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BSR Real Estate Reports Q3 Net Operating Income of $16.5M

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BSR Real Estate Investment Trust of Little Rock this week reported third-quarter total portfolio net operating income of $16.5 million and total portfolio revenue of $31.7 million, up 8.3% and 6.2% year-over-year, respectively.

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).

“Our core Texas markets continue to generate outsize growth, with same community rental rates for new leases increasing 19.8% year-over-year,” CEO John Bailey said in a news release. “Robust revenue growth across all of our markets drove a 12.6% increase in same community net operating income, which in turn contributed to substantial net asset value growth of 41% over the prior year. With the culmination of our capital recycling program, we have positioned the REIT for sustained outperformance in the years ahead.”

Capital recycling refers to the proceeds from the sale of some properties in a portfolio being used to purchase new properties. BSR said it plans to spend approximately $70 million this way before the end of the year.

During the quarter, the REIT:

Weighted average rent was $1,275 per apartment unit as of Sept. 30, up 26.1% from the $1,011 reported at the same time last year.

  • Purchased Hangar 19 in the Dallas, Texas metropolitan statistical area for $82.8 million, adding 351 apartment units to its portfolio
  • Purchased Aura 36Hundred located in the Austin, Texas area for $93.8 million, adding 356 apartment units to its portfolio
  • Refinanced $134.6 million in mortgage debt and amended certain credit facilities to reduce its interest rate to 3.1% on $742 million
  • Collected 99% of total monthly revenue, “reflecting the minimal ongoing impact of the pandemic on the REIT’s revenue collection,” according to the release

The new lease rental rates also increased 16.5% and renewals increased 4.5% during the quarter.

In addition, BSR had collected $1.1 million in federal rental assistance from residents as of Oct. 31.

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