BSR Real Estate Investment Trust (HOM.UN) Q4 2025 earnings summary

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).

• Significant refinancing of near-term debt, including extension of major credit facilities and term loans.

• Leasing momentum at new developments, with Aura 3550 at 92% occupancy and The Owensby at 70.4% by year-end, with further ramp-up expected.

• Same community weighted average occupancy closed 2025 at 94.3%, with a retention rate of 59.5%, up year-over-year.

• The REIT was recognized as a top workplace in multifamily for the fourth consecutive year.

Financial highlights

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

• Q4 2025 net loss was $2.3 million, compared to net income of $39.8 million in Q4 2024, driven by non-cash fair value adjustments.

• 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 (midpoint $0.77); AFFO per unit: $0.68–$0.74 (midpoint $0.71).

• Guidance assumes 0.5–1.5% same community revenue growth, 1.0–2.0% property operating expense and real estate tax growth, and 0.0–1.0% NOI growth.

• Management expects normalization of AFFO payout ratio and FFO/AFFO metrics as new acquisitions 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.