BSR REIT Announces Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• BSR REIT reported a net loss of $2.3 M for Q4 2025 and a FY 2025 net loss of $62.7 M, a material deterioration from the prior year’s profit.
• Liquidity stood at $52.7 M; total debt increased to $723.1 M with a Debt‑to‑Gross Book Value of 51.2 %.
• The REIT announced a Normal Course Issuer Bid (NCIB) authorizing purchase and cancellation of up to ~3.15 M Units (≈10% of float) and filed a 2026 Base Shelf Prospectus for future issuances.

Key Details

• Financial Performance – Q4 2025 vs Q4 2024
• Revenue: $33.96 M ↓ $8.21 M (−19%)
• Net loss: $(2.28 M) vs $39.79 M profit in prior year
• NOI: $16.02 M ↓ $5.72 M (−26%)
• FFO: $5.44 M ↓ $6.42 M (−55%); FFO per Unit $0.14 vs $0.22

• AFFO: $4.31 M ↓ $6.56 M (−73%); AFFO per Unit $0.11 vs $0.20

• Financial Performance – FY 2025 vs FY 2024

• Revenue: $144.2 M ↓ $24.45 M (−15%)
• Net loss: $(62.7 M) vs $(40.2 M) prior year
• NOI: $75.21 M ↓ $16.73 M (−18%)
• FFO: $34.60 M ↓ $17.14 M (−33%); FFO per Unit $0.79 vs $0.96

• AFFO: $30.92 M ↓ $16.66 M (−54%); AFFO per Unit $0.70 vs $0.88

• Liquidity & Capital Structure

• Cash & equivalents: $6.3 M; Credit Facility availability: $46.4 M (total $52.7 M liquidity).
• Total mortgage notes payable: $407.3 M; total loans & borrowings (incl. revolving) $723.1 M.
• Weighted‑average contractual interest rate on all debt: ~4.0 %; 99% of debt fixed or hedged.

• Secured Term Loan ($160 M) extended to Dec 10 2027; Credit Facility maturity extended to Dec 8 2029 with optional further extension.

• Interest Rate Swaps – Jan 2026 amendments:

• Existing $42 M receive‑variable/ pay‑fixed swap amended (termination date Feb 1 2027, fixed rate 3.11%).

• New $110 M receive‑variable/ pay‑fixed swap entered (effective Jan 2 2026, fixed rate 3.20%, maturity Jan 2 2029).

• Normal Course Issuer Bid (NCIB) – TSX approval on Mar 11 2026:

• Up to 3,148,801 Units (~10% of public float) may be purchased and cancelled over 12‑month period starting Mar 16 2026.

• Daily purchase limit: 12,383 Units (≈25% of average daily volume).

• Base Shelf Prospectus – Filed Mar 11 2026; valid for 37 months to issue Units, debt securities, convertible instruments, warrants, etc., under a well‑known seasoned issuer regime.

• Board Change – Trustee Bryan H. Held retiring; Karine MacIndoe nominated for election at the AGM (May 14 2026).

• Distributions – Cash distributions Q4 2025: $5.4 M (100% return of capital), AFFO payout ratio 125.7%.

• Guidance for 2026

• FFO per Unit: $0.75‑$0.79 (midpoint $0.77).
• AFFO per Unit: $0.68‑$0.74 (midpoint $0.71).

• Same‑Community revenue growth: 0.5%‑1.5% (midpoint 1.0%).

• Conference Call – Management to discuss results on Mar 12 2026, 12:00 pm ET; webcast available.

Notable Quotes

“2025 was a transformative year for the REIT… we crystalized significant embedded value for our Unitholders…” – Dan Oberste, President & CEO.

All figures are presented in U.S. dollars unless otherwise noted.