LITTLE
ROCK, Ark. and TORONTO, July 16,
2024 /CNW/ - BSR Real Estate Investment Trust
("BSR" or the "REIT") today provided select operating highlights
from the second quarter of 2024 ("Q2 2024").
Leasing Update
During Q2 2024, excluding short term leases, rental rates for
new leases declined 2.6%, while rates for renewals increased 3.1%,
resulting in a blended increase of 0.3% over the prior leases with
weighted average occupancy of 95.3% as of June 30, 2024, consistent with the prior quarter
and prior year.
MSA
|
State
|
Number of
Units
|
Effective New
Lease Rate
Growth for Q2
2024
|
Effective
Renewal Lease
Rate Growth
for Q2 2024
|
Effective
Blended Lease
Rate Growth
for Q2 2024
|
Austin
|
Texas
|
1,936
|
-6.2 %
|
1.8 %
|
-2.3 %
|
Dallas
|
Texas
|
3,225
|
-4.1 %
|
3.1 %
|
-0.6 %
|
Houston
|
Texas
|
2,236
|
0.0 %
|
3.4 %
|
1.7 %
|
Little Rock
|
Arkansas
|
304
|
4.0 %
|
4.9 %
|
4.6 %
|
Oklahoma
City
|
Oklahoma
|
965
|
6.5 %
|
4.6 %
|
5.4 %
|
Total Same
Community
|
8,666
|
-2.6 %
|
3.1 %
|
0.3 %
|
Debt Management
- On May 15, 2024, the REIT amended
its 3.54% $60 million interest rate
swap by extending the maturity and counterparty optional
termination dates by one year (to July 1,
2032 and January 2, 2026,
respectively) at a revised fixed rate of 3.48%.
- On June 14, 2024, the REIT
entered into a 90-day $150 million
swaption at a cash premium received of $98
thousand, exercisable by the counterparty on September 14, 2024. If exercised, the underlying
swap would be effective as of July 1,
2025 at a rate of 2.75%, maturing on July 1, 2031.
- On June 18, 2024, the REIT
amended its 3.27% $65 million and
3.178% $70 million interest rate
swaps by blending them into a $105
million swap at an interest rate of 3.274% and extending the
maturity and counterparty optional termination dates by
approximately one year (to July 1,
2032 and January 2, 2026,
respectively).
- During Q2 2024, the REIT retired $9.5
million of debt held on its credit facility with cash flow
generated from operations.
"As we anticipated, leasing performance in the second quarter
reflects continued demand for well-run, well-located sunbelt
multifamily communities," said Dan
Oberste, the REIT's President and Chief Executive Officer.
"We anticipate continued positive performance in the future as
absorption of new apartment deliveries accelerates into 2025. Our
debt retirement and interest rate hedging activities strengthen our
balance sheet and expand our financial flexibility. Our stable
occupancy and blended rate increases as well as our interest rate
and debt management reflect the methodical outcomes expected by our
investors and are representative of the REIT's track record of
creating value."
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed,
unincorporated, 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 markets in the Sunbelt region of
the United States.
Forward-Looking Statements
This news release contains forward-looking information within
the meaning of applicable Canadian securities legislation
(collectively, "forward-looking statements"). Forward-looking
statements in this news release include, but are not limited to,
statements which reflect management's expectations regarding
objectives, plans, goals, strategies, future growth (including 2024
guidance for FFO, AFFO, and Same Community metrics Revenue,
Property Expenses and NOI growth), results of operations,
performance, business prospects, and opportunities for the REIT.
The words "expects", "expectation", "anticipates", "anticipated",
"believes", "will" or variations of such words and phrases identify
forward-looking statements herein. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events or circumstances.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties, many of which
are beyond the REIT's control that could cause actual results and
events to differ materially from those that are disclosed in or
implied by such forward-looking information. The REIT's estimates,
beliefs and assumptions, which may prove to be incorrect, include
assumptions relating to the REIT's future growth potential, results
of operations, demographic and industry trends, no changes in
legislative or regulatory matters, the tax laws as currently in
effect, a gradual recovery and growth of the general economy over
2024, the impact of COVID-19, lease renewals and rental increases,
the ability to re-lease or find new tenants, the timing and ability
of the REIT to sell certain properties, project costs and timing, a
continuing trend toward land use intensification at reasonable
costs and development yields, including residential development in
urban markets, access to equity and debt capital markets to fund,
at acceptable costs, future capital requirements and to enable
refinancing of debts as they mature, the availability of investment
opportunities for growth in the REIT's target markets, the
valuations to be realized on property sales relative to current
IFRS values, and the market price of the Units. When
relying on forward-looking statements to make decisions, the REIT
cautions readers not to place undue reliance on these statements,
as forward-looking statements involve significant risks and
uncertainties. The risks and uncertainties that may impact such
forward-looking information include, but are not limited to, the
REIT's ability to execute its growth strategies, the impact of
changing conditions in the U.S. multifamily housing market,
increasing competition in the U.S. multifamily housing market, the
effect of fluctuations and cycles in the U.S. real estate market,
the marketability and value of the REIT's portfolio, changes in the
attitudes, financial condition and demand of the REIT's demographic
market, fluctuation in interest rates and volatility in financial
markets, developments and changes in applicable laws and
regulations, the impact of climate change, the impact of COVID-19
on the operations, business and financial results of the REIT and
the factors discussed under "Risks and Uncertainties" in the REIT's
Management's Discussion and Analysis for the three months and year
ended March 31, 2024 and in the
REIT's Annual Information Form dated March
12, 2024, both of which are available on SEDAR+
(www.sedarplus.ca). If any risks or uncertainties with respect to
the above materialize, or if the opinions, estimates or assumptions
underlying the forward-looking information prove incorrect, actual
results or future events might vary materially from those
anticipated in the forward-looking information. The REIT does not
undertake any obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law. This
forward-looking information speaks only as of the date of this news
release.
SOURCE BSR Real Estate Investment Trust