Bsr Real Estate Investment Trust · TSX:BSRT.UN
Bsr Real Estate Investment Trust — Q4 2024 Earnings Presentation
29 slides from Bsr Real Estate Investment Trust's earnings presentation, Mar 6, 2025
Slide 1: BSR Real Estate Investment Trust
BSR REAL ESTATE INVESTMENT TRUST January 2025 Lakeway Castle Hills Ariza Plum Creek Headquarters Palermo by the Park Adley at Gleannloch Dallas, TX Austin TX Little Rock, AR Dallas, TX Houston, TX
Slide 2: Disclaimers
Disclaimers Non-Reliance This presentation does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate an investment in securities of BSR Real Estate Investment Trust (“BSR” or the “REIT”). No representation or warranty, express or implied, i
Slide 3: Presenters
Presenters Daniel Oberste President and Chief Executive Officer • CEO since January 2022 • Served as the REIT’s President and Chief Investment Officer prior to promotion • With BSR and predecessor company since 2009 Susan Rosenbaum Chief Operating Officer and Interim Chief Financial Officer • With B
Slide 4: REIT Overview
Aura 36Hundred – Round Rock, TX REIT Overview 4
Slide 5: BSR REIT At A Glance
BSR REIT At A Glance • Internally managed portfolio of 32 garden-style, multi-family communities ARKANSAS totalling 8,904 units 3 Properties 304 Apartment Units OKLAHOMA • Located in five suburban primary and 4 Properties 965 Apartment Units secondary markets in three bordering U.S. sunbelt states •
Slide 6: BSR REIT Asset Profile
BSR REIT Asset Profile • Low density rental communities, located primarily in suburban areas of primary and secondary markets • Primarily middle market, high-quality housing that typically experiences strong demand throughout all phases of the economic cycle Palermo by the Park - Frisco, TX >Cater t
Slide 7: Investment Highlights
Investment Highlights 1. Fully aligned internal management platform 2. Attractive suburban apartments in high-growth U.S. sunbelt markets 3. Track record of disciplined capital allocation in the path of population growth 4. Stable cash distribution with a strong liquidity position and demonstrated N
Slide 8: Fully Aligned Internal Management Platform
Brandon Place - Oklahoma City, OK Fully Aligned Internal Management Platform 8
Slide 9: Fully Aligned Internal Management Platform with Significant Retained Interest
Fully Aligned Internal Management Platform with Significant Retained Interest • Scalable internal management platform of • Experienced platform that has owned and over 200 employees across five markets operated more than 100 properties and 18,000 apartment units simultaneously • 40% internal ownersh
Slide 10: Suburban Class A and Class B Apartments in High-Growth U.S. Sunbelt Markets
The M at Lakeline – Austin, TX Suburban Class A and Class B Apartments in High-Growth U.S. Sunbelt Markets 10
Slide 11: Top Performing Sector
Attractive Asset Class with Favourable Fundamentals Top Performing Sector 20-Year Annualized Returns by Real Estate Sector (2003 – 2023) 20% Public REITs 16% 12% 10.9% 10.1% 8% 6.4% 6.0% 4% 0% Multifamily Industrial Retail Office Source: S&P Global Note: REIT performance indicates total return and a
Slide 12: Top Performing Sub-Sector
Attractive Asset Class with Favourable Fundamentals Top Performing Sub-Sector Compound annual total return for multifamily apartment REITS, 2015-2023 24% 20% 16% 13.7% 12% 8% 6.7% 5.1% 4% 0% Sunbelt National Coastal Source: Bloomberg Sunbelt includes: BRT Apartment Corp., Camden Property Trust, Inde
Slide 13: Repositioned to Focus on Attractive Modern Properties in Primary Markets
Alleia Long Meadow Farms – Houston, TX Repositioned to Focus on Attractive Modern Properties in Primary Markets with Embedded Growth Opportunity 13
Slide 14: New Apartment Supply Forecast to Revert to Historical Levels
New Apartment Supply Forecast to Revert to Historical Levels US National Quarterly New Supply 200,000 4.0% 180,000 3.5% 160,000 3.0% 140,000 Inventory Growth 2.5% 120,000 Units 100,000 2.0% 80,000 1.5% 60,000 1.0% 40,000 0.5% 20,000 0 0.0% 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015
Slide 15: 2024 Demand and Supply in Select Markets
2024 Demand and Supply in Select Markets 2024 Multifamily Demand Market Leaders Vs. Supply 40000 35000 30000 25000 20000 15000 10000 5000 0 Demand / Absorption (Units) Supply (Units) Top 3 US markets for absorption in 2024 are core BSR markets Source: RealPage 15
Slide 16: Q4 2024 Demand and Supply in Select Markets
Q4 2024 Demand and Supply in Select Markets Q4 2024 Multifamily Demand Market Leaders Vs. Supply 14000 12000 10000 8000 6000 4000 2000 0 2020 2022 Q4 Demand / Absorption (Units) Q4 Supply (Units) Demand started to outpace supply in Austin in Q4 2024 Source: RealPage Note: Data for Washington, DC is
Slide 17: Exposure to Highest-Growth U.S. Markets: Population Growth
Exposure to Highest-Growth U.S. Markets Population Growth 1.62% 1.65% 1.54% 1.30% 1.25% 1.22% 0.84% 0.51% 0.48% 0.53% 0.47% 0.30% 0.19% 0.01% 0.04% 0.02% 2018 2019 2020 2021 2022 2023 -0.33% -1.39% BSR Primary Markets Gateway Markets National Population growth in BSR’s primary markets consistently o
Slide 18: Exposure to Highest-Growth U.S. Markets: Employment Growth
Exposure to Highest-Growth U.S. Markets Annual Employment Growth 5.7% 4.0% 3.7% 3.1% 3.2% 2.6% 2.7% 2.5% 2.4% 2.5% 2.5% 2.1% 1.7% 1.7% 1.7% 1.6% 1.3% 1.1% 1.2% 1.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -4.4%-6.2% BSR Primary Texas Markets (Cumulative) United States Employment growt
Slide 19: Affordability Offers Potential for Long-Term Rent Growth
Affordability Offers Potential for Long-Term Rent Growth Annual Rent as a Percentage of Median Household Income(1) 40% 35% 33.9% 30% 26.1% 25% 21.1% 20.5% 19.5% 20% 16.9% 15% 10% 5% 0% Gateway National Dallas Houston Austin Oklahoma City % of REIT’s Total Markets 37% 26% 22% 11% Apartment Units Rent
Slide 20: Increased Exposure to Primary, High-Growth Markets
Increased Exposure to Primary, High-Growth Markets Portfolio NOI Breakdown by MSA Q3 2018 (Post-IPO) Q3 2024 NW Arkansas Austin Austin 4% Dallas 5% 26% 10% Dallas 39% Houston 20% Other Other 3% 48% Oklahoma City 8% Oklahoma City 13% Houston 24% 52% Primary Markets 97% Primary Markets Highgraded port
Slide 21: Market Rent Per Square Foot in BSR's Primary Markets
Market Rent Per Square Foot in BSR’s Primary Markets Austin Dallas-Fort Worth $1.70 $1.70 $1.85 $1.89 $1.88 $1.61 $1.45 $1.50 $1.37 $1.30 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Houston Oklahoma City $1.44 $1.07 $1.08 $1.37 $1.43 $1.02 $1.16 $1.23 $0.89 $0.92 2019 2020 2021 2022 2023 2019
Slide 22: Historical Financial Metrics
Historical Financial Metrics NOI ($millions)1 FFO per Unit1 AFFO per Unit1 $91.1 $92.4 $0.93 $0.96 $0.88 $85.5 $0.86 $0.80 $0.85 $0.71 $0.64 $59.7 $59.2 $62.9 $0.61 $0.60 $0.56 $0.59 2019 2020 2021 2022 2023 2024E 2019 2020 2021 2022 2023 2024E 2019 2020 2021 2022 2023 2024E Maintenance Capex (as a
Slide 23: Stable Cash Distribution with a Strong Liquidity Position and Demonstrated NAV and AFFO Growth
Aura Benbrook – Dallas /Fort Worth, TX Stable Cash Distribution with a Strong Liquidity Position and Demonstrated NAV and AFFO Growth 23
Slide 24: Financial Review
Financial Review (000s, except for percentages and per-unit Q3 2024 Q3 2023 Change YTD 2024 YTD 2023 Change amounts) Same Community $42,273 $42,079 0.5% $126,488 $125,707 0.6% Revenue Same Community $22,411 $22,694 (1.2%) $70,356 $68,576 2.6% NOI Same Community 53.0% 53.9% (90bps) 55.6% 54.6% 100bps
Slide 25: Stable Cash Distribution with a Strong Liquidity Position
Stable Cash Distribution with a Strong Liquidity Position • Debt to Gross Book Value Ratio: 46.4% as of September 30, 2024 • AFFO payout ratio of 65.9% in Q3 2024 • Weighted average mortgage term to maturity of 3.6 years with weighted average contractual interest rate of 3.6% • As of September 30, 2
Slide 26: Unitholder Distributions Increased 7.7%
Recent Distribution Increase Unitholder Distributions Increased 7.7% • Board of Trustees approved increase in monthly distribution to $0.0467 per Unit ($0.56 on an annualized basis), beginning with the August 2024 distribution • Second distribution increase since IPO • Reflects positive business out
Slide 27: Debt Maturities
Debt Maturities Debt Repayment Schedule (as at September 30, 2024) Principal Payments on Maturity Principal Payments During Period 8% $400,000,000 45.9% $350,000,000 39% $300,000,000 92%61% $250,000,000 26.4% $200,000,000 $150,000,000 15.1% 12.4% $100,000,000 $50,000,000 0.1% 0.1% $0 2024 2025 2026
Slide 28: Positive Outlook
Positive Outlook • Very positive long-term economic outlook for the REIT’s markets • New apartment deliveries expected to peak in 2024 as pace of new developments has slowed • Solid financial guidance for 2024, despite more challenging near-term environment of elevated interest rates and rising supp
Slide 29: ESG Commitment
ESG Commitment Environmental: Social: Governance: • Third-party biller provides vacant • Maintain voluntary turnover at • Code of business conduct and ethics apartment unit charge backs, energy approximately half of the industry • Third-party anonymous whistleblower consumption variance reporting, p
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