LITTLE ROCK, Ark. and
TORONTO, July 30, 2020 /PRNewswire/ - BSR Real Estate
Investment Trust ("BSR" or the "REIT") (TSX:HOM.U and HOM.UN)
announced today that it has acquired Broadstone Park West
("Broadstone" or the "Property"), a 370 suite, garden style
residential community in Houston,
Texas for US$51 million from
Starlight Investments. The transaction was financed through a
combination of a draw on the REIT's credit facility of
approximately US$40.0 million and the
issuance of approximately US$10.4
million of trust units of the REIT at US$12.25 per unit, net of prorations. Debt to
gross book value is 49.8% and the REIT has US$54.5 million in liquidity after the purchase.
The addition of the Property is expected to be immediately
accretive to the REIT's adjusted funds from operations ("AFFO") on
a per unit basis.
Broadstone was constructed in 2014 in the Houston
metropolitan statistical area ("MSA"), the fifth largest MSA in
the United States and home to 21
Fortune 500 companies. The Property has numerous amenities
including a clubhouse, fitness center, resort-style swimming pool
with sun
deck, garages, and a dog park. The
REIT now owns 2,332 apartment units in the
Houston MSA, where BSR has been operating for 20 years.
"The acquisition of Broadstone is another example of BSR growing
according to our defined clustering strategy," stated John Bailey, BSR's Chief Executive Officer.
"Broadstone is an attractive asset with the newer amenities that
our residents want. We will add value to the Property by
applying it to our internal management platform, as we have done
with other properties acquired since our IPO."
The purchase of Broadstone marks the eleventh property
acquisition for BSR since completing its initial public offering
(the "IPO") on the Toronto Stock Exchange in May 2018. Other post-IPO acquisitions included
Satori at Long Meadow Apartments constructed in 2019 and also in
the Houston MSA. In the Austin MSA, acquisitions included Ariza at
Plum Creek, Retreat at Wolf Ranch, Cielo, and Madrone Apartments.
In the Dallas-Fort Worth MSA, acquisitions included Wimberly,
Auberry at Twin Creeks, and Riverhill Apartments. Additional
acquisitions were Brandon Place Apartments in Oklahoma City, OK and Towne Park at Har-ber Apartments in the
Northwest Arkansas MSA. These acquisitions have added 3,235
apartment units to the REIT's portfolio with an average age of ten
years compared to the 20 dispositions to-date which total 3,666
apartment units and an average of age of 38 years.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed,
unincorporated, and 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 and secondary markets 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. 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, including with
respect to expected accretion to AFFO, are based on certain
assumptions, including that the Property will perform as expected.
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 Annual Information Form for the dated
March 10, 2020, 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 Measures
AFFO and debt to gross book value are key measures of
performance commonly used by real estate operating companies and
real estate investment trusts. They are not measures recognized
under International Financial Reporting Standards ("IFRS") and do
not have a standardized meaning prescribed by IFRS. AFFO and debt
to gross book value 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 three months
and year ended December 31, 2019 for
a reconciliation of AFFO to standardized IFRS measures.
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SOURCE BSR Real Estate Investment Trust
