BSR REIT posts Q3 profit, disposes of six properties in portfolio

by Roby Brock ([email protected]) 700 views 

BSR Real Estate Investment Trust posted a third quarter profit on Tuesday (Nov. 10), while announcing it had sold six apartment properties including four in the Little Rock metro.

The REIT, which trades on the Toronto Stock Exchange, recorded third quarter revenue of $29.85 million, up 7.2% from a year ago when revenue stood at $27.84 million.

Net income for the quarter was $39.78 million, but that included nearly $37 million in fair value adjustments that were favorable to the REIT’s bottom line. One year ago, BSR REIT posted a $13.5 million quarterly loss for the period ending Sept. 30, 2019. That quarterly loss was negatively impacted by fair value adjustments.

Investment property assets have grown from $1.057 billion to $1.205 billion since Dec. 31, 2019.

BSR also announced the sale of six “noncore” properties, comprising 1,483 apartment units. The six units, four of which are in Little Rock metro, sold for $130 million.

They include Indian Hills, Overbrook I and V, and Woodland Oaks. The other two assets sold were Baystone and Vanderbilt, both in the Houston, Texas MSA.

The net proceeds of $127 million generated from these dispositions were used to repay $68 million in mortgage debt with the balance used to reduce the outstanding balance on the REIT’s credit facility.

“We have successfully executed on our portfolio enhancement growth strategy and capital recycling plan to transform our portfolio both in terms of primary market locations and in the age and quality of our communities. We added $558 million in acquisitions and sold $389 million of our apartment communities and our renewal program is not finished,” said John Bailey, BSR’s Chief Executive Officer. “The acquisitions are expected to drive higher consistent organic rental and asset value growth, while we grow our portfolio by continuing to capitalize on our robust pipeline of acquisition opportunities.”

BSR REIT owns 34 properties with 8,198 apartment units in Arkansas, Mississippi, Oklahoma and Texas.