BSR's Net Operating Income and Revenue Rise in Q2

BSR's Net Operating Income and Revenue Rise in Q2
Dan Oberste, CEO of BSR Real Estate Investment Trust (Jason Burt)

BSR Real Estate Investment Trust of Little Rock on Tuesday reported second-quarter total portfolio net operating income of $20.9 million, up 46.1% from $14.4 million in the same quarter a year ago.

Net operating income is a measure of performance used by real estate operating companies and REITs. The company is publicly traded on the Toronto Stock Exchange (TSX HOM.U).

Total portfolio revenue for the quarter was $38.8 million, up 38.3% from $28 million in the first quarter of 2021. Property acquisitions accounted for $11.4 million of revenue.

Weighted average rent was up 17.1% to $1,412 per apartment unit in the quarter, compared to $1,206 in the same period last year. On a quarterly basis, weighted average rent increased 4.6%.

BSR owns 31 multifamily residential properties consisting of 8,666 apartment units, with 85% located in Texas, 11% in Oklahoma and 4% in Arkansas.

President & CEO Dan Oberste said second-quarter results reflect strong population growth and positive growth in the company's core Texas markets, which are driving outsized rental demand.

"As a result, operating results for the first half of 2022 exceeded expectations, and we expect favorable leasing conditions to continue in the second half of the year," he said in a news release.

BSR last month entered into an agreement to jointly develop the second phase of a 238-unit apartment complex in Austin. The project is expected to be completed in 2024 with a projected total cost of $59.5 million

Shares of BSR were up 2% late Wednesday morning. The company's stock is down about 5.8% year to date.

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