Our Pal Ed

Lame duck Premier Ed Stelmach is our pal says the Biggest Landlord in Canada....

"We are extremely pleased," whooped Boardwalk president Roberto Geremia.

"Though confronted with intense pressure from the media and opposition parties," he continued, "the provincial government has remained steadfast in its stand against legislated rent controls."

CEO Sam Kolias said Boardwalk was now "poised to generate significant gains," and reminded unitholders that "today's most exciting investment story surrounds our Alberta portfolio," which he described as "really hot."

And Edmonton in particular, where 32% of Boardwalk's apartment units are concentrated and the vacancy rate is running under 1%, is "poised to generate significant gains over the next coming months."

Then Kolias rolled out the happy numbers for the cheerleading stockies listening on the conference call.

Funds from operations were up 25% over the same three months in 2006. Distributable income per unit was up 27%. Rental revenues were up 15%, while net operating income of $51 million was up 19%.

Happy days are here again. And probably the most important stat of all was Boardwalk's "outlook and guidance" prediction that distributable income will climb from $1.87 to as high as $2.04 per unit in 2007.

"We're being thoughtful in the amount we are increasing rents," he continued.

"Although the market can bear more," Kolias sighed, "we do realize that our customers are the most important thing that we have."

H/T to West of the Fourth who discovered Neil Waugh is as Socialist.

Something I have pointed out over the past couple of years about Neil.

After you suffer thirty five years of an incompetent One Party State, socialism actually looks good.

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No New Apartments in Alberta

Boardwalk REIT claims it would have to raise rents to $1650 a month in order to have enough cash to build new apartments in Alberta, thus its opposition to rent control. However Boardwalk has not built any apartments, as a REIT it buys up existing properties.

Meanwhile the Stelmach government ignores the recommendations of its own public committee to implement rent controls. Claiming it would discourage apartment construction.

Except all current conversions and construction of multiple person dwellings are not apartments but condos, cause thats where the money is.

Developers have not been building rental units in Alberta, even without rent controls. Despite the rapid growth in the Edmonton area, there were 5,050 fewer rental units last year than in 1987, according to the Canada Mortgage and Housing Corp.

See:

Inflation In Alberta

Housing


Find blog posts, photos, events and more off-site about:
Alberta, Calgary, Edmonton, Ed Stelmach, housing, rental, condominium, apartment, Boardwalk Reality, Income Trusts, rent controls, homelessness,