BSR Real Estate Investment Trust (HOM.UN) AI Stock Analysis

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TSE:HOM.UN Dividends

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BSR Real Estate Investment Trust

(TSX:HOM.UN)

54Neutral

BSR REIT maintains strong occupancy and exhibits liquidity through positive cash flow, but profitability and leverage pose significant challenges. The stock's technical indicators suggest a downward trend, and valuation reflects concerns about net losses. The earnings call provided a mixed outlook, with strategic achievements offset by market challenges.

BSR Real Estate Investment Trust (HOM.UN) vs. S&P 500 (SPY)

Market Cap

C$921.47M

Dividend Yield4.47%

Average Volume (3M)16.68K

Price to Earnings (P/E)―

Beta (1Y)0.69

Revenue Growth2.02%

EPS Growth80.16%

CountryCA

Employees250

SectorReal Estate

Sector Strength76

IndustryREIT - Residential

Share Statistics

EPS (TTM)-1.00

Shares Outstanding33,487,790

10 Day Avg. Volume7,880

30 Day Avg. Volume16,679

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.88

Price to Cash Flow (P/CF)4.60

P/FCF Ratio3.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$18.86

Price Target Upside12.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

BSR Real Estate Investment Trust Business Overview & Revenue Model

Company DescriptionBSR Real Estate Investment Trust (HOM.UN) is a publicly traded real estate investment trust (REIT) focused on owning and managing multi-family residential properties in the United States. The company primarily targets the Sunbelt region, which includes states such as Texas, Arkansas, and Oklahoma. BSR REIT aims to provide investors with stable income and potential for capital appreciation through a diversified portfolio of high-quality apartment communities.

How the Company Makes MoneyBSR REIT generates revenue primarily through rental income from its portfolio of multi-family residential properties. The company leases apartment units to individual tenants, collecting monthly rental payments which form the core of its revenue stream. Additionally, BSR REIT may earn income from ancillary services offered to tenants, such as parking fees, pet fees, and utility reimbursements. The company's revenue model is also supported by strategic property acquisitions and dispositions, allowing it to optimize its portfolio for maximum financial performance. Key factors contributing to its earnings include occupancy rates, rental growth, and effective property management, with a focus on maintaining high-quality living environments that attract and retain tenants.

BSR Real Estate Investment Trust Financial Statement Overview

Summary

BSR Real Estate Investment Trust exhibits stable revenue performance with adequate liquidity through positive cash flow. However, profitability remains a concern due to consecutive net losses and high leverage. The company needs to improve its operational efficiency and reduce its debt levels to enhance financial stability.

Income Statement

Neutral

The company shows a stable revenue trend with a slight increase from the previous year. However, the net income is negative, indicating profitability challenges. The gross profit margin remains relatively healthy, but the absence of EBIT in the latest year affects the EBIT margin. EBITDA margin is low, reflecting operational inefficiencies.

Balance Sheet

Neutral

The debt-to-equity ratio is moderately high, indicating leverage risk. Stockholders' equity has decreased, affecting the equity ratio. Although the company maintains a reasonable level of assets, the return on equity is negative due to the net loss, highlighting profitability challenges.

Cash Flow

Positive

The company maintains a strong operating cash flow to net income ratio, despite net losses, indicating good cash flow management. Free cash flow remains positive, ensuring liquidity. However, the free cash flow growth is stagnant, suggesting limited expansion in cash-generating activities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
168.67M	167.80M	158.52M	119.58M	113.29M
	Gross Profit
91.94M	91.07M	85.52M	65.69M	60.35M
	EBIT
0.00	81.12M	168.45M	-103.91M	49.02M
	EBITDA
3.17M	-170.90M	76.07M	54.35M	52.45M
	Net Income Common Stockholders
-40.24M	-210.87M	312.95M	417.77M	5.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.73M	19.25M	7.20M	6.84M	5.26M
	Total Assets
1.78B	1.83B	2.06B	1.95B	1.11B
	Total Debt
829.32M	813.10M	769.27M	878.26M	517.83M
	Net Debt
820.60M	806.37M	762.07M	871.42M	512.57M
	Total Liabilities
1.12B	1.11B	1.09B	1.28B	795.03M
	Stockholders Equity
657.60M	712.40M	975.75M	666.57M	318.66M
Cash Flow		Free Cash Flow
79.38M	83.08M	89.51M	58.40M	51.30M
	Operating Cash Flow
79.38M	83.08M	89.51M	58.40M	51.30M
	Investing Cash Flow
-33.02M	-33.47M	-26.52M	-434.12M	-37.92M
	Financing Cash Flow
-44.37M	-50.08M	-62.63M	377.29M	-45.11M

BSR Real Estate Investment Trust Technical Analysis

Technical Analysis Sentiment

Negative

Last Price16.84

Price Trends

50DMA

17.59

Negative

100DMA

17.44

Negative

200DMA

17.49

Negative

Market Momentum

MACD

-0.31

Positive

RSI

42.13

Neutral

STOCH

44.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HOM.UN, the sentiment is Negative. The current price of 16.84 is below the 20-day moving average (MA) of 17.63, below the 50-day MA of 17.59, and below the 200-day MA of 17.49, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HOM.UN.

BSR Real Estate Investment Trust Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRC	66 Neutral	$1.20B	4.68	6.46%	0.67%	-7.92%	256.12%
Sector *	59 Neutral	$2.73B	11.65	0.11%	8783.19%	5.45%	-17.32%
HOM.UN	54 Neutral	C$921.47M	―	-5.69%	4.47%	2.02%	80.16%

* Real Estate Sector Average

Performance Comparison

TSE:HOM.UN

BSR Real Estate Investment Trust

17.10

2.85

20.00%

TSE:MRC

Morguard (OTC)

111.60

1.80

1.64%

BSR Real Estate Investment Trust Earnings Call Summary

Earnings Call Date: Mar 5, 2025 | % Change Since: -8.28% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted BSR REIT's ability to maintain strong occupancy and reduce debt despite facing challenging market conditions. Notable achievements included the completion of a new apartment community and a strategic acquisition in a growing market. However, the call also noted challenges such as a decrease in same community NOI and average rent, as well as declines in FFO and AFFO.

Highlights

Strong Occupancy Maintained

Despite challenging market dynamics, BSR REIT maintained a strong occupancy rate of 95.6% during Q4 2024.

Debt Reduction Achievement

BSR REIT retired $4.5 million of long-term debt in Q4 and a total of $8.8 million in 2024.

Completion of New Apartment Community

Construction was completed on Aura 35Fifty, a new 238-unit apartment community in the Austin MSA.

Acquisition of Venue at Craig Ranch Apartments

BSR acquired a Class A property with 277 apartment units in McKinney, Dallas Fort Worth, for $61 million.

Recognition as Best Places to Work

For the third year in a row, BSR was named one of the Best Places to Work in multifamily and especially for women.

Lowlights

Same Community NOI Decrease

Same community NOI decreased by 2.6% in Q4, mainly due to an increase in property tax expenses.

FFO and AFFO Decline

FFO and AFFO each declined by $0.02 per unit, impacted by tax issues and health insurance expense timing.

Slight Decrease in Average Rent

The average rent per unit decreased from $1,503 to $1,488 in Q4 2024.

Challenging Market Conditions

Faced with the absorption of an unprecedented supply of new multifamily housing, impacting lease rates.

Company Guidance

During the BSR REIT Q4 2024 financial results conference call, several key metrics and guidance were discussed. The REIT maintained a strong occupancy rate of 95.6% despite challenging market conditions and a decrease in lease rates. They retired $4.5 million of long-term debt in the fourth quarter, bringing the total debt retired in 2024 to $8.8 million. Same community revenue was flat compared to Q4 2023, while same community NOI declined by 2.6% due to increased property taxes. FFO and AFFO each decreased by $0.02 per unit. The REIT's debt to gross book value ratio was 46.5%, and total liquidity stood at $136 million. The company plans to capitalize on the declining new apartment completions in key markets—Austin, Dallas, and Houston—and is positioned to make approximately $200 million in acquisitions following the sale of properties to AvalonBay. Due to the current market variability, BSR REIT did not provide financial guidance for 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.