BSR REIT Acquires Aura 36Hundred Apartments in Austin Market for $93.8 Million

LITTLE ROCK, Ark. and TORONTO, Sept. 22, 2021 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today that it has acquired Aura 36Hundred Apartments ("Aura 36Hundred" or the "Property"), a new garden-style residential community with 356 apartment units in the Round Rock sub-market of Austin, Texas for $93.8 million. This Property is expected to be accretive to the REIT's Adjusted Funds From Operations ("AFFO") per unit in the first 90 days of ownership.

The transaction was funded through $51.0 million in mortgage debt, a draw-down of $41.0 million from the REIT's credit facility and $2.0 million of cash on hand.

Aura 36Hundred is part of Avery Centre, a new 1,200-acre mixed use planned community adjacent to higher education and medical care hubs including Texas State and Texas A&M Health and Science Center Round Rock. The Property is newly constructed and fully opened in September 2021 with more than 90% of apartment units leased. Aura 36Hundred has numerous amenities including a cutting-edge fitness center, resort-style pool with sun deck, direct access garages, a 24/7 package locker system, walk-in closets, a pet wash station, and a dog walk. Following this acquisition, the REIT owns 1,848 apartment units in the Austin/Round Rock MSA, representing 22% of its total portfolio.

"Aura 36Hundred complements BSR's more modernized portfolio as we deploy capital and enhance our scale in Austin, one of the most robust apartment markets in the U.S.," stated John Bailey, BSR's Chief Executive Officer. "As we continue to leverage our established management platform and benefit from the strong sunbelt market fundamentals, we expect further outsized increases to our key performance indicators."

Since BSR completed its IPO in May 2018, the percentage of the portfolio's NOI concentrated in the REIT's primary markets has increased from 46% to 97%. Also, the weighted average age of the portfolio has decreased from 29 years to 13 years old. This is directly attributable to BSR's capital recycling program. The REIT has deployed approximately $1.1 billion into 19 acquisitions following the IPO, adding 5,907 apartment units with a weighted average year built of 2015 (six years old). This compares with 37 dispositions totaling approximately $613 million and comprising 7,376 apartment units with a weighted average year built of 1989 (32 years old).

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. These statements are based on the REIT's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the intended monthly distributions of the REIT. The forward-looking statements in this news release are based on certain assumptions including, without limitation, that the REIT will have sufficient cash to pay its distributions. 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 2021 Management's Discussion & Analysis dated August 10, 2021 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 Measures

AFFO and NOI are key measures of operating performance commonly used by real estate operating companies and real estate investment trusts. They are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. AFFO and NOI 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 dated August 10, 2021 for reconciliations of non-IFRS financial measures to the nearest standardized IFRS measures.

SOURCE BSR Real Estate Investment Trust