LOWER THE RENTS to tenants of highly profitable landlords.  Landlords renting to thousands of renters across Canada are reporting high profits and comparatively low costs – including BOARDWALK REIT. 

BOARDWALK Real Estate Investment Trust (REIT).  Following is information for the 3 months ending December 2019 – for ALL provinces. See also results for specific provinces and for the 12 months ending December 31, 2019 in Boardwalk REIT 2019 Annual Report.

1.  LANDLORD PAYS:  operating costs per unit per month =  $506 (See NOTE A.)

2.  TENANT PAYS:  average rental revenue to landlord per unit per month  = $1,153 (See NOTE A.)  “Occupied rent” varies by location. (See NOTE B.)

3.  LANDLORD’S OPERATING PROFIT PER RENTAL UNIT PER MONTH:  $647 (=$1,153 - $506).

4.  LANDLORD’S OPERATING MARGIN:   56.1%  (= $647/$1,153). (See NOTES A & C.)  

5.  LANDLORD’S NET OPERATING INCOME = $64,750,000 – an increase of 14.7% from 3 months ending December 31, 2018. (See NOTES A & C.)  

6.  LANDLORD’s Objectives for 2020:  4% to 7% “Stabilized Building NOI Growth” (See NOTE D; NOI = Net Operating Income.)    So are tenants’ rents increasing in 2020 by 4% to 7%  - at a time of worldwide COVID-19 pandemic and unprecedented negative impacts to Canada’s economy?  See reference to COVID-19 by Sam Kolias, Boardwalk REIT Chairman and CEO in the Boardwalk REIT 2019 Annual Report at page 7. 

If highly profitable LANDLORDS lowered rents to their tenants this may mean LESS government supports needed for the tenants – which could mean LESS income tax and, or property tax for Canadians pay.  

Landlords who are Real Estate Investment Trusts (REITs) apparently do NOT pay income tax – but distribute profits to their unit holders trading on stock exchanges. See reference to this by Boardwalk REIT in “Our Story” - 2004 (https://www.bwalk.com/en-ca/our-story/):    “With 31,780 suites, Boardwalk converted to a Real Estate Investment Trust (REIT).  A REIT is a corporation that is not taxed because it distributes most of its taxable income to unitholders.”  [Emphasis added]

Highly profitable landlords should  pay their FAIR SHARE and LOWER the rents to their tenants in 2020.  Aren’t we ALL in this together?

THANK YOU, fellow Canadians, for signing the petition!!  It really does help.  Let’s PROTECT RENTERS:  let’s make it a WIN-WIN-WIN solution for Renters and Community as well as Landlords.  Please pass the petition on to others!

Stay safe, stay healthy!

Anne

We the Courageous.

NOTES:

A.  Boardwalk REIT Live Life Elevated February 28, 2020 Q4 2019 Conference Call presentation, pg. 58.

B.  Boardwalk REIT Live Life Elevated February 28, 2020 Q4 2019 Conference Call presentation, pg. 53.  By location:  December 2019 Occupied Rent ($);  number of rental units (weighted average);  and % of portfolio: 

·         Edmonton, AB - $1,201;  12,906; 39%.

·         Calgary, AB - $1,339;  5,647; 17%.

·         Red Deer, AB - $1,088;  939, 3%.

·         Grande Prairie, AB – $1,085;  645;  2%.

·         Fort McMurray, AB - $1,290;   352;  1%.

·         ALBERTA PORTFOLIO - $1,232;  20,499;  63%.

·         Quebec – $1,108;  6,000; 18%.

·         Saskatchewan - $1,148;  3,685; 11%.

·         Ontario - $1,001; 2,585;  8%.

·         TOTAL PORTFOLIO:  $1,182;  32,769;  100%.

C.  Boardwalk REIT 2019 Annual Report – pg. 28.

D.  Boardwalk REIT 2019 Annual Report – pg. 80.