from.

Michael Markidis: From an NOI perspective, I know the interest cost would definitely it into the contribution from the JV and I know, it's a it's an offset to we'll have to dig into that but just from an NOI perspective, when you look at.

Michael Markidis: Where are the where.

Michael Markidis: 45 railroad is that currently versus where there is upside in the rest of the lease up what would sort of be that delta right now.

Lisa Smandych: So are you asking on the accounting side or just where we're seeing how the JV is actually performing on an NOI performance?

Michael Markidis: So are you asking on the accounting side or just where were seeing them how how the JV is actually performing on an NOI performance.

Michael Markidis: Well, I guess, I think, I don't know. I may have missed, I think you may have taken away, sort of the detailed JV disclosure on the revenue and expenses, but If you didn't, I missed it. I'll go back and look, but just getting a sense of where the NOI for the project was in Q1 and then, sort of, I mean, we can get to the stabilized level, but with that, just trying to get a sense of the upside versus what was booked in this quarter.

Lisa Smandych: Well I guess I think I don't know I may have missed I think you may have taken away sort of the detailed JV disclosure on revenue and expenses, but.

Michael Markidis: Yes.

Michael Markidis: If you didn't I'd missed it I'll go back and look, but I'm, just getting a sense of where the NOI for the project was in Q1, and then sort of.

Michael Markidis: We can get to a stabilized level, but what that I'm, just trying to get a sense of the upside versus what was booked in this quarter.

Lisa Smandych: Certainly, yeah. So you are correct, Mike.

Speaker Change: Certainly, yes. So you are correct, Mike we did.

Speaker Change: Given the immaterial nature of the note we did it we did take out the JV notes in Q1. So the overall because we are still in lease up of cute.

Lisa Smandych: We did, given the immaterial nature of the note, we did take out the JV note in Q1. So overall, because we are still in the lease-up of Tower 2, that JV would have had a slight loss, contributing to that would have been the interest cost that is currently incurring. From a net operating income perspective, we did see a little bit of seasonality on the revenue side, just like the Q1 winter months, but we are progressing within our budget and forecast for that afternoon.

Lisa Smandych: Tower too that JV would have had a slight loss contributing that would've been the interest cost that is currently incurring them from an operating income perspective, we did see a little bit of seasonality on the revenue side, just like that Q1 winter months, but we are sort of we are progressing within our budget and forecast for that for that asset.

Michael Markidis: Okay, so was it flat or negative NOI this quarter? Was it positive? Just trying to get a sense.

Speaker Change: Okay. So was it flat or negative NOI this quarter.

Speaker Change: With a positive just trying to get a sense.

Lisa Smandych: I want to say it was right around flat. So I think the way I would look at it, I guess, as we're moving through the year, is you would have seen a loss on the JV and Q1. I think you could anticipate a loss sort of for the first half, and then once that asset becomes close to stabilization, it will turn positive. But overall, in the context of the year, I would expect a slight loss on the asset overall for the year. Right, but

Speaker Change: I wanted to say it was right around flat.

Lisa Smandych: So I think the way I would look at it I guess as we're moving through the year you would've seen a loss on the JV in Q1, I think you could anticipate similar sort of for the first half and then once that asset comes becomes closer to stabilization. It will turn to positive but overall in the context of the year I would expect a slight loss on the asset overall.

Lisa Smandych: For the year.

Michael Markidis: Right, but taking into account the interest income, your contribution is effectively the unlevered yield that you get on your portion once it's stabilized. That's correct. That is very helpful. Thank you very much.

Lisa Smandych: Alright, but taken into effect the interest income Youre. Your contribution is effectively the unlevered yield that you get on your portion once it stabilizes.

Michael Markidis: Okay.

Speaker Change: So that was very helpful. Thank you very much I'll turn it back.

Speaker Change: Thanks, Mike.

Operator: Your next question comes from the line of Sairam Srinivas with Cormark Securities. Your line is open.

Michael Markidis: Your next question comes from the line of <unk> Srinivasan with core Mark Securities. Your line is open.

Sairam Srinivas: Thank you, everybody. Good morning. Good afternoon, everybody.

Sairam Srinivas: Thank you operator, good morning, good afternoon everybody.

Sairam Srinivas: Just looking at, maybe probably dovetailing on Johnson's line of questioning, when you look at the acquisitions, James, and you look at the acquisition market, and all the vendors that are coming up with these targets, what's driving the opportunities in the market? Is it more of, you know, maybe developers are finding it difficult to actually pay down their loans and essentially trying to get out of projects? Or is it more organic opportunities that would normally be here, maybe a year ago?

Sairam Srinivas: I'm just looking at maybe probably duck tailing on Jonathan's line of questioning.

Sairam Srinivas: When you look at the acquisitions, James and you look at the acquisition market.

Sairam Srinivas: And all the vendors that are coming off of these targets, what's driving the opportunities in the market because there's more of you know maybe develop those kind of finding a difficult backs leap years older than the ones in the country trying to get out of projects are a little more organic opportunity there would normally be doing.

Sairam Srinivas: <unk>.

James Ha: Hi, it's James. Certainly, in the acquisitions market, interest rates are tough, right? I mean, higher interest rates certainly make it much more difficult for many groups. I think of, again, some of the opportunities that we've had with our past acquisitions, and that has provided that opportunity for us to come in. And so, you know, every deal is different. Everybody has their own circumstances. But, you know, even within our own projects, when you have higher carrying costs for construction, Lisa just talked about paying down our portion in full at 45 Railroad, where we were paying, Lisa, our interest rate at 45 Railroad was

James Ha: ASI, it's James a.

James Ha: Certainly in the acquisitions market.

James Ha: Interest rates are tough right I mean higher interest rates certainly make it a much more difficult for.

James Ha: Many groups I mean, I think of again some of the opportunities that we've had with.

James Ha: With our past acquisitions and that has provided that opportunity for us to come in and so.

James Ha: Every deal is different everybody has their own circumstances, but you know.

James Ha: Even even within our own projects when you have higher carrying costs for construction, Lisa just talked about paying paying down our our portion in full at 45 Railroad, where we were paying Lisa our interest rate at 45 Railroad was.

James Ha: Our last payment was $6.6.

James Ha: This payment was $6, 666% and that's under our full covenant as well and so.

James Ha: It's 6.6%, and that's under our full covenant as well, and so, you know, higher interest rates certainly make it tougher. Hopefully, that answers your question, Sai.

James Ha: Higher interest rates certainly makes it tougher.

James Ha: Hopefully that answers your question sorry.

Sairam Srinivas: It does, it does. And maybe just kind of shifting gears to the operations side of things, do you guys track the amount of time it actually takes to maybe lease a unit? And has that actually changed from, let's say, a year ago or two ago to now?

Sai: It does it does and maybe just kind of shifting gears to the operation side of things.

Sai: Do you guys track the amount of time, it actually takes to maybe lease a unit and how does that actually change from let's see who you ought to come out.

James Ha: You know, I would say in the marketplace right now, and you can see it in our occupancy numbers, we are running pretty well at max occupancy. We actually think it could be better.

Sairam Srinivas: You'll see in the marketplace right now and you can see it in our occupancy number you know we are running pretty well at a Max.

James Ha: Max occupancy.

James Ha: Today, you know, we're turning over units, as Lisa had mentioned, within 24 hours. That's a huge focus for us. And that's how we can get vacancy to zero. If we think of days vacant, in that case, where Lisa was speaking to those 200 back-to-backs that we were doing, vacancy on those units is zero. If a unit is sitting vacant for two weeks, so PSI 2 out of 52, that's 4% vacancy on that unit, and so our goal here is to take the number of days vacant to zero.

James Ha: I actually think it could be better.

James Ha: You know, we're turning over units as Lisa mentioned within 24 hours, that's a huge focus for us and that's how we can get vacancy to zero right. If we think of days vacant in that case release, who is speaking to those 200 back to backs that we were doing vacancy on those units is zero.

James Ha: If a unit is sitting vacant for two weeks Cy two out of 52, that's 4% vacancy on that unit and so our goal here is take that the number of days vacant to zero we.

James Ha: We do continue to see some strong wait lists in a lot of our communities, and that's resulting in us being able to maximize this occupancy, and we'll continue to aim to maintain that high occupancy through the summer, if not even improve it by doing even more backup.

James Ha: We do continue to see some strong waitlist and a lot of our communities and that's resulting in us being able to maximize occupancy and we will continue to aim to maintain that high occupancy through the summer if not even improve it by doing even more back to backs.

Sairam Srinivas: That's really encouraging. Thanks for the follow-up, James. I'll turn it back. Thank you.

Speaker Change: That's really unclear and thankfully I apologize I'm talking about.

Speaker Change: Thank you Sir.

James Ha: I do just want to run it before we jump in. I do want, for the purpose of the transcript, I think we had said the circle was 7.75% cap rate. To be clear, and as per the slide, that is a 5.75% cap rate on the circle, per slide 26.

Speaker Change: I do just want an operator before we jump in I do want it for the purpose of the transcript I think.

James Ha: We had said to circle was 775% cap rate to be clear and as per the slide that is a 575% cap rate on on the circle.

Speaker Change: First slide 26, thank you.

James Ha: Yeah.

Operator: Your next question comes from the line of Jamie Shan from RBC. Your line is open.

James Ha: Your next question comes from the line of Jamie Shen from RBC. Your line is open.

Khing Shan: Thanks. I wondered if you had any general comment on how you think the limits on non-permanent residence will impact rental demand going forward.

Khing Shan: Thanks, I Wonder if you had any general comment on how you think the.

Khing Shan: There are limits on non permanent residents, how that'll impact until demand going forward.

Eric Bowers: Hi Jimmy, it's Eric. I can comment on that one. So I think a couple of things. There's still some clarity we need on that announcement in terms of how that looks regionally. I think we'll get a lot more clarity on that in the fall. But generally speaking, I think a couple things that really work to Alberta's advantage. Number one, we do have a significant interprovincial migration flow of around 55,000 people a year.

Khing Shan: Yeah, Hi, Jimmy it's Eric.

Khing Shan: Sure I can comment on that one so I think a couple of things theres still some clarity we need on that announcement in terms of how that looks regionally.

Eric Bowers: We'll get a lot more clarity on that in the fall, but generally speaking I think a couple of things that really worked to Alberta has advantage number one.

Eric Bowers: We do have a significant inter provincial migration flow of around 55000 people a year.

Eric Bowers: James touched on that a little bit in his remarks, but some of the factors leading to that, including affordability, we see as a continued trend going forward. Also, I guess, on the non-permanent resident front, we still have a significant shortage on the supply side. So to date on that, we've seen some pretty limited responses from a supply perspective, and some of the other measures that are being proposed under the budget and other announcements are going to take a lot of time to flow through the system. So that is all to say that over the next few years here and beyond, we see that having a pretty limited impact on the medium term on our demand side of the equation.

Eric Bowers: James touched on that a little bit in his remarks, but some of the factors leading to that including the affordability.

Eric Bowers: We see continued trend going forward.

Eric Bowers: Also I guess on that non permanent resident front.

Eric Bowers: We saw the significant shortage on the on the supply side so to.

Eric Bowers: To date on that we've seen some pretty limited response from a supply perspective, and some of the other measures that are being.

Eric Bowers: Post under the bucket other.

Eric Bowers: Other announcements are going to take a lot of time to flow through the system. So that is all to say that.

Eric Bowers: Over the next few years here and beyond.

Eric Bowers: We see that being a pretty.

Eric Bowers: Limited impact.

Eric Bowers: Over the medium term two to our demand side of the equation.

Khing Shan: If the population growth now very returns to that equilibrium, as you pointed out, that 90 to 100,000 population growth that you have in one of the slides versus the $150,000-$200,000 it was last year, in that environment, do you think you'd still be able to push through the type of rent growth that we've seen?

Eric Bowers: If if the population growth returns to that equilibrium, but as you pointed out that 90 to 100000 population growth that you have in one of the slides.

Khing Shan: Versus the <unk> hundred 50 clients out there has been.

Khing Shan: Last year.

Khing Shan: In that environment, what do you think you'd be able to push through the type of growth that we've seen.

Eric Bowers: Well, I think part of the beauty of our strategy right now on the self-moderation side of the new leasing spreads and renewals is that, by design, we are looking to elongate that revenue runway over time. So, I think for us, a more sustainable demand and supply picture in the long run is actually a good thing for maintaining our long-term affordability, and that's part of the reason why we take the self-moderation approach in the first place. I'll just add to that, Jimmy. It's James.

Khing Shan: Well I think part of the beauty of our strategy right now on the self moderation side of the new leasing spreads on renewals is that by design. We are looking to elongate that revenue run rate over time so.

Eric Bowers: I think for us a more sustainable demand supply picture in the long run is actually a good thing to two maintaining our long term affordability and that's part of the reason why we take the self moderation approach in the first place.

Eric Bowers: Add to that Jamie it's James.

James Ha: Again, we'll point back to affordability, you know, rent relative to income in the mid-twenties. Where else can you get that in the country? Right, Calgary and Edmonton are continuing to see strong demand. As I heard yesterday, Alberta's calling campaign is running again in that we're incentivizing trade workers to come to Alberta. And so, again, when we look at the attractiveness of Alberta, if we look at the affordability, if we look at the high lifestyle, if we look at the low taxes, I think Alberta continues to see the benefits of that. With that in mind, we are confident that we can continue to see this growth going forward, especially knowing that, to Eric's point, we are elongating this runway with our own moderation.

James Ha: Again, I'll point back to affordability.

James Ha: Relative to income in the mid twenties, where else can you get that in the country right now.

James Ha: In Calgary and Edmonton are continuing to see strong draws a I heard yesterday.

James Ha: Alberta is calling campaign is running any gain in that were incentivising trade workers to come to Alberta.

James Ha: So again, when we look at that attractiveness of Alberto if you look at the affordability as we look at the Hyatt lifestyle. If you look at the low taxes like Alberta continues to see the benefits of that.

James Ha: As a result of.

James Ha: With that backdrop, we are confident that we can continue to see this growth going forward, especially knowing that to Eric's point.

James Ha: We are elongated in this run rate with her with her own moderation.

Khing Shan: Okay, thank you. And then, just last one, I just wanted to confirm something. First of all, Samantha Adams, it's good to connect with you again. But, as I recall, Samantha has a lot of experience in the U.S. You tell me if I'm reading too much into it, but I'm assuming you're not looking to make acquisitions in the U.S. Hi Jimmy.

Speaker Change: Okay. Thank you and then just last one I just wanted to confirm something.

Khing Shan: Well Samantha items.

Speaker Change: Connect with you again.

Khing Shan: We call Samantha and lot of experience in the U S. You tell me, if I'm reading too much into it but I'm, assuming you're not looking to make.

Khing Shan: Acquisitions in the U S.

Samantha Kolias: Hi Jimmy, it's nice to connect with you as well. No, today our focus remains solely on our core markets, I think, as James and Samantha and everyone here have already alluded to. So that'll be the focus going forward.

Samantha Kolias: Hi, Jimmy it's nice to connect with you as well no today, our focus remains solely on our core markets I think as James and math and everyone. Here has already alluded to so that'll be the focus going forward.

Speaker Change: Okay. Thank you.

Operator: Your next question comes from the line of Matt Kornack with National Bank. Please go ahead.

Samantha Kolias: Your next question comes from the lineup Mccormack with National Bank. Please go ahead.

Matt Kornack: Hey guys, just given your approach to pushing rents over a longer period of time, have you seen turnover come down in the portfolio as a result of a bigger mark to market for people to move elsewhere? And then maybe just qualify the type of turnover you're seeing in the portfolio at this point, where tenants are going?

Matt Kornack: Hey, guys, just given year auction and pushing rents over a longer period of time have you seen turnover come down in the portfolio as a result of a bigger mark to market for people to move elsewhere.

Matt Kornack: And then maybe just quantify the type of turnover you are seeing in the portfolio at this point where tenants are doing.

James Ha: Hey Matt, it's James. Turnover in our Alberta and Saskatchewan portfolios, actually countrywide, we have seen turnover decline. You know, we can go west to east here. In B.C., we've seen turnover decline. You know, into the mid-teens, keep in mind, we do have a newer product in B.C. In Alberta and Saskatchewan, that turnover has come down to 25-30%; that is down from 35-40% a couple of years ago. And by design, right? Turnovers cost money.

Matt Kornack: Hey, Matt it's James turnover in our Alberta, Saskatchewan portfolio. She countrywide, we have seen turnover decline.

James Ha: We can go geography.

James Ha: West to east here in.

James Ha: NBC, we've seen that turnover decline.

James Ha: The mid teens keep in mind, we do have a newer product in BC.

James Ha: Albert in Saskatchewan that turnover has come down to 25% to 30% that is down from 35% to 40% a couple of years ago and by design right turnovers cost money and so for us.

James Ha: And so for us, and this is much different in a non-regulated market or a non-price-controlled market, is, hey, we as community providers want our residents to stay with us. And so as a result of that, as a result of the lower targeted spreads that we're providing for renewals, the increased sustainability that we're providing our residents that are staying with us, we're also benefiting from that lower turnover. And so part of it's by design, Matt.

James Ha: This is much different than a nonregulated market or a non price controls market is hey, we as community providers want our residents to stay with us.

James Ha: And so as a result of that as a result of the lower targeted spreads that we're providing for an for renewals the increase sustainability that we're providing our residents are staying with US. We're also benefiting from that lower turnover and so part of it is by design, Matt the other part of it as well as again, most community providers in Alberta and Saskatchewan.

Matt Kornack: The other part of it as well is, again, most community providers in Alberta and Saskatchewan have figured this out as well and are looking to retain. In Ontario, our turnover has declined from high single digits to low double digits. And similarly, in Quebec, our turnover is down into the 10% to 15%.

Matt Kornack: Figured this out as well and are looking to retain their residents.

Matt Kornack: And Ontario, our turnover has declined to high single.

Matt Kornack: Digits to low double digits.

Matt Kornack: And similarly in Quebec, or turnover is down into the 10% to 15% range.

Lisa Smandych: Just with regard to, I mean, in the past, when Alberta has been hot, labor costs have increased. You've said 2% to 5% expense growth, but are you expecting that that dynamic to return, or is the oil and gas industry not maybe as proactive in hiring people at this point? So maybe you won't see as much growth in wages. Just interested on that front.

Matt Kornack: Just with regards I mean in the past when Alberta has been hot labor costs have increased.

Lisa Smandych: You said, 2% to 5% expense growth.

Lisa Smandych: Are you expecting that that dynamic returns or is the oil and gas industry is not maybe as proactive on hiring people at this point, so maybe you won't see as much.

Lisa Smandych: And wages.

Lisa Smandych: On that front.

Matt Kornack: When we're contemplating that two to five percent, Matt, that's, I mean, that's looking specifically at where we're seeing Boardwalk's costs in terms of sort of utilities, insurance, some of our controllable expenses. I don't think we're, at this juncture, forecasting a required wage adjustment in the province. I mean, we would agree with you that Alberta does have some of the highest incomes across the country, and certainly sometimes that does, the energy sector can lead where those wages come from, but at this juncture, we're not forecasting requiring a wage adjustment within our 2024 calendar year.

Lisa Smandych: So when when we're contemplating that 2% to 5%, Matt that's not I mean, that's looking specifically where were seeing boardwalks costs in terms of sort of utilities insurance. Some of our controllable expenses I don't think we're at this juncture, we're not forecasting a a required wage adjustments in the province, I mean, we would agree with you that Alberta does have some of the highest.

Matt Kornack: Incomes across the country and certainly sometimes that does the energy sector can lead where those those wages come from but at this juncture, we're not we're not forecasting them requiring a wage adjustment in within our 2024 calendar year.

Lisa Smandych: And then lastly, on the CapEx budget for 2024, it looks like you're allocating a little bit more to kind of common areas. Is that correct? I mean, I would think at this point, you don't really have to allocate much to get people to rent, but what's the justification for kind of an incremental expense there, or is it just inflation and the cost to kind of renovate things?

Speaker Change: Okay Fair enough and then lastly on the Capex budget for 2024.

Lisa Smandych: It looks like you're allocating a little bit more to kind of common areas that.

Lisa Smandych: I mean I would think at this point you don't really have to allocate much to get people to rent, but what's the justification for kind of incremental expense or is it just inflation of that close to the kind of things.

Matt Kornack: If using that to your point, geared more towards the inflation side of what those common area improvements will cost, that's not to be said that, I mean, we will make sure that there is that incremental return above and beyond what the market will already give us from an organic growth perspective when we pursue those common area renovations. So, to your point, do we need to do them or not? We're only doing them if that incremental return above what the market is already giving us is available.

Lisa Smandych: I'm not to your point geared more from the inflation side of what those common area improvements will cost.

Matt Kornack: Not to be said that I mean, we will make sure that there is that incremental return above and beyond what the market will already give us from an organic growth perspective, when we pursue those common area renovations. So said to your point do we need to do them or not we're only doing them if that incremental return above what the market is already giving us is available.

Lisa Smandych: And then, presumably, similarly on suites, you're doing the minimal that needs to be done given how competitive the market is at this point.

Matt Kornack: And then presumably similarly on suites.

Lisa Smandych: Youre doing the minimal that needs to be done given how competitive the market is at this point.

Matt Kornack: Yep, to James' point, really focusing on those back-to-backs, trying to keep our vacancy as low as we can, and occupancy as high as we can. Should a suite, of course, if a suite turns over and it requires more than just a normal back-to-back, we will, of course, make that investment because we can then drive the rent up again on that suite. But again, everything is very disciplined and detailed in terms of what level of renovation we do, ensuring that the return is there should we do it. Great. Thanks for the call.

Lisa Smandych: Could you just point really focusing on those back to backs I'm trying to keep our vacancy of our vacancy as long as we can occupancy as high as we can and should a suite of course, if a fleet turns over and it requires more than just the normal back to back we will of course make that investment because we can then drive the rent up again on that suite, but again everything is very disciplined and detailed in terms of what.

Matt Kornack: Level of renovation, we do ensuring that the return is there should we do it.

Matt Kornack: Okay, great. Thanks for the call.

Speaker Change: Okay, great. Thanks for the color.

Speaker Change: Thanks, Matt.

Operator: Your next question comes from the line of Dean Wilkinson with CIBC. Please go ahead.

Matt Kornack: Your next question comes from the line of Dean Wilkinson with CIBC. Please go ahead.

Dean Mark Wilkinson: Thanks, everyone. Um, I don't know if this is Sam or James or a jump ball. Um... You can't open a paper or turn on a TV in the last six to eight weeks without hearing another housing announcement, housing announcement, housing announcement. And it seems to have pressured not just you but your peers. Is there anything in what you've seen, read, or heard that would actually fundamentally change the strength of the dynamic of... Not just you but the entire housing supply, demand, and balance that we're currently experiencing?

Dean Mark Wilkinson: Thanks, everyone.

Dean Mark Wilkinson: I don't know if this is sam or James or a jump ball.

Dean Mark Wilkinson: You can't open a paper turn on a television in the last six to eight weeks without hearing another housing announced when housing announcement housing announcement and it seems to have pressured not just you but your peers.

Dean Mark Wilkinson: Is there anything in what you've seen read or heard that would actually fundamentally changed the strength of the dynamic of.

Dean Mark Wilkinson: Not just you, but the entire housing.

Dean Mark Wilkinson: A supply demand imbalance that we're currently seeing.

Dean Mark Wilkinson: Athene at Fam and.

Sam Kolias: The only thing we can learn from history is that we don't learn from history because, in the 60s and 70s, our taxes for housing were much, much lower, and our capital cost allowance was much, much higher. Yeah.

Dean Mark Wilkinson: The only thing we learned from our history is we don't learn from history.

Sam Kolias: <unk>.

Sam Kolias: In the sixties and seventies, our taxes for housing was much much lower and our capital cost allowance was much much higher.

Sam Kolias: I'm going to commend our policymakers for increasing the capital cost allowance from 4% to 10%. It was 20%, and then the MIRVs were 200, and that's when we built more housing than demand and rents dropped probably 30-40%, and that's not the policy that we're recommending. But 10% is a start, and lowering our taxes is a proven public policy, and we ask the question, why do we want to increase taxes on something we need more of?

Sam Kolias: Going to command, our policymakers for increasing capital cost allowance from 4% to 10%. It was 20% and then the mirv was 200% and that's when we built more housing demand and rents dropped probably 30%, 40% and that's not the policy that.

Sam Kolias: That were recommended recommending but 10% is a start and lowering our taxes as a proven public policy and we asked the question why do we want to increase taxes on something we need more off.

Sam Kolias: And as voters, we have to keep asking that question, learn from history, and keep decreasing taxes on housing because that's really the biggest, most expensive part of housing over the last several years is our taxation. So yeah, it's a tax on all of us, yeah. Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host. Yeah, you know, the huge opportunity here, Dean, is that we have an existing portfolio where average rents are $1,400.

Sam Kolias: And as voters, we have to keep asking that question, we've got to look at the past.

Sam Kolias: Learn from history, and keep decreasing taxes on housing because thats really the biggest most expensive part of housing over the last several years because our taxation. So it's.

Speaker Change: Yeah, the attacks of attacks on all of Us yeah.

Sam Kolias: So do you think that the concept of affordable housing, a new supply or potentially at cross purposes to each other you are in the market, you're you're building and you know I've talked to James a lot about this and I think that you'd be ecstatic. If you could build something for 450 or 500000 a door.

Sam Kolias: It just seems like there's.

Sam Kolias: The math is strained.

Sam Kolias: Yeah, you know the the huge opportunity here Deane is that we have an existing portfolio, where average rents are $1400 a month.

James Ha: And that is some of the most affordable rents that you'll find in the country. So, again, to Sam's point, I mean, we certainly applaud some of the policy initiatives, including the Affordable Acquisition, which presents a great opportunity. Existing affordable housing? Yes.

Sam Kolias: It is some of the most affordable rents that you'll find in the country. So again to Sam's point I mean, we certainly applaud you know some of the policy initiatives, including the.

James Ha: Affordable acquisition fund, which presents a great opportunity for us to keep existing affordable housing affordable.

James Ha: While providing some opportunity for those same community providers to recycle that capital and add more supply to the housing market. Now, what's maybe taking a step back on that? Capital Gains Tax. You know, it's one step forward, one step back, but, you know, again, to Sam's point: capital grants are great for not-for-profits.

James Ha: While providing some opportunity for those same community to providers to recycle that capital and add more supply into the housing market now, what's maybe taken a step back on that as the capital gains increase which.

James Ha: Its one step forward, one step back, but no gain to Sam's point great.

James Ha: Great way to incentivize more housing is to lower taxes on it capital grants are great for the not for profits.

Sam Kolias: And we have a community that still provides affordable housing in Spruce Ridge, SW Calgary, where we entered into a partnership 50-50 between ourselves and the province and feds on a community where 50% was provided with capital. And that capital helps amortize and subsidize rents for the next 20 years. So we're in our 13th year on that community providing affordable rents and amortizing that 50% capital grant, so that's another great example of LIHTC and the United States Low-Income Housing Tax Credits that provide a similar type of capital.

James Ha: And we have a community that still provides affordable housing and spruce Ridge southwest Calgary, where we entered into a partnership 50 50 between ourselves and the province in Feds on community, where 50% was provided.

Sam Kolias: Our capital and that capital helps amortizing subsidized rents for the next 20 years and so we're in our 13th year on that community, providing affordable rents and amortizing that 50% capital grants. So that's another great example.

Sam Kolias: <unk> in the United States low income housing tax credits that provide this similar type of capital.

Sam Kolias: We saw that again in the 1950s when our veterans came back from the Second World War and the 1960s. We were in the exact same situation, and our housing was very, very difficult to find, and very expensive given the ratio of housing versus wages and salaries.

Sam Kolias: We saw that again in the fifties when our veterans came back from the second World War and the sixties, we were in the exact same situation and our housing was very very difficult to find very expensive given the ratio of housing versus wage and salaries and so we've been here before.

Sam Kolias: And so we've been here before, and there are great ways of providing affordable housing. We just have to bring back what we did. It was a long time ago, you know, 30, 40, 50 years. Not everybody remembers what happened back then.

Sam Kolias: Sure and there are great ways of providing affordable housing, we just got to bring back what we did it was a long time ago.

Sam Kolias: 30, 40, 50 years not everybody remembers what happened back then but it sure work and it's sure working in the United States in Texas, Florida capital gains in some instances of zero percent lower taxes lowering the prices, it's a law of supply and demand it's not a theory.

Sam Kolias: It sure worked, and it sure worked in the United States, in Texas, and Florida. Capital gains in some instances were zero. Lower taxes, lowering prices. It's a law of supply and demand. It's not a theory.

Sam Kolias: The more we lower the price of anything, the demand goes up. And our Alberta government is in a surplus. We lower taxes, and guess what? We're making more tax revenue in Alberta than we've ever, ever made. It's the law of supply and demand. It's not an idea. And it's very difficult to explain that, but we need to keep rewinding and repeating that, and lower taxes work when it comes to more Alberta.

Sam Kolias: The more we lower price if anything the demand goes up and our Alberta government.

Sam Kolias: Our surplus we lower taxes and guess, what we're making more tax revenue in Alberta than we've ever ever made its the law of supply and demand, it's not a theory and it's very difficult to explain that but we need to keep rewinding and repeating that and lower taxes works when it comes to more affordable housing.

Dean Mark Wilkinson: From your lips to Reagan's ears, I couldn't agree more. Thanks for that, Sam. Thanks, everybody. What the hell is this?

Speaker Change: From your lips to Reagan's here, so I couldn't agree more.

Dean Mark Wilkinson: Thanks for that Sam Thanks, everybody.

Dean Mark Wilkinson: It back.

Sam Kolias: Good point. Reagan brought it in. He did bring that home, and it worked.

Speaker Change: It's a good point, Greg and brought it in he did bring that home and it worked.

Sam Kolias: And it worked right.

Sam Kolias: Works.

Dean Mark Wilkinson: Thank you. And once again, if you would like to ask a question, simply press star followed by the number one on your telephone keypad. Your next question comes from the line of... Please go ahead. There are no further questions at this time. I would like to turn it back to Sam Kolias for closing remarks.

Speaker Change: Thank you and once again, if you would like to ask a question simply press star followed by the number one on your telephone keypad.

Dean Mark Wilkinson: Okay.

Dean Mark Wilkinson: Your next question comes from the line.

Speaker Change: Sorry. Please go ahead.

Dean Mark Wilkinson: Yeah.

Sam Kolias: I think where there are no further questions at this time I would like to turn it back to Suncor, yes.

Sam Kolias: Closing remarks.

Operator: Thank you so much, Ludi. As always, if there are any further questions or comments, please do not hesitate to contact us. A big, huge thank you to Lisa Smandych for her 16 years of service, inspiration, and leadership. We are so blessed to have her in our Boardwalk family forever and wish her well in her future. With gratitude, we would like to thank our extraordinary team, loyal residents, CMHC, our lenders, and, of course, our unit.

Sam Kolias: Thank you so much ludy as always if there are any further questions or comments, please do not hesitate to contact us.

Operator: Huge thank you to Lisa bandage for her 16 years of service inspiration and leadership. We are so blessed to have her in our boardwalk family forever and wish her well in her future with.

Operator: With gratitude, we would like to thank our extraordinary team loyal resident CMA Sea, our lenders and of course, our unit holders. It really is about RPF app are boardwalk family forever, whose huge shoulders, we stand and as leaders. We continue to do everything we can to support continued growth and extraordinary.

Operator: It really is about our BFF, our Boardwalk Family Forever, on whose huge shoulders we stand, and as leaders, we continue to do everything we can to support continued growth and extraordinary. We really can't thank our extraordinary team and great leaders enough. We are pleased with our improving results on a foundation of exceptional value, service, and experience. We continue to provide for our resident members, our investors, and all our stakeholders.

Operator: We really can't thank our extraordinary team and great leaders enough. We're pleased with our improving results on a foundation of exceptional value service and experience. We continue to provide a resident members our investors and all our stakeholders.

Sam Kolias: Home is where our heart is, our heart is where our family is, and our family is where love always is. Welcome home to Love Always. Our future is family. What can be more important when choosing where to call?

Operator: Home is where our heart is our hardest where our families and our family is where love always lifts welcome home to love always.

Sam Kolias: Our future is family.

Speaker Change: It can be more important when choosing where to call. Thank you again, everyone for joining us This morning, God bless and now more than ever.

Operator: Thank you again everyone for joining us this morning. God bless, and now more than ever, grant us peace. Thank you, presenters. And ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

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Operator: Thank you presenters and ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.

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