LITTLE ROCK, AR and TORONTO, July 29, 2021 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today that it has acquired Hangar 19 Apartments ("Hangar 19" or the "Property"), a garden style residential community with 351 apartment units in the Dallas/Fort Worth, Texas market for $82.75 million. The transaction was funded from the REIT's credit facility. The addition of Hangar 19 is expected to contribute approximately $0.04 per unit to BSR's adjusted funds from operations ("AFFO") in the first full year of the REIT's ownership.
Hangar 19 was constructed in 2020 in the high-growth Dallas/Fort Worth metropolitan statistical area ("MSA"), the fourth largest in the U.S. The Property has numerous amenities including a modern fitness center, saltwater swimming pool with sun deck, corridor access garages, 24/7 package locker system, pet wash and dog walk, modern kitchens, soaking tubs, bike storage and private office workspaces.
"BSR now owns 3,014 apartment units in the Dallas/Fort Worth MSA, one of our core growth markets and one of the strongest generational multifamily markets in the US," stated John Bailey, BSR's Chief Executive Officer. "With this scale of operations, our internalized management platform is well positioned to optimize Hangar 19, delivering peak performance that benefits our residents and unitholders."
Since BSR completed its IPO on May 18, 2018, the portfolio's weighted average age has decreased from 29 years to 13 years old, directly attributable to the capital recycling program. The REIT has deployed $964.1 million into 18 acquisitions following the IPO adding 5,551 apartment units with a weighted average year built of 2014 (seven years old) compared to 37 dispositions totaling $612.6 million and 7,376 apartment units with a weighted average year built of 1989 (32 years old). The REIT has recycled the proceeds from the sale of 76% of the IPO portfolio into high growth markets in the Dallas/Fort Worth, Austin and Houston, Texas markets. Following the transaction announced today, the REIT's debt to gross book value ratio ("Debt to GBV") is 44.9%.
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 May 11, 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 and Debt to GBV are key measures of operating performance commonly used by real estate operating companies and real estate investment trusts. They are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. AFFO and 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 Management's Discussion and Analysis dated March 9, 2021 for reconciliations of non-IFRS financial measures to standardized IFRS measures.
SOURCE BSR Real Estate Investment Trust
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