BSR REIT lowers 2026 FFO per unit guidance to $0.73-$0.77 from $0.75-$0.79
Company cuts 2026 AFFO per unit guidance to $0.66-$0.71 from $0.68-$0.74
Company expects blended lease rate changes to improve as supply is absorbed in core markets
Overview
Canada multifamily REIT's Q2 revenue rose 1.5% yr/yr, driven by property acquisitions
Adjusted FFO per unit declined yr/yr due to higher finance costs and maintenance capex
Company lowered 2026 FFO and AFFO per unit guidance on slower leasing stabilization
Result Drivers
PROPERTY ACQUISITIONS - Revenue and NOI growth were primarily driven by contributions from newly acquired properties, partially offset by property dispositions
SAME COMMUNITY WEAKNESS - Lower average occupancy and rents in same community properties led to declines in revenue and NOI
HIGHER FINANCE AND MAINTENANCE COSTS - Increased finance costs from higher interest rates and leverage, along with higher maintenance capex, reduced FFO and AFFO
Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the residential reits peer group is "buy"
Wall Street's median 12-month price target for BSR Real Estate Investment Trust is $13.00, about 10.5% above its August 11 closing price of $11.77
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago
BSR•
