BSR REIT ANNOUNCES Q2 2022 FINANCIAL RESULTS

LITTLE ROCK, Ark. and TORONTO, Aug. 9, 2022 /CNW/ - BSR Real Estate Investment Trust ("BSR", or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) today announced its financial results for the three and six months ended June 30, 2022 ("Q2 2022" and "YTD 2022", respectively). All comparisons in the following summary are to the corresponding periods in the prior year. Results are presented in U.S. dollars. References to "Same Community" correspond to stabilized properties the REIT has owned for equivalent periods throughout Q2 2022 and YTD 2022 and the three months and six months ended June 30, 2021 ("Q2 2021" and "YTD 2021", respectively), thus removing the impact of acquisitions, dispositions and non-stabilized properties. Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis as of and for the three and six months ended June 30, 2022 are available on the REIT's website at www.bsrreit.com and at www.sedar.com.

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-IFRS Measures" in this release. FFO per Unit, AFFO per Unit and NAV per Unit include diluted trust units of the REIT ("Units") and Class B Units of BSR Trust, LLC ("Class B Units").

"Strong population growth and positive economic trends in our core Texas markets are driving outsized rental demand in our communities," said Dan Oberste, the REIT's President and Chief Executive Officer. "As a result, operating results for the first half of 2022 exceeded expectations, and we expect favorable leasing conditions to continue in the second half of the year."

Q2 2022 Highlights

• On April 29, 2022, the REIT completed a public offering of 5,888,000 Units ("April 2022 Offering") for gross proceeds of $115.1 million after the full exercise of the underwriters' overallotment option;
• NAV per Unit¹ increased 51.4% to $22.35, inclusive of the Units issued in the April 2022 Offering, as of June 30, 2022 as compared to $14.77 as of June 30, 2021 and 1.7% sequentially from $21.98 as of March 31, 2022;
• FFO per Unit¹ for Q2 2022 increased 61.5% over Q2 2021;
• AFFO per Unit¹ for Q2 2022 increased 26.7% over Q2 2021;
• Weighted average rent increased 17.1% to $1,412 per apartment unit as of June 30, 2022 compared to $1,206 as of June 30, 2021 and 4.6% sequentially from $1,350 as of March 31, 2022;
• Same Community¹ revenues for Q2 2022 increased 11.5% over Q2 2021;
• Same Community¹ Net Operating Income ("NOI")¹ for Q2 2022 increased 16.7% over Q2 2021;
• During Q2 2022, the REIT's AFFO Payout Ratio¹ was 71.8% compared to 82.6% during Q2 2021;
• During Q2 2022, rental rates for new leases, increased 16.3% and renewals increased 8.8%, for a blended increase of 12.6%;
• As of June 30, 2022, weighted average occupancy was 95.0% compared to 96.2% as of June 30, 2021; and
• Debt to Gross Book Value¹ excluding Convertible Debentures (as defined below) as of June 30, 2022 was 34.0%.

Subsequent Highlights

• In July 2022, the REIT entered into three interest rate swaps (the "Swaps"). Two of the Swaps are on notional values of $150 million and $65 million at fixed rates of 2.163% and 2.178%, respectively, and begin on September 1, 2022 and mature on August 31, 2029. The third Swap is on a notional value of $65 million at a fixed rate of 2.087% and begins on January 3, 2023 and matures on July 27, 2029. Following the commencement of the Swaps, 100% of the REIT's debt will be fixed or economically hedged to fixed rates at a weighted average contractual interest rate of 3.4%;
• In July 2022, the REIT entered into an agreement to jointly develop phase II of Aura 36Hundred in the Austin, Texas metropolitan statistical area. The 238 apartment unit development is expected to be completed in 2024 with a projected total cost of $59.5 million.
• For the sixth consecutive year, BSR was named as one of the Best Places to Work in Arkansas by Arkansas Business and the Best Companies Group.

____________________________ 

¹Same 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-IFRS measures. For a description of the basis of presentation and reconciliations of the REIT's non-IFRS measures, see "Non-IFRS Measures" in this news release.

Q2 2022 Financial Summary

In thousands of U.S. dollars, except per unit amounts

	Q2 2022			Q2 2021			Change			Change %
Revenue, Total Portfolio	$	38,787		$	28,046		$	10,741		38.3 %
Revenue, Same Community^1 Properties	$	23,179		$	20,795		$	2,384		11.5 %
Revenue, Non-Same Community^1 Properties	$	15,608		$	7,251		$	8,357		115.3 %
Net income and comprehensive income	$	160,832		$	35,975		$	124,857		nm*
NOI^1, Total Portfolio	$	20,998		$	14,374		$	6,624		46.1 %
NOI^1, Same Community^1 Properties	$	12,718		$	10,901		$	1,817		16.7 %
NOI^1, Non-Same Community^1 Properties	$	8,280		$	3,473		$	4,807		138.4 %
Funds from Operations ("FFO")^1	$	11,637		$	7,000		$	4,637		66.2 %
FFO per Unit^1	$	0.21		$	0.13		$	0.08		61.5 %
Maintenance capital expenditures	$	(1,218)		$	(690)		$	(528)		76.5 %
Escrowed rent guaranty realized	$	5		$	1,475			(1,470)		nm*
Severance/retention costs on dispositions	$	-		$	59		$	(59)		nm*
Straight line rental revenue differences	$	54		$	11		$	43		nm*
AFFO^1	$	10,478		$	7,855		$	2,623		33.4 %
AFFO per Unit^1	$	0.19		$	0.15		$	0.04		26.7 %
Weighted Average Unit Count		56,290,702			52,084,576			4,206,126		8.1 %
Unitholders' equity	$	991,865		$	484,465		$	507,400		104.7 %
NAV^1	$	1,300,732		$	769,302		$	531,430		69.1 %
NAV per Unit^1	$	22.35		$	14.77		$	7.58		51.4 %

*Percentages have been excluded for changes which are not considered to be meaningful for comparative purposes.

¹Same 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-IFRS measures. For a description of the basis of presentation and reconciliations of the REIT's non-IFRS measures, see "Non-IFRS Measures" in this news release.

The 38.3% increase in total portfolio revenue for Q2 2022, compared to Q2 2021, was the result of contributions of $2.4 million from Same Community properties, $11.4 million from property acquisitions and $0.2 million from non-stabilized properties, partially offset by property dispositions that reduced revenue by $3.3 million.

Revenue from Same Community properties for Q2 2022 outperformed Q2 2021 by $2.4 million, or 11.5%, primarily due to a 12.6% increase in average rental rates from $1,161 per apartment unit as of June 30, 2021 to $1,307 per apartment unit as of June 30, 2022.

The increase in net income and comprehensive income for Q2 2022 compared to Q2 2021 was primarily due to an increase in the fair value adjustment (gain) to derivatives and other financial liabilities of $178.1 million, over the prior period, partially offset by a decrease in the fair value gain to investment properties of $63.2 million.

The increase in total portfolio NOI for Q2 2022 compared to Q2 2021 of $6.6 million, or 46.1%, was the result of contributions of $1.8 million from Same Community properties and $6.3 million from property acquisitions and non-stabilized properties, partially offset by property dispositions which reduced NOI by $1.3 million. Severance/retention costs on dispositions are excluded from NOI.

The increase in Same Community NOI for Q2 2022 compared to Q2 2021 of $1.8 million, or 16.7%, was the result of the increase in revenue described above, partially offset by an increase in property operating expenses, including real estate taxes, of $0.6 million, or 5.7%, due to an increase in payroll, administrative and repair and maintenance expenses as well as an increase in the cost of insurance over the prior period.

FFO was $11.6 million, or $0.21 per Unit, for Q2 2022 compared to $7.0 million, or $0.13 per Unit, for Q2 2021. The increase was primarily the result of the higher NOI discussed above, partially offset by increases of $0.4 million in general and administrative expenses associated with payroll and insurance and $1.6 million in finance costs associated with additional debt related to additional investment properties over the prior period and an increase in interest rates. As discussed above, subsequent to Q2 2022 the REIT entered into Swaps to hedge an additional $280.0 million in variable rate debt. Losses on extinguishment of debt are excluded from the calculation of FFO.

AFFO was $10.5 million, or $0.19 per Unit, for Q2 2022, compared to $7.9 million, or $0.15 per Unit, for Q2 2021. The improvement was primarily the result of the increase in FFO discussed above, partially offset by an escrowed rent guaranty realized in the prior year of $1.5 million and an increase in maintenance capital expenditures of $0.5 million largely related to the painting of metal railings and replacing of gutters in Q2 2022. Losses on extinguishment of debt and severance/retention costs on dispositions are excluded from the calculation of AFFO.

YTD 2022 Financial Summary

In thousands of U.S. dollars, except per unit amounts

	YTD 2022			YTD 2021			Change			Change %
Revenue, Total Portfolio	$	76,332		$	53,816		$	22,516		41.8 %
Revenue, Same Community^1 Properties	$	45,380		$	40,756		$	4,624		11.3 %
Revenue, Non-Same Community^1 Properties	$	30,952		$	13,060		$	17,892		137.0 %
Net income and comprehensive income	$	219,863		$	105,353		$	114,510		nm*
NOI^1, Total Portfolio	$	40,643		$	27,729		$	12,914		46.6 %
NOI^1, Same Community^1 Properties	$	24,837		$	21,323		$	3,514		16.5 %
NOI^1, Non-Same Community^1 Properties	$	15,806		$	6,406		$	9,400		146.7 %
FFO^1		22,702		$	12,806		$	9,896		77.3 %
FFO per Unit^1	$	0.42		$	0.25		$	0.17		68.0 %
Maintenance capital expenditures	$	(1,920)		$	(1,186)		$	(734)		61.9 %
Escrowed rent guaranty realized	$	87		$	1,475		$	(1,388)		nm*
Severance/retention costs on dispositions	$	-		$	105		$	(105)		nm*
Straight line rental revenue differences	$	136		$	(35)		$	171		nm*
AFFO^1	$	21,005		$	13,165		$	7,840		59.6 %
AFFO per Unit^1	$	0.39		$	0.26		$	0.13		50.0 %
Weighted Average Unit Count		54,246,536			50,682,740			3,563,796		7.0 %

*Percentages have been excluded for changes which are not considered to be meaningful for comparative purposes.

¹Same 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-IFRS measures. For a description of the basis of presentation and reconciliations of the REIT's non-IFRS measures, see "Non-IFRS Measures" in this news release.

The 41.8% increase in total portfolio revenue for YTD 2022 compared to YTD 2021 was the result of contributions of $4.6 million from Same Community properties, $25.0 million from property acquisitions and $0.8 million from non-stabilized properties, partially offset by property dispositions that reduced revenue by $7.8 million.

Revenue from Same Community properties for YTD 2022 outperformed YTD 2021 by $4.6 million, or 11.3%, primarily due to a 12.6% increase in average rental rates from $1,161 per apartment unit as of June 30, 2021 to $1,307 per apartment unit as of June 30, 2022.

The increase in net income and comprehensive income for YTD 2022 compared to YTD 2021 was primarily due to an increase in the fair value adjustment gain to derivatives and other financial liabilities of $108.1 million over the prior period.

The increase in total portfolio NOI for YTD 2022 compared to YTD 2021 of $12.9 million, or 46.6%, was the result of contributions of $3.5 million from Same Community properties and $13.2 million from property acquisitions and non-stabilized properties, partially offset by property dispositions which reduced NOI by $3.6 million. Severance/retention costs on dispositions are excluded from NOI.

The increase in Same Community NOI for YTD 2022 compared to YTD 2021 of $3.5 million, or 16.5%, was the result of the increase in revenue described above, offset by an increase in property operating expenses, including real estate taxes, of $1.1 million, or 5.7%, due to higher payroll expenses, administrative expenses, utilities and property insurance expense as well as higher property taxes of $0.3 million.

FFO was $22.7 million, or $0.42 per Unit, for YTD 2022 compared to $12.8 million, or $0.25 per Unit, for YTD 2021. The FFO per Unit increase of 68.0% was primarily the result of higher NOI discussed above, partially offset by increases of $0.6 million in general and administrative expenses associated with payroll and professional fees and $2.5 million in finance costs related to additional debt associated with additional investment properties over the prior period and an increase in interest rates. As discussed above, subsequent to Q2 2022 the REIT hedged an additional $280.0 million in variable rate debt. Losses on extinguishment of debt are excluded from the calculation of FFO.

AFFO was $21.0 million, or $0.39 per Unit, for YTD 2022, compared to $13.2 million, or $0.26 per Unit, for YTD 2021. The AFFO per Unit improvement of 50.0% was primarily the result of the increase in FFO, partially offset by a lower escrow rent guaranty realized of $1.4 million and an increase in maintenance capital expenditures of $0.7 million largely related to the painting of metal railings and replacing of gutters in Q2 2022. Losses on extinguishment of debt and severance/retention costs on dispositions are excluded from the calculation of AFFO.

Highlights from Recent Four Quarters

In thousands of U.S. dollars (except per unit amounts)

	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
Operational Information
Number of real estate investment properties		31			31			31			30
Total apartment units		8,666			8,666			8,666			8,367
Average monthly rent on in-place leases	$	1,412		$	1,350		$	1,328		$	1,275
Average monthly rent on in-place leases,
Same Community^1 Properties	$	1,307		$	1,238		$	1,228		$	1,199
Weighted average occupancy rate		95.0 %			94.5 %			96.0 %			96.4 %
Retention rate		57.1 %			57.3 %			58.5 %			56.6 %
Debt to Gross Book Value^1		36.2 %			43.2 %			45.1 %			43.5 %
	Q2 2022			Q1 2022			Q4 2021			Q3 2021
Operating Results
Revenue, Total Portfolio	$	38,787		$	37,545		$	34,061		$	31,705
Revenue, Same Community^1 Properties	$	23,179		$	22,201		$	21,981		$	21,702
Revenue, Non-Same Community^1 Properties	$	15,608		$	15,344		$	12,080		$	10,003
NOI^1, Total Portfolio	$	20,998		$	19,645		$	18,678		$	16,504
NOI^1, Same Community^1 Properties	$	12,718		$	12,119		$	12,369		$	11,366
NOI^1, Non-Same Community^1 Properties	$	8,280		$	7,526		$	6,309		$	5,138
NOI Margin^1, Total Portfolio		54.1 %			52.3 %			54.8 %			52.1 %
NOI Margin^1, Same Community^1 Properties		54.9 %			54.6 %			56.7 %			54.8 %
NOI Margin^1, Non-Same Community^1 Properties		53.0 %			49.0 %			53.7 %			50.2 %
Net income and comprehensive income	$	160,832		$	59,031		$	70,868			106,993
Distributions on Class B Units	$	2,678		$	2,648		$	2,595		$	2,628
Fair value adjustment to investment properties	$	(20,258)		$	(118,789)		$	(114,282)		$	(162,302)
Fair value adj. to investment prop. (IFRIC 21)	$	7,732		$	(22,328)		$	5,057		$	5,606
Property tax liability adjustment, net (IFRIC 21)	$	(7,732)		$	22,328		$	(5,057)		$	(5,606)
Fair value adjustment to derivatives and other
financial liabilities	$	(129,842)		$	65,607		$	42,512		$	57,084
Fair value adj. to unit-based compensation	$	(1,771)		$	2,569		$	905		$	1,285
Costs of disposition of investment properties	$	-		$	-		$	1,518		$	-
Loss on extinguishment of debt	$	-		$	-		$	5,538		$	2,472
Principal payments on lease liability		(35)		$	(34)		$	(33)		$	(33)
Depreciation of right-to-use asset	$	33		$	33		$	32		$	33
FFO^1	$	11,637			11,065		$	9,653		$	8,160
FFO per Unit	$	0.21		$	0.21		$	0.19		$	0.16
Maintenance capital expenditures	$	(1,218)		$	(702)			(974)		$	(948)
Escrowed rent guaranty realized	$	5		$	82		$	265		$	677
Severance/retention costs on dispositions	$	-		$	-		$	106		$	–
Straight line rental revenue differences	$	54		$	82		$	43		$	(40)
AFFO^1	$	10,478		$	10,527		$	9,093		$	7,849
AFFO per Unit^1	$	0.19		$	0.20		$	0.17		$	0.15
AFFO Payout Ratio		71.8 %			63.3 %			71.4 %			82.7 %
Weighted Average Unit Count		56,290,702			52,179,657			52,130,772			52,109,042

¹Same 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-IFRS measures. For a description of the basis of presentation and reconciliations of the REIT's non-IFRS measures, see "Non-IFRS Measures" in this news release.

Liquidity and Capital Structure

As of June 30, 2022, the REIT had liquidity of $167.3 million, consisting of cash and cash equivalents of $8.7 million and $158.6 million available under its revolving credit facility. The REIT also has the ability to obtain additional liquidity by adding properties to the current borrowing base.

As of June 30, 2022, the REIT had total mortgage notes payable of $488.4 million, excluding the credit facility, with a weighted average contractual interest rate of 3.3% and a weighted average term to maturity of 5.6 years. Total loans and borrowings of the REIT as of June 30, 2022 were $710.9 million with a weighted average contractual interest rate of 3.3%, excluding the convertible unsecured subordinated debentures (the "Convertible Debentures"). Debt to Gross Book Value excluding the convertible debentures as of June 30, 2022 was 34.0%. As of June 30, 2022, 61% of the REIT's debt was fixed or economically hedged to fixed rates. As discussed above, in July of 2022, the REIT hedged an additional $280.0 million in variable rate debt. Following the commencement of these interest rate swaps, 100% of the REIT's debt is fixed or economically hedged to fixed rates with a weighted average contractual interest rate of 3.4%.

As of June 30, 2022, the REIT had outstanding Convertible Debentures valued at $46.0 million at a contractual interest rate of 5%, maturing on September 30, 2025 with a conversion price of $14.40 per Unit.

On December 8, 2021, the REIT announced that it has established an at-the-market equity program (the "ATM Program") that allows the REIT to issue up to $150 million of Units from treasury to the public from time to time, at the REIT's discretion. The ATM Program is effective until the earlier of (i) the issuance and sale of all of the Units through the agents on the terms and conditions set forth in the equity distribution agreement, (ii) the Shelf Prospectus ceasing to be effective on January 1, 2024, and (iii) the termination of the equity distribution agreement as permitted therein. As of June 30, 2022, no Units have been issued under the ATM Program.

On April 29, 2022, the REIT completed the April 2022 Offering, referenced above, for gross proceeds of $115.1 million, after the full exercise of the underwriters' overallotment option.

Distributions and Units Outstanding

Cash distributions declared to holders of Units and holders of Class B Units totalled $7.5 million for Q2 2022, representing an AFFO Payout Ratio¹ of 71.8%. 100% of the REIT's cash distributions were classified as return of capital. As of June 30, 2022, the total number of Units outstanding was 37,337,895. There were also 20,604,860 Class B Units outstanding, which are redeemable for Units on a one-for-one basis.

2022 Earnings and Same Community Portfolio Guidance

Given the unprecedented growth in BSR's markets, the REIT provided initial 2022 guidance for FFO per Unit¹ and AFFO per Unit¹, along with its expectations for growth of the Same Community¹ properties revenue, property operating expense and NOI¹ in 2022. As of June 30, 2022, the REIT is increasing its expectations for the Same Community¹ properties revenue and NOI¹ growth in 2022. However, the guidance for FFO per Unit¹ and AFFO per Unit¹ in 2022 remains unchanged due to the increased NOI expectations offsetting the impact of the April 2022 Offering. The REIT will update this guidance on a quarterly basis as necessary.

	Revised guidance for 2022
Per Unit	Range	Midpoint
Total Portfolio
FFO per Unit	$0.86 to $0.90	$0.88
AFFO per Unit	$0.80 to $0.84	$0.82
Same Community Growth
Total Revenue	10.0% to 12.0%	11.00 %
Property Operating Expenses	4.5% to 6.5%	5.50 %
NOI	12.0% to 14.0%	13.00 %

Non-IFRS measures are presented to illustrate alternative relevant measures to assess the REIT's performance. See "Non-IFRS Measures" in this news release. See also "Forward-Looking Information", as the figures presented above are considered "financial outlook" for purposes of applicable Canadian securities laws and may not be appropriate for purposes other than to understand management's current expectations relating to the future growth of the REIT. Although the REIT believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information. The REIT reviews its key assumptions regularly and may change its outlook on a going-forward basis if necessary.

Conference Call

Dan Oberste, President and Chief Executive Officer, and Susan Koehn, Chief Financial Officer, will host a conference call for analysts and investors on Wednesday, August 10^th, 2022 at 11:00 am (ET). The dial-in numbers for participants are 416-764-8688 or 888-390-0546. In addition, the call will be webcast live at: 

https://app.webinar.net/0XlWGOMgKDr

A replay of the call will be available until Wednesday, August 17^th, 2022. To access the replay, dial 416-764-8677 or 888-390-0541 (Passcode: 758476 #). 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 and secondary markets in the Sunbelt region of the United States.

Non-IFRS 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 International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. 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 calculated 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 titled "Non-IFRS Measures" in the REIT's Management's Discussion and Analysis for the three and six months ended June 30, 2022, which section is hereby incorporated herein by reference.

						Three months ended June 30, 2022			Three months ended June 30, 2021			Six months ended June 30, 2022			Six months ended June 30, 2021
Net income and comprehensive income						$	160,832		$	35,975		$	219,863		$	105,353
Adjustments to arrive at FFO
	Distributions on Class B Units						2,678			2,703			5,326			5,415
	Fair value adjustment to investment properties						(20,258)			(83,469)			(139,047)			(146,164)
	Fair value adjustment to investment properties (IFRIC 21)						7,732			5,698			(14,596)			(7,670)
	Property tax liability adjustment, net (IFRIC 21)						(7,732)			(5,698)			14,596			7,670
	Fair value adjustment to derivatives and other financial
		liabilities					(129,842)			48,302			(64,235)			43,881
	Fair value adjustment to unit-based compensation						(1,771)			830			798			782
	Costs of disposition of investment properties						—			1,080			—			1,689
	Loss on extinguishment of debt						—			1,580			—			1,851
	Principal payments on lease liability						(35)			(33)			(69)			(66)
	Depreciation of right-to-use asset						33			32			66			65
Funds from Operations ("FFO")						$	11,637		$	7,000		$	22,702		$	12,806
FFO per Unit						$	0.21		$	0.13		$	0.42		$	0.25
Adjustments to arrive at AFFO
	Maintenance capital expenditures						(1,218)			(690)			(1,920)			(1,186)
	Escrowed rent guaranty realized						5			1,475			87		1,475
	Severance/retention costs on dispositions						—			59			—		105
	Straight line rental revenue differences						54			11			136		(35)
Adjusted Funds from Operations ("AFFO")						$	10,478		$	7,855		$	21,005		$	13,165
AFFO per Unit						$	0.19		$	0.15		$	0.39		$	0.26
Distributions declared						$	7,525		$	6,492		$	14,191		$	12,720
AFFO Payout Ratio							71.8 %			82.6 %			67.6 %		96.6 %
Weighted average unit count							56,290,702			52,084,576			54,246,536		50,682,740

						Three months ended June 30, 2022			Three months ended June 30, 2021			Six months ended June 30, 2022			Six months ended June 30, 2021
Total revenue						$	38,787		$	28,046		$	76,332		$	53,816
Property operating expenses						(11,388)			(8,623)			(21,750)			(16,838)
Real estate taxes						1,331			590			(28,535)			(17,024)
						28,730			20,013			26,047			19,954
Property tax liability adjustment (IFRIC 21)						(7,732)			(5,698)			14,596			7,670
Severance/retention costs on dispositions						—			59			—			105
Net Operating Income ("NOI")						$	20,998		$	14,374		$	40,643		$	27,729
NOI margin						54.1 %			51.3 %			53.2 %			51.5 %

								June 30, 2022			December 31, 2021
Loans and borrowings (current portion)								$	1,746		$	1,714
Loans and borrowings (non-current portion)								709,141			824,767
Convertible debentures								45,956			51,745
Total loans and borrowings and convertible debentures ("Debt")								756,843			878,226
Gross Book Value								$	2,093,448		$	1,948,095
Debt to Gross Book Value								36.2 %			45.1 %

								June 30, 2022		December 31, 2021
Unitholders' equity								$         991,865		$         666,569
Class B Units								308,867		366,365
NAV								$      1,300,732		$      1,032,934
Unit count, as of the end of period								58,204,190		52,142,519
NAV per Unit								$              22.35		$              19.81

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 (including 2022 guidance for FFO, AFFO, and Same Community metrics Revenue, Property Expenses and NOI growth), 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, a gradual recovery and growth of the general economy over 2022, the impact of COVID-19, lease renewals and rental increases, the ability to re-lease or find new tenants, the timing and ability of the REIT to sell certain properties, project costs and timing, relatively historically low interest costs, 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 to enable refinancing of 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 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 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, developments and changes in applicable laws and regulations, the impact of climate change, the impact of COVID-19 on the operations, business and financial results of the REIT and the factors discussed under "Risks and Uncertainties" in the REIT's Management's Discussion and Analysis for the three and six months ended June 30, 2022 and in the REIT's Annual Information Form dated March 8, 2022, both of which are available on SEDAR (www.sedar.com). 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, including with respect to 2022 FFO, AFFO and Same Community portfolio guidance, are considered financial outlook for purposes of applicable Canadian securities 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.

SOURCE BSR Real Estate Investment Trust

Susan Koehn, Chief Financial Officer, BSR Real Estate Investment Trust, Tel: [phone], Fax: [phone]