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

Executive summary

• Completed a $1 billion property rotation, shifting from stabilized to newer lease-up assets with higher growth potential, and streamlined the capital structure by canceling 75% of Class B units (27% of total units as converted).

• 2025 marked a transformative year with significant asset rotation, refinancing of near-term debt, and acquisition of high-growth properties.

• Despite a challenging leasing environment in Texas, incremental performance improvements were achieved, supported by lease-up progress and growth initiatives.

• Aura 3550 reached 92% occupancy by year-end, up from the low 20s at the start of 2025; The Owensby ended at 70.4% occupancy, with further ramp-up expected in 2026.

• Portfolio repositioning led to a smaller, more concentrated asset base, with 26 properties and 7,170 units at year-end, down from 32 properties and 8,904 units a year earlier.

Financial highlights

• Q4 2025 total revenue was $34.0 million, down $8.2 million year-over-year, mainly due to property dispositions.

• FY 2025 total revenue was $144.2 million, a decrease of $24.4 million from FY 2024, primarily from asset sales.

• Q4 2025 FFO per unit was $0.14 (vs. $0.19 in Q3 and $0.22 in Q4 2024); AFFO per unit was $0.11 (vs. $0.17 in Q3 and $0.20 in Q4 2024).

• Full year 2025 FFO per unit was $0.79 (vs. $0.96 in 2024); AFFO per unit was $0.70 (vs. $0.88 in 2024).

• Debt to gross book value at year-end was 51.2%, with $723.1 million in debt at a 4% weighted average interest rate; 99% of debt is fixed or hedged.

Outlook and guidance

• 2026 FFO per unit guidance: $0.75–$0.79; AFFO per unit: $0.68–$0.74.

• Guidance assumes 50–150 bps same community revenue growth, 100–200 bps property operating expense and real estate tax growth, and 0–100 bps NOI growth.

• Management expects normalization of performance as newly acquired and developed properties stabilize.

• Occupancy guidance assumes 94–96% (midpoint used), with rates expected to be flat to up 1%.

• Ancillary revenue from bulk internet initiative expected to contribute $400,000 in 2026, ramping to $2.8 million by 2028.