LITTLE ROCK, Ark. and
TORONTO, April 26, 2021 /CNW/ - BSR Real Estate
Investment Trust ("BSR" or the "REIT") (TSX: HOM.U)
(TSX: HOM.UN) announced today it has sold Mountain Ranch
Apartments in Fayetteville,
Arkansas for gross proceeds of $49.5
million (the "Transaction"). The sale price reflects a 27.2%
increase in this property's asset value since BSR's IPO in
May 2018. All dollar amounts in this
news release are denominated in US currency.
Mountain Ranch was the REIT's last remaining property in the
Northwest Arkansas market. The
sale reflects the REIT's opportunity to realize the attractive
price available through divestment at this time. The proceeds of
the Transaction will be deployed in targeted primary markets where
BSR has established scale. Including the pending purchase of Alleia
Long Meadow Farms in the Houston
metropolitan statistical area announced in March, the REIT's debt
to gross book value ratio ("Debt to GBV") following the Transaction
is 46.7%, providing approximately $279
million of acquisition capacity.
"The Northwest Arkansas market
is strong," stated John Bailey,
BSR's Chief Executive Officer. "Reversion values continue to be
attractive and, given our lack of scale there, it made sense to
continue to capitalize on the current market conditions, with a
view to maximizing unitholder return. We will rotate this capital
into BSR's primary core markets as we have consistently done since
our IPO."
Following the progress of BSR's capital recycling program to
date, the REIT's portfolio now comprises 7,844 apartment units in
29 investment properties, with 95% of Net Operating Income ("NOI")
coming from strategic, high growth primary markets. This compares
with just 52% at the time of the REIT's IPO. The REIT's 17
acquisitions following the IPO added 5,200 apartment units with a
weighted average year built of 2014 (seven years old) compared to
36 dispositions totaling 7,192 apartment units with a weighted
average year built of 32 years old. The portfolio's overall
weighted average age has decreased from 29 years to 15 years.
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.
Forward-Looking Statements
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.
These statements are based on the REIT's expectations, estimates,
forecasts and projections and include, without limitation,
statements regarding the intended monthly distributions of the
REIT. The forward-looking statements in this news release are based
on certain assumptions including, without limitation, that the REIT
will have sufficient cash to pay its distributions. 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 2020 Management's Discussion & Analysis
dated March 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 Measure
Debt to GBV is a key measure of financial strength commonly used
by real estate operating companies and real estate investment
trusts. It is not a measure recognized under International
Financial Reporting Standards ("IFRS") and does not have a
standardized meaning prescribed by IFRS. Debt to GBV as calculated
by the REIT may not be comparable to similar measures presented
by other issuers. Please refer to the REIT's 2020 Management's
Discussion and Analysis dated March 9, 2021 for a
reconciliation of Debt to GBV to standardized IFRS measures.
SOURCE BSR Real Estate Investment Trust