BSR REIT Announces Fourth Quarter and Full Year 2024 Financial Results

BSR Real Estate Investment Trust (BSR REIT) (TSX: HOM.U) (TSX: HOM.UN) recently announced its financial results for the three months and year ended December 31, 2024 ("Q4 2024" and "FY 2024", respectively). The REIT reported solid operating and financial results for the year, with key highlights including:

* Same Community revenue for FY 2024 increased 0.4% over FY 2023.
* Same Community NOI for FY 2024 increased 1.3% compared to FY 2023.
* Weighted average occupancy was 95.6% as of December 31, 2024, compared to 95.3% of December 31, 2023.
* FFO per Unit for FY 2024 of $0.96 increased 3.2% over FY 2023.
* AFFO per Unit for FY 2024 of $0.88 increased 3.5% over FY 2023.
* The REIT's AFFO payout ratio was 60.3% during FY 2024, compared to 60.7% during FY 2023.
* Debt to Gross Book Value as of December 31, 2024 was 46.5%.
* During FY 2024 and Q4 2024, the REIT retired $8.8 million and $4.5 million, respectively, of its debt with cash flows generated from operations.
* In December 2024, the REIT extended $160.0 million of mortgage notes to December 11, 2026, with no other contractual changes as a result of the extension.
* On November 1, 2024, the REIT entered into a new forward receive-variable based USD-SOFR/pay fixed interest rate swap of $42.0 million at a fixed rate of 3.13% effective February 2, 2025 and maturing February 1, 2030, subject to the counterparty's optional early termination date of February 2, 2026.
* In December 2024, construction was completed on Aura 35Fifty, a 238-apartment unit community in the Austin, TX MSA.
* For the third year in a row, BSR was named one of the Best Places to Work in Multifamily, and Best Places to Work in Multifamily for Women at the Multifamily Innovations Awards held in December 2024.

Subsequent Highlights:

* On January 3, 2025, the REIT redeemed all issued and outstanding of the 5.0% Convertible Debentures, for $41.5 million, plus accrued and unpaid interest.
* On January 9, 2025, the REIT acquired Venue Craig Ranch, a 277-apartment unit community in McKinney, TX (Dallas MSA) for a total contractual purchase price of $61.0 million.
* On February 27, 2025, the REIT announced the pending sale of nine stabilized properties for a contractual purchase price of $618.5 million.

BSR REIT's solid financial performance in 2024 was driven by strong rent growth, stable occupancy rates, and effective debt management. The REIT's ability to increase its AFFO per unit and occupancy rate, despite record new deliveries in its core markets, demonstrates its resilience and strong demand for its properties. The REIT's debt management strategy, including debt retirement and interest rate swaps, has contributed to its financial success and positioned it for future growth. Looking ahead, BSR REIT is well-positioned to continue generating value for its unitholders, as it redeploys the proceeds from the sale of nine stabilized properties to acquire properties with higher returns.