BSR Real Estate Investment Trust of Little Rock on Wednesday reported a 2.7% increase in third-quarter net operating income (NOI) at its core multifamily properties.
The company said NOI at same community properties, or properties it owned for the same periods of time the previous year, grew to $14.37 million, up from $14.33 million.
NOI is a key metric used by real estate operating companies and REITs, which own income-producing properties and pay dividends to shareholders from the income on the properties.
Total NOI fell 22.21% in the third quarter from $22.3 million to $17.3 million, a drop the company attributed to the sale of properties. Third-quarter revenue was $33.1 million, down 21.7% from $42.3 million a year ago.
Among same communities, revenue fell 1.1% to $26.5 million. The company attributed the decrease primarily due to lower monthly in-place leases, which averaged $1,449 as of Sept. 30, compared to $1,467 a year ago.
Basic year-over-year comparisons were affected by the company’s sale 2,701 of its apartments in a $618 million deal AvalonBay Communities Inc. of Arlington, Virginia (NYSE:AVB) earlier this year. The company pulled its guidance for 2025 after the transaction.
Since then, BSR has reshaped its portfolio of multifamily properties with two acquisitions in the Houston area and the August purchase of a Dallas-area apartment complex.
Other moves include the $61 million acquisition of an apartment complex in the Dallas suburbs and the opening of a new complex in Austin, Texas.
BSR President and CEO Dan Oberste said in a statement that the third quarter marked a turning point for the company, which has now “fully and accretively redeployed our 2025 disposition capital.”
The company posted net income of $2.9 million in the third quarter, compared to a loss of $39.3 million in the third quarter of 2024. The company attributed the loss primarily to adjustments in the fair value of investment properties and said the figure is not comparable period over period.
BSR is publicly traded on the Toronto Stock Exchange (HOM-U.TO). Shares of the company closed at $11.63 on Wednesday, up more than 3%. Over the past 12 months, shares were down more than 8%.
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