LITTLE ROCK, AR AND
TORONTO, Dec. 20, 2018 /CNW/ - BSR Real Estate
Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) announced today
that it has completed the acquisition of Riverhill Apartments
("Riverhill" or the "Property"), in Grand
Prairie, Texas for US$45.2
million. The Riverhill Apartments are centrally located in
the Dallas-Fort Worth Metropolitan Statistical Area ("MSA") between
the cities of Dallas and
Fort Worth, just south of DFW
International Airport, and the headquarters of American Airlines.
The addition of Riverhill is expected to be immediately accretive
to the REIT's adjusted funds from operations1 ("AFFO")
on a per unit basis.
Riverhill, built in 1995, is a 334-unit multifamily complex
located on approximately 16 acres that comprises four four-storey
apartment buildings and 11 three-storey apartment buildings, as
well as a leasing office/clubhouse, laundry facility and fitness
center. The average monthly rent is approximately US$1,067 per unit.
Riverhill is the REIT's third property in the Dallas-Fort Worth
MSA, an area the REIT has targeted for acquisitions. The DFW MSA
spans 13 counties and 9,700 square miles and includes one of the
fastest-growing populations in the United
States. The region has an above average household income,
below average unemployment and is home to 22 Fortune 500 companies,
one of the highest concentrations in the country. According to
CoStar Group's 2018 third quarter report, apartment rental rates
increased 2.4% during the 12 months ended September 30, 2018, while the occupancy rate
remained stable at 92.2%. The central location of the Property
within the MSA provides ideal access to economic hubs.
"The Riverhill property is an outstanding addition to BSR's
portfolio," said John Bailey, Chief
Executive Officer of the REIT. "It increases our exposure to a
highly attractive market, and we see significant opportunities to
generate both organic rent growth and additional rent growth
through our value add strategies including unit upgrades and
property enhancements."
The transaction was funded utilizing the REIT's revolving credit
facility. As a result of this acquisition, the REIT's debt to Gross
Book Value ratio is 49%.
Riverhill is the REIT's third property acquisition since
completing an initial public offering on the Toronto Stock Exchange
in May, 2018. The acquisitions have added a combined 771 units to
the REIT's portfolio, which now includes 50 multifamily properties
comprising 10,450 units.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed,
unincorporated, 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 50 multifamily garden-style residential properties
aggregating 10,450 apartment units located across five bordering
states 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, including statements regarding the extent to which the
acquisition of Riverhill is expected to be accretive to AFFO per
Unit. Forward-looking statements are identified by words such as
"believe", "anticipate", "project", "expect", "intend", "plan",
"will", "may", "estimate" and other similar expressions. The
forward-looking statements in this news release are based on
certain assumptions, including assumptions regarding the expected
financial performance of Riverhill. 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
prospectus dated May 11, 2018 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 Measure
AFFO is a key measure of performance commonly used by real
estate operating companies and real estate investment trusts. It is
not a measure recognized under International Financial Reporting
Standards ("IFRS") and does not have standardized meanings
prescribed by IFRS. AFFO 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 for the
period ended September 30, 2018 for a
reconciliation of the REIT's AFFO to a standardized IFRS
measure.
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1 AFFO is a non-IFRS financial measure. See
"Non-IFRS Financial Measure" in this news release.
SOURCE BSR Real Estate Investment Trust