BSR Real Estate Investment Trust., - CEO, John Bailey
CEO, John Bailey
Source: Arkansas Business
  • BSR REIT (TSX:HOM.U and HOM.UN) is selling three apartment complexes for C$73.34 million
  • The Summer Brook Apartments, Summer Green I, and Summer Green II Apartments are all located in Longview, Texas
  • The sale is part of the company’s portfolio enhancement and capital recycling strategy, aimed at mitigating the impacts of COVID-19
  • Through the sale, BSR improved the weighted average age of its investment portfolio by seven years
  • BSR REIT (TSX:HOM.U) is up 0.3 per cent, with shares trading for $9.10 and a market cap of $203 million

BSR REIT (TSX:HOM.U and HOM.UN) has begun selling a number of non-core assets as part of its capital enhancing strategy.

The company has sold the Summer Brook Apartments, Summer Green I, and Summer Green II Apartments for around C$73.34 million.

Cumulatively, the properties comprise 632 apartment units, and are all located Longview, Texas. The company specialises in Sunbelt real estate, which includes Texas and stretches along the southern border of the US.

In response to the ongoing COVID-19 pandemic, the company initiated a portfolio enhancement and capital recycling strategy. BSR hopes that the strategies will help mitigate the effects of the crisis on the company’s balance sheet.

Given the present challenges, John Bailey, CEO of BSR, believes that this sale was timely and necessary for the company.

“The sale of the Longview properties is consistent with our stated strategy to capitalise on the historically low cap rate spread between primary and secondary markets in US sunbelt states. 

“I am very proud of the BSR team for continuing to execute efficiently during these uncertain economic times related to COVID-19. It is a testament to our management platform,” he said.

John went on to say that this sale pairs well with the company’s purchase in Austin, Texas, announced last month.

The three complexes were built between 1984 and 1997, making them much older than the company’s recent purchases. The property sale improved the weighted average age of BSR’s investment portfolio by seven years, to around 22 years.

The company has stated that it is utilising the proceeds to enhance its financial position. BSR now has $107 million in liquidity, which includes 13.4 million in cash and equivalents.

BSR REIT (TSX:HOM.U) is up 0.3 per cent, with shares trading for $9.10 at 9:35am EST.

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