Let’s dive into one of the crucial interesting month-to-month paying dividend shares on the TSX proper now: Boardwalk Actual Property Funding Belief (TSX:BEI.UN). In a time when excessive rates of interest, inflation worries, and monetary uncertainty have left many Canadians looking for dependable passive revenue, this 2.3% yielder stands out.
About Boardwalk
Boardwalk REIT owns and operates over 34,000 residential suites throughout Canada. It makes a speciality of high-quality, inexpensive housing, with most of its portfolio positioned in Alberta, Quebec, and Saskatchewan. This concentrate on affordability has helped it thrive in risky instances. Rents stay accessible, and demand stays sturdy, at the same time as some Canadians pull again on spending. In Q1 2025, the belief maintained a excessive occupancy fee of 97.8%, with same-property rental income rising 7.5% 12 months over 12 months.
Let’s look nearer on the latest outcomes. Funds from operations (FFO) hit $1.06 per unit, up 11.6% from the identical interval final 12 months. Internet working revenue (NOI) climbed 10.3%, whereas revenue totalled $133.8 million. Regardless of a steep year-over-year drop in headline revenue, a lot of that displays one-time truthful worth positive aspects in Q1 2024. What issues extra is the operational power, which was clear throughout the board.
Distributions are beneficiant and rising. Boardwalk declared month-to-month distributions of $0.135 per unit for June, July, and August 2025. That works out to $1.62 yearly and interprets right into a 2.3% yield primarily based on the present unit value round $71.50. Even higher, its payout ratio is low at simply 35.3% of Q1 FFO. That provides it ample room to take care of and lift distributions with out placing strain on operations. Proper now, a $30,000 funding might usher in $56.65 each month!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BEI.UN | $71.50 | 419 | $1.62 | $679.78 | Month-to-month | $29,948.50 |
Extra to come back
On the valuation entrance, BEI.UN trades at an implied worth of $192,000 per suite. Administration believes this represents a 6% cap fee on trailing NOI, which is enticing for actual property of this high quality. Its internet asset worth sits at $96.07 per unit, that means it trades at an enormous low cost to what the underlying properties are value. That alerts worth for long-term traders.
Boardwalk can be actively enhancing its portfolio. It not too long ago repurchased practically half one million belief models and closed on two acquisitions, together with the Elbow 5 Eight group in Calgary. This sort of capital recycling of promoting older property to purchase or improve higher ones is a key a part of its technique. On the similar time, it’s investing in constructing upgrades, with 73% of the portfolio improved since 2017. These strikes assist elevate rents and enhance margins.
The belief additionally manages its debt nicely. About 96% of its mortgages are CMHC-insured, and its debt-to-assets ratio declined barely to 39.9%. It renewed $57 million of maturing mortgages in Q1 at a median fee of simply 3.8%, nicely beneath present industrial borrowing prices. This implies its steadiness sheet is each versatile and resilient, a uncommon combo in at present’s actual property market.
Silly takeaway
There’s no sugar-coating the dangers on this sector. Increased rates of interest have made it dearer to refinance debt and have lowered property values in lots of markets. However Boardwalk’s technique of sticking to inexpensive housing and staying disciplined with debt has labored in its favour. Traders can take consolation within the firm’s sturdy financials and administration’s observe file of navigating difficult cycles.
The massive image? This dividend gives one thing few others can: a reliable, tax-advantaged month-to-month payout, backed by a tough asset with rising revenue. With inflation lingering and considerations about job safety rising, Boardwalk’s concentrate on inexpensive, high quality houses is extra related than ever. And traders are on board, with shares up 13% year-to-date.
So, when you’re seeking to flip your portfolio right into a month-to-month revenue machine, BEI.UN deserves critical consideration. A 2.3% yield with room for development, a rock-solid steadiness sheet, and a reduction to NAV? That’s not simple to search out. For long-term traders who need revenue and peace of thoughts, this REIT checks all of the packing containers.