BSR REIT Continues Capital Recycling Program With Sale of Two Noncore Assets
LITTLE ROCK, AR and TORONTO, June 19, 2019 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U; HOM.UN) announced today that it has sold two additional noncore assets as part of the REIT's portfolio enhancement and capital recycling strategy. The total consideration received of $22.1 million exceeded the initial public offering appraised values by $1.6 million or 7.6%. All dollar amounts in this news release are denominated in US currency.
The dispositions include The Waterford Apartments ("The Waterford" ), built in 1984 with 256 units and Bowman Heights Apartments ("Bowman Heights" ), built in 1980 with 80 units. Both properties are located in Little Rock, Arkansas. Including these dispositions, in 2019, BSR has sold six noncore assets comprising of 1,109 total units.
"Selling The Waterford and Bowman Heights aligns with our capital recycling strategy," said John Bailey, Chief Executive Officer of BSR REIT. "We have again crystallized the benefits of upgrades previously performed, allowing us the ability to redeploy capital into other properties on a tax deferred basis where we can maximize our platform's capital redevelopment capabilities in our target markets."
BSR's growth strategy includes acquiring more modern properties, clustered in target markets with above average population and employment growth with a clear potential for higher rent utilizing the BSR platform.
Of the net cash proceeds of $21.4 million from the above-mentioned sale, $6.5 million was used to retire related mortgage financing and $14.9 million to reduce the balance outstanding under the REIT's credit facility, resulting in a Debt to Gross Book Value ratio of approximately 48.6%. BSR's portfolio now consists of 45 multifamily properties comprising 9,714 units.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT owns a portfolio of 45 multifamily garden-style residential properties aggregating 9,714 apartment units located across five bordering states in the Sunbelt region of the United States.
Non-IFRS Financial Measure
Debt to Gross Book Value is a key measure of balance sheet strength commonly used by real estate operating companies and real estate investment trusts. It is not a measure recognized under International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. Debt to Gross Book Value as calculated by the REIT may not be comparable to similar measures presented by other issuers. Please refer to the REIT's Management's Discussion and Analysis for the period ended March 31, 2019 for a reconciliation of the REIT's Debt to Gross Book Value to standardized IFRS measures.
SOURCE BSR Real Estate Investment Trust