BSR REAL ESTATE INVESTMENT TRUST (TSX:HOM) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call.
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Summary
HOM.UN reported a sequential increase in same community NOI by 11% from Q4 2025, driven by expense normalization.
The company is ramping up bulk Internet and valet trash initiatives, which are expected to drive organic growth.
Occupancy for the August 2025 acquisition increased to 73.1%, with further leasing expected to stabilize it by July.
FFO was up 29% sequentially to $0.18 per unit, despite a year-over-year decrease due to higher borrowing costs and other expenses.
Management reiterated guidance for 2026, projecting FFO per unit of $0.75 to $0.79 and AFFO of $0.68 to $0.74, reflecting optimism in market conditions and strategic initiatives.
Full Transcript
OPERATOR
Spencer Andrews (Vice President of Investor Relations and Marketing)
Dan Oberst
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
Tom Service (Chief Financial Officer)
We will update this guidance as needed throughout the year I will now turn it back to Dan for his closing remarks.
Dan Oberst
Dan Oberst
Dan Oberst
OPERATOR
We will now begin the question and answer session. To ask a question, press Star, then the number one on your telephone keypad. Please pick up your handset and ensure that your phone is not on mute when asking your question. Our first question will come from the line of Jimmy Shan with RBC Capital Markets. Please go ahead.
Jimmy Shan (Equity Analyst)
Thanks. So, just a question. On the lease spreads,, you know, the sequential improvement that you’re seeing, would you say that’s more than the typical seasonal uptick that you’d see as you enter the spring leasing season, actually seeing improvement in market rents. I guess that would be number one. And then two is sort of the retention rate. Did that sustain into April and what were your expectations for the summer?
Dan Oberst
Jimmy Shan (Equity Analyst)
Okay, sorry, those stats that you just quoted, 11.6 versus 12.1. What was that again? That’s the percentage of tenants moving out to buy a home. Buy home. Okay, got it. Okay, thank you.
OPERATOR
Our next question will come from the line of Brad Sturges with Raymond James. Please go ahead.
Brad Sturges (Equity Analyst)
Dan Oberst
Brad Sturges (Equity Analyst)
That’s great. And I guess my other question would be I really appreciate the breakdown on the real estate tax and the breakout of the refunds. Just as a reminder, when you put out the guidance ranges, how do you account for refunds within your guidance? Is that included? Or would that, depending on how the refunds come in, that would be incremental to the guidance? Yeah, no, it’s included.
Tom Service (Chief Financial Officer)
OPERATOR
Our next question comes from the line of Jonathan Kelcher with TD Cowan. Please go ahead.
Jonathan Kelcher (Equity Analyst)
Thank you. On the 13 to 22 cents that you guys expect to get over the next three years, how much or any of that was in Q1? And can you remind us what you expect for 20, 26 and 27,
Tom Service (Chief Financial Officer)
Jonathan Kelcher (Equity Analyst)
Okay, so sounds like not a ton yet. And it’s going to continue to build with a bigger portion, the biggest portion I guess coming on next year. Is that fair? Right. Okay. And then secondly Dan, probably for you just on capital recycling, are you seeing right now any opportunities to sell assets and redeploy into new opportunities?
Dan Oberst
Jonathan Kelcher (Equity Analyst)
Yeah, I guess we need a calmer credit environment before volumes pick up. Yeah, more or less, right? Yeah. Okay, thanks. I’ll turn it back.
OPERATOR
Our next question will come from the line of Dean Wilkinson with cibc. Please go ahead.
Dean Wilkinson (Equity Analyst)
Dan Oberst
Dean Wilkinson (Equity Analyst)
But not necessarily indicative of say, a stressed seller.
Dan Oberst
No, not at this time. I mean, there’s always a handful of stressed sellers in just about any environment. But I don’t see, I mean, in our discussions with operators, I see them very patient and developers very patient. I’m sure there’s probably some, a little bit of acrimony related to partnership behaviors, but nothing on the level of people picking up pitchforks and partnerships blowing up.
Dean Wilkinson (Equity Analyst)
Well, not yet anyway. All right, thanks, Dan. Appreciate it.
OPERATOR
Our next question comes from the lineup. Kyle Stanley with Desjardins, please. Go ahead.
Kyle Stanley (Equity Analyst)
Hi everyone. Just going to your leasing spreads for the first quarter. Obviously Austin looked like there was a pretty good improvement, but Dallas did look a little bit softer than the fourth quarter. Just curious if you can talk about the difference in dynamics between the two markets and what maybe drove that in Dallas.
Dan Oberst
Kyle Stanley (Equity Analyst)
Okay, thank you for that. That was very helpful. As we look at the non same property portfolio, excluding the owns B, it does look like you’ve had great success there and it’s near stabilization. Something you’ve talked about in the past is the ability to see margin enhancement as that part of the portfolio becomes more stabilized. Where would the margins be today versus where could they end up as you
Dan Oberst
start to turn over leases and get your second or third kick at the can on these? Right. So, all right, so if you take out the August acquisition, we’re probably average physically occupied at about 94%. Once we burned off all concessions, we would figure the margins on those new properties would be around 4, 60%.
Kyle Stanley (Equity Analyst)
Okay. Okay, perfect. That’s it for me. I will turn it back.
OPERATOR
again. For any questions, press Star one. And our next question will come from the line of Siram Srinivas with ATB Coremark Capital Markets. Please go ahead.
Siram Srinivas (Equity Analyst)
Dan Oberst
Kyle Stanley (Equity Analyst)
That is great, Kara. Dan. Thank you, I’ll turn back.
OPERATOR
This concludes our question and answer session. I’ll hand the call back over to Dan for any closing comments.
Dan Oberst
Thank you, Regina. Thank you all. We look forward to seeing you in Nareit, in early June for our investor presentations. And between now and then, if any of our investors would like a tour of our markets, please, you know where to find us. Please reach out to us. We’re happy to tour you through our properties. Thank you everyone and have a good night.