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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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Rating:52Neutral
Price Target:
C$17.50
▼(-1.41% Downside)
The overall stock score of 52 reflects the significant financial challenges faced by BSR Real Estate Investment Trust, including declining revenue and high leverage. While there are positive strategic developments and a relatively strong dividend yield, the negative P/E ratio and operational inefficiencies weigh heavily on the score. The earnings call provided some optimism with strategic acquisitions and market growth prospects, but financial metrics remain a concern.
BSR Real Estate Investment Trust (HOM.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$692.64M
Dividend Yield4.43%
Average Volume (3M)11.37K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-1.10%
EPS Growth61.83%
CountryCA
Employees250
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.71
Shares Outstanding33,500,423
10 Day Avg. Volume16,581
30 Day Avg. Volume11,374
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$18.51Price Target Upside4.28% Upside
Rating ConsensusStrong 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: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive strategic positioning and challenges in financial metrics. The positive developments in occupancy, strategic acquisitions, and market conditions are countered by declines in NOI, FFO, and increased finance costs due to swap cancellations.Q2-2025 Updates
Positive Updates
Positive Occupancy and Leasing Developments
Same-community weighted average occupancy increased by 20 basis points to 95.6% compared to Q2 last year. Retention rate increased by 300 basis points year-over-year to 57.4%, with a 50 basis point sequential improvement.
Strategic Property Dispositions and Acquisitions
Completed the sale of 6 stabilized properties in Dallas for $431.5 million and acquired two new apartment communities in Houston for $141 million. The new acquisitions are expected to offer higher growth potential.
Improved Market Conditions and Growth Prospects
Market conditions in Texas are improving with expected absorption of new rental supply by the end of 2025, positioning BSR REIT for future rental rate growth and acquisitions.
Valet Trash and Other Income Increases
Increase in other income driven by enhanced resident participation in credit building services, higher utility reimbursements, and increased properties receiving valet trash service.
Negative Updates
Decline in Same-Community NOI
Same-community NOI was $14.3 million, a decline of 4.9% compared to Q2 2024 due to increased utility and maintenance expenses, and higher real estate taxes.
Decrease in FFO and AFFO
FFO decreased to $9.2 million or $0.21 per unit, down from $14.1 million or $0.26 per unit in Q2 last year. AFFO was $8.4 million or $0.19 per unit, down from $12.7 million or $0.24 per unit last year.
Higher Finance Costs Due to Swap Cancellations
Cancellations of $80 million and $150 million swaps resulted in expected higher finance costs moving forward.
Company Guidance
During the BSR REIT Second Quarter 2025 Financial Results Conference Call, several key metrics and strategic developments were highlighted. The REIT reported a same-community weighted average occupancy of 95.6%, marking a 20 basis point increase from the previous year. Additionally, Q2 same-community blended re-leasing spreads improved by 200 basis points from Q1 2025, although they remained negative at 70 basis points. Notably, July marked a turning point as same-community blended trade-outs turned positive, growing by 1.1%. The retention rate also increased by 300 basis points year-over-year to 57.4%. The company executed a strategic disposition of six stabilized properties in the Dallas MSA for $431.5 million and reinvested in two Houston apartment communities for $141 million. Operating income and expenses showed some fluctuation, with same-community revenue remaining flat at $26.6 million, and same-community NOI decreasing by 4.9% to $14.3 million due to increased operating expenses and real estate taxes. Net finance costs decreased by $1.5 million to $6 million, and the REIT declared cash distributions of $0.14 per unit, a 7.7% increase from the previous year, with an AFFO payout ratio of 73.0%. The debt-to-gross book value stood at 48.9%, with a total liquidity of $82.5 million. Looking forward, BSR REIT expressed optimism about the Texas market, focusing on new construction assets in Houston and Dallas, anticipating significant rental rate growth as supply is absorbed, and maintaining a strategic focus on enhancing value for unitholders through further acquisitions and operational improvements.BSR Real Estate Investment Trust Financial Statement Overview
Summary
The company faces challenges with declining revenue and significant net losses, as reflected in the income statement. The balance sheet shows high leverage, which could pose risks if not managed carefully. 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.50
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 1.0.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.63M | 168.67M | 167.80M | 158.52M | 119.58M | 113.29M |
| Gross Profit | 83.69M | 91.94M | 91.07M | 85.52M | 65.69M | 60.35M |
| EBITDA | -22.18M | 3.17M | 81.25M | 168.58M | 54.35M | 49.15M |
| Net Income | -62.79M | -40.24M | -210.87M | 227.23M | 283.21M | 27.58M |
Balance Sheet | ||||||
| Total Assets | 1.35B | 1.78B | 1.83B | 2.06B | 1.95B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 21.53M | 8.73M | 19.25M | 7.20M | 6.84M | 5.26M |
| Total Debt | 659.91M | 829.32M | 813.10M | 769.27M | 878.26M | 517.83M |
| Total Liabilities | 762.75M | 1.12B | 1.11B | 1.09B | 1.28B | 795.03M |
| Stockholders Equity | 585.87M | 657.60M | 712.40M | 975.75M | 666.57M | 318.66M |
Cash Flow | ||||||
| Free Cash Flow | 80.65M | 79.38M | 83.08M | 89.51M | 58.40M | 51.30M |
| Operating Cash Flow | 80.65M | 79.38M | 83.08M | 89.51M | 58.40M | 51.30M |
| Investing Cash Flow | 165.91M | -33.02M | -33.47M | -26.52M | -434.12M | -37.92M |
| Financing Cash Flow | -237.46M | -44.37M | -50.08M | -62.63M | 377.29M | -45.11M |
BSR Real Estate Investment Trust Technical Analysis
Neutral
17.75
Price Trends
17.64
Positive
17.76
Negative
17.41
Positive
Market Momentum
0.07
Positive
47.45
Neutral
10.01
Positive
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 17.75 is below the 20-day moving average (MA) of 18.04, above the 50-day MA of 17.64, and above the 200-day MA of 17.41, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 10.01 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$2.15B | 3.83 | 17.52% | 4.04% | 5.82% | 83.08% | |
68 Neutral | C$953.07M | 10.19 | 5.09% | 4.16% | 3.93% | -29.40% | |
68 Neutral | C$494.18M | 7.14 | 5.67% | 3.85% | -0.69% | ― | |
61 Neutral | C$6.38B | 80.43 | 0.91% | 3.79% | -2.56% | ― | |
58 Neutral | C$1.86B | -10.75 | -8.02% | 2.96% | 1.56% | -9446.15% | |
52 Neutral | C$692.64M | ― | -10.24% | 4.43% | -1.10% | 61.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
TSE:HOM.UN
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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.