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BSR Real Estate Investment Trust (TSE:HOM.UN)
TSX:HOM.UN
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BSR Real Estate Investment Trust
(TSX:HOM.UN)
Rating:60Neutral
Price Target:
C$19.00
▲(5.20%Upside)
BSR Real Estate Investment Trust (HOM.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$975.58M
Dividend Yield4.2%
Average Volume (3M)7.60K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth4.39%
EPS Growth56.33%
CountryCA
Employees250
SectorReal Estate
Sector Strength60
IndustryREIT - Residential
Share Statistics
EPS (TTM)-1.09
Shares Outstanding33,500,423
10 Day Avg. Volume4,235
30 Day Avg. Volume7,601
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.67
Price to Sales (P/S)0.00
P/FCF Ratio4.87
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit13.77
Enterprise Value/Ebitda-3.72
Forecast
1Y Price Target
C$19.81Price Target Upside9.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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:May 07, 2025
(Q1-2025)
| % Change Since: -1.10%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive achievements such as strategic property dispositions that unlocked value and increased liquidity, alongside challenges like increased financing costs and negative trends in leasing rates. The potential for future growth in core markets and strong operational performance were encouraging, yet uncertainties remain regarding capital redeployment and future guidance.Q1-2025 Updates
Positive Updates
Increase in Same Community Revenue and NOI
Same community revenue increased by 0.6% and same community NOI increased by 2.3% compared to Q1 last year. Occupancy closed at 95.9%, a 60 basis point increase year-over-year.
Successful Strategic Disposition
Completed the strategic disposition of nine properties to AvalonBay with a combined sales price of $618.5 million, unlocking value and generating capital for future growth.
Acquisition and Sale of Key Properties
Acquired Venue Craig Ranch Apartments for $61 million and sold Bluff Creek Apartments for $28 million, an 80.4% premium to IFRS value.
Strong Liquidity Position
Closed the quarter with nearly $150 million of liquidity, the strongest capital position ever to pursue accretive growth.
Positive Operational and Customer Service Metrics
Ranked number two overall in the J Turner Research 2024 top REITs by online reputation report, highlighting customer service and cleanliness.
Negative Updates
Increase in Financing Costs
Total cost of financing increased to $9 million from $7.7 million in Q1 2024, impacting FFO due to interest expenses associated with completed developments.
Negative Trends in Effective Lease Rates
Effective new lease rates decreased 7.3% in Q1, with a 3.2% decrease in effective blended lease rate, though a slight improvement from the previous quarter.
No Guidance for 2025
BSR REIT did not release guidance for 2025 due to uncertainty with the timing of full capital redeployment and other moving pieces.
Company Guidance
During the BSR REIT First Quarter 2025 Financial Results Conference Call, several key metrics were shared to highlight the company's performance and strategic actions. Same community revenue grew by 0.6%, while same community NOI saw a 2.3% increase. The weighted average occupancy improved to 95.9%, marking a 60 basis point rise from Q1 2024. Resident retention also increased by 460 basis points year over year. BSR completed a significant disposition of nine properties for $618.5 million, which included $380 million in cash and the elimination of 15 million Class B units. This transaction improved liquidity to nearly $150 million. Furthermore, the REIT's debt to gross book value decreased by 120 basis points to 45.3%. Despite a 17% increase in total financing costs, BSR reported Q1 FFO and AFFO per unit of $0.23 and $0.22, respectively. While the company has not issued guidance for 2025 due to ongoing capital redeployment, it is optimistic about future growth opportunities in core markets, particularly in Texas.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
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.55
Neutral
Balance Sheet
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.60
Neutral
Cash Flow
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.70
Positive
| 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
Neutral
18.06
Price Trends
18.02
Negative
17.80
Positive
17.54
Positive
Market Momentum
0.03
Positive
48.03
Neutral
50.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HOM.UN, the sentiment is Neutral. The current price of 18.06 is above the 20-day moving average (MA) of 18.03, above the 50-day MA of 18.02, and above the 200-day MA of 17.54, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.30B | 3.58 | 22.26% | 3.72% | 5.77% | 108.23% | |
75 Outperform | C$958.41M | 8.65 | 5.83% | 4.14% | 3.85% | -31.81% | |
71 Outperform | C$539.27M | 6.08 | 9.03% | 3.52% | -0.29% | ― | |
70 Outperform | C$1.88B | ― | -7.00% | 2.93% | 2.52% | -573.45% | |
68 Neutral | C$7.13B | 64.22 | 1.29% | 3.35% | 0.93% | ― | |
60 Neutral | C$975.58M | ― | -11.97% | 4.20% | 4.39% | 56.33% | |
59 Neutral | C$1.25B | -2.56 | -8.19% | 4.96% | 10.84% | -23.78% |
* Real Estate Sector Average
Performance Comparison
TSE:HOM.UN
BSR Real Estate Investment Trust
17.94
1.71
10.54%
TSE:KMP.UN
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TSE:CAR.UN
Canadian Apartment
45.34
-2.15
-4.53%
TSE:MRG.UN
Morguard NA REIT UN
18.19
1.81
11.05%
TSE:IIP.UN
InterRent REIT Un
13.31
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TSE:MI.UN
Minto Apartment Real Estate Investment Trust
14.63
-0.90
-5.80%
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.