BSR Acquires Aura Castle Hills in Dallas Market for $51.8 Million

LITTLE ROCK, Ark. and TORONTO, Sept. 24, 2020 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today that it has acquired Aura Castle Hills Apartments ("Aura Castle Hills" or the "Property"), a 276 suite, garden style residential community in Lewisville, Texas and the Dallas/Fort Worth Metropolitan Statistical Area (MSA) for $51.8 million ($187,681/suite). The transaction was funded through the REIT's credit facilities. The addition of the Property is expected to be immediately accretive to the REIT's adjusted funds from operations ("AFFO") on a per unit basis.

Aura Castle Hills was constructed in 2019 in the high-growth Dallas/Fort Worth MSA. The Property has numerous amenities including a clubhouse, modern fitness center, resort-style swimming pool with sun deck, garages, 24/7 package locker system, grilling areas, fire pit and pet park. BSR now owns 1,984 apartment units in the Dallas/Fort Worth MSA, representing approximately 24% of the REIT's Net Operating Income ("NOI").

"Aura Castle Hills is a modern community in one of BSR's high growth targeted markets," stated John Bailey, BSR's Chief Executive Officer. "This purchase is another example of BSR's superior execution on our capital recycling strategy. Aura Castle Hills has all of the amenities our residents treasure and value."

BSR currently owns 40 multifamily garden style properties consisting of 9,681 units with a weighted average age of 20 years. The REIT's 12 acquisitions following the IPO have added 3,511 apartment units with a weighted average year built of 2011 compared to 20 dispositions to-date totaling 3,666 apartment units with a weighted average year built of 1982. Including the acquisition of the Property, 82% of BSR's NOI now comes from properties located in the REIT's primary markets, compared with 52% at the time of the REIT's IPO in 2018, and the REIT's debt to gross book value ("Debt-to-GBV") is 51.9%.

About BSR Real Estate Investment Trust

BSR Real Estate Investment Trust is an internally managed, unincorporated, and 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.

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. 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. 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 Management's Discussion and Analysis for the second quarter of 2020, dated August 12, 2020, 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 Measures

NOI, AFFO and Debt-to-GBV are key measures of performance commonly used by real estate operating companies and real estate investment trusts. They are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. NOI, AFFO or Debt-to-GBV 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 three and six month periods ended June 30, 2020 for reconciliations of NOI, AFFO and Debt-to-GBV to standardized IFRS measures.

SOURCE BSR Real Estate Investment Trust