BSR Real Estate Investment Trust (HOM.UN) investor relations material

Executive summary

• Q2 results show positive momentum with strong operating performance, strategic acquisitions, and successful absorption of new supply, positioning for sustained growth and value creation for unitholders.

• Major portfolio repositioning included selling six Dallas properties for $431.5M and acquiring two newer Houston assets for $141M, increasing exposure to Dallas and Houston.

• Same community weighted average occupancy rose to 95.6%, up 20 basis points year-over-year; retention rate improved to 57.4%, a 300 basis point increase.

• July saw a positive turn in blended trade outs (up 1.1%), the first positive movement since 2024, indicating market recovery.

Financial highlights

• Same community revenue was $26.6M in Q2, flat year-over-year; same community NOI declined 4.9% to $14.3M due to higher expenses.

• FFO was $9.2M ($0.21/unit), down from $14.1M ($0.26/unit) last year, reflecting lower NOI from dispositions, partially offset by lower finance costs.

• AFFO was $8.4M ($0.19/unit), down from $12.7M ($0.24/unit) last year; AFFO payout ratio was 73%.

• Q2 cash distributions totaled $0.14/unit, a 7.7% year-over-year increase, all classified as return of capital.

• Net finance costs decreased by $1.5M year-over-year due to debt paydown after property sales.

Outlook and guidance

• Guidance suspended due to significant portfolio changes and ongoing stabilization of new acquisitions; management will update when appropriate.

• Expecting continued absorption of new supply, with rental rates poised for significant growth as new deliveries decline sharply from late 2025 onward.

• Capital deployment target for 2025 remains $200M–$250M in acquisitions, with $141M already completed in Houston.

• Focus remains on acquiring newer assets in Houston and Dallas, with Dallas expected to become a larger focus in the near term.