Earnings release
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BSR REIT Announces Third Quarter 2025 Financial Results Little Rock, AR and Toronto, ON, November 5, 2025 – BSR Real Estate Investment Trust (“BSR”, or the “REIT”) (TSX: HOM.U and HOM.UN) today announced its financial results for the three and nine months ended September 30, 2025 (“Q3 2025” and “YTD 2025,” respectively). "The third quarter represents an important turning point for BSR ," said Dan Oberste, the REIT's President and Chief Executive Officer. "Q3 2025 Same Community NOI grew 2.7%, blended trade-outs were positive for the first time since third quarter of 2024 and our retention was over 58%. Moreover, with the addition of The Ownsby to our portfolio during the quarter, we have now fully and accretively re deployed our 2025 disposition capital. As the economic and demographic fundamentals in our Texas Triangle markets continue to improve, the REIT is positioned to outperform." Q3 2025 Highlights1 ● Same Community NOI increased 2.7% compared to the three months ended September 30, 2024; ● During Q3 2025, excluding short term leases, Same Community rental rates for new leases and renewals changed (2.9%)and 2.8%, respectively, resulting in a 0.4% blended change over the prior leases. This represents the first quarter the REIT has return ed to positive blended rates since the third quarter of 2024; ● Leasing momentum at our newly completed development continues. As of September 30, 2025, occupancy of Aura 35Fifty was 86.6%, significantly improved from 59.7% as of June 30, 2025; ● Same Community weighted average occupancy was 94.3% as of September 30, 2025; ● As of September 30, 2025, the REIT’s total liquidity was $63.4 million; ● The REIT's retention rate was 58.2% as of September 30, 2025, a further 80 basis point expansion from 57.4% as of June 30, 2025; ● On August 12, 2025, the REIT acquired The Ownsby , a 368-unit apartment community in Celina, TX (Dallas MSA) for $87.5 million. The REIT funded the transaction using its Credit Facility and available cash. The REIT acquired the property during its initi al lease- up, and it was 65.2% occupied as of September 30, 2025; ● On September 3, 2025, the REIT amended its 3.27% $105 million interest rate swap to lower the fixed interest rate to 3.10% an d extended the counterparty optional termination date to January 1, 2027; and ● BSR was named one of the Best Places to Work in Multifamily for the fourth consecutive year. 1This section refers to certain non-GAAP measures which are not recognized under IFRS Accounting Standards and do not have standardized meanings prescribed by IFRS Accounting Standards. For definitions, reconciliations and the basis of presentation of the REIT’s non-GAAP measures, refer to sections “Non- GAAP Measures”.
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Overview All comparisons are to the corresponding periods in the prior year. Results are presented in U.S. dollars. The Condensed Cons olidated Interim Financial Statements and Management’s Discussion and Analysis as of and for the three and nine months ended September 30, 2025 are prepared in accordance with the accounting standards issued by the International Accounting Standards Board (“IFRS A ccounting Standards” or “GAAP”), and are available on the REIT’s website at www.bsrreit.com and at www.sedarplus.ca. “Same Community” corresponds to stabilized properties the REIT has owned for equivalent periods throughout YTD 2025 and the three and nine months ended September 30, 2024 (“Q3 2024” and “YTD 2024,” respectively). “Non-Same Community” properties include: Venue Craig Ranch Apartments, Forayna Vintage Park, Botanic Luxury Living and The Ownsby (collectively, the “Property Acquisitions”); Aur a 35Fifty, which was developed and completed in December 2024 (the “Non-Stabilized Property”); Bluff Creek Apartments, Cielo I, Cielo II, Retreat at Wolf Ranch, Auberry at Twin Creeks, Aura Benbrook, Lakeway Castle Hills, Satori Frisco, Vale Frisco and Wimberly (collectivel y, the “Property Dispositions”). A reconciliation of Funds from Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”) to net income and comprehensive income, as well as an expanded discussion of the components of FFO and AFFO, and a reconciliation of Net Asset Value (“NAV”) to Unitholders' equity can be found under “Non-GAAP Measures” in this release. Calculations of FFO per Unit, AFFO per Unit and NAV per Unit include trust units of the REIT (“Units”), Class B Units of BSR Trust, LLC (“Class B Units”) and issued deferred units of the REIT granted to trustees (“Deferred Units”). Based on the Property Dispositions and Property Acquisitions to date, the financial results presented throughout this documen t are inherently dissimilar from the comparative period results in the prior year. This is due to (1) the stabilized nature of the Property Dispositions (which were 95.8% occupied in aggregate at the time of their respective sales), (2) the timing related to the ro tation of assets and full redeployment of proceeds from the Property Dispositions and (3) the overall portfolio concentration and the occupanc y levels of the current Non-Same Community properties as of September 30, 2025, which was 83.0% for the Property Acquisitions (which includes the 65.2% occupancy of The Ownsby, which is in the initial lease-up period) and 86.6% for our Non-Stabilized Property in Austin, which is in the initial lease-up period. As Property Acquisitions and the Non -Stabilized Property continue to perform through stabilization, comparisons of current performance to prior periods will become more meaningful. However, even once stabilized, there will continue to be some inherent differen ces when comparing to the prior year results, with the exception of metrics presented on a “per Unit” basis, given the cancellation of 15,000,000 Class B Units in connection with the REIT's disposition of six assets in April 2025 (the "Contribution Transaction").
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Q3 2025 Financial Summary In thousands of U.S. dollars, except per unit amounts Q3 2025 Q3 2024 Change Change %* Revenue, Total Portfolio $ 33,094 $ 42,290 $ (9,196) nm Revenue, Same Community** Properties $ 26,503 $ 26,787 $ (284) (1.1%) Revenue, Non-Same Community** Properties $ 6,591 $ 15,503 $ (8,912) nm Net income (loss) and comprehensive income (loss) $ 2,874 $ (39,251) $ 42,125 nm NOI**, Total Portfolio $ 17,312 $ 22,256 $ (4,944) nm NOI**, Same Community** Properties $ 14,367 $ 13,990 $ 377 2.7% NOI**, Non-Same Community** Properties $ 2,945 $ 8,266 $ (5,321) nm Funds from Operations ("FFO")** $ 7,577 $ 12,159 $ (4,582) nm FFO per Unit** $ 0.19 $ 0.23 $ (0.04) (17.4%) Maintenance capital expenditures $ (895) $ (1,067) $ 172 nm Straight line rental revenue differences $ (239) $ 13 $ (252) nm AFFO** $ 6,443 $ 11,105 $ (4,662) nm AFFO per Unit** $ 0.17 $ 0.21 $ (0.04) (19.0%) Weighted Average Unit Count 39,023,496 53,789,870 (14,766,374) (27.5%) Q3 2025 Q4 2024 Change Change %* Unitholders' equity $ 584,125 $ 657,596 $ (73,471) nm NAV** $ 648,752 $ 901,308 $ (252,556) nm NAV per Unit** $ 16.62 $ 16.75 $ (0.13) (0.8%) *Percentages have been excluded for changes which are not considered to be meaningful for comparative purposes. **Same Community, NOI, NOI Margin, FFO, FFO per Unit, AFFO, AFFO per Unit, AFFO Payout Ratio, Debt to Gross Book Value and NAV per Unit are non -GAAP measures. For a description of the basis of presentation and reconciliations of the REIT's non-GAAP measures, see “Non-GAAP Measures” in this news release. Total portfolio revenue of $33.1 million for Q3 2025 decreased $9.2 million compared to $42.3 million for Q3 2024. This decrease wa s primarily the result of the Property Dispositions which reduced revenue by $15.5 million and a $0.3 million reduction from Sa me Community properties (discussed below), partially offset by $6.6 million of revenue generated from the Property Acquisitions and the Non-Stabilized Property. Total revenue resulting from the Property Acquisitions and the Non-Stabilized Property is expected to continue to improve in future periods as the lease-up and operational enhancements continue to progress through stabilization. Same Community revenue of $26.5 million for Q3 2025 decreased $0.3 million, or 1.1%, compared to $26.8 million for Q3 2024, primarily due to lower average monthly in -place leases of $1,449 as of September 30, 2025 as compared to $1,467 as of September 30, 2024. Lower average monthly rent was partially offset by an increase in other property income, driven by enhanced resident participation in credit building services, an increase in utility reimbursements and an increase in properties receiving valet trash service over the prior year. The change in net loss and comprehensive loss between Q3 2025 and Q3 2024 is primarily due to non -cash adjustments to derivatives and other financial liabilities, partially offset by the non -cash adjustment to the fair value of investment properties. As such, the net loss and comprehensive loss is not considered comparable period over period. Total portfolio NOI for Q3 2025 of $17.3 million decreased $4.9 million from $22.3 million in Q3 2024. The decrease was the r esult of the Property Dispositions which reduced NOI by $8.4 million, partially offset by the contribution of $3.1 million from Property A cquisitions and the Non-Stabilized Property and an increase of $0.4 million from Same Community properties (described below). Same Community NOI for Q3 2025 of $14.4 million increased $0.4 million, or 2.7%, from $14.0 million in Q3 2024 and was attributable to a $0.6 million decrease in real estate taxes as a result of tax refunds and a $0.2 million decrease in property insurance, partially offset by the $0.3 million decrease in revenue as described above and an increase of $0.1 million in repair and maintenance expenses. FFO in Q3 2025 was $7.6 million, or $0.19 per Unit, compared to $12.2 million, or $0.23 per Unit, for Q3 2024. The decrease w as primarily related to the decrease in NOI described above, partially offset by a decrease in net finance costs of $0.2 million (which re sulted from the net paydown of debt following the Property Dispositions and Property Acquisitions) and a decrease in general and administrative expenses of $0.1 million. In addition, the reduction in FFO was also partially offset on a per Unit basis by the elimination of 15,000,000 Class B Units which were cancelled on April 30, 2025, in conjunction with the Contribution Transaction. AFFO was $6.4 million, or $0.17 per Unit for Q3 2025 compared to $11.1 million, or $0.21 per Unit, for Q3 2024. The decrease in AFFO was primarily the result of the decrease in FFO as well as higher straight line rental revenue differences, partially offset by a reduction in maintenance capital expenditures. In addition, the reduction in AFFO was partially offset on a per Unit basis by the eliminat ion of 15,000,000 Class B Units discussed above. NAV was $648.8 million, or $16.62 per Unit, as of September 30, 2025 compared to $901.3 million, or $16.75 per Unit, as of De cember 31, 2024. The decrease in NAV from December 31, 2024 to September 30, 2025 was primarily due to the Contribution Transaction, whi ch included the cancellation of 15,000,000 Class B Units which were exchanged by participating Class B Unitholders for new units of the purchaser, resulting in a $238.5 million decrease in Class B Units upon their cancellation. As this resulted in a reduction i n the total unit count outstanding, NAV was relatively flat on a per Unit basis.
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YTD 2025 Financial Summary YTD 2025 YTD 2024 Change Change %* Revenue, Total Portfolio $ 110,267 $ 126,505 $ (16,238) nm Revenue, Same Community** Properties $ 79,843 $ 79,994 $ (151) (0.2%) Revenue, Non-Same Community** Properties $ 30,424 $ 46,511 $ (16,087) nm Net loss and comprehensive loss $ (60,453) $ (80,027) $ 19,574 nm NOI**, Total Portfolio $ 59,192 $ 70,201 $ (11,009) nm NOI**, Same Community** Properties $ 43,508 $ 43,606 $ (98) (0.2%) NOI**, Non-Same Community** Properties $ 15,684 $ 26,595 $ (10,911) nm FFO** $ 29,163 $ 39,882 $ (10,719) nm FFO per Unit** $ 0.64 $ 0.74 $ (0.10) (13.5%) Maintenance capital expenditures $ (2,113) $ (3,181) $ 1,068 nm Straight line rental revenue differences $ (443) $ 5 $ (448) nm AFFO** $ 26,607 $ 36,706 $ (10,099) nm AFFO per Unit** $ 0.58 $ 0.68 $ (0.10) (14.7%) Weighted Average Unit Count 45,572,408 53,828,208 (8,255,800) (15.3%) *Percentages have been excluded for changes which are not considered to be meaningful for comparative purposes. **Same Community, NOI, NOI Margin, FFO, FFO per Unit, AFFO, AFFO per Unit, AFFO Payout Ratio, Debt to Gross Book Value and NAV per U nit are non-GAAP measures. For a description of the basis of presentation and reconciliations of the REIT's non-GAAP measures, see “Non-GAAP Measures” in this news release. Total portfolio revenue of $110.3 million for YTD 2025 decreased $16.2 million compared to $126.5 million for YTD 2024. This decrease was the result of the Property Dispositions which reduced revenue by $28.0 million and a $0.2 million reduction from Same Communi ty properties (discussed below), partially offset by contributions of $11.9 million from the Property Acquisitions and the Non -Stabilized Property. Total revenue resulting from the Property Acquisitions and the Non -Stabilized Property is expected to continue to improve in future periods as the lease-up and operational enhancements continue to progress through stabilization. Same Community revenue of $79.8 million for YTD 2025 decreased $0.2 million, or 0.2%, compared to $80.0 million for YTD 2024, primarily due to a $0.5 million reduction from rental revenue as a result of lower rental rates, partially offset by higher average occupancy versus the comparative period. This decrease was also partially offset by a $0.3 million increase in other property income, driven by en hanced resident participation in credit building services, an increase in utility reimbursements and an increase in properties recei ving valet trash service over the prior year. The change in net loss and comprehensive loss between YTD 2025 and YTD 2024 is primarily due to non -cash adjustments to the fair value of investment properties, partially offset by the non -cash adjustments to derivatives and other financial liabilities and the costs of dispositions, partially offset by non -cash adjustments to the fair value of investment properties. As such, the net loss and comprehensive loss is not considered comparable period over period. Total portfolio NOI of $59.2 million for YTD 2025 decreased $11.0 million from $70.2 million for YTD 2024. The decrease was the result of a reduction of $16.1 million from the Property Dispositions and $0.1 million from Same Community properties, offset by $5.2 mil lion from the Property Acquisitions and the Non-Stabilized Property. Same Community NOI for YTD 2025 of $43.5 million decreased $0.1, or 0.2%, compared to $43.6 million in YTD 2024 and was primarily attributable to the decrease in Same Community revenue described above. FFO in YTD 2025 was $29.2 million, or $0.64 per Unit, compared to $39.9 million, or $0.74 per Unit, for YTD 2024. The decrease was primarily related to the decrease in NOI described above, partially offset by a decrease in net finance costs of $0.3 million. The redu ction in FFO was partially offset on a per Unit basis by the elimination of 15,000,000 Class B Units which were cancelled on April 30, 2025, in conjunction with the Contribution Transaction. AFFO was $26.6 million, or $0.58 per Unit for YTD 2025 compared to $36.7 million, or $0.68 per Unit, for YTD 2024. The decrease in AFFO was primarily the result of the decrease in FFO as well as higher straight line rental revenue differences, partially offset by a reduction of maintenance capital expenditures resulting from the Property Acquisitions and the Property Dispositions. In addition, the red uction in AFFO was partially offset on a per Unit basis by the elimination of 15,000,000 Class B Units discussed above.
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Highlights from Recent Four Quarters In thousands of U.S. dollars (except per unit amounts) September June 30, March 31, December 30, 2025 2025 2025 31, 2024 Operational Information Number of real estate investment properties 26 25 29 32 Total apartment units 7,170 6,802 8,008 8,904 Average monthly rent on in-place leases $ 1,511 $ 1,491 $ 1,503 $ 1,489 Average monthly rent on in-place leases, Same Community** Properties $ 1,449 $ 1,440 $ 1,443 $ 1,447 Weighted average occupancy rate 93.7% 94.6% 95.9% 95.6% Weighted average ending occupancy rate, Same Community** Properties 94.3% 95.6% 95.9% 95.6% Retention rate 58.2% 57.4% 56.9% 56.0% Debt to Gross Book Value** 51.3% 48.9% 45.3% 46.5% Q3 2025 Q2 2025 Q1 2025 Q4 2024 Operating Results Revenue, Total Portfolio $ 33,094 $ 33,697 $ 43,476 $ 42,165 Revenue, Same Community* Properties $ 26,503 $ 26,638 $ 26,702 $ 26,624 Revenue, Non-Same Community* Properties $ 6,591 $ 7,059 $ 16,774 $ 15,541 NOI*, Total Portfolio $ 17,312 $ 17,850 $ 24,030 $ 21,736 NOI*, Same Community* Properties $ 14,367 $ 14,326 $ 14,815 $ 13,552 NOI*, Non-Same Community* Properties $ 2,945 $ 3,524 $ 9,215 $ 8,184 NOI Margin*, Total Portfolio 52.3% 53.0% 55.3% 51.5% NOI Margin*, Same Community* Properties 54.2% 53.8% 55.5% 50.9% NOI Margin*, Non-Same Community* Properties 44.7% 49.9% 54.9% n/a Net (loss) income and comprehensive (loss) income $ 2,874 $ (22,479) $ (40,848) $ 39,785 Distributions on Class B Units $ 724 $ 1,427 $ 2,822 $ 2,815 Fair value adjustment to investment properties $ 6,510 $ 2,856 $ 74 $ 16,069 Fair value adjustment to investment properties (IFRIC 21) $ 6,509 $ 6,351 $ (22,420) $ 6,552 Property tax liability adjustment, net (IFRIC 21) $ (6,509) $ (6,351) $ 22,420 $ (6,552) Fair value adjustment to derivatives and other financial liabilities $ (2,582) $ 21,028 $ 45,272 $ (45,958) Fair value adjustment to unit-based compensation $ (233) $ 27 $ (65) $ (848) Costs of dispositions of investment properties $ 284 $ 6,294 $ 5,181 $ — Principal payments on lease liability $ — $ — $ (36) $ (36) Depreciation of right-to-use asset $ — $ — $ 33 $ 34 FFO* $ 7,577 $ 9,153 $ 12,433 $ 11,861 FFO per Unit* $ 0.19 $ 0.21 $ 0.23 $ 0.22 Maintenance capital expenditures $ (895) $ (669) $ (549) $ (933) Straight line rental revenue differences $ (239) $ (107) $ (97) $ (51) AFFO* $ 6,443 $ 8,377 $ 11,787 $ 10,877 AFFO per Unit* $ 0.17 $ 0.19 $ 0.22 $ 0.20 AFFO Payout Ratio 84.1% 73.0% 63.8% 68.9% Weighted Average Unit Count 39,023,496 43,951,971 53,905,295 53,805,811 *Same Community, NOI, NOI Margin, FFO, FFO per Unit, AFFO, AFFO per Unit, AFFO Payout Ratio, Debt to Gross Book Value and NAV per Unit are non-GAAP measures. For a description of the basis of presentation and reconciliations of the REIT's non-GAAP measures, see “Non-GAAP Measures” in this news release.
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Liquidity and Capital Structure As of September 30, 2025, the REIT had liquidity of $63.4 million, consisting of cash and cash equivalents of $6.6 million and $56.8 million available under its senior secured revolving credit facility (“Credit Facility”). The REIT also has the flexibility to obtain additional liquidity through adding properties to the borrowing base of the Credit Facility. As of September 30, 2025, the REIT had total mortgage notes payable of $407.7 million, excluding the revolving credit facilit y, with a weighted average contractual interest rate of 3.5% (including interest rate swap agreements) and a weighted average term to maturity of 3.5 years. In aggregate, total loans and borrowings (including the revolving credit facility) totaled $726.6 million as of Se ptember 30, 2025, with a weighted average contractual interest rate of 4.0% (including interest rate swap agreements). Debt to Gross Book Value as of September 30, 2025, was 51.3%. As of September 30, 2025, 99% of the REIT’s debt was fixed or economically hedged to fixed rates. Outside of the regular principal amortization of existing loans and borrowings, a balloon payment of $27.8 million on one property mortgage comes due in the next twelve months. No formal agreements have been entered into at this time to refinance this mort gage; however, the REIT has borrowing capacity under its Credit Facility as well as various other alternatives to refinance this sp ecific property. Additionally, the REIT's Credit Facility, with a current balance of $322.9 million, matures on September 30, 2026. Given the current financial environment, the REIT is actively exploring refinancing alternatives and is confident in its ability to refinance the facilit y prior to its maturity. Distributions and Units Outstanding Cash distributions declared to holders of both Units and Class B Units totaled $5.4 million for Q3 2025, representing an AFFO Payout Ratio of 84.1%. 100% of the REIT’s cash distributions were classified as return of capital. As of September 30, 2025, the total number of Units outstanding was 33,505,992. There were also 5,170,129 Class B Units, which are redeemable for Units on a one-for-one basis, and 364,028 Deferred Units outstanding as of September 30, 2025, for a total non-weighted unit count of 39,040,149. These are weighted for the purpose of calculating FFO per Unit, AFFO per Unit and NAV per Unit as defined above. On April 30, 2024, 15,000,000 Class B Units were cancelled as a result of the Contribution Transaction, which has had a substantial impact on the REIT’s weighted average unit count based on the size and timing of that reduction. As such, our weighted average unit cou nt was 39,023,496 and 45,572,408 for the three and nine months ended September 30, 2025, respectively, and should continue to decline for the remainder of the year at a proportional rate for the year -to-date weighted average unit count, excluding any further changes to the unit counts in the future. Conference Call Dan Oberste, President and Chief Executive Officer, and Tom Cirbus, Chief Financial Officer, will host a conference call for analysts and investors on Thursday, November 6 th, 2025, at 10:00 am (ET). Participants can register and enter their phone number at: https://registrations.events/easyconnect/5469157/rec2ybKWadySPmIKb/ to receive an instant automated call back. Alternatively, they can dial 647-932-3411 or 800-715-9871 to reach a live operator who will join them into the call. In addition, the call will be webcast live at: https://app.webinar.net/ryAlbWPZP2e A replay of the call will be available until Thursday, November 13th, 2025. To access the replay, dial 647 -362-9199 or 800 -770-2030 (Passcode: 5469157#). A transcript of the call will be archived on the REIT’s website. About BSR Real Estate Investment Trust BSR Real Estate Investment Trust is an internally managed, unincorporated, 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 markets in the Sunbelt region of the United States. Non-GAAP Measures Same Community, NOI, NOI Margin, FFO, FFO per Unit, AFFO, AFFO per Unit, AFFO Payout Ratio, Debt to Gross Book Value, NAV and NAV per Unit are key measures of performance commonly used by real estate operating companies and real estate investment trusts. They are not measures recognized under and do not have standardized meanings prescribed by IFRS Accounting Standards. Same Community, NOI, NOI Margin, FFO, FFO per Unit, AFFO, AFFO per Unit, AFFO Payout Ratio, Debt to Gross Book Value, NAV and NAV per Unit as calc ulated by the REIT may not be comparable to similar measures presented by other issuers. For complete definitions of these measures, as well as an explanation of their composition and how the measures provide useful information to investors, please refer to the section ti tled “Non- GAAP Measures” in the REIT’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2025, whi ch section is incorporated herein by reference.
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Three months ended September Three months ended September Nine months ended September Nine months ended September 30, 2025 30, 2024 30, 2025 30, 2024 Net income (loss) and comprehensive income (loss) $ 2,874 $ (39,251) $ (60,453) $ (80,027) Adjustments to arrive at FFO Distributions on Class B Units 724 2,750 4,973 7,993 Fair value adjustment to investment properties 6,510 (15,161) 9,440 54,240 Fair value adjustment to investment properties (IFRIC 21) 6,509 7,332 (9,560) (6,552) Property tax liability adjustment, net (IFRIC 21) (6,509) (7,332) 9,560 6,552 Fair value adjustment to derivatives and other financial liabilities (2,582) 63,049 63,718 56,625 Fair value adjustment to unit-based compensation (233) 775 (271) 1,056 Costs of dispositions of investment properties 284 — 11,759 — Principal payments on lease liability — (36) (36) (105) Depreciation of right-to-use asset — 33 33 100 Funds from Operations ("FFO") $ 7,577 $ 12,159 $ 29,163 $ 39,882 FFO per Unit $ 0.19 $ 0.23 $ 0.64 $ 0.74 Adjustments to arrive at AFFO Maintenance capital expenditures (895) (1,067) (2,113) (3,181) Straight line rental revenue differences (239) 13 (443) 5 Adjusted Funds from Operations ("AFFO") $ 6,443 $ 11,105 $ 26,607 $ 36,706 AFFO per Unit $ 0.17 $ 0.21 $ 0.58 $ 0.68 Distributions declared $ 5,416 $ 7,316 $ 19,050 $ 21,191 AFFO Payout Ratio 84.1% 65.9% 71.6% 57.7% Weighted average unit count 39,023,496 53,789,870 45,572,408 53,828,208 Three Three months months Nine months Nine months ended ended ended ended September September September September 30, 2025 30, 2024 30, 2025 30, 2024 Total revenue $ 33,094 $ 42,290 $ 110,267 $ 126,505 Property operating expenses (10,435) (13,017) (33,646) (37,043) Real estate taxes 1,162 314 (26,989) (25,814) 23,821 29,587 49,632 63,648 Property tax liability adjustment (IFRIC 21) (6,509) (7,332) 9,560 6,552 Net Operating Income ("NOI") $ 17,312 $ 22,255 $ 59,192 $ 70,200 NOI margin 52.3% 52.6% 53.7% 55.5% September 30, 2025 December 31, 2024 Loans and borrowings (current portion) $ 351,883 $ 49,951 Loans and borrowings (non-current portion) 374,694 737,572 Convertible Debentures — 41,764 Total loans and borrowings and Convertible Debentures ("Debt") 726,577 829,287 Gross Book Value $ 1,417,211 $ 1,782,583 Debt to Gross Book Value 51.3% 46.5%
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September 30, 2025 December 31, 2024 Unitholders' equity $ 584,125 $ 657,596 Class B Units 64,627 243,712 NAV $ 648,752 $ 901,308 Unit count, as of the end of period 39,040,149 53,822,040 NAV per Unit $ 16.62 $ 16.75 Forward-Looking Statements This news release contains forward -looking information within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements in this news release include, but are not limited to, statements which reflect management ’s expectations regarding objectives, plans, goals, strategies, future growth metrics, results of operations, performance, business prospects, and opportunities for the REIT. The words “expects”, “expectation”, “anticipates”, “anticipated”, “believes”, “will” or variations of such words and phrases identify forward -looking statements herein. Statements containing forward -looking information are not historical facts but instead represent management ’s expectations, estimates and projections regarding future events or circumstances. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT ’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward- looking information. The REIT ’s estimates, beliefs and assumptions, which may prove to be incorrect, include assumptions relating to the REIT ’s future growth potential, results of operations, demographic and industry trends, no changes in legislative or regulatory matters, the tax laws as currently in effect, stability of the general economy for the remainder of 2025 and into 2026, lease renewals and rental increases, the ability to re-lease or find new tenants, the timing and ability of the REIT to sell and acquire certain properties, project costs and timing, a continuing trend toward land use intensification at reasonable costs and development yields, including residential development in urban markets, access to equity and debt capital markets to fund, at acceptable costs, future capital requirements and ability to refinance debts as they mature, the availability of investment opportunities for growth in the REIT ’s target markets, the valuations to be realized on property sales relative to current IFRS Accounting Standards carrying values, and the market price of the Units. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward -looking statements involve significant risks and uncertainties. The risks and uncertainties that may impact such forward-looking information include, but are not limited to, the REIT’s ability to execute its growth strategies, the REIT’s ability to execute future acquisitions, the impact of changing conditions in the U.S. multifamily housing market, increasing competition in the U.S. multifamily housing market, the effect of fluctuations and cycles in the U.S. real estate market, the marketability and value of the REIT’s portfolio, changes in the attitudes, financial condition and demand of the REIT’s demographic market, fluctuation in interest rates and volatility in financial markets, the impact of U.S. and global tariffs, developments and changes in applicable laws and regulations, the impact of climate change, and the factors discussed under “Risks and Uncertainties” in the REIT’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2025 and in the REIT’s Annual Information Form dated March 5, 2025, both of which are available on SEDAR+ (www.sedarplus.ca). If any risks or uncertainties with respect to the above materialize, or if the opinions, estimates or assumptions underlying the forward -looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward -looking information. The REIT does not undertake any obligation to update such forward -looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward -looking information speaks only as of the date of this news release. Certain statements included in this news release are considered financial outlook for purposes of applicable Canadian securit ies laws, and as such, the financial outlook may not be appropriate for purposes other than to understand management’s current expectations relating to the future growth of the REIT, as disclosed in this news release. These forward -looking statements have been approved by management to be made as at the date of this news release. Certain material factors, estimates or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in this news release and actual results could differ materially from such conclusions, forecasts or projections. There can be no assurance that actual results, performance or achievements will be consistent with these forward -looking statements. The forward -looking statements contained in this document are expressly qualified in their entirety by this cautionary statement. For further information, please contact: Spencer Andrews, Vice President of Marketing and Investor Relations BSR Real Estate Investment Trust Tel: 501.371.6321