BSR Real Estate Investment Trust (HOM.UN) Q1 2025 earnings summary

Executive summary

• Achieved 3.6% year-over-year growth in total portfolio revenue to $43.5 million, with same-community revenue up 0.6% and NOI up 2.3%, driven by acquisitions, improved retention, and higher ancillary income.

• Completed a two-phase $618.5 million sale of Texas assets to AvalonBay, reducing Class B unit holder influence and unlocking value.

• Acquired Venue Craig Ranch Apartments for $61 million and sold Bluff Creek Apartments at an 8.4% premium to IFRS value.

• Weighted average occupancy improved to 95.9% and resident retention rose 460 basis points to 56.9%.

• Portfolio now consists of 6,164 units, with 88% of NOI from Houston, Austin, and Dallas.

Financial highlights

• Q1 FFO and AFFO per unit were $0.23 and $0.22, respectively, both down year-over-year; AFFO payout ratio was 63.8%.

• Net loss and comprehensive loss for Q1 2025 was $40.8 million, mainly due to non-cash fair value adjustments and $5.2 million in disposition costs.

• NAV per unit decreased to $16.66 from $17.20 at Q4 2024.

• Declared cash distributions of $0.14 per unit, up 7.7% year-over-year.

• Liquidity stood at $148 million, including $84 million cash and $64 million undrawn credit.

Outlook and guidance

• Guidance for 2025 is suspended due to the AvalonBay transaction and uncertain capital redeployment timing; management will revisit guidance later.

• Expecting rental rate recovery as new supply is absorbed, with significant growth anticipated in 2026 and 2027.

• Acquisition target for 2025 is $190–$250 million, focusing on Houston and Dallas.

• Anticipate positive blended lease rate growth in the second half of 2025.