LITTLE ROCK, Ark. and TORONTO, Dec. 15, 2021 /CNW/ – BSR Real Estate Investment Trust (“BSR” or the “REIT”) (TSX: HOM.U) (TSX: HOM.UN) announced today that it has acquired Aura Benbrook Apartments (“Aura”) and Overlook by the Park Apartments (“Overlook”), both in the Dallas/Fort Worth (“DFW”) metropolitan statistical area (“MSA”), as well as The M at Lakeline Apartments (“Lakeline”) in the Austin, Texas MSA for a combined contractual purchase price of $273.6 million. The addition of the properties is expected to be immediately accretive to the REIT’s adjusted funds from operations (“AFFO”) contributing $0.11 per unit, on an annual basis. Considering the impact of both acquisitions and dispositions in the fourth quarter of 2021, resulting in a net increase in assets of $126.0 million, AFFO will incrementally increase by $0.05 per unit on an annual basis and places the REIT $56.0 million ahead of its previously announced plan of acquiring an additional $70.0 million in assets before year end. The transaction was funded using the REIT’s credit facility and cash on hand.
Aura is a garden-style community in the Benbrook submarket of the DFW MSA consisting of 301 apartment units constructed in 2020. The property includes multiple amenities such as a resort-style swimming pool, corridor attached garages, a modern fitness center, a dog park and a grilling station.
Overlook is a midrise suburban community consisting of 384 apartment units situated in the Frisco submarket of the DFW MSA, constructed in 2014. The property includes features such as an infinity edge saltwater pool, a modern fitness center, jetted tubs, a dog park and pet care center and reserved covered parking for all apartment units.
Lakeline is a Big House style community situated in the rapidly growing Cedar Park submarket of the Austin, Texas MSA comprising 374 apartment units built in 2014. The property includes features such as a resort style swimming pool with splash pad, 24hr package access and private access to a stocked fishing pond.
“With the purchase of Overlook, Aura, and Lakeline, we have added over 1,000 investment grade apartment units in our core markets to close out the year,” said John Bailey, Chief Executive Officer. “This wraps up a historic year for BSR where our acquisitions have continued to modernize and reposition our portfolio for growth, while significantly increasing our Net Asset Value.”
After BSR completed its IPO in May 2018, it embarked on an aggressive capital recycling program resulting in the portfolio’s weighted average age decreasing from 29 years to 11 years old. The REIT acquired 22 core market acquisitions totaling approximately $1.3 billion, adding 6,966 apartment units with an average age of six years old. This compares with 39 dispositions totaling approximately $760.5 million and comprising 8,136 apartment units with an average age of 31 years old. Following the purchase of the three communities announced today, the REIT’s Debt to GBV is 45.0%, excluding the convertible debentures.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed, unincorporated, and open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT owns a portfolio of multifamily garden-style residential properties located in attractive primary and secondary markets in the Sunbelt region of the United States.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and other similar expressions. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading “Risk Factors” in the REIT’s Management’s Discussion and Analysis for the third quarter of 2021, dated November 9, 2021, which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law. The REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-IFRS Financial Measures
AFFO, Debt to GBV and Net Asset Value are key financial measures commonly used by real estate operating companies and real estate investment trusts to analyze performance and financial position. They are not measures recognized under International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS. AFFO, Debt to GBV and Net Asset Value as calculated by the REIT may not be comparable to similar measures presented by other issuers. Please refer to the REIT’s Management’s Discussion and Analysis for the three and nine month periods ended September 30, 2021 for a reconciliation of non-IFRS financial measures to standardized IFRS measures.
SOURCE BSR Real Estate Investment Trust
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