BSR Real Estate Investment Trust (HOM.UN) Q2 2025 earnings summary

Executive summary

• Q2 2025 results show positive momentum with strong operating performance, strategic acquisitions, and successful absorption of new supply, positioning for sustained growth and value creation for unitholders.

• Portfolio transformation included the sale of six stabilized Dallas properties for $431.5 million and redeployment into two new Houston assets for $141 million.

• Same community weighted average occupancy rose to 95.6%, up 20 basis points year-over-year, and blended re-leasing spreads improved by 200 basis points sequentially.

• July saw same community blended tradeouts turn positive for the first time since Q3 2024, growing 1.1%, and retention rate increased to 57.4%, up 300 basis points year-over-year.

• Ongoing lease-up in Austin and repositioning efforts are expected to drive future growth.

Financial highlights

• Q2 2025 total portfolio revenue was $33.7 million, down 20.2% year-over-year, mainly due to property dispositions; same community revenue was flat at $26.6 million.

• FFO was $9.2 million ($0.21/unit), down from $14.1 million ($0.26/unit) in Q2 2024; AFFO was $8.4 million ($0.19/unit), down from $12.7 million ($0.24/unit) last year.

• Q2 cash distributions totaled $0.14 per unit, a 7.7% year-over-year increase, with an AFFO payout ratio of 73%.

• Net finance costs decreased by $1.5 million to $6 million, reflecting debt paydown from property dispositions.

• NAV as of June 30, 2025 was $653.3 million ($16.74 per unit), down from $901.3 million ($16.75 per unit) at December 31, 2024, mainly due to the cancellation of 15 million Class B Units.

Outlook and guidance

• Guidance remains suspended due to ongoing portfolio changes and stabilization of new acquisitions; management will revisit providing detailed guidance in the future.

• Expecting continued positive leasing spreads and occupancy gains as new supply is absorbed and limited new deliveries are forecasted for 2026.

• Anticipates $200–$250 million in acquisitions for 2025, with $141 million already completed in Houston and $60–$110 million targeted for the remainder of the year.

• Focused on acquiring newer assets in Houston and Dallas, with Dallas expected to become a greater focus moving forward.

• Performance comparisons to prior periods will become more meaningful as new assets stabilize.