BSR REIT Announces Third Quarter 2025 Financial Results

Executive Summary

• BSR REIT reported a turnaround to net income of $2.9 M for Q3 2025 versus a loss of $(39.3 M) in the same quarter‑last year.
• Total portfolio revenue fell to $33.1 M, down $9.2 M YoY, driven primarily by property dispositions; however, NOI for “Same Community” properties increased 2.7% and occupancy remained strong at 94.3 %.
• The REIT completed the acquisition of The Ownsby (368‑unit apartment) for $87.5 M, funded via its credit facility and cash, and amended its interest‑rate swap to a lower fixed rate of 3.10%.

Key Details

• Financial Highlights – Q3 2025 vs. Q3 2024
• Revenue, Total Portfolio: $33,094 K ↓ $9,196 K (nm)
• Same Community NOI: $14,367 K ↑ $377 K (+2.7 %)
• Non‑Same Community NOI: $2,945 K ↓ $5,321 K (nm)
• Funds from Operations (FFO): $7,577 K ↓ $4,582 K (nm) – $0.19 per Unit vs. $0.23 prior year
• Adjusted Funds from Operations (AFFO): $6,443 K ↓ $4,662 K (nm) – $0.17 per Unit vs. $0.21 prior year

• Net Income: $2,874 K (positive) vs. $(39,251 K) loss last year

• Liquidity & Capital Structure

• Total liquidity as of Sept‑30‑2025: $63.4 M (cash $6.6 M + credit facility availability $56.8 M).
• Mortgage notes payable: $407.7 M; total loans & borrowings: $726.6 M; weighted average interest rate 4.0 %.

• Debt‑to‑Gross Book Value: 51.3 % (up from 46.5 %).

• Acquisition & Financing Activity

• Acquired The Ownsby, Celina, TX for $87.5 M; 65.2 % occupied at quarter end.

• Amended $105 M, 3.27 % interest‑rate swap (fixed rate reduced to 3.10%; termination date extended to Jan 1 2027).

• Operational Metrics

• Weighted average occupancy (portfolio): 93.7 %; Same Community occupancy: 94.3 %.
• Retention rate: 58.2 %, up 80 bps YoY.
• Number of properties: 26 (up from 25).

• Total apartment units: 7,170 (up from 6,802).

• Distributions

• Cash distributions declared for Q3 2025: $5.4 M (AFFO payout ratio 84.1 %, classified as return of capital).

• Conference Call

• Management (CEO Dan Oberste & CFO Tom Cirbus) to host analyst call on Nov 6 2025, 10:00 am ET; webcast and replay details provided.

Notable Quotes

“The third quarter represents an important turning point for BSR… Same Community NOI grew 2.7%, blended trade‑outs were positive for the first time since Q3 2024 and our retention was over 58%.” – Dan Oberste, President & CEO

Materiality Assessment: Material – Positive (significant earnings reversal, acquisition activity, and liquidity updates constitute material information for investors).