BSR Profile and Strategy

BSR REIT is an internally-managed real estate investment trust that owns and operates a portfolio of 29 multi-family real estate properties across the Sunbelt region of the United States. The properties are strategically located in three bordering states.

The REIT’s objective is to provide sustainable and growing distributions to investors by expanding cash flow through both organic rental growth and acquisitions. The REIT’s units trade on the Toronto Stock Exchange under the symbol HOM.U in USD and HOM.UN in CAD.

Investment Highlights

1. Fully aligned management platform with significant retained interest

- The REIT has a scalable platform with nearly 210 employees spread across five markets. The business is internally managed, led by a team of five professionals with more than 100 years of combined experience and supported by a highly experienced Board with a majority of independent Trustees. Management and the Board own greater than 50% of the REIT.

2. Attractive asset class with favourable fundamentals

- The multi-family sector has outperformed other real estate sectors over the past 20 years, generating strong returns throughout various economic cycles. Multi-family rental rates increase frequently due to relatively short lease durations compared to other forms of real estate. The REIT benefits from strong demographic fundamentals in the Sunbelt, and an increased propensity to rent across the United States.

3. Sizeable, quality portfolio with embedded growth opportunity

- The REIT’s portfolio has been upgraded since its initial public offering by divesting properties in secondary Sunbelt markets and recycling the capital into high-quality properties in primary Sunbelt markets. More upside in rental rates is expected given strong population and employment growth in these primary markets, and the REIT’s relatively low rental rates compared to its tenants’ annual income.

4. Attractive external growth strategy

- The REIT is well positioned to complete accretive acquisitions in the Sunbelt region. Management is focused on acquisitions in suburban areas of primary and secondary markets outside larger cities, where there is less competition. The team has completed transactions totalling more than $3 billion since 2008.

5. Stable cash distributions with a strong liquidity position

- BSR REIT pays a stable monthly distribution of $0.0417 per REIT unit, representing US$0.50 per REIT unit on an annualized basis. Management expects to maintain a strong liquidity position while investing capital to enhance the value of the business.

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