BSR Real Estate Investment Trust (HOM.UN) Q4 2025 earnings summary

Executive summary

• Completed $1 billion in property rotations, shifting from stabilized to newer lease-up assets with higher growth potential, resulting in a more concentrated portfolio of 26 properties and 7,170 units at year-end 2025, down from 32 properties and 8,904 units a year earlier.

• Streamlined capital structure by canceling 75% of Class B units, representing 27% of total units, including 15,000,000 Class B Units in April 2025.

• Despite a challenging leasing environment, incremental performance improvements were achieved, especially through lease-up of new properties, with Aura 3550 reaching 92% occupancy and Owensby at 70.4% by year-end.

• Portfolio quality is at its highest, with lease-up ramp and internal growth initiatives underway.

• Same Community weighted average occupancy was 94.3% as of December 31, 2025.

Financial highlights

• Q4 2025 total revenue was $34.0 million, down $8.2 million year-over-year, mainly due to property dispositions; FY 2025 total revenue was $144.2 million, a decrease of $24.4 million from FY 2024.

• Same community revenue declined 1.2% year-over-year in Q4 2025; NOI for Q4 was $12.7 million, down 6.1%.

• FFO per unit for Q4 2025 was $0.14, down from $0.19 in Q3 and $0.22 in Q4 2024; AFFO per unit was $0.11, down from $0.17 in Q3 and $0.20 in Q4 2024.

• Full year 2025 FFO per unit was $0.79 (vs. $0.96 in 2024); AFFO per unit was $0.70 (vs. $0.88 in 2024).

• Debt to gross book value at year-end was 51.2%, with $723.1 million in debt at a 4% weighted average interest rate.

Outlook and guidance

• 2026 FFO per unit guidance: $0.75–$0.79; AFFO per unit: $0.68–$0.74.

• Guidance assumes 50–150 bps same community revenue growth, 100–200 bps property operating expense growth, and 0–100 bps NOI growth.

• Occupancy expected at 94–96%, with rates flat to up 1%.

• Growth in 2026 expected to be offset by higher net interest costs and marginal overhead increases.

• Management expects normalization of performance as newly acquired and developed properties stabilize.