November 11, 2010 / 3:01 PM / 7 years ago

Boardwalk REIT units fall as Q3 results miss

* FFO of C$0.64/unit vs street view of C$0.69/unit

* Rental revenues flat

* Sees 2011 FFO between C$2.35-C$2.55 per unit

TORONTO, Nov 11 (Reuters) - Units of Boardwalk Real Estate Investment Trust (BEI_u.TO) fell in early trade on Thursday after Canada’s biggest apartment landlord reported lower-than-expected results.

Boardwalk fell 2.2 percent to C$42.50 on the Toronto Stock Exchange on Thursday morning, the day after the REIT reported third-quarter funds from operations fell 3.9 percent and rental revenue was unchanged.

Funds from operations, a key measure of performance for real estate companies, slipped to C$33.6 million ($33.6 million), or 64 Canadian cents a unit, from C$35 million, or 66 Canadian cents a unit, a year ago.

Analysts on average were expecting earnings of 69 Canadian cents a unit, according to Thomson Reuters I/B/E/S.

The Calgary, Alberta-based REIT said the average monthly rent in the trust’s portfolio for the quarter edged up to C$977 per suite, compared to C$976 a year earlier. Rental revenues in the quarter were flat at C$104.7 million.

    Overall occupancy in the third quarter rose to 97.01 percent from 95.54 percent a year ago.

    The REIT said because it sold some properties at the end of 2009 and this year, it now expects annual FFO to come in between C$2.40-C$2.50 per unit, compared with a previous view of C$2.40-C$2.55.

    For 2011, Boardwalk estimated FFO between C$2.35-C$2.55 per unit and said it plans to invest about C$79 million into its properties through capital improvements.

    The units have risen about 17 percent over the past 12 months, outperforming the main Toronto stock index slightly.

    ($1=$1.00 Canadian)

    Reporting by Ka Yan Ng, editing by Dave Zimmerman

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