LITTLE ROCK and TORONTO, Oct. 25,
2018 /PRNewswire/ - BSR Real Estate Investment Trust ("BSR"
or the "REIT") (TSX: HOM.U) announced today that it has closed on
the acquisition of Towne Park at Har-Ber Apartments ("Towne Park"),
in Springdale, Arkansas, for
US$28.9 million. The
transaction was funded utilizing BSR's revolving credit
facility. The addition of Towne Park is expected to be accretive to
the REIT's adjusted funds from operations1 ("AFFO") on a
per unit basis.
Towne Park, which was constructed
in two phases in 2016 and 2017, is a 237-unit multifamily property
comprising one, two, and three bedroom apartments and townhomes in
the high-growth Northwest Arkansas
metropolitan statistical area ("MSA"). The property is the REIT's
second purchase in this region in just under two years, following
the acquisition of Mountain Ranch Apartments, a 360 unit
garden-style complex less than 10 miles away.
Northwest Arkansas is the
fastest growing region of the state and 14th fastest
growing MSA in the United States.
Towne Park is located less than a 15
mile drive from the headquarters of three Fortune 500 companies
including, Walmart. Median household income in Northwest Arkansas rose 8.1% in the past 12
months. In the multifamily space, average lease prices in
Northwest Arkansas have increased
18% over the past four years. Multifamily vacancy rates in this MSA
currently sit at 3.9%, representing a decrease of 260 basis points
over the past four years.
"We are thrilled to add Towne
Park to our portfolio," said John
Bailey, Chief Executive Officer of the REIT. "This
acquisition increases our exposure to the fastest growing market in
our home state of Arkansas and is
consistent with our strategy of clustering properties to maximize
operating efficiencies."
In the past two and a half years, BSR has grown its portfolio by
16% through the acquisition of five properties with a combined
1,394 units. The total unit count for BSR, which completed an IPO
just five months ago on the Toronto Stock Exchange, now stands at
10,116 units.
About BSR Real Estate Investment Trust
BSR 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 49 multifamily garden-style residential properties
consisting of 10,116 apartment units located across five bordering
states 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, including statements regarding the extent to which the
acquisition of Towne Park is expected to be accretive to AFFO per
Unit. Forward-looking statements are identified by words such as
"believe", "anticipate", "project", "expect", "intend", "plan",
"will", "may", "estimate" and other similar expressions. The
forward-looking statements in this news release are based on
certain assumptions, including assumptions regarding the expected
financial performance of Towne Park. 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
prospectus dated May 11, 2018 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 Measure
AFFO is key measures of performance commonly used by real estate
operating companies and real estate investment trusts. It is not a
measure recognized under International Financial Reporting
Standards ("IFRS") and does not have standardized meanings
prescribed by IFRS. AFFO 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 for the
period ended June 30, 2018 for a
reconciliation of the REIT's AFFO to a standardized IFRS
measure.
___________________
1 AFFO is a non-IFRS financial measure. See "Non-IFRS
Financial Measure" in this news release.
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SOURCE BSR Real Estate Investment Trust
