Canada's BSR REIT Q4 revenue and FFO per unit fall on asset sales

Overview

• Canada multifamily REIT's Q4 total portfolio revenue fell, mainly due to property dispositions

• Q4 FFO and AFFO per unit declined year-over-year, reflecting lower NOI and higher expenses

• Company announced on Wednesday a normal course issuer bid to repurchase up to 10% of public float

Outlook

• BSR REIT expects 2026 FFO per unit between $0.75 and $0.79

• Company sees 2026 AFFO per unit between $0.68 and $0.74

• BSR REIT forecasts same-community revenue growth of 0.5% to 1.5% in 2026

Result Drivers

• PROPERTY DISPOSITIONS - Q4 revenue fell mainly due to the sale of stabilized assets, which reduced income contributions

• LOWER SAME-COMMUNITY RENT - Same-community revenue and NOI declined due to lower average monthly rent and higher real estate taxes, and repair and maintenance expenses

• NON-STABILIZED ASSET LEASE-UP - Revenue and NOI from newly acquired and non-stabilized properties partially offset declines, but these assets are still in lease-up and not yet fully contributing

Company press release: ID:nCNWkhm4Va

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for BSR Real Estate Investment Trust is $14.75, about 21.5% above its March 11 closing price of $12.14

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 21 three months ago

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