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The freebies helped keep Boardwalk’s towers more full than others, with only 1.8 per cent vacancy in Calgary and 2.8 per cent in Edmonton, compared to 5.3 per cent and 4.2 per cent for the rest of the market respectively, according to the latest annual CMHC figures.

Overleveraged Consumers

As Alberta’s market cools, Canada’s two largest cities are so hot it’s prompted cautionary calls from regulators, the government, international organizations and even lenders. Home prices have been on a tear, up 50 per cent in Vancouver and Toronto in the last five years, according to the Canadian Real Estate Association.

The disparity and risks, such as overleveraged consumers and influence of foreign buyers, caught the eye of U.S. short- sellers even three years ago, such as Steve Eisman, now managing director at Neuberger Berman Group LLC. Until the start of 2016, Home Capital Group Inc., one of Canada’s biggest non-bank lenders, and Genworth MI Canada Inc., it’s largest private mortgage insurer, were the top two shorted stocks in the country.

“If you want to short the housing market there aren’t a lot of ways to do it,” said Jimmy Shan, an analyst at GMP Securities. “If you’ve gone through what you’ve gone through in the 2008 U.S. recession, it makes sense that you would think that way.” He has a hold rating on Boardwalk.

Labour Holding

Boardwalk’s biggest external shareholder is sticking behind the company.

“It’s the largest real estate company with the greatest exposure to Alberta — you put those two things together and that’s where people might be wagering it’s a good way to play the downside in Alberta,” said Michael Missaghie, who helps oversee C$18 billion as vice-president and senior portfolio manager at Sentry Investments Inc., owner of about 9.3 per cent of Boardwalk shares, according to data compiled by Bloomberg. “To us it doesn’t make sense. The occupancy and rent has not been as negative as its stock would imply.”