BSR Real Estate Investment Trust (HOM.UN) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw continued operational strength with a 3.6% year-over-year increase in total portfolio revenue to $43.5 million, driven by acquisitions, improved retention, and same-community NOI growth despite significant asset dispositions and supply impacts in U.S. growth markets.

• Major strategic transactions included the $618.5 million sale of Texas assets to AvalonBay, acquisition of Venue Craig Ranch Apartments for $61 million, and sale of Bluff Creek Apartments for $28 million at a premium to IFRS value.

• Portfolio repositioned to focus on core Texas markets, with 88% of NOI from Houston, Austin, and Dallas post-disposition.

• Weighted average occupancy improved to 95.9% and retention rate increased 460 basis points to 56.9% compared to Q1 2024.

Financial highlights

• Q1 FFO per unit was $0.23 and AFFO per unit was $0.22, both down over 8% year-over-year due to higher finance costs and transaction expenses.

• Same-community revenue increased 0.6% and same-community NOI rose 2.3% year-over-year, reflecting operational improvements and higher resident participation in ancillary services.

• Total portfolio revenue and NOI increased 3.6% and 0.8% year-over-year, respectively.

• Net loss and comprehensive loss for Q1 2025 was $40.8 million, primarily due to non-cash fair value adjustments and $5.2 million in disposition costs.

• Cash distributions totaled $0.14 per unit, a 7.7% increase year-over-year; AFFO payout ratio was 63.8%.

Outlook and guidance

• No formal 2025 guidance issued due to recent major transactions and uncertain timing of capital redeployment; management intends to revisit guidance in a future period.

• Management expects rental rate recovery in the next 12–24 months as new supply is absorbed and anticipates significant rental growth in 2026–2027 as a supply deficit emerges in core markets.

• Acquisition target for 2025 is $190–$250 million, focusing on Houston and Dallas, with Austin ranked third due to cap rate dynamics.