BSR Real Estate Investment Trust (HOM.UN) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked the start of significant momentum, with sequential improvement in same community NOI and NOI margins from Q4 2025, driven by expense normalization and operational enhancements.

• Q1 2026 results aligned with management expectations, reflecting stabilization of newly acquired assets and ongoing portfolio optimization.

• Portfolio consists of 26 properties with 7,170 apartment units, down from 29 properties and 8,008 units year-over-year due to property dispositions.

• Retention rate improved to 59.8% at quarter end, up from 56.9% a year earlier, and physical occupancy at the August 2025 lease-up rose to 73.1%.

• Management remains confident in growth prospects, citing robust demand in core markets and continued operational momentum.

Financial highlights

• Same community NOI for Q1 2026 was $14.1 million, down 4.7% year-over-year but up 11% sequentially from Q4 2025.

• Total portfolio revenue for Q1 2026 was $33.8 million, down 22.2% year-over-year, primarily due to property dispositions.

• FFO per unit was $0.18, up 29% from $0.14 in Q4 2025, but down year-over-year due to higher borrowing costs, lower same community results, and higher G&A.

• AFFO per unit was $0.17, 55% higher than $0.11 in Q4, but down from $0.22 in Q1 2025.

• Debt to gross book value was 52% at quarter end, with $738 million in debt at a 4.1% weighted average interest rate and 3.7 years average term.

• Total liquidity stood at $67.3 million, including $7.4 million cash and $59.9 million available under the revolving credit facility.

Outlook and guidance

• 2026 guidance reiterated: full year FFO per unit of $0.75-$0.79 (midpoint $0.77), AFFO per unit of $0.68-$0.74 (midpoint $0.71).

• Guidance assumes 50-150 bps same community revenue growth, 100-200 bps expense and tax growth, and 0-100 bps NOI growth.

• Organic growth initiatives expected to add $0.13-$0.22 FFO per unit from 2026 to 2028, with bulk internet rollout contributing $400,000 in 2026 and further ramping in 2027-2028.

• Management expects blended lease rate changes to improve as new supply is absorbed in core markets.