BSR Real Estate Investment Trust of Little Rock on Tuesday reported third-quarter total portfolio net operating income of $21.7 million, up 31.6% from $16.5 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 also reported that Blake Brazeal, BSR's co-president and chief operating officer since 2004, is retiring at the end of the year. He'll be replaced by Susan Koehn, the company's current CFO. The CFO role will be filled by Brandon Barger, BSR's current chief accounting officer.
President and CEO Dan Oberste said Brazeal will remain an advocate for BSR, which is publicly traded on the Toronto Stock Exchange (TSX HOM.U), in a shareholder capacity and as a "friend and confidante."
"He and I have discussed the REIT's succession plan at length for some years, and we have confidence in Susie and Brandon's leadership and expertise," Oberste said in a statement. "We both eagerly look forward to the future of BSR."
Total portfolio revenue for the quarter was $40.5 million, up 27.9% from $31.7 million in the first quarter of 2021. Property acquisitions accounted for $9.3 million of revenue, partially offset by property dispositions that reduced revenue by $2.9 million.
Weighted average rent was up 17.1% to $1,412 per apartment unit in the quarter, compared to $1,206 a year ago. On a quarterly basis, weighted average rent increased 4.6%.
"Positive economic trends in our core Texas markets continued to drive rental demand as we captured double-digit rental increases on both new and renewed leases during the third quarter," Oberste said. "Even with the rent increases achieved over the past year, our rent as a percentage of household income remains highly affordable compared to the national average, and we expect favorable leasing conditions to continue."
BSR owns 31 multifamily residential properties consisting of 8,666 apartment units, with 85% located in Texas, 11% in Oklahoma and 4% in Arkansas.
Shares of the company were down half a percent Wednesday morning. For the year to date, shares were down 24%.