TSX SYMBOL: BEI.UN August 1, 2008
Boardwalk announces results of extraordinary meeting of debentureholders – amendments to trust indenture approved
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For Immediate Release Calgary, Alberta August 1, 2008 Calgary, Alberta – August 1, 2008 – Boardwalk Real Estate Investment Trust (“BEI.UN” – TMX) announced July 30, 2008 that the extraordinary meeting of the holders of 5.31% convertible debentures due January 23, 2012 (the “Debentures”) of Boardwalk REIT was held July 30, 2008 in Calgary, as previously announced. Boardwalk is pleased to report that, at the meeting, all resolutions put forth were approved by the requisite majority of debentureholders. In particular, debentureholders approved amendments to the existing trust indenture which sets out the terms of the Debentures (the “Trust Indenture”) to amend: a. the definition of “Adjusted Gross Book Value” in section 3.1 of the Trust Indenture to increase that amount by an aggregate of $410 million until Boardwalk is required or elects to report the fair market value of its and its subsidiaries’ assets on its publicly issued consolidated balance sheet in accordance with International Financial Reporting Standards (“IFRS”) and, after such time, the definition of “Adjusted Gross Book Value” in the Trust Indenture will mean the fair market value of the assets of Boardwalk and its subsidiaries as shown on Boardwalk’s then most recently publicly-issued consolidated balance sheet; b. section 3.12 of the Trust Indenture to increase the ratio of Consolidated EBITDA to Consolidated Interest Expense to 1.75 to 1 from the current 1.50 to 1; c. section 3.13 of the Trust Indenture to decrease the Indebtedness Percentage to 60% from the current 70% when Boardwalk is required or elects to report the fair market value of its and its subsidiaries’ assets on its publicly issued consolidated balance sheet in accordance with IFRS; and d. section 3.5(1) of the Trust Indenture to increase the rate of interest on the Debentures to 5.61% from the current 5.31% from and after July 23, 2008 until the Maturity Date of January 23, 2012; Corporate Profile Boardwalk REIT is Canada’s largest owner/operator of multi-family rental communities. Boardwalk REIT currently owns and operates in excess of 260 properties with 36,784 rental units totaling approximately 31 million net rentable square feet. The Trust’s portfolio is concentrated in the provinces of Alberta, British Columbia, Saskatchewan, Ontario and Quebec. Boardwalk REIT’s Trust units are listed on the Toronto Stock Exchange, trading under the symbol BEI.UN. The Trust’s total Enterprise Value is approximately $4.1 billion. Forward Looking Information This press release may contain forward looking statements. These statements relate, but are not limited to, Boardwalk REIT’s expectations, intentions, plans and beliefs. These forward looking statements can generally be identified by the use of words “anticipated”, “expected” or the negative thereof or other comparable terminology. You should be aware that these statements are subject to known and unknown risks, uncertainties and other factors, including the risks discussed under the heading “Risk Factors” in the Annual Information Form of Boardwalk REIT available on www.sedar.com. Actual events or results may differ materially from those suggested by any forward-looking statements. You should not place undue reliance on any forward-looking statements contained in this press release and should not rely on such statements on any date other than the date of this press release. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of Boardwalk REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurances that future results, levels of activity, performance or achievements will occur as anticipated. None of Boardwalk REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligations to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law. For further information please contact: Boardwalk REIT Sam Kolias, CEO, (403) 531-9255; Roberto Geremia, President, (403) 531-9255
