If a stock is falling, it doesn’t necessarily mean you need to wait for the price to turn around before buying. If the business remains fundamentally healthy, you should rather grab the opportunity while other investors are still cautious.
Boardwalk Real Estate Investment Trust (TSX: BEI.UN) is that kind of stock on the TSX today. Its shares have lost ground, but the underlying portfolio continues generating resilient rental income, occupancy remains strong, and funds from operations per unit are still growing. If you hold such quality stocks in your Tax-Free Savings Account (TFSA), you can benefit from both regular dividends and potential long-term capital appreciation without paying tax on those gains.
Let me show you why Boardwalk REIT’s discounted valuation, combined with its strong fundamentals and monthly income, makes me optimistic about this TFSA-friendly stock.
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Why Boardwalk REIT looks attractive now
Headquartered in Calgary, Boardwalk is a residential real estate investment trust (REIT) with roughly 33,000 suites across more than 200 Canadian communities. At the time of writing, its shares traded at $62.96 apiece, giving the REIT a market cap of $2.9 billion.
Boardwalk stock has fallen about 9% over the last year and currently sits 13% below its 52-week high. Dividend investors, however, still get a 2.7% annualized yield, with cash payouts arriving every month.
Interestingly, Boardwalk posted a net asset value of $96.37 per unit at the end of June. And its current market price is roughly 35% below that figure. In addition, the company appears to see value in its own units, as the REIT has been aggressively buying them back.
Solid operating momentum supports the bullish case
In the June 2026 quarter, Boardwalk’s rental revenue rose 2.3% year-over-year (YoY) to $161 million. Higher occupied rents and lower incentives backed that increase, although higher vacancy losses partly offset those gains.
The REIT’s net operating income in the latest quarter also increased nearly 3% YoY, while its funds from operations (FFO) climbed 2.6% YoY to $1.19 per unit. At the same time, Boardwalk maintained same-property occupancy of 97%, as its operating margin improved by 40 basis points to 66.6%.
Still, performance was not equally strong everywhere as Boardwalk’s Calgary same-property net operating income declined 1.2% last quarter due partly to higher vacancy losses and lower in-place rents. Stronger results in markets including Ontario, Quebec, and other parts of Alberta helped keep the REIT’s overall operating performance positive.
Capital allocation adds to the TFSA appeal
Beyond its operating resilience, Boardwalk’s approach to capital allocation gives me another reason to remain bullish on this monthly dividend stock. Through July 24, the REIT had invested about $204 million to repurchase roughly 3.1 million units at a weighted average price of $65.51.
It has also been selling non-core properties and established a strategic co-ownership with DGAM Real Estate Fund to support future growth opportunities in Western Canada. At the end of the second quarter, the REIT had roughly $375 million in available liquidity.
Its second-quarter FFO payout ratio also remained very conservative at 37.6%, which gives Boardwalk plenty of room to fund its monthly distributions while retaining cash for other priorities.
Overall, Boardwalk gives TFSA investors monthly cash flow, resilient business performance, disciplined unit buybacks, and an attractive valuation relative to its reported net asset value.
