BSR Acquires Retreat at Wolf Ranch Apartments in Austin Market for $51.6 Million

LITTLE ROCK, AR and TORONTO, June 10, 2020 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX:HOM.U and HOM.UN) announced today that it has acquired Retreat at Wolf Ranch Apartments ("Wolf Ranch" or the "Property"), a 303 suite, garden style residential community in Georgetown, Texas and the Austin Metropolitan Statistical Area (MSA) for $51.6 million. The transaction was funded  with $26.5 million in mortgage debt, with the REIT's credit facility used for the balance. The addition of the Property is expected to be immediately accretive to the REIT's adjusted funds from operations ("AFFO") on a per unit basis.

Wolf Ranch was constructed in 2017 in the high-growth Austin MSA and sits in Williamson County, which was the second fastest growing county in the US from 2010-2018. The Property has numerous amenities including a clubhouse, fitness center, resort-style swimming pool with sun deck, garages, 24/7 package locker system, and two dog parks. BSR now owns 1,492 apartment units in the Austin MSA.

"Despite instability in the broader US economy attributable to the COVID-19 pandemic, we continue to execute our growth plan," stated John Bailey, BSR's Chief Executive Officer. "Wolf Ranch is a modern community complete with the amenities our residents seek. The addition of this property to our portfolio is consistent with our strategy of building large clusters of properties in target markets that lead the country in population and employment growth."

The purchase of Wolf Ranch marks ten property acquisitions for BSR since completing its initial public offering (the "IPO") on the Toronto Stock Exchange in May 2018. Other post IPO acquisitions included in the Austin MSA are Ariza at Plum Creek, Cielo, and Madrone Apartments. In the Dallas-Fort Worth MSA acquisitions include Wimberly, Auberry at Twin Creeks, and Riverhill Apartments. Additional acquisitions were Brandon Place Apartments in Oklahoma City, OK and Towne Park at Harber Apartments in the Northwest Arkansas MSA. In the Houston MSA, an area already highly penetrated by BSR, the REIT acquired its youngest property built in 2019, Satori at Long Meadow Apartments. These acquisitions have added 2,865 apartment units to the REIT's portfolio with an average age of ten years.

About BSR Real Estate Investment Trust

BSR Real Estate Investment Trust is an internally managed, unincorporated, and 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 multifamily garden-style residential properties located in attractive primary and secondary markets in the Sunbelt region of the United States.

Forward-Looking Statements

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's Annual Information Form for the dated March 10, 2020, which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law. The REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-IFRS Financial Measure

AFFO is a key measure of performance 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. AFFO 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 three months and year ended December 31, 2019 for a reconciliation of AFFO to standardized IFRS measures.

SOURCE BSR Real Estate Investment Trust