LITTLE ROCK, Ark. and TORONTO, July 16, 2024 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") today provided select operating highlights from the second quarter of 2024 ("Q2 2024").

Leasing Update

During Q2 2024, excluding short term leases, rental rates for new leases declined 2.6%, while rates for renewals increased 3.1%, resulting in a blended increase of 0.3% over the prior leases with weighted average occupancy of 95.3% as of June 30, 2024, consistent with the prior quarter and prior year.

Debt Management

• On May 15, 2024, the REIT amended its 3.54% $60 million interest rate swap by extending the maturity and counterparty optional termination dates by one year (to July 1, 2032 and January 2, 2026, respectively) at a revised fixed rate of 3.48%.
  
  
• On June 14, 2024, the REIT entered into a 90-day $150 million swaption at a cash premium received of $98 thousand, exercisable by the counterparty on September 14, 2024. If exercised, the underlying swap would be effective as of July 1, 2025 at a rate of 2.75%, maturing on July 1, 2031.
  
  
• On June 18, 2024, the REIT amended its 3.27% $65 million and 3.178% $70 million interest rate swaps by blending them into a $105 million swap at an interest rate of 3.274% and extending the maturity and counterparty optional termination dates by approximately one year (to July 1, 2032 and January 2, 2026, respectively).
  
  
• During Q2 2024, the REIT retired $9.5 million of debt held on its credit facility with cash flow generated from operations.

"As we anticipated, leasing performance in the second quarter reflects continued demand for well-run, well-located sunbelt multifamily communities," said Dan Oberste, the REIT's President and Chief Executive Officer. "We anticipate continued positive performance in the future as absorption of new apartment deliveries accelerates into 2025. Our debt retirement and interest rate hedging activities strengthen our balance sheet and expand our financial flexibility. Our stable occupancy and blended rate increases as well as our interest rate and debt management reflect the methodical outcomes expected by our investors and are representative of the REIT's track record of creating value."

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 multifamily garden-style residential properties located in attractive primary markets in the Sunbelt region of the United States.

Forward-Looking Statements

This news release contains forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements in this news release include, but are not limited to, statements which reflect management's expectations regarding objectives, plans, goals, strategies, future growth (including 2024 guidance for FFO, AFFO, and Same Community metrics Revenue, Property Expenses and NOI growth), results of operations, performance, business prospects, and opportunities for the REIT. The words "expects", "expectation", "anticipates", "anticipated", "believes", "will" or variations of such words and phrases identify forward-looking statements herein. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. The REIT's estimates, beliefs and assumptions, which may prove to be incorrect, include assumptions relating to the REIT's future growth potential, results of operations, demographic and industry trends, no changes in legislative or regulatory matters, the tax laws as currently in effect, a gradual recovery and growth of the general economy over 2024, the impact of COVID-19, lease renewals and rental increases, the ability to re-lease or find new tenants, the timing and ability of the REIT to sell certain properties, project costs and timing, a continuing trend toward land use intensification at reasonable costs and development yields, including residential development in urban markets, access to equity and debt capital markets to fund, at acceptable costs, future capital requirements and to enable refinancing of debts as they mature, the availability of investment opportunities for growth in the REIT's target markets, the valuations to be realized on property sales relative to current IFRS values, and the market price of the Units. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. The risks and uncertainties that may impact such forward-looking information include, but are not limited to, the REIT's ability to execute its growth strategies, the impact of changing conditions in the U.S. multifamily housing market, increasing competition in the U.S. multifamily housing market, the effect of fluctuations and cycles in the U.S. real estate market, the marketability and value of the REIT's portfolio, changes in the attitudes, financial condition and demand of the REIT's demographic market, fluctuation in interest rates and volatility in financial markets, developments and changes in applicable laws and regulations, the impact of climate change, the impact of COVID-19 on the operations, business and financial results of the REIT and the factors discussed under "Risks and Uncertainties" in the REIT's Management's Discussion and Analysis for the three months and year ended March 31, 2024 and in the REIT's Annual Information Form dated March 12, 2024, both of which are available on SEDAR+ (www.sedarplus.ca). If any risks or uncertainties with respect to the above materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

SOURCE BSR Real Estate Investment Trust