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

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BSR Real Estate Investment Trust

(TSX:HOM.UN)

Rating:57Neutral

Price Target:

C$17.50

▲(0.69% Upside)

The overall score is driven by stable financial performance and positive earnings call sentiment, despite technical weakness and valuation concerns. Strong cash flows and strategic repositioning efforts are positive, but profitability challenges and high leverage remain significant risks.

BSR Real Estate Investment Trust (HOM.UN) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$665.32M

Dividend Yield4.5%

Average Volume (3M)5.81K

Price to Earnings (P/E)―

Beta (1Y)0.66

Revenue Growth-1.10%

EPS Growth61.83%

CountryCA

Employees250

SectorReal Estate

Sector Strength48

IndustryREIT - Residential

Share Statistics

EPS (TTM)-0.71

Shares Outstanding33,500,423

10 Day Avg. Volume9,134

30 Day Avg. Volume5,810

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$17.49

Price Target Upside0.63% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

BSR Real Estate Investment Trust Business Overview & Revenue Model

Company DescriptionBSR Real Estate Investment Trust (HOM.UN) is a real estate investment trust focused on owning and managing residential properties in the United States. It primarily invests in multifamily residential properties, offering a range of apartment homes across various markets, particularly in the Sunbelt region. The company's objective is to provide sustainable and growing cash distributions to its unitholders through a diversified portfolio of income-producing real estate assets.

How the Company Makes MoneyBSR Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of multifamily residential properties. The company leases apartment units to tenants, which provides a steady stream of rental income. This rental income is the core revenue stream for the REIT. Additionally, BSR may engage in strategic property acquisitions and disposals to optimize its portfolio, potentially realizing capital gains. The trust's performance is influenced by factors such as occupancy rates, rental rate adjustments, and property management efficiencies. BSR also benefits from its focus on high-growth markets in the U.S., where demand for quality rental housing is robust, contributing to its revenue stability and potential for growth.

BSR Real Estate Investment Trust Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: 1.76%|

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a cautious optimism. While there are challenges with declining NOI and increased finance costs due to interest rate swap cancellations, the company is strategically repositioning its portfolio for future growth and has seen positive trends in occupancy and leasing spreads.

Q2-2025 Updates

Positive Updates

Improved Occupancy and Retention Rates

Same-community weighted average occupancy increased to 95.6%, a 20 basis point rise from Q2 last year. Retention rate improved by 300 basis points year-over-year to 57.4%.

Strategic Property Dispositions and Acquisitions

Completed the sale of six properties in Dallas for $431.5 million and reinvested in new properties in Houston, enhancing portfolio quality and potential returns.

Positive Leasing Trends

Same-community blended trade-outs turned positive for the first time since Q3 2024, with a growth of 1.1% in July.

Strong Position for Future Growth

The company is well-positioned to benefit from population growth in Texas, with a focus on acquiring new construction properties in Houston and Dallas.

Improved AFFO Payout Ratio

The AFFO payout ratio for the quarter was 73.0%.

Negative Updates

Decline in Same-Community NOI

Same-community NOI fell by 4.9% compared to Q2 2024 due to increased operating expenses and higher real estate taxes.

Decreased FFO and AFFO

FFO decreased to $9.2 million or $0.21 per unit, from $14.1 million or $0.26 per unit in Q2 last year. AFFO also decreased to $8.4 million or $0.19 per unit from $12.7 million or $0.24 per unit last year.

Interest Rate Swap Cancellation Impact

Cancellation of $80 million and $150 million interest rate swaps led to increased finance costs going forward.

Continued Suspension of Guidance

The company has decided to continue the suspension of more detailed guidance due to ongoing changes in the portfolio.

Company Guidance

During the BSR REIT Second Quarter 2025 Financial Results Conference Call, the company provided guidance indicating a positive shift in their business outlook. They reported a same-community weighted average occupancy of 95.6%, marking a 20 basis point increase from the previous year. The same-community blended re-leasing spreads improved by 200 basis points from Q1 to Q2 2025, with July seeing a 1.1% growth. The retention rate increased by 300 basis points year-over-year, reaching 57.4%. BSR REIT completed significant transactions, including the sale of six properties for $431.5 million and the acquisition of two communities in Houston for $141 million, with occupancy rates improving by 5% since acquisition. The REIT's debt-to-gross book value stood at 48.9%, with a weighted average interest rate of 3.8%. They expect continued favorable market conditions and aim to leverage strategic acquisitions in their core Texas markets, targeting $200 million to $250 million in acquisitions for the year. Despite short-term fluctuations, the company remains optimistic about long-term growth, driven by population increases and a declining new supply in their target markets.

BSR Real Estate Investment Trust Financial Statement Overview

Summary

BSR Real Estate Investment Trust shows stable revenue growth and efficient cash management, reflected in strong operating cash flows. However, it faces profitability challenges and high leverage, with net losses impacting net profit margins. The overall financial health is supported by strong cash flows but undermined by high debt levels and inconsistent profitability.

Income Statement

Neutral

The income statement shows moderate performance with consistent revenue growth from 2020 to TTM 2025. However, the company has been incurring net losses since 2023, which is a concern. Gross profit margins are stable, but the net profit margin has been negative, indicating profitability challenges. EBITDA margins have fluctuated significantly, showing inconsistency in operational performance.

Balance Sheet

Neutral

The balance sheet reflects a stable equity ratio with a slight deterioration in stockholders' equity over time. The debt-to-equity ratio is high, indicating significant leverage, which poses financial risk. Return on equity has been negative recently due to net losses, though the company maintains a substantial asset base.

Cash Flow

Positive

Cash flow analysis shows strong operating cash flows, with positive free cash flows indicating good liquidity management. However, the free cash flow growth rate has been inconsistent. The operating cash flow to net income ratio is favorable due to high operating cash flows despite negative net income, highlighting efficient cash generation from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	3.17M	81.25M	168.58M	54.35M	49.15M
Net Income	-40.24M	-210.87M	227.23M	283.21M	27.58M
Balance Sheet
Total Assets	1.78B	1.83B	2.06B	1.95B	1.11B
Cash, Cash Equivalents and Short-Term Investments	8.73M	19.25M	7.20M	6.84M	5.26M
Total Debt	829.32M	813.10M	769.27M	878.26M	517.83M
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 Price17.38

Price Trends

50DMA

17.73

Negative

100DMA

17.67

Negative

200DMA

17.44

Negative

Market Momentum

MACD

-0.22

Positive

RSI

47.19

Neutral

STOCH

58.97

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 17.38 is below the 20-day moving average (MA) of 17.48, below the 50-day MA of 17.73, and below the 200-day MA of 17.44, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	70 Outperform	C$2.15B	3.83	19.03%	4.06%	5.82%	83.08%
MRG.UN	68 Neutral	C$939.64M	10.02	4.86%	4.20%	3.93%	-29.40%
MI.UN	68 Neutral	C$502.76M	5.67	9.03%	3.79%	-0.29%	―
IIP.UN	65 Neutral	C$1.84B	―	-7.49%	2.94%	1.56%	-9446.15%
Sector *	64 Neutral	C$1.97B	4.85	-0.88%	5.21%	1.67%	-56.01%
CAR.UN	64 Neutral	C$6.64B	83.52	0.88%	3.63%	-2.56%	―
HOM.UN	57 Neutral	C$665.32M	―	-10.24%	4.50%	-1.10%	61.83%

* Real Estate Sector Average

Performance Comparison

TSE:HOM.UN

BSR Real Estate Investment Trust

17.38

0.42

2.48%

TSE:KMP.UN

Killam Apartment REIT Un

17.61

-0.40

-2.22%

TSE:CAR.UN

Canadian Apartment

42.00

-5.94

-12.39%

TSE:MRG.UN

Morguard NA REIT UN

17.96

1.62

9.91%

TSE:IIP.UN

InterRent REIT Un

13.33

1.43

12.02%

TSE:MI.UN

Minto Apartment Real Estate Investment Trust

13.63

-1.44

-9.56%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 12, 2025