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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)
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Select Model
Rating:54Neutral
Price Target:
C$16.50
▼(-3.45% Downside)
The overall stock score is primarily influenced by financial performance challenges, including declining revenues and high leverage. Technical analysis and earnings call sentiment provide some positive aspects, but valuation concerns due to a negative P/E ratio weigh heavily. The dividend yield offers a slight offset to these risks.
Positive Factors
Operational Improvements
Improved retention and occupancy rates indicate effective property management and strong demand, enhancing long-term revenue stability.
Strategic Acquisitions
Strategic acquisitions in high-growth areas support portfolio expansion and potential revenue growth, strengthening market position.
Cost Management
Effective cost management through reduced expenses enhances profitability and improves financial resilience against market fluctuations.
Negative Factors
Revenue Decline
Declining revenue in same-community properties suggests challenges in maintaining rental income, potentially impacting long-term financial health.
High Leverage
High leverage increases financial risk, limiting flexibility and potentially affecting the company's ability to invest in growth opportunities.
Interest Rate Swap Challenges
Higher finance costs from interest rate swaps can strain cash flow, reducing funds available for reinvestment and growth initiatives.
BSR Real Estate Investment Trust (HOM.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$674.04M
Dividend Yield4.57%
Average Volume (3M)41.48K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-6.91%
EPS Growth82.31%
CountryCA
Employees250
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.10
Shares Outstanding33,906,315
10 Day Avg. Volume97,549
30 Day Avg. Volume41,479
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.62
Price to Sales (P/S)2.40
P/FCF Ratio5.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.49Price Target Upside19.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BSR Real Estate Investment Trust Business Overview & Revenue Model
Company DescriptionBSR Real Estate Investment Trust is an internally managed, unincorporated, 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.
How the Company Makes MoneyBSR Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of residential properties. The company leases its apartment units to tenants, collecting monthly rents that form the bulk of its revenue stream. Additionally, BSR may benefit from ancillary income sources, including fees from property management services, parking, and laundry facilities. The REIT's revenue model is further supported by its strategic focus on acquiring properties in markets with strong population growth and employment opportunities, which enhances occupancy rates and rental pricing power. Significant partnerships with property management firms also play a role in optimizing operations and maximizing returns on investments.
BSR Real Estate Investment Trust Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with significant achievements in asset acquisition and operational improvements, such as increased occupancy rates and reduced costs. However, these are balanced by challenges in revenue decline, softer leasing environments, and financial pressures from interest rate swaps. The overall outlook is cautiously optimistic with focus on future growth and stability.Q3-2025 Updates
Positive Updates
Successful Redeployment of Capital
BSR REIT completed its capital redeployment and integration of newly acquired assets, positioning for upcoming growth.
Positive Leasing Momentum in Austin
Occupancy at Austin lease-up Aura 35Fifty increased from 59.7% to 86.6% by quarter end.
Increased Retention and Occupancy Rates
Retention rate increased to 58.2% and same-community weighted average occupancy was 94.3%.
Acquisition of The Ownsby
Acquired The Ownsby for $87.5 million, located in the fast-growing city of Celina, Texas.
Cost Reductions and Financial Improvements
Same-community expenses declined by 5%, driven by decreases in real estate taxes and property insurance. G&A improved by 5% and net finance costs declined by 2.7%.
Industry Recognition
BSR was named one of the best places to work in multifamily for the fourth consecutive year.
Negative Updates
Decline in Same-Community Revenue
Same-community revenue was $26.5 million in Q3 2025, a decline of 1% from last year due to negative trade-outs.
Lower FFO and AFFO Per Unit
FFO was $0.19 per unit compared to $0.23 last year, and AFFO was $0.17 per unit compared to $0.21 last year.
Challenging Leasing Environment
Faced softer leasing environment than anticipated, with seasonality and rate pushes impacting occupancy.
Increased Concessions in Dallas and Houston
Concessions increased slightly in Dallas and Houston due to supply issues, affecting rental growth.
Interest Rate Swap Challenges
Ongoing finance costs impacted by higher cost replacement of derivative instruments, reflecting in interest expenses.
Company Guidance
During the BSR REIT third quarter 2025 fiscal results conference call, the company provided several key metrics indicating its performance and outlook. Same-community net operating income (NOI) increased by 2.7% compared to the same quarter last year, with a same-community weighted average occupancy of 94.3%. The retention rate improved to 58.2%, marking an 80 basis point increase from the previous quarter. The Austin lease-up Aura 35Fifty showed significant leasing momentum, with occupancy rising to 86.6% from 59.7% in the previous quarter. Additionally, blended same-community rental rates saw a 0.4% increase over prior leases, marking the first positive change since Q3 2024. The REIT also acquired The Ownsby, a property with 368 apartment units, for $87.5 million. Financially, same-community revenue was reported at $26.5 million, a 1% decline from the previous year, while same-community expenses decreased by 5%, leading to a same-community NOI of $14.4 million. The REIT's debt stood at $726.6 million, with a debt to gross book value of 51.3% and a weighted average interest rate of 4.0%. The call concluded with management expressing confidence in the REIT's strategic positioning for continued growth, despite ongoing macroeconomic challenges.BSR Real Estate Investment Trust Financial Statement Overview
Summary
The financial performance is challenged by declining revenue and significant net losses, as shown by a negative net profit margin of -46.73% and a revenue decline of -5.02%. The balance sheet shows high leverage with a debt-to-equity ratio of 1.26, posing potential risks. However, cash flow remains a relative strength with positive operating cash flow despite declining free cash flow growth.Income Statement
The income statement shows declining revenue with a negative revenue growth rate of -5.02% in the TTM period. The net profit margin is significantly negative at -46.73%, indicating substantial losses. Gross profit margin remains stable at around 54%, but the negative EBIT and EBITDA margins highlight operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 1.26, suggesting significant leverage. Return on equity is negative, indicating losses relative to equity. The equity ratio is moderate, but the high leverage poses potential risks.55
Neutral
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by -11.33% in the TTM period. However, the operating cash flow to net income ratio is positive, indicating some cash generation capability despite net losses. The free cash flow to net income ratio is stable at 1.0.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 152.07M | 168.67M | 167.80M | 158.52M | 119.58M | 113.29M |
| Gross Profit | 77.66M | 91.94M | 91.07M | 85.52M | 65.69M | 60.35M |
| EBITDA | 30.28M | 3.17M | -170.90M | 168.58M | 54.35M | 49.15M |
| Net Income | -20.70M | -40.24M | -210.87M | 227.23M | 283.21M | 27.58M |
Balance Sheet | ||||||
| Total Assets | 1.42B | 1.78B | 1.83B | 2.06B | 1.95B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 11.41M | 8.73M | 19.25M | 7.20M | 6.84M | 5.26M |
| Total Debt | 725.87M | 829.32M | 813.10M | 769.27M | 878.26M | 517.83M |
| Total Liabilities | 832.27M | 1.12B | 1.11B | 1.09B | 1.28B | 795.03M |
| Stockholders Equity | 583.56M | 657.60M | 712.40M | 975.75M | 666.57M | 318.66M |
Cash Flow | ||||||
| Free Cash Flow | 53.51M | 79.38M | 83.08M | 89.51M | 58.40M | 51.30M |
| Operating Cash Flow | 53.51M | 79.38M | 83.08M | 89.51M | 58.40M | 51.30M |
| Investing Cash Flow | 91.15M | -33.02M | -33.47M | -26.52M | -434.12M | -37.92M |
| Financing Cash Flow | -143.34M | -44.37M | -50.08M | -62.63M | 377.29M | -45.11M |
BSR Real Estate Investment Trust Technical Analysis
Positive
17.09
Price Trends
16.53
Positive
16.87
Positive
17.10
Positive
Market Momentum
0.15
Negative
59.31
Neutral
75.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HOM.UN, the sentiment is Positive. The current price of 17.09 is above the 20-day moving average (MA) of 17.05, above the 50-day MA of 16.53, and below the 200-day MA of 17.10, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 75.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HOM.UN.
BSR Real Estate Investment Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$2.14B | 3.94 | 18.10% | 4.42% | 6.19% | 79.98% | |
70 Outperform | C$1.66B | 5.78 | 17.29% | 0.09% | 10.61% | 43.64% | |
70 Outperform | C$645.11M | 8.62 | 7.26% | 3.87% | -1.21% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | C$674.04M | -26.24 | -3.64% | 4.57% | -6.91% | 82.31% | |
54 Neutral | C$6.14B | 101.75 | 0.65% | 4.20% | -6.51% | -81.28% | |
47 Neutral | C$1.87B | -18.71 | -4.40% | 3.01% | 1.55% | -401.05% |
* Real Estate Sector Average
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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.