BEI.UN: 2026 Investor Day Takeaways

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BEI.UN: 2026 Investor Day Takeaways

2 4.02 4.12

reported Q2 SP occupancy of 96.9% (-20 bps QoQ) and occupied rent of P/AFFO 18.8x 16.7x 16.7x 16.3x

$1,607 in April/May (+0.6% QoQ), largely in line with our estimate. Distribution/Unit 1.40 1.62 1.68 1.68

Payout Ratio 39% 40% 42% 41%

2026 Guidance: BEI will update its guidance with Q2 earnings (July 28). FFO/Unit Q1 Q2 Q3 Q4

Given the lease spreads achieved YTD, our sense is that H1/2026 revenue 2025 1.06A 1.16A 1.23A 1.20A

is tracking closer to the lower end of revenue guide range of 1.5%-2.5%. 2026 1.15A 1.14E 1.21E 1.19E

On the other hand, opex increase, driven by insurance cost renewals, could 2027 1.17E 1.19E 1.24E 1.23E

come in at the lower end of opex guide increase of 0%-2%. Debt to Cap means Debt to Gross Book Value

All values in CAD unless otherwise noted.

Alberta fundamentals: While management acknowledged that Alberta is Priced as of prior trading day's market close, EST (unless otherwise noted).

currently on the soft side of the rental cycle, their message was the positive

set up for 2027+. Their strategy today is to continue to invest counter

cyclically ($276M of acquisitions since 2025), buy back units ($234M since

2025) and improve quality of portfolio ($290M of dispositions since 2025)

in anticipation of tighter rental markets. The medium-term positive outlook

is based on:

1. 2027 could see resumption of more meaningful population growth.

Unlike national average, AB QoQ population growth rate has remained

positive, peaked at ~1.3% in Q3/23, having decelerated consistently

since and seemed to have leveled off at ~0.2%. The positive divergence

relative to ON and BC is due to higher birth rates given younger

population and higher interprovincial migration given better housing

affordability.