LITTLE ROCK, Ark. and TORONTO, Nov. 23, 2021 / CNW / – The BSR Real Estate Investment Trust (“BSR” or the “REIT”) (TSX: HOM.U) (TSX: HOM.UN) announced today that it has sold Windhaven Park Apartments in Plano, TX, consisting of 474 residential units, and The Heritage at Hillcrest Apartments in Austin, TX, consisting of 286 residential units, for gross proceeds of $ 147.9 million. All dollar amounts in this news release are in US currency.
The net proceeds of $ 142.0 million were used to repay $ 59.0 million in mortgage debt, the balance being used to reduce the outstanding balance of the REIT’s credit facility. The values of both communities have been increased in part by 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 Chief Executive Officer of the REIT. “We have once again crystallized the value created by our platform. We intend to reinvest the proceeds in investment grade properties in our core Texas Markets of Austin, Dallas and Houston. “
Since BSR completed its IPO, it has launched an aggressive capital recycling program. The REIT has 19 core market acquisitions with a total of approx $ 1.1 billion, in addition there are 5,907 residential units with an average age of six years. There are 39 dispositions of a total of approx. $ 760.5 million and comprises 8,136 residential units with an average age of 31 years. Following the sale of Windhaven Park Apartments and The Heritage at Hillcrest Apartments, the REIT has increased its acquisition capacity $ 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, unregistered and open type real estate investment trust established under a deed of trust under the laws of the province Ontario. The REIT owns a portfolio of garden-style multi-family residential properties in attractive primary and secondary markets in the Sunbelt region of The United States.
This press release may contain forward-looking statements (within the meaning of applicable securities laws) regarding 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 press 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 those discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading “Risk Factors” in the REIT management’s discussion and analysis for the Third quarters discussed were dated from 2021 November 9, 2021which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be correct, as actual results and results could differ materially from those in these forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. In addition, these forward-looking statements apply as of the date of this press release unless expressly required by applicable law. The REIT assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.
Non-IFRS financial measure
Debt at gross book value is an important measure of financial health commonly used by real estate companies and real estate funds. It is not a recognized measure under the International Financial Reporting Standards (“IFRS”) and has no standardized meaning prescribed by the IFRS. The debt at gross book value calculated by the REIT may not be comparable to a similar figure from other issuers. Please note the discussion and analysis of the REIT management for the three- and nine-month periods that have elapsed September 30, 2021 for the transition from non-IFRS financial ratios to standardized IFRS ratios.
SOURCE BSR Real Estate Investment Trust