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    The Bull Case For Boardwalk Real Estate Investment Trust (TSX:BEI.UN) Could Change Following New Desjardins Co-Ownership Platform And Net Loss – Learn Why

    Simply Wall St·08/09/2026 08:35:28
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    • In July 2026, Boardwalk Real Estate Investment Trust reported higher quarterly and half-year sales but swung to a net loss, while also confirming continued monthly cash distributions and unveiling a new multifamily co-ownership with Desjardins Global Asset Management seeded with a CAD 292 million Western Canada portfolio.
    • This partnership not only validates Boardwalk’s IFRS asset values and maintains its 50% ownership stake, but also introduces recurring fee income through management and administrative services on the jointly owned properties.
    • Next, we’ll examine how this new co-ownership platform, alongside the recent buyback activity, reshapes Boardwalk’s longer-term investment narrative.

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    What Is Boardwalk Real Estate Investment Trust's Investment Narrative?

    To own Boardwalk, you have to be comfortable with a residential REIT that is currently unprofitable but still leaning into Western Canada multifamily as its core thesis. The latest quarter’s net loss underlines that earnings volatility and weaker interest coverage remain key near term risks, even as revenue edges higher. Against that, management is doubling down on capital allocation: a sizeable buyback has retired more than 6% of units, while the new Desjardins co-ownership validates IFRS asset values, adds fee income and broadens access to capital without giving up operating control. In the short term, the partnership does not remove the main pressure points around funding costs and earnings quality, but it slightly improves the risk/reward mix around growth capital and balance sheet flexibility.

    But interest coverage and recurring losses are still issues investors should be aware of. Despite retreating, Boardwalk Real Estate Investment Trust's shares might still be trading 23% above their fair value. Discover the potential downside here.

    Exploring Other Perspectives

    TSX:BEI.UN 1-Year Stock Price Chart
    TSX:BEI.UN 1-Year Stock Price Chart

    Two Simply Wall St Community fair value estimates, clustered around CA$79.48 to CA$84.33, sit well above the recent price, yet investors still face earnings volatility and interest coverage concerns that could influence how those targets are interpreted over time.

    Explore 2 other fair value estimates on Boardwalk Real Estate Investment Trust - why the stock might be worth just CA$79.48!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.