Investor Presentation November, 2012 (4mb - pdf ... - Boardwalk REIT

Portfolio Summary By ProvinceUnit Breakdown – Jun 30, 2012 Net Operating Income – Jun 30, 2012Quebec, 17.0%BC, 1.8%Quebec,15.0%BC, 2.2%Ontario, 12.1%Ontario,7.2%Saskatchewan,13.1%Alberta, 56.0%Saskatchewan,14.9%Alberta,60.7%Province Number of Units % of Units Net Rentable Square Footage % of Square Footage Average Unit SizeAlberta 19,743 56.0% 16,861,937 56.3% 854British Columbia 633 1.8% 456,936 1.5% 722Saskatchewan 4,636 13.1% 3,841,756 12.8% 829Ontario 4,265 12.1% 3,410,651 11.4% 800Quebec 6,000 17.0% 5,364,721 18.0% 894Total (as at Jun 30, 2012) 35,277 100.0% 29,936,001 100.0% 849Updated: Q2 20123

Q2 2012 Rent Statistics$1,100$1,090$1,087$1,080$1,070$1,065$1,060$1,053$1,055$1,050$1,040$1,030$1,031$1,044$1,024 $1,029 $1,033$1,042Occupied RentMarket Rent$1,020$1,010$1,000$990June-11 September-11 December-11 March-12 June-12Source: Internally generatedUpdated Q2, 20126

Differential between OwnershipCosts and Monthly RentSource: CMHC, monthly carrying cost minus average two-bedroom rent ($)Updated: June 201210

Stabilized AnalysisThree and six months ended June 30, 2012Jun 30 2012 - 3 M# of Units% RevenueGrowth% OperatingExpenseGrowth% NetOperatingIncome Growth% of NOICalgary 5,310 5.8% -0.5% 8.5% 18.7%Edmonton 12,497 4.6% 1.2% 6.4% 37.2%Fort McMurray 352 0.1% 6.7% -2.2% 2.0%Grande Prairie 645 7.6% -1.1% 14.6% 1.4%Red Deer 939 7.2% 14.1% 3.1% 2.1%British Columbia 633 1.6% 6.6% -0.8% 1.9%Ontario 4,265 1.7% -1.9% 5.1% 7.5%Quebec 6,000 1.0% -1.9% 2.9% 15.0%Saskatchewan 4,636 3.3% 1.9% 3.9% 14.2%35,277 3.7% 0.5% 5.5% 100.0%Jun 30 2012 - 6 M# of Units% RevenueGrowth% OperatingExpenseGrowth% NetOperatingIncome Growth% of NOICalgary 5,310 6.4% -2.2% 10.5% 18.8%Edmonton 12,497 4.1% -4.7% 9.5% 37.3%Fort McMurray 352 0.1% -3.4% 1.5% 2.0%Grande Prairie 645 9.1% -2.9% 19.9% 1.4%Red Deer 939 6.3% 5.1% 7.1% 2.1%British Columbia 633 2.8% 7.1% 0.7% 2.0%Ontario 4,265 1.9% -4.9% 9.2% 7.4%Quebec 6,000 1.0% -1.7% 3.0% 14.8%Saskatchewan 4,636 2.9% 0.5% 4.1% 14.3%35,277 3.6% -2.8% 7.6% 100.0%Source: Internally generatedUpdated: Q2 201211

$000'sVacancy Loss and IncentivesVacancy Loss & Incentives$8,000$7,000$6,000Incentives:$2,247$5,000$4,000VacancyLoss: $2,863$3,000$2,000$1,000$-Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012Vacancy Loss Incentives TotalSource: Internally generatedUpdated: Q2 201212

Revenue StrategyCustomer Service-Best Quality Communities- Best Service- Self Imposed Rent ControlRevenueOptimizationOccupancy Levels- Maintain High Occupancy Levels-Equilibrium of Market Supply and Demand isat 97% occupancyMarket Rents-Constant monitoring of rental rates for bothnew and renewing customers- Offer Selective Incentives in weaker markets- Reduce Incentives in Stronger MarketsCustomer Service is the driver of our Revenue Optimization Strategy, but is best achievedwhen coupled with active and timely management of Market Rents while maintaining highOccupancy Levels.13

Qualitative Revenue Growth StrategyThe quality of Boardwalk’s Communities drives revenue growth and stability.Capital Expenditures:- Over $70 Million invested annually.- $73.7 Million invested in capital improvements in 2011- Over $90 Million budgeted for in 2012Vertical Integration:- Completing more maintenance and improvements in-house where quality and cost is bettercontrolled- Quality and Service of Communities are improved as productivity is enhanced- Parts and Supplies are purchased bulk and stored in warehouses to increase efficiency whilereducing costs.Improving the Portfolio- Selective selling of non-core communities and replacing with new construction orthe repurchase and cancellation of units.- Since August of 2007, approximately 4.5 million units have been purchased andcancelled representing an investment of approximately $170 million.- Reviewing the potential development of new units on existing land owned by theTrust.Customer Service combined with Quality Communities provide optimum revenue and stability.14

Responsible Revenue Growth StrategyIn addition to quality communities, customer satisfaction has proven to be a driver in customerretention. Boardwalk works with each customer individually and provides internal programs suchas:-Self-Imposed “Rent Protection”- Guarantee a maximum $150/month rent increase per year for existing customers-In-House Subsidy Program- Boardwalk will eliminate rent increases for any resident who can prove financial hardshipAs an advocate of Social Responsibility, Boardwalk has committed a significant number of unitsto address the need for affordable housing through partnership with all levels of Government,and Housing Authorities.1000AffordableHousingInitiatives200300200300Housing FirstHomeward TrustThe New Start ProgramFixed Rate Rental SupplementProgramCollaboration with GovernmentOrganizations15

Vertical IntegrationBulk purchasing and warehousing of parts andsupplies, including carpet, linoleum, laminatecountertops, light bulbs, etc, has lead to cost effectiveprocurement and increased service levels for ourCustomers.Boardwalk has 7 warehouses across Canada.Boardwalk has largely internalized repair andmaintenance functions including landscaping.The net result is:- Increased quality of repairs- Increased productivity- Increased effectiveness of resources- Increased Curb Appeal- Increased quality of communities16

Growth through Vertical Integration18001600140012001000800600400200$3.00$2.50$2.00$1.50$1.00$0.50Number of employeesFFO02001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$-The efficiencies of Vertical Integration has helped in FFO growth andstability. Boardwalk currently has over 1,600 associates.Source: Internally Generated17

Curb Appeal –Boardwalk vs. CompetitorsFairmont Village, Edmonton, ABEdmonton Competitor on same streetNorthwest Pointe, Calgary, ABCalgary Competitor across the streetPhotos takenAugust, 2011

What Have We Been Up ToFFO perApartments Trust Unit Funds From Operations Trust Units O/S2007 36,487 2.07 $ 116,500,00056,280,0002012 35,277 2.83 $ 147,958,00052,282,000Net % Change -3% 37% 27% -7%Compounded 6.5%Market PriceAveragePurchasePrice Trust Units Repurchased Total InvestmentReturn - Notadjusted forDistributionsInvestment in Trust Unit Buy Back $ 65.0037.53 4,542,742 $ 170,489,00073%Updated: Q2 201219

Boardwalk Rental Premium98.20%98.10%98.00%97.90%97.80%97.62%98.18%$1,100.00$1,000.00$900.00$800.00$883$1,055$1,08797.70%97.60%$700.0097.50%97.40%$600.0097.30%CMHCBoardwalk$500.00CMHC Bwk WA Occ Rent Bwk WA Mkt RentBoardwalk’s Strategy of selective acquisition and customer focused service hascreated a demand for Boardwalk’s rental product that commands a premium tomarket rents and has resulted in higher overall occupancyInternally generated, Boardwalk data as of Jun 2012, CMHC data as of April 2012 from CMHC’s SpringRental Market Reports. All averages are weighted by Boardwalk’s apartment units in each majorcentre.Note – CMHC publishes a rental market report semi-annuallyUpdated: June 201220

98.0%97.5%97.0%96.5%96.0%95.5%95.0%94.5%Quality and Service RewardedOccupancy and TurnoverOccupancy vs. TurnoverOccupancy% TO %Occupancy50.0%48.0%46.0%44.0%42.0%40.0%Turnover94.0%38.0%93.5%2007 2008 2009 2010 201136.0%The Trust’s Revenue Strategy, including a continued focus on CustomerService and Quality, has increased occupancy levels while also decreasingturnover.21

Quality and Service RewardedAverage Tenancy Length3.40Average Tenancy (yrs)3.303.203.103.002.902.802.702006 2007 2008 2009 2010 2011 2012 YTDContinued focus on Customer Service and Quality has also increased the lengthof time tenants choose to call Boardwalk “Home.”All22

Total UnitsFFO/UnitA History of Strong Organic Growth40,00035,00030,00025,00020,00015,00010,0005,000$3.50$3.00$2.50$2.00$1.50$1.00$0.50-1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rent +25Rent +50Rent +75Rent +100$-FFO Per UnitApartmentsSince 2007, Boardwalk has shown strong organic growth during periods oflittle apartment acquisition.Source – Internally generated, amount generated are based on existing occupancy levels and assume no impact of any changes inoperating costs.23

FFO SustainabilityCore Rental Growth$3.50$3.00$2.50$2.00FFO$3.13$2.92$2.72$2.51 $2.47 $2.52$3.33$1.50FFO$1.00$0.50$-2009 2010 2011 Rent + 25 Rent + 50 Rent + 75 Rent + 100Source – Internally generated, amount generated are based on existing occupancy levels and assume no impact of any changes inoperating costs24

Acquisitions AnalysisOrganic vs. External$3.50$3.25$3.00Organic Growth Potential$2.75$2.50Acquisition Growth$2.25$2.002011 Rent + 25 Rent + 50 Rent + 75 Rent + 100Organic FFO Growth $200mm Acquisition $300mm AcquisitionAcquisitions assume a 5.50% Cap Rate (including Deferred Cap Ex) andfinancing at 75% LTV @ 3%.25

Mortgage & Liquidity ReviewMortgage & Debt Maturity ScheduleYear of Term MaturityPrincipal Outstanding as atJun 30, 2012Weighted AverageInterest Rate By Maturity % of Total2012 333,113,637 4.71% 14.4%2013 283,463,947 4.52% 12.3%2014 421,983,512 3.52% 18.2%2015 449,647,529 3.72% 19.4%2016 277,429,545 3.89% 12.0%2017 212,457,527 3.20% 9.2%2018 93,390,055 3.89% 4.0%2019 107,817,968 4.39% 4.7%2020 55,053,719 4.49% 2.4%2021 33,299,012 4.26% 1.4%2022 46,981,479 3.03% 2.0%Total Principal Outstanding 2,314,637,930 3.95% 100.0%Unamortized Transaction Costs (87,248,153)Unamortized Market Debt Adjustments 147,678Total Per Financial Statements 2,227,537,455Source: Internally generatedAverage Term to Maturity is 3 YearsAverage amortization period is 32 yearsCurrent 5 Year Interest Rates are 2.30%Current 10 year Interest rates are 2.80%Updated: Q2 201226

Future Opportunity –Potential Finance Savings$3.20$3.00$2.80$2.60$2.52$2.58$2.70$2.82$2.93$3.05$2.40$2.20$2.004.14% 4.00% 3.75% 3.50% 3.25% 3.00%FFOSource: Internally generatedContinued low interest rates will drive FFO growthCurrent 5 Year Interest Rates are 2.30%* Current 10 year Interest rates are 2.80%*Weighted Average Portfolio Interest Rate June 30, 2012– 3.95%Note – Assumptions based on FY2011 FFO, and no changes to mortgage principal*as of June 30, 201227

BoardwalkFinance – Liquidity Analysis2012 - Q2 (In 000's)Cash Position - June 30, 2012 $ 135,715Subsequent Committed Financing $ 45,190Line of Credit* $ 196,276The Trust currently has approximately$377 Million in available liquidity.Total Available Liquidity $ 377,181Liquidity as a % of Total Debt 16%Debt (net of Cash) as a % of reported Asset Fair value 42%June 30, 2012Type of Debt Apartment Units Amount - in $ MillionsSecured 32,412 $2,315Un-levered 2,865 * $-Boardwalk has 2,865 apartment unitswhich currently do not have anyencumbrances.Total 35,277 $2,315*The Trust’s undrawn credit facility has a credit limit of $200mm. The balance stated reflects the available balance net of outstanding Letters of CreditSource: Internally generatedUpdated: Q2 201228

Liquidity Analysis – StrategyA Balanced Approach• The future is very difficult to foresee• Taking a balanced approach to Liquidity Strategy is believed to be prudent• We are renewing debt and hedging interest rate risk up and down• Assessing all terms with bias towards long end (7-10 years)• Forward-fixing of rates on renewals is being considered• Equity’s role• Although currently not fully quantified, the use of equity to be balanced between• Paying off high cost debt• Purchasing low priced Trust Units• Accretive property acquisitions• Accretive new development opportunities on excess density• The issuance of a Special Distribution to Trust holders• Ensure there is ample liquidity to allow maximum choices to value creatingopportunities (lessons from the financial crisis: companies with the leastreliance of new credit had maximum access to credit).29

What’s NewCurrent Cap RatesCap rates for various Canadian markets, representing well located,better quality buildings with no deferred capx.Source: Internally generatedVictoria 4.50 - 5.50%Vancouver 4.00 - 5.00%Vancouver Suburbs 4.50 - 5.50%Calgary 4.50 - 5.50%Edmonton 4.75 - 5.75%Saskatoon 5.50 - 6.50%South West Ontario 5.75 - 6.75%Montreal 4.75 - 5.75%Quebec City 5.50 - 6.50%Victoria 4.0 - 5.0%Vancouver 3.5 - 4.25%Vancouver Suburbs 4.5 - 5.5%Calgary 4.0 - 5.0%Edmonton 4.5 - 5.5%South West Ontario 6.0 - 6.75%Montreal 5.5 - 6.5%Quebec City 6.0 - 6.75%Updated: Q2 201230

IFRS Estimated Net Asset ValueTrust Unit Range AnalysisFFO Guidance Range $ 2.75 $ 2.90Based on IFRS reported ValuesIFRS Reported Value(000s)Bwalk Mid Point2012 Guidance(000s)Cap RateImplied Trust Unitvalue ($)Cash per TrustUnit ($) Total ($)FFO Multiple Lowend Guidance -No CashFFO Multiple Highend Guidance -No CashRevenue $ 452,398 $ 437,7845.00% 68.63 2.60 71.23 25.0 23.75.25% 63.25 2.60 65.85 23.0 21.85.50% 58.37 2.60 60.96 21.2 20.1Operating Expenses $ 157,261 $ 162,1335.75% 53.90 2.60 56.50 19.6 18.66.00% 49.81 2.60 52.41 18.1 17.2Net Operating Income $ 295,137 $ 275,6516.25% 46.05 2.60 48.65 16.7 15.96.50% 42.58 2.60 45.17 15.5 14.7Reported Value $5,174,506 $5,174,506 7.00% 36.37 2.60 38.97 13.2 12.57.50% 31.00 2.60 33.59 11.3 10.7Implied cap Rate 5.70% 5.33% 8.00% 26.29 2.60 28.89 9.6 9.1Mortgages & Debentures $ 2,314,6388.50% 22.14 2.60 24.74 8.1 7.69.00% 18.45 2.60 21.05 6.7 6.4Current Price 61.40 2.60 64.00 20.5 21.2Cash $ 135,715Implied cap rate 5.34% 5.21%Trust Unit outstanding (000s) 52,282NAV range reflects implied capitalization rates only on anticipated net operating income. Both revenues and expensesare based on assumptions used to determine the Fair Value of Boardwalk Investment assets consistent with thatreported on its balance sheet on June 30, 2012. It does not incorporate any subjective value that may relate to otherassets, including: intangibles and excess land, development assets, any potential value which may be associated withother higher related use of these assets such as Condominium Conversion or the lesser value that may be associatedwith assets currently on land leases. It also does not include any corporate administration or portfolio premium .Updated: Q2 2012Source: Internally generated31

Continued Cap Rate Compression$7,000$6,000$5,000$4,000$3,000$2,000$1,000$-008.5% 8% 7.5% 7% 6.5% 6% 5.5% 5.00% 4.5%Per Trust Unit Cash Per Trust Unit Enterprize Value$80.00$70.00$60.00$50.00$40.00$30.00$20.00$10.00$-00If Cap Rates continue to fall as the largest owner we will benefit the mostUpdated: Q1 201232

Development OpportunitiesSpruce Ridge Gardens, Calgary•Development Permit and partial Building Permit have been released•We have signed a fixed price contract and commenced construction•Completion expected to be Fall 2013•Estimated cost of completion:•$175,000 per door•$186 per sq ft gross buildable•$221 per sq ft rentable•We have a grant from the provincial government for $7.5 Million•Rents on 54 affordable units 10% below CMHC average for 20 years•Year 2 cap rate including land 6.09%• Surfaced $39,000 per door of land valueUpdated: Q2 201233

Development – Spruce Ridge GardensSpruce Ridge Gardens, CalgaryPhotos taken – August, 201234

DevelopmentOther Development Opportunities• Second site in Calgary, Sarcee Trail Place• Completed conceptual design for an 80 unit, four storey, elevatored, wood framebuilding – also exploring the possibility of a concrete construction with higherdensity• Preliminary discussions with the city regarding this project have taken place• Looking at the achievable density and economic viability of developing on excessland on two sites in Regina, Pines of Normanview and Boardwalk Estates• Investigating potential re-zoning to substantially increase density on two majorsites in Calgary and a site in Regina• These sites are currently operated as rental properties and will requiresubstantial demolitionUpdated Q2, 201235

IFRS Review – Q2 Balance SheetQ2 2012 IFRS Balance Sheet Review$5,400$5,200$5,000$4,800$4,600$4,400Fair Value of Investment Assets$5,175$5,022$4,793$4,653$4,500$4,318 $4,319$300$295$290$285$280$275NOI and Cap Rate Estimates$277 $277$278$277$283$288$2956.60%6.40%6.20%6.00%5.80%5.60%$4,200$4,000$2705.40%$3,8002010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2Fair Value of Investment Assets (in $ Millions)$2652010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012 -Q1NOI Same Store (in $ Millions)2012 -Q2WA Cap Rate5.20%Source: Internally generatedExcludes Development AssetsUpdated Q2, 201236

Boardwalk REITFair value of Investment Assets2012-Q2 2012-Q1 2011-Q2City Min Cap Max Cap Min Cap Max Cap Min Cap Max CapVancouver CMA 4.75% 6.25% 4.75% 6.25% 5.00% 6.50%Victoria 4.75% 4.75% 4.75% 4.75% 5.00% 5.00%Calgary 5.00% 5.75% 5.00% 5.75% 5.50% 6.25%Edmonton 5.25% 5.75% 5.25% 5.75% 5.75% 6.25%Other Alberta 6.00% 7.75% 6.00% 7.75% 6.50% 8.25%Regina 6.00% 6.25% 6.25% 6.50% 6.75% 7.00%Saskatoon 6.00% 6.25% 6.25% 6.50% 6.75% 7.00%Kitchener 5.75% 5.75% 5.75% 5.75% 6.25% 6.25%London 5.75% 6.00% 5.75% 6.00% 6.25% 6.50%Windsor 6.50% 7.00% 6.50% 7.00% 7.00% 7.50%Montreal CMA 5.75% 6.50% 5.75% 6.50% 6.00% 7.00%Québec City 5.75% 6.25% 5.75% 6.25% 6.00% 6.50%Free Hold Cap Rate Range 4.75% 7.75% 4.75% 7.75% 5.00% 8.25%Land Lease 5.50% 12.69% 5.50% 11.50% 5.75% 11.50%W.A. Cap Rate - Free Hold 5.67% 5.71% 6.20%W.A. Cap Rate - Land Leases 6.04% 6.00% 6.52%W.A. Cap Rate - All 5.70%5.73% 6.23%Value of Investment Properties($ millions)$5,175 $5,022 $4,500Excludes Development Assets.Source: Internally generated% Increase from 2011-Q2 14.99% 11.60% n/a37

Boardwalk REIT 2012 GuidanceDescription 2012 2012 - Q1 2012 - Q2Original Guidance Revised Guidance Revised GuidanceAcquisitionsNo new apartmentacquisitions or dispositionsNo new apartmentacquisitions or dispositionsNo new apartmentacquisitions or dispositionsStabilized Building NOIGrowth 1% to 4% 2% to 4% 3% to 5%FFO Per Trust Unit $2.65 to $2.85 $2.70 to $2.85 $2.75 to $2.90AFFO per Trust Unit -based on $450/yr/apt $2.35 to $2.55 $2.40 to $2.55 $2.45 to $2.60Updated: Q2 201239

Recent External Research40

Recent External Research41

Investor Presentation -AppendixNovember 201242

Focused Vision and MissionOur Vision:Boardwalk is committed to being Canada’sleading multi-family Trust and to expanding ouroperations into a truly national platform.Our Mission:To Serve and Provide our Residents with QualityRental Communities.43

Trust Overview- Started in 1984 as a private company- Became a public company in 1994- Converted into a REIT in May of 2004- Canada’s largest multi-family owner/operator- Property portfolio of 35,277 rental units (as at June 30, 2012)– (Rental universe of over 1.5MM units in major Canadian CMA’s)- Listed on TSX (BEI.UN)- Inclusion in the S&P/TSX Composite and Income Trust Indices- Total Enterprise Value: C$5.5 Billion (as at June 30, 2012)44

Trust Overview• Experienced Professional Management Team– significant ownership stake in the Trust– absence of conflicts of interest– proven track record of growth and adding value• Quality Portfolio– high concentration in dynamic markets– geographic diversity, with properties located in five provinces– over $350M invested on capital upgrades and improvements over 5years prior to converting to a REIT– $73.7 million invested in capital improvements for the twelve months of2011 ($73.3 million in the twelve months of 2010)• Continued Strong Financial Position45

$MillionsCanadian REIT Market ContextBoardwalk REIT is currently the Fifth largest REIT and the largest ResidentialREIT in Canada based on Market CapitalizationMarket Cap Summary9000800070006000500040003000200010000REI HR D CWT BEI CUF REF CAR PMZ AP CSH MRTMarket Capitalization as at September 27 2012Source: Internally generated46

Boardwalk REIT Overview•Business Strategy•The strategy of Boardwalk REIT is:•to be the best team•to focus on acquiring, financing, developing, owning and managing quality multi-familyrental properties in larger vibrant economic centres•to provide Unitholders with a stable and growing cash flow distribution•Boardwalk REIT can best achieve its goals by strategically:•maximizing Customer satisfaction by providing an above-average level of service andproduct with our exceptional team•acquiring selected multi-family residential properties throughout Canada•selling properties classified as ‘held for resale’ and reinvesting the sale proceeds backinto new and existing properties•enhancing property values through pro-active management and capital improvements•managing capital prudently while maintaining a conservative financial structure•pursuing opportunities to form selective partnerships or joint ventures47

Boardwalk REIT Overview• Business Strategy (cont’d)• Boardwalk REIT will:• seek to capitalize on economies of scale derived from its substantial presencein natural resource rich Western Canada, as well as its assets in EasternCanada• focus on markets that are typified by strong economic outlook and relatively lowvacancy rates• Due to Boardwalk’s size and relationship with various commerciallenders and Canada Mortgage and Housing Corporation, financingfor acquisitions can often be negotiated on favourable terms• As at Jun 30, 2012, approximately 99% of Boardwalk REIT’s secured debt isNHA insured, thus virtually eliminating the risk of non-renewal48

Trust OverviewSocial ResponsibilityBoardwalk is an advocate of social responsibility. To address the need foraffordable housing:• We partner with all levels of Government, and Housing Authorities inevery centre.- Currently over 1,100 units dedicated to Government subsidized housing in Alberta.- Approximately 300 units dedicated to ending homelessness through ‘Housing First’programs in Alberta.• We program internally:- Self-imposed “Rent Protection” - maximum $150 / month rent increase per year forexisting Customers- In house subsidy program eliminates rent increases for any resident who can provefinancial hardship.49

Attractive Distribution- Annualized distributions of $1.92 per REIT unit, payable monthly (increased twice since thebeginning of 2012 by 3.3% and 3.2% in February and August respectively. )-Equivalent distribution of approx. $7.44 pre-split since becoming public in 1994 with$0.25 IPO price-Amount does not include the special distribution of $0.50 per Trust unit announcedin Q3 2010- Approximation for 2012: 55% return of capital, 45% considered income- Current equity yield of approx. 3.0% (as at Sept 1, 2012)- Conservative capital structure, with leverage, net of cash of approximately 42%(as at Jun 30, 2012) of the REIT’s Fair Value of Investment Properties- Debt to Total Enterprise Value (net of cash) is 42% (as at Jun 30, 2012)50

Sustainable Distribution-Weighted average occupied rent base of $1,055- Jun 2012 occupied rent across portfolio based on average twobedroom unit size of 849 sq. ft.-2012 H1 FFO Payout Ratio: 66.7%-2011 FFO Payout Ratio: 71% ($1.80/$2.52 = 71.4%)-Future cash flow increase shared between Unitholders & capitalexpenditures$350M+ invested on portfolio over 5 years prior to REIT conversion$73.7 million invested in capital improvements in 2011.51

Alberta and SaskatchewanUnemployment8.0%Unemployment - Q2 20128.0%Unemployment - August 20126.0%6.0%4.0%AlbertaSaskatchewanCanada4.0%AlbertaSaskatchewanCanada2.0%2.0%0.0%Apr-12 May-12 Jun-120.0%Aug-11Aug-12Source: Statistics CanadaUpdated: September 201252

Average Weekly EarningsAverage Weekly Earnings by YearAverage Weekly Earnings - July 2012$1,200.00$1,200$1,000.00$1,000$800.002007$800$600.00$400.00$200.002008200920102011$600$400$200Jul-11Jul-12$0.00CAN NL PE NS NB QC ON MB SK AB BC$0NL PE NS NB QC ON MB SK AB BCSource: Statistics CanadaUpdated: September 201253

Alberta ForecastAlberta Forecast Summary2006 2007 2008 2009 2010 2011 2012f 2013fEconomyGDP Growth 6.2% 2.5% 0.0% -5.0% 2.8% 3.2% 3.4% 3.2%Employment Growth 4.8% 4.7% 2.8% -1.3% 0.4% 3.8% 2.9% 2.7%Net Migration 70,990 47,939 65,936 37,755 29,200 38,500 57,800 48,500Retail Trade ($ millions) $55,942 $61,160 $61,069 $55,956 $59,718 $64,004 na naNew Home MarketSingle-detached Starts 31,835 28,105 14,716 14,344 17,851 15,193 17,600 18,400Multi-family Starts 17,127 20,231 14,448 5,954 9,237 10,511 14,200 13,800Total Starts 48,962 48,336 29,164 20,298 27,088 25,704 31,800 32,200Resale Market*Total MLS Sales 74,350 71,430 56,399 57,786 49,723 53,146 59,800 61,000Average Price $285,383 $356,235 $352,857 $341,201 $352,301 $355,808 $362,200 $372,300Source: CMHC Forecast, Statistics Canada, *Residential PropertiesUpdated: September 201254

Inventory of Major Alberta ProjectsContinued Long Term Capital being invested in AlbertaSectorAug. 2012Value ofProjects($Millions)July 2012Value ofProjects($Millions)May 2012Value ofProjects($Millions)Apr. 2012Value ofProjects($Millions)Mar. 2012Value ofProjects($Millions)Agriculture & Related $45.4 $45.4 $195.1 $195.1 $208.1Biofuels, Chemicals & Petrochemicals $2,156.5 $2,156.5 $1,952.5 $1,952.5 $2,102.5Commercial/Retail $7,104.5 $7,089.1 $7,356.3 $7,297.3 $7,584.0Commercial/Retail & Residential $328.3 $328.3 $328.3 $328.3 $728.3Infrastructure, Institutional & Other Industrial $26,583.7 $26,516.4 $27,426.7 $24,552.4 $26,639.6Manufacturing, Mining, Forestry & Related $1,248.5 $871.5 $879.5 $879.5 $1,001.2Oil & Gas $2,262.0 $2,262.0 $2,227.5 $2,236.5 $2,201.5Oil Sands $129,948.0 $129,808.0 $125,913.0 $123,633.0 $122,025.0Pipelines $8,619.8 $8,406.2 $7,341.9 $7,324.2 $6,463.2Power $10,243.0 $10,243.0 $12,957.2 $12,997.2 $13,525.2Residential $2,573.1 $2,566.9 $3,303.3 $3,169.8 $3,954.6Telecommunications & Tourism/Recreation $2,712.3 $2,524.4 $2,716.7 $2,601.3 $2,803.6Total $193,825.1 $192,817.7 $192,598.0 $187,167.1 $189,236.8Source: Government of AlbertaUpdated: September 201255

Alberta Crown Land Sales4.00Annual Alberta Land SalesExcluding Oil Sands; 2000 to 2012 YTD3.503.002.502.001.501.00$ bln0.500.002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012TYDUpdated: June2012Source:Alberta Energy56

Canadian Well CompletionsSource: ARC Financial57

Oil Sands – Cost of ProductionSuncor Energy$120.00Suncor Oilsands Cost of Production$120.00$100.00$100.00$80.00$80.00$60.00$60.00Suncor Cost of ProductionAverage Annual WTI Price$40.00$40.00$20.002007 2008 2009 2010 2011$20.00Source: Suncor Energy, 2011 Annual Report and EIA.*WTI in $US, Suncor Cost of Production $Cdn58

Redwater RefineryCanadian Natural Resources and Northwest Upgrading Inc. have partnered to build and operatean estimated $15 Billion Refinery in Redwater, AB; which is approximately 35 kms NE ofEdmonton.Construction of the first phase of the refinery is expected to begin in 2012, with a total of 3,000 to5,000 F/T jobs needed to build the phase.The first phase is expected to be complete by the end of 2014 and will be able to handle 50,000bbl/d of bitumen, of which the Province of Alberta has agreed to supply the refinery with 37,500bbl/d. Phase’s 2 and 3 will add an additional 100,000 bbl/d of capacity.Source: CNRL, NW PartnershipUpdated Oct, 201159

$120.00FFO Growth and StabilityWTI Prices vs. Boardwalk FFOBoardwalk FFO vs Oil$3.00$100.00$2.50$80.00$2.00$60.00$40.00$1.50$1.00WTI Annual AvgFFO$20.00$0.50$-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$-Boardwalk’s portfolio has provided growth and stability despite volatility in commoditymarkets through active management of its communities.Source: Internally generatedWTI prices: annual averages as reported by the US Energy Information Administration ($US)Historical FFO as prescribed by Canadian GAAP to 2010, and IFRS beginning in 2011.60

Q106Q206Q306Q406Q107Q207Q307Q407Q108Q208Q308Q408Q109Q209Q309Q409Q110Q210Q310Q410Q111Q211Q311Q411Q112Alberta International andInterprovincial Migration30,00025,00020,00015,00010,000Net International MigrationNet InterprovincialMigration5,0000-5,000Source: Statistics CanadaUpdated: Q2 201261

Edmonton Single Family Home andCondo Prices$450,000$400,000$350,000$300,000$250,000$200,000$150,000SingleCondo$100,000$50,000$0Source: Edmonton Real Estate BoardUpdated: July 201262

Jan-07Mar-07May-07Jul-07Sep-07Nov-07Jan-08Mar-08May-08Jul-08Sep-08Nov-08Jan-09Mar-09May-09Jul-09Sep-09Nov-09Jan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Edmonton Resale Inventory12,000Residential MLS® Inventory - Edmonton CMA10,0008,0006,0004,0002,0000Source: Realtors® Association of Edmonton (EREB)*Residential includes SFD, condos and duplex/row houses.Updated: July 201263

Jan-07Mar-07May-07Jul-07Sep-07Nov-07Jan-08Mar-08May-08Jul-08Sep-08Nov-08Jan-09Mar-09May-09Jul-09Sep-09Nov-09Jan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Edmonton Residential Resale6,000Residential MLS® Sales and Listings - Edmonton CMA5,0004,0003,0002,000ListingsSales1,0000Source: Realtors® Association of Edmonton (EREB)*Residential includes SFD, condos and duplex/row houses.Updated: July 201264

Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Edmonton New Home Sales andInventorySingle and Semi Detached Sales and Inventory - Edmonton CMA1,4001,2001,000800600400Unabsorbed Single detached and SemidetachedAbsorbed Single detached and Semidetached200-Source: CMHCUpdated: July 201265

Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Edmonton New Home Sales andInventoryAug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Multiple Dwelling Sales and Inventory - Calgary CMA1,2001,000800600400Unabsorbed Multiple DwellingAbsorbed Multiple Dwelling200-Source: CMHCUpdated: July 201266

Edmonton Housing StartsEdmonton Housing Starts - Single andMultiple9,0008,0007,0006,0005,0004,0003,0002,0001,000-2007 2008 2009 2010 2011 2012 (F*) 2013 (F*)Single StartsMultiple StartsSource: CMHCUpdated: June 201267

Calgary Single Family Home andCondo Prices$550,000$500,000$450,000$400,000$350,000$300,000$250,000$200,000SingleCondo$150,000$100,000$50,000$0Source: Calgary Real Estate Board and Century 21 CREB archiveUpdated: July 201268

Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08Oct-08Jan-09Apr-09Jul-09Oct-09Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Calgary Resale Inventory8,000MLS® Inventory - Calgary CMA7,0006,0005,0004,0003,000InventoryInventory2,0001,0000Source: Calgary Real Estate Board (CREB) and Century 21 CREB ArchiveUpdated: July 201269

Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08Oct-08Jan-09Apr-09Jul-09Oct-09Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Calgary Single Family ResaleSingle Family MLS® Sales and Listings - Calgary CMA4,0003,5003,0002,5002,0001,500SalesListings1,0005000Source: Calgary Real Estate Board (CREB) and Century 21 CREB ArchiveUpdated: July 201270

Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08Oct-08Jan-09Apr-09Jul-09Oct-09Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Calgary Condo Resale1,800Condominium MLS® Sales and Listings - Calgary CMA1,6001,4001,2001,000800SalesListings6004002000Source: Calgary Real Estate Board (CREB) and Century 21 CREB ArchiveUpdated: July 201271

Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Calgary New Home Sales andInventorySingle and Semi Detached Sales and Inventory - Calgary CMA1,000900800700600500400300200100-Unabsorbed Single detached and SemidetachedAbsorbed Single detached and SemidetachedSource: CMHCUpdated: July 201272

Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Calgary New Home Sales andInventoryAug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Multiple Dwelling Sales and Inventory - Calgary CMA1,2001,000800600400Unabsorbed Multiple DwellingAbsorbed Multiple Dwelling200-Source: CMHCUpdated: July 201273

Calgary Housing Starts9,0008,0007,0006,0005,0004,0003,0002,0001,000-Calgary Housing Starts - Single and MultipleSingle StartsMultiple Starts2007 2008 2009 2010 2011 2012 (F*) 2013 (F*)Source: CMHCUpdated: June 201274

Edmonton Average Vacancy andAverage RentEdmonton Vacancy & Rent12.0%$1,20010.0%$1,0008.0%$8006.0%$6004.0%$4002.0%$2000.0%$0RentVacancySource: CMHC, two-bedroom units (centres 10,000 population and higher)Updated: July 201275

Calgary Average Vacancy andAverage RentCalgary Vacancy & Rent6.0%$1,4005.0%4.0%3.0%2.0%1.0%$1,200$1,000$800$600$400$2000.0%$0RentVacancySource: CMHC, two-bedroom units (centres 10,000 population and higher)Updated: July 201276

Q106Q206Q306Q406Q107Q207Q307Q407Q108Q208Q308Q408Q109Q209Q309Q409Q110Q210Q310Q410Q111Q211Q311Q411Q112Saskatchewan International andInterprovincial Migration6,0005,0004,0003,0002,0001,000Net International MigrationNet InterprovincialMigration0-1,000-2,000-3,000Source: Statistics CanadaUpdated: Q2 201277

Jan-08Mar-08May-08Jul-08Sep-08Nov-08Jan-09Mar-09May-09Jul-09Sep-09Nov-09Jan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Saskatoon and Regina Home Prices$400,000$350,000$300,000$250,000$200,000$150,000$100,000ReginaSaskatoon$50,000$0Source: Saskatoon Real Estate Board, CMHC, Association of Regina RealtorsUpdated: July 201278

Saskatchewan ForecastSaskatchewan Forecast Summary2006 2007 2008 2009 2010 2011 2012f 2013fEconomyGDP Growth -1.0% 3.6% 4.2% -6.1% 2.8% 3.7% 3.1% 3.0%Employment Growth 1.7% 2.1% 2.2% 1.5% 1.1% 0.3% 2.0% 1.4%Net Migration -1,562 9,287 10,480 11,251 12,000 10,400 12,000 11,000Retail Trade ($ millions) $11,495 $12,984 $14,360 $14,036 $14,993 $16,234 na naNew Home MarketSingle-detached Starts 2,689 4,017 4,518 2,829 3,830 4,152 4,900 4,700Multi-family Starts 1,026 1,990 2,310 1,037 2,077 2,879 3,600 3,500Total Starts 3,715 6,007 6,828 3,866 5,907 7,031 8,500 8,200Resale Market*Total MLS Sales 9,140 12,054 10,194 10,856 10,872 11,991 14,000 13,700Average Price $132,078 $174,405 $224,592 $233,695 $242,258 $228,386 $269,000 $275,500Source: CMHC Forecast, Statistics Canada, *Residential PropertiesUpdated: September 201279

Jan-08Apr-08Jul-08Oct-08Jan-09Apr-09Jul-09Oct-09Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Saskatoon Residential ResaleResidential MLS ® Sales and Listings - Saskatoon CMA1,6001,4001,2001,000800600SalesListings4002000Source: Saskatoon Region Association of Realtors® (SRAR)Updated: July 201280

Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Aug-09Oct-09Saskatoon New Home Sales andInventoryDec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Single and Semi Detached Sales and Inventory - Saskatoon CMA300250200150100Unabsorbed Single detached and SemidetachedAbsorbed Single detached and Semidetached50-Source: CMHCUpdated: July 201281

Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Aug-09Oct-09Saskatoon New Home Sales andInventoryDec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Multiple Dwelling Sales and Inventory - Saskatoon CMA300250200150100Unabsorbed Multiple DwellingAbsorbed Multiple Dwelling50-Source: CMHCUpdated: July 201282

Saskatoon Housing StartsSaskatoon Housing Starts - Single andMultiple1,8001,6001,4001,2001,000800600400200-2008 2009 2010 2011 2012 (F*)2013 (F*)Single StartsMultiple StartsSource: CMHCUpdated: June 201283

Jan-08Apr-08Jul-08Oct-08Jan-09Apr-09Jul-09Oct-09Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Regina Residential ResaleResidential MLS® Sales and Listings - Regina CMA900800700600500400300SalesListings2001000Source: Association of Regina® Realtors, CMHCUpdated: July 201284

Sep-08Nov-08Jan-09Mar-09May-09Jul-09Sep-09Nov-09Regina New Home Sales andInventoryJan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Single and Semi Detached Sales and Inventory - Regina CMA140120100806040Unabsorbed Single detached and SemidetachedAbsorbed Single detached and Semidetached20-Source: CMHCUpdated: July 201285

Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Aug-09Regina New Home Sales andInventoryOct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Multiple Dwelling Sales and Inventory - Regina CMA1401201008060Unabsorbed Multiple DwellingAbsorbed Multiple Dwelling4020-Source: CMHCUpdated: July 201286

Regina Housing Starts1,200Regina Housing Starts - Single andMultiple1,000800600400Single StartsMultiple Starts200-2008 2009 2010 2011 2012 (F*)2013 (F*)Source: CMHCUpdated: June 201287

Saskatoon Average Rent andAverage VacancySaskatoon Vacancy & Rent7.0%6.0%5.0%4.0%3.0%2.0%1.0%0.0%$1,200$1,000$800$600$400$200$0RentVacancySource: CMHC, two-bedroom units (centres 10,000 population and higher)Updated: July 201288

Regina Average Rent and AverageVacancyRegina Vacancy & Rent3.5%3.0%2.5%2.0%1.5%1.0%0.5%0.0%$1,000$800$600$400$200$0RentVacancySource: CMHC, two-bedroom units (centres 10,000 population and higher)Updated: July 201289

Out of Town RentalsSource: Internally generatedUpdated: Q2 201290

Average Tenancy (Years)3.43.33.23.13.03.03.03.03.13.03.13.2 3.2 3.2 3.2 3.2 3.2 3.23.23.23.13.1 3.13.13.13.23.23.33.32.92.92.92.82.72006 2007 2008 2009 2010 2011 2012Source: Internally generatedUpdated: Q2 201291

199519961997199819992000200120022003200420052006200720082009Oct-10Oct-11199519961997199819992000200120022003200420052006200720082009Oct-10Oct-11199519961997199819992000200120022003200420052006200720082009Oct-10Oct-11200120022003200420052006200720082009Oct-10Oct-11Average Rental Rate IncreasesCMHC statistics based on 2 bedroom apartments4 Years of 0%RentalIncreases, FreeRent and HighSingle Digit toDouble DigitIncreases inExpenses$2,400$2,100$1,800$1,500$1,200Average RentsCalgary Edmonton Grande Prairie Fort McMurray$900$600$300$-Updated: December 201192

Portfolio Statistics•Properties have approx. 30 million square feet of rentable area•Portfolio avg. unit size of 849 sq. ft - 2 bedroom•Overall avg. market rent $1,087/month (Jun 2012)•100% of the Trust's portfolio is stabilized – owned for a period ofmore than 24 months•Portfolio located in 18 market areas in 5 provincesUpdated: Q2 201293

Q2 - Portfolio HighlightsQ2 2012 Q2 2011 ChangePortfolio Occupancy - Period Average 98.18% 97.49% 69 BpsAverage Stabilized Rent Realized - Period Ended $1,055 $1,024 $ 31Same Property Q2 2012 3M 6MRevenues 3.7% 3.6%Operating Costs 0.5% -2.8%NOI 5.5% 7.6%For the stabilized property analysis shown above, operating expense for Q1 and Q2 2011 was adjusted for the change inwage allocation estimate, which was reported in Q3 of 2011.Source: Internally generated94

Sask. (13% of total portfolio)Rental Revenue CycleMove - outs > Move - insRents increaseCalgary (15% of total portfolio)Edmonton (35% of total portfolio)BC (2% of total portfolio)Source: Internally generatedIncentivesDecreaseOntario (12% of total portfolio)Quebec (17% of total portfolio)Other Alberta (6% of total portfolio)VacancyDropsRents decreaseMove - outs < Move - insVacancyRisesIncentivesIncreaseUpdated Q2, 201295

BoardwalkOccupancy vs. AvailabilityHigh occupancyreflects thatBoardwalk’s marketrents are at thebottomLow AvailabilitySource: Internally generatedUpdated Q2 201296

Rentals / MO'sMove-outs, Move-ins and OccupancySupply & Demand1,8001,6001,4001,2001,000Move-Outs Rentals % Occ100.0%99.0%98.0%97.0%800600400200-96.0%95.0%94.0%93.0%Source: Internally generatedUpdated Q2, 201297

Operations UpdateReasons for Move Out2010 20102011 2011 2012 2012Reason Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 TotalPurchased Home 418 657 600 485 2,160 411 550 581 398 1,940 447 626 1,073Moving out of town 387 680 646 420 2,133 358 617 566 410 1,951 321 599 920Personal reasons 425 557 581 382 1,945 349 532 533 358 1,772 341 536 877Transfer 530 570 607 527 2,234 469 565 503 431 1,968 394 469 863Skip / Eviction 539 521 547 453 2,060 487 508 586 443 2,024 489 457 946Rent too expensive 225 285 319 222 1,051 249 281 244 205 979 206 295 501Larger accommodation 119 248 283 156 806 194 278 252 185 909 185 266 451Unknown 186 247 296 196 925 179 239 219 210 847 196 262 458Work related 190 234 263 208 895 194 289 228 189 900 162 228 390Moving in with others 136 171 228 159 694 123 153 160 106 542 116 155 271Total 3,155 4,170 4,370 3,208 14,903 3,013 4,012 3,872 2,935 13,832 2,857 3,893 6,750Q2 Top Ten Reasons for Move-OutReason 2010 2011 2012 % Chg.Purchased home 657 550 626 13.8%Moving out of town 680 617 599 -2.9%Personal reasons 557 532 536 0.8%Transfer 570 565 469 -17.0%Skip / Eviction 521 508 457 -10.0%Rent too expensive 285 281 295 5.0%Larger accommodation 248 278 266 -4.3%Unknown 247 239 262 9.6%Work related 234 289 228 -21.1%Moving in with others 171 153 155 1.3%Total 4,170 4,012 3,893 -3.0%• Total turnover was down 3.0% compared to the same period in2011.• Purchase of home is the largest reason for move out• Skips and Evictions have decreased 10%, a positive improvementwith our continued prelease screening98

Revenue StrategyCustomer service and occupancy remain a primary focus inoptimizing revenue.When the market is strong, our self-imposed rent increase maximums enhanceCustomer loyalty. When the market is weak, we offer proactive early leaserenewals with competitive suite selective incentives to attract and retainCustomers.Three Variables in our Revenue Strategy:1) Market rent (price); 2) Occupancy; and 3) Selective Incentives.Market Supply and Demand is in balance at 97% occupancy.99

Revenue StrategyTwo basic approaches:1) In a strong market, focus is on optimizing market rent with minimal to noincentives and maintaining high occupancy to optimize revenue.2) In a weaker market, focus is on decreasing rental rates and offering incentivesto increase occupancy. Higher occupancy helps offset lower rents and higherincentives (90% of a lower rental price is better than 0% of a higher rentalprice), generating maximum revenue.In both strong and weak markets, constant focus on customer loyalty provides moststable revenues. Boardwalk’s customer friendly self-imposed rent control and theelimination of rental increases for customers that can prove financial hardshipcontinue to build good will and stronger community.100

Revenue OptimizationRevenue = Supply + Demand + PriceTotalRevenueLow Price = Higher Demand = LowPhysical Vacancy but higher EconomicVacancyHigh Price = Lower Demand = HigherPhysical Vacancy but lower EconomicVacancyEconomic IncentiveEconomicDisincentiveVacancy0%Vacancy*Our Strategy attempts to optimize physical and economic vacancy on a seasonally adjusted basis.101

Acquisitions AnalysisOrganic vs. External•In a competitive market, focus is on growing value, quality andservice•Our team is the most valuable asset•Most significant return comes from growing team expertiseReduction of contractors replaced by higher team productivity•Acquisitions can be dilutive in a competitive market due totypical high deferred cap-ex and vacancy•Better value, quality and service results in better revenues andFFO102

Funds From Operations(in $000’s, except per unit amounts)FFO Reconciliation 3 Months 3 Months 6 Months 6 MonthsIn $000's, except per unit amounts Jun-12 Jun-11 % Change Jun-12 Jun-11 % ChangeProfit $ 161,628 $ 196,591$ 378,972 $ 919,105AdjustmentsAdd (deduct) fair value losses (gains) $ (126,175) $ (164,181)$ (312,088) $ (121,148)Deferred income taxes (recovery) $ (138) $ (551)$ (173) $ (740,745)Add amortization of property, plant and equipment $ 879 $ 827$ 1,697 $ 1,592Add back distributions paid to LP 'B' Unitholders $ 2,080 2,014 $ 4,139 $ 4,028Funds from operations $ 38,274 $ 34,700 10.3% $ 72,547 $ 62,832 15.5%Funds from operations - per unit $ 0.73 $ 0.66 10.6% $ 1.39 $ 1.20 15.8%Source: Internally generated103

Q2 Overall PerformanceFFO PER UNIT RECONCILIATION3 Months 6 MonthsFFO - June 2011 $ 0.66 $ 1.20NOI from Stabilized $ 0.06 $ 0.17Financing costs $ 0.04 $ 0.06Administration and other $ (0.03) $ (0.04)FFO - June 30, 2012 $ 0.73 $ 1.39Source: Internally generated104

Q2 Overall Performance3 Months 3 Months 6 Months 6 MonthsIn 000's, except per unit amounts Jun-12 Jun-11 Change Jun-12 Jun-11 ChangeTotal rental revenue (including ancillary rental income) $109,269 $105,364 3.7% $217,257 $209,660 3.6%ExpensesOperating expenses $21,813 $20,668 5.5% $42,649 $41,142 3.7%Utilities $8,223 $8,299 -0.9% $20,106 $21,807 -7.8%Property taxes $8,912 $9,305 -4.2% $17,726 $18,751 -5.5%$38,948 $38,272 1.8% $80,481 $81,700 -1.5%Net operating income $70,321 $67,092 4.8% $136,776 $127,960 6.9%Average rental revenue per unit per month $1,032 $996 3.7% $1,026 $991 3.6%Operating costs per unit per month $368 $362 1.8% $380 $386 -1.5%Operating margins 64% 64% 63% 61%Source: Internally generated105

Stabilized AnalysisFor the Three and Six Months ended June 30, 2012Jun 30 2012 - 3 M# of Units% RevenueGrowth% OperatingExpenseGrowth% NetOperatingIncome Growth% of NOICalgary 5,310 5.8% -0.5% 8.5% 18.7%Edmonton 12,497 4.6% 1.2% 6.4% 37.2%Fort McMurray 352 0.1% 6.7% -2.2% 2.0%Grande Prairie 645 7.6% -1.1% 14.6% 1.4%Red Deer 939 7.2% 14.1% 3.1% 2.1%British Columbia 633 1.6% 6.6% -0.8% 1.9%Ontario 4,265 1.7% -1.9% 5.1% 7.5%Quebec 6,000 1.0% -1.9% 2.9% 15.0%Saskatchewan 4,636 3.3% 1.9% 3.9% 14.2%35,277 3.7% 0.5% 5.5% 100.0%Jun 30 2012 - 6 MSource: Internally generated# of Units% RevenueGrowth% OperatingExpenseGrowth% NetOperatingIncome Growth% of NOICalgary 5,310 6.4% -2.2% 10.5% 18.8%Edmonton 12,497 4.1% -4.7% 9.5% 37.3%Fort McMurray 352 0.1% -3.4% 1.5% 2.0%Grande Prairie 645 9.1% -2.9% 19.9% 1.4%Red Deer 939 6.3% 5.1% 7.1% 2.1%British Columbia 633 2.8% 7.1% 0.7% 2.0%Ontario 4,265 1.9% -4.9% 9.2% 7.4%Quebec 6,000 1.0% -1.7% 3.0% 14.8%Saskatchewan 4,636 2.9% 0.5% 4.1% 14.3%35,277 3.6% -2.8% 7.6% 100.0%For the stabilized property analysis shown above, operating expense for Q1 and Q2 2011 wasadjusted for the change in wage allocation estimate, which was reported in Q3 of 2011.106

Sequential Stabilized Revenue AnalysisStabilized Revenue Growth# of UnitsQ2 2012vs Q12012Q1 2012vs Q42011Q4 2011vs Q32011Q3 2011vs Q22011Calgary 5,310 1.3% 2.0% 1.3% 1.1%Edmonton 12,497 1.9% 0.7% 1.1% 0.9%Fort McMurray 352 1.7% 1.5% -1.5% -1.6%Grande Prairie 645 1.1% 1.5% 3.2% 1.6%Red Deer 939 3.4% 1.5% 1.4% 0.6%British Columbia 633 -0.7% 0.5% 0.7% 1.1%Ontario 4,265 0.5% 0.6% 1.3% -0.7%Quebec 6,000 -0.2% 0.0% 0.6% 0.6%Saskatchewan 4,636 1.4% 0.7% 0.6% 0.6%35,277 1.2% 0.8% 1.0% 0.6%Source: Internally generated107

Future Opportunity –Net Rental SensitivityFFO per Trust Unit$0.25$0.20$0.15$0.10$0.05$0.08$0.16$0.24$-$(0.05)$(0.10)$(30) $(20) $(10) $10 $20 $30$(0.08)$(0.15)$(0.20)$(0.25)$(0.24)$(0.16)Source – Internally generated, amount generated are based on existing occupancy levels and assume no impact of any changes inoperating costs.Updated: Q1 2012108

Capital InvestmentFor the Three Months Ended June 30, 20123 Months 6 Months$ in 000's, except for per suite amounts 30-Jun-12 Per Suite 30-Jun-12 Per SuiteRepairs and Maintenance - expense $ 5,150$ 146$ 10,122 $ 287On-Site Maintenance Personnel - expense $ 7,634$ 216$ 15,140 $ 429$ 12,784$ 362$ 25,262 $ 716Invested Capital - cost $ 19,008$ 539$ 32,036 $ 908$ 31,792$ 901$ 57,298 $ 1,624Estimated Maintenance Capex $ 3,969$ 113$ 7,937 $ 225Stabilizing & Value Enhancing Capex $ 15,039$ 426$ 24,099 $ 683$ 19,008$ 539$ 32,036 $ 908Source: Internally generated109

Capital InvestmentFor the Three Month Period ended June 30, 2012Capital Investment - 6 M Period Ended June 30, 2012Wage Allocation28%BuildingImprovements29%Elevators7%Other8%Boilers/ Mech5%Appliances3%Suite Improvements18%HallwayImprovements2%Total Capital Invested through Q2 of 2012 - $34.8 Million (Q2 2011 - $31.2 Million)Source: Internally generated110

Natural Gas ReviewBoardwalk Consumes approximately 2.1 million GJ of natural gas Annually. A $1.00 annualized change in the price ofNatural Gas would result in either an increase or decrease to FFO in the amount of $2.2 million (including tax) orapproximately $0.04 in annual FFO per Unit.Source: Internally generated111

Natural Gas Hedging StrategyBoardwalk’s objective is to protect itself from short to medium durationprice spikes and to provide for budgeting certainty.The company will hedge, using various forms, up to 75% of hedgeableconsumption portfolio wide; employing a staggered tranche approach,and using diverse counterparties to limit counterparty credit risk.Due to continued low natural gas prices, the Government of Albertahas not re-implemented a tiered rebate program from residentialnatural gas usage.112

BoardwalkFinance – Liquidity AnalysisSource: Internally generated2012 - Q2 (In 000's)Cash Position - June 30, 2012 $ 135,715Subsequent Committed Financing $ 45,190Line of Credit* $ 196,276Total Available Liquidity $ 377,181Liquidity as a % of Total Debt 16%Debt (net of Cash) as a % of reported Asset Fair value 42%*The Trust’s undrawn credit facility has a credit limit of $200mm. The balance stated reflects the available balance net of outstanding Letters of Credit113

Mortgage & Liquidity ReviewMortgage Maturity ScheduleYear of Term MaturityPrincipal Outstanding as atJun 30, 2012Weighted AverageInterest Rate By Maturity % of Total2012 333,113,637 4.71% 14.4%2013 283,463,947 4.52% 12.3%2014 421,983,512 3.52% 18.2%2015 449,647,529 3.72% 19.4%2016 277,429,545 3.89% 12.0%2017 212,457,527 3.20% 9.2%2018 93,390,055 3.89% 4.0%2019 107,817,968 4.39% 4.7%2020 55,053,719 4.49% 2.4%2021 33,299,012 4.26% 1.4%2022 46,981,479 3.03% 2.0%Total Principal Outstanding 2,314,637,930 3.95% 100.0%Unamortized Transaction Costs (87,248,153)Unamortized Market Debt Adjustments 147,678Total Per Financial Statements 2,227,537,455Average Term to Maturity is 3 YearsAverage amortization period is 32 yearsCurrent 5 Year Interest Rates are 2.30%Current 10 year Interest rates are 2.80%Source: Internally generated Q2 2012114

Liquidity Analysis – Property ValuationValuation/Underwriting Model with June 2012 Revenue and Standardized Costs.Estimated Loan amounts have DSCR and LTV Constraints of 1.3 DCR and/or 70% LTV(In 000's)EstimatedUnderwriting Value - Projected Maximum Period End Projected NetLoan toUnderwritingYear Units June 2012Loan Amount Balance Benefit Value2012 4380 $ 652,575 $ 456,802 $ 333,114 $ 124,24051%2013 4116 $ 514,379 $ 360,065 $ 283,464 $ 91,72455%2014 5903 $ 792,557 $ 554,790 $ 421,984 $ 135,76253%2015 5799 $ 804,258 $ 562,941 $ 449,648 $ 126,96856%2016 4077 $ 524,425 $ 367,098 $ 277,430 $ 97,82353%2017 2820 $ 393,470 $ 275,429 $ 212,458 $ 64,92254%2018 1551 $ 233,127 $ 163,189 $ 93,390 $ 69,79940%2019 1534 $ 224,134 $ 156,894 $ 107,818 $ 49,72248%2020 722 $ 87,488 $ 61,242 $ 55,054 $ 6,25363%2021 695 $ 101,980 $ 71,386 $ 33,299 $ 38,08733%2022 815 $ 96,045 $ 67,232 $ 46,981 $ 20,25049%Un-Levered 2865 $ 302,295 $ 211,606 $ - $ 211,6060%Total 35277 $ 4,726,732 $ 3,308,674 $ 2,314,638 $ 1,037,15549%Cash June 30, 2012 $ 135,715Grand Total Net of Cash $ 2,178,92346%99% of Boardwalk’s Secured Mortgages are NHA-insured and assumes an averageCapitalization Rate of 6.26% based on recent CMHC underwriting criteria.Model utilizes a conservative 70% LTV on potential maximum NHA Insured Loans.Source – Internally generatedUnderwriting Value extrapolated using current CMHC CriteriaAs at June 30, 2012115

Debt SummaryJune 30, 2012Type of Debt Apartment Units Amount - in $ MillionsSecured 32,412 $2,315Un-levered 2,865 * $-Total 35,277 $2,31599% of Boardwalk’s Secured Mortgages are NHA insured.*855 of these apartment units (approx $110.3 million of estimated value) are pledged against the Trust’s undrawn credit facility.Source: Internally generated116

Mortgage Highlights($ in millions)As at June 30, 2012$ millionsMortgage Principal Outstanding $2,315% of NHA Insured Secured Mortgages 99%Existing Bond Spreads 90-105Over 5 and 10 Year GoC BondsInterest Coverage (Ex. Gains)Rolling 4 Quarters ended June 30, 2012 2.57Rolling 4 Quarters ended June 30, 2011 2.37Source: Internally generated As at June 30, 2012117

Mortgage Highlights – Q2 2012Mortgage SummaryCompleted Mortgage to June 30, 2012Est. 12MMaturing Mortgage New Up-WA NewWA Maturing Interest AverageInterestSavings onMaturity DateUnits AmountFinancing Rate Rate Term PrincipalJanuary, 2012 191 $ 6,920,000 $ -6.21% 2.60% 6 $ 250,000February, 2012 810 $ 53,390,000 $ -4.46% 2.40% 5 $ 1,100,000March, 2012 407 $ 30,050,000 $ -4.51% 2.89% 9 $ 490,000May, 2012 192 $ 4,860,000 $ 14,219,000 6.25% 2.90% 10 $ 160,000June, 2012 517 $ 30,620,000 $ -4.56% 2.43% 5 $ 650,000Total to June 30, 2012 2117 $ 125,840,000 $ 14,219,000 4.66% 2.55% 6 $ 2,650,000Fwd Locked MortgagesJuly, 2012 690 $ 57,370,000 $ 17,080,000 4.43% 2.62% 6 $ 1,040,000August, 2012 104 $ 4,230,000 $ -4.14% 2.69% 10 $ 60,000September, 2012 348 $ 16,130,000 $ -5.19% 2.24% 5 $ 480,000October, 2012 266 $ 23,980,000 $ -5.00% 2.85% 10 $ 520,000November, 2012 1382 $ 132,640,000 $ -4.85% 3.64% 9 $ 1,600,000December, 2012 415 $ 23,210,000 $ 28,110,000 4.38% 2.79% 7 $ 370,000Total Fwd Locked 3205 $ 257,560,000 $ 45,190,000 4.74% 3.16% 8 $ 4,070,000Grand Total Funded/Fwd 5322 $ 383,400,000 $ 59,409,000 4.71% 2.96% 8 $ 6,720,000The Trust has successfully renewed all mortgage maturities through June 30, 2012, reducing the averageinterest rate from 4.66% to 2.55%.In addition, the Trust has forward locked an additional $258 million of mortgage maturities at an averageinterest rate of 3.16%.Source: Internally generatedAs at June 30, 2012118

Mortgage Highlights – 2012 Mortgage Maturities -Month x Month2012 Remaining MortgagesMaturity DateUnitsMaturing MortgageAmountNew Up-FinancingWA MaturingRateJuly, 2012 180 $ 7,030,000 $ -1.85%September, 2012 145 $ 10,140,000 $ -3.99%October, 2012 150 $ 9,090,000 $ -4.48%November, 2012 700 $ 49,300,000 $ -4.78%Total Remaining Mortgages 1175 $ 75,560,000 $ -4.37%Mortgage Principal Forward Locked (See Prev Slide) $ 257,560,000Un-commited Mortgage Principal $ 75,560,000Total Principal Remaining, 2012 $ 333,120,000% of remaining 2012 mortgage principal fwd locked 77%The Trust has forward locked 77% of the remaining mortgage maturities in 2012.The Trust intends to continue to take a balanced approach to mortgage renewals with an emphasis onlonger term financing.Current Interest Rates are well below the maturing rate and present an opportunity for the Trust to securelong term interest savings.119

FinanceCanadian Bonds5 Year GoC Yield 10 Year GoC YieldSource – Stockwatch.com; August 2012120

Boardwalk REIT DistributionsMonth Per Unit Record Date DistributionDateAug-12 $ 0.160 31-Aug-12 17-Sep-12Sep-12 $ 0.160 28-Sep-12 15-Oct-12Oct-12 $ 0.160 31-Oct-12 15-Nov-12Effective for the August, 2012 Monthly Distribution, the Trust hasincreased distributions by 3% to $0.16 per month, or $1.92 on anannualized basis.121

Boardwalk Management CommitmentManagement Ownership$600,000,000$500,000,000$400,000,000$300,000,000$200,000,000$100,000,000$0Source: Internally generatedNotes: Internally calculated, based on public documents available as at May 2011.Value based on Trust Unit price as at May 13, 2011.122

Outlook / Summary- Well positioned for continued internal growth• High portfolio concentration in growth markets• Currently priced well below replacement value- Increasing portfolio diversification and scope• Provides lower income volatility• Enhances access to expansion opportunities-Strong balance sheet and cash flows to capitalize on acquisitionopportunities- Recent Transactions in the Private Market for Multi-Family Assetscontinues to be higher than the REIT’s current Public MarketValuation- Consistent, sustainable and superior long-term growth in FFO pershare and value for Unitholders123

Why Invest in Boardwalk REIT?- Proven and performance-driven management team with existinginternal management systems•Management continues to own in excess of 25% of the Trust- Strong Financial Position•Strong Liquidity•99% of outstanding secured debt is NHA insuredVery competitive interest rate pricingVirtually eliminates renewal risk- High-quality, well-maintained portfolio concentrated in some of thebest apartment markets in the country- Strong local market positions in the markets in which we operate124

Boardwalk REITDo we qualify as a REIT?• At January 1, 2012, the Trust does qualify as a REIT.• The question that remains is: does income generated from the sale of realproperties, once it flows through Boardwalk’s Trust on Trust Structure, lose itscharacter?• Recent Draft legislation still has not been substantially enacted but once enactedwill provided clarity on this issue.•With the recent election of a majority Conservative Government, we areexpecting the legislation to be introduced imminently.• On July 20, 2011, the Finance Department announced proposed changes tothe SIFT regulations including the treatment of stapled securities and otherminor technical updates. These changes are not expected to impact the Trust.125

Questions and AnswersContact Information:Sam Kolias, CEORoberto Geremia, PresidentWilliam Wong, CFOEmail: Investor@bwalk.comPh: 403-531-9255Certain statements in this presentation may be considered forward-looking statements within the meaning of existingsecurities laws. Although Boardwalk believes that the expectations set forth in such statements are based onreasonable assumptions, Boardwalk’s future operations and its actual performance may differ materially from those inany forward – looking statements. Additional information that could cause actual results to differ materially from thesestatements are detailed in the earnings press release and in other publically filed documents, including Boardwalk’sannual report, Annual Information Form and quarterly reports.Updated: Q1 2011126

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