TSX:HOM.UN - Post by User
Post by
retiredcfon Nov 09, 2023 7:11am
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Post# 35725471
RBC
RBCNovember 8, 2023
BSR REIT
Q3 in line; saved by the taxes
TSX: HOM/U | USD 10.56 | Outperform | Price Target USD 17.50
Sentiment: Neutral
First Look: BSR REIT (“BSR”) reported FFO/unit of $0.23, +9.5% y/y, vs. RBC/consensus of $0.23/$0.23. 2023 FFO guidance was tightened and mid-point maintained, with previously-reported lower tax assessment in Texas being a contributor to the guide being maintained. Leasing spreads show deceleration in line with Sun Belt peers. We view the results as largely neutral.
Key points:
• SP NOI growth: +7.0% (SP-Rev +3.9%; SP-Exp +0%).
• 2023 guidance tightened and mid-point maintained: FFO/unit $0.92-0.94; SP NOI growth guidance is 6-8%.
• Occupancy: 95.2% (-10bps q/q, +50 bps y/y).
• Rent $1,504 (+0% q/q, +3% y/y).
• Lease spreads: +2.7%, vs. +3.7% in Q2, and +3.6% in Q1. New lease spread was -0.2% / renewal spread +5.6%.
• Reported NAV/unit: $18.66 (-9% q/q, -16% y/y). Average cap rate utilized was 4.9% (+20bps q/q).
• Active on NCIB: Acquired 45K units at an average price of $10.73 for a total of $0.5M in October.
• D/GBV: 41.3%, +190 bps q/q.
• Susan Rosenbaum returns as interim CFO, post Brandon Barger taking leave of absence for health-related reasons.