LITTLE ROCK, Ark. and TORONTO, Nov. 23, 2021 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today it has sold Windhaven Park Apartments in Plano, TX, consisting of 474 apartment units, and The Heritage at Hillcrest Apartments in Austin, TX, consisting of 286 apartment units, for gross proceeds of $147.9 million. All dollar amounts in this news release are denominated in US currency.
The net proceeds of $142.0 million were used to repay $59.0 million in mortgage debt, with the balance used to reduce the outstanding balance on the REIT's credit facility. The values of both communities were enhanced in part through the REIT's successful capital redevelopment program, and the communities have an average age of 38 years.
"Heritage at Hillcrest and Windhaven Park are two communities that have benefited significantly from the BSR management platform," said John Bailey, the REIT's Chief Executive Officer. "We have once again crystalized value created by our platform. We intend to reinvest the proceeds into investment grade properties situated in our core Texas markets of Austin, Dallas and Houston."
Since BSR completed its IPO, it has embarked on an aggressive capital recycling program. The REIT has acquired 19 core market acquisitions totaling approximately $1.1 billion, adding 5,907 apartment units with an average age of six years old. This compares with 39 dispositions totaling approximately $760.5 million and comprising 8,136 apartment units with an average age of 31 years old. Following the sales of Windhaven Park Apartments and The Heritage at Hillcrest Apartments, the REIT increased its acquisition capacity to $400 million and reduced its debt to gross book value to 38.5%.
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.
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 third quarter of 2021, dated November 9, 2021, 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
Debt to gross book value is a key measure of financial position 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 a standardized meaning prescribed by IFRS. Debt to gross book value as calculated by the REIT may not be comparable to a similar measure presented by other issuers. Please refer to the REIT's Management's Discussion and Analysis for the three and nine month periods ended September 30, 2021 for reconciliations of non-IFRS financial measures to standardized IFRS measures.
SOURCE BSR Real Estate Investment Trust
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