BSR REIT Announces Fourth Quarter and Full Year 2025 Financial Results

LITTLE ROCK, Ark. and TORONTO, March 11, 2026 /CNW/ – BSR Real Estate Investment Trust (“BSR”, or the “REIT”) (TSX:HOM) today announced its financial results for the three months and year ended December 31, 2025 (“Q4 2025” and “FY 2025,” respectively).

“2025 was a transformative year for the REIT,” said Dan Oberste, President and Chief Executive Officer of the REIT. “We crystalized significant embedded value for our Unitholders, we acquired newer, high growth assets, refinanced nearly all near-term debt maturities, and we streamlined the business’ capitalization. Transient headwinds fueled by supply, interest and our acquisition of newer unstabilized assets temporarily underpins our reported performance, but the future growth imbedded in the REIT is more visible today. Most importantly, our team once again found creative ways to deliver value to our Unitholders.”

Highlights for Q4 2025 and FY 2025¹

• Leasing momentum continues at Aura 35Fifty, our recently completed development. As of December 31, 2025, occupancy was 92.0%;
• Occupancy at The Ownsby, which the REIT acquired in August 2025, increased to 70.4%, demonstrating significant upside potential for 2026;
• Same Community weighted average occupancy was 94.3% as of December 31, 2025;
• Total portfolio average monthly lease rent improved to $1,496 as of December 31, 2025 from $1,489 as of December 31, 2024;
• As of December 31, 2025, the REIT’s total liquidity was $52.7 million;
• The REIT’s retention rate was 59.5% as of December 31, 2025, a sequential expansion of 130 basis points from 58.2% as of September 30, 2025;
• In November 2025, the REIT extended its $160.0 million Secured Term Loan (defined below) to December 10, 2027, with no contractual changes;
• In December 2025, the REIT refinanced its revolving Credit Facility (defined below), extending the maturity to December 8, 2029 with a one-year extension option. The refinancing of the Credit Facility also reduced the interest rate margin for most leverage ratios in the agreement and removed the 10 basis point credit spread adjustment to all leverage points; and
• For the fourth year in a row, BSR was named one of the Best Places to Work in Multifamily and Best Places to Work in Multifamily for Women at the Multifamily Innovation Awards held in December 2025.

Subsequent Highlights

• In January 2026, the REIT amended its 3.13% receive-variable based USD-SOFR CME / pay fixed interest rate swap with a notional value of $42.0 million with a counterparty optional termination date to February 1, 2027 and updated the fixed rate to 3.11%. The interest rate swap matures on February 1, 2030.
• In January 2026, the REIT entered into a new $110.0 million receive-variable based USD – SOFR CME / pay fixed interest rate swap at a fixed rate of 3.20% effective January 2, 2026 and maturing January 2, 2029, subject to the counterparty’s optional early termination date of July 1, 2026.
• On March 11, 2026, the REIT announced that the Toronto Stock Exchange (“TSX”) approved the REIT’s intention to make a normal course issuer bid (the “2026 NCIB”), permitting the REIT to purchase for cancellation up to a maximum of 3,148,801 Units, or approximately 10% of the public float as of March 2, 2026, over the twelve month period commencing March 16, 2026.
• On March 10, 2026, the REIT placed Vale Luxury onto the Credit Facility as a borrowing base property and refinanced the $27.8 million outstanding mortgage note using the Credit Facility availability.

Q4 2025 Financial Summary

Based on the Property Dispositions (defined below) and Property Acquisitions (defined below) to date, the financial results depicted throughout this document are inherently dissimilar from the comparative period results in the prior year. This is due to (i) the stabilized nature of the Property Dispositions (which were 95.8% occupied in aggregate at the time of their respective sales), (ii) the timing related to the rotation of assets and full redeployment of proceeds from the Property Dispositions and (iii) the overall portfolio concentration and occupancy of the current Non-Same Community properties as of December 31, 2025, which was 86.8% for the Property Acquisitions, 92.0% for the REIT’s Non-Stabilized Property (defined below) in Austin, which is completing its initial lease-up period, and 70.4% for The Ownsby which remains in lease up.

As Property Acquisitions and the Non-Stabilized Property continue to perform through stabilization, comparisons of current performance to prior periods will become more meaningful. However, even once stabilized, there will continue to be some inherent differences when comparing to the prior year results, with the exception of metrics presented on a “per Unit” basis, given the cancellation of 15,000,000 Class B Units (defined below) in connection with the REIT’s disposition of six assets in April 2025 (the “Contribution Transaction”).

Total portfolio revenue of $34.0 million for Q4 2025 decreased $8.2 million compared to $42.2 million for the three months ended December 31, 2024 (“Q4 2024”). This decrease was primarily the result of the Property Dispositions which reduced revenue by $15.2 million and a $0.3 million reduction from Same Community properties (discussed below), partially offset by $7.3 million of revenue generated from the Property Acquisitions and the Non-Stabilized Property. Total revenue resulting from the Property Acquisitions and the Non-Stabilized Property is expected to continue to improve in future periods as the lease-up and operational enhancements continue to progress through stabilization.

Same Community revenue of $26.3 million for Q4 2025 decreased $0.3 million, or 1.2%, compared to $26.6 million for Q4 2024, primarily due to lower average monthly in-place leases of $1,436 as of December 31, 2025 as compared to $1,447 as of December 31, 2024. Lower average monthly rent was partially offset by an increase in other property income, driven by an increase in utility reimbursements.

The change in net loss and comprehensive loss between Q4 2025 and Q4 2024 is primarily due to non-cash fair value adjustments to interest rate derivatives and other financial liabilities. As such, the net loss and comprehensive loss is not considered comparable period over period.

Total portfolio NOI for Q4 2025 of $16.0 million decreased $5.7 million from $21.7 million in Q4 2024. The decrease was the result of the Property Dispositions which reduced NOI by $8.0 million and a $0.8 million reduction from Same Community properties (discussed below), partially offset by a contribution of $3.1 million from Property Acquisitions and the Non-Stabilized Property.

Same Community NOI for Q4 2025 of $12.7 million decreased $0.8 million, or 6.1%, from $13.6 million in Q4 2024 and was attributable to the decrease in revenue described above of $0.3 million, as well as higher overhead of $0.3 million, real estate taxes of $0.2 million, repair and maintenance expenses of $0.1 million and utility expenses of $0.1 million, partially offset by a decrease in property insurance expenses of $0.2 million.

FFO in Q4 2025 was $5.4 million, or $0.14 per Unit, compared to $11.9 million, or $0.22 per Unit, for Q4 2024. The decrease was primarily related to the decrease in NOI described above, higher general and administrative expenses of $0.6 million due to payroll costs and legal professional fees and higher net finance costs of $0.2 million attributable to the impact of changes to the interest rate derivatives portfolio as well as the timing and relative capitalization of the Property Acquisitions and Property Dispositions in 2025. The decrease in FFO was amplified during the quarter given the temporary lease-up nature of a portion of portfolio, the resultant relative leverage levels of the REIT following the Property Acquisitions and Property Dispositions, and the prior year capitalization of (as compared to the current year expensing of) interest on the debt related to Aura 35Fifty. These dynamics should normalize throughout 2026 as these properties continue to perform through stabilization. The reduction in FFO was partially offset on a per Unit basis by the elimination of 15,000,000 Class B Units which were cancelled on April 30, 2025, in conjunction with the Contribution Transaction.

AFFO was $4.3 million, or $0.11 per Unit for Q4 2025 compared to $10.9 million, or $0.20 per Unit, for Q4 2024. The decrease in AFFO was primarily the result of the decrease in FFO as well as an increase in maintenance capital expenditures. In addition, the reduction in AFFO was partially offset on a per Unit basis by the elimination of 15,000,000 Class B Units as discussed above.

NAV was $642.3 million, or $16.43 per Unit, as of December 31, 2025 compared to $901.3 million, or $16.75 per Unit, as of December 31, 2024. The …

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