BSR REIT to Acquire Wimberly Apartments Property in Dallas-Fort Worth MSA
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BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX:HOM-U.TO) announced today that it has entered into an agreement to purchase Wimberly Apartments ("Wimberly" or the "Property"), in Dallas, Texas for US$53.05 million. The Wimberly Apartments are located in North Dallas, near the high-traffic interchange of the George Bush Turnpike and Dallas North Tollway. This location is in close proximity to the corporate headquarters of American Airlines and other major Dallas-area employers including Liberty Mutual Insurance, JPMorgan Chase, and Toyota USA. The addition of Wimberly is expected to be immediately accretive to the REIT's adjusted funds from operations((1)) ("AFFO") on a per unit basis. The transaction is expected to close by March 29, 2019.
Wimberly, built in 1995, is a 372-unit multifamily complex located on approximately 16.8 acres that comprises eighteen three-story apartment buildings. The community features amenities such as a resort-style pool, grilling stations, outdoor fireplace, attached and detached garages, fitness center and private access gate. The average monthly rent is approximately US$1,104 per unit.
The Dallas-Fort Worth Metropolitan Statistical Area ("MSA") has one of the fastest-growing populations in the United States and is home to 22 Fortune 500 companies. Following the closing of the Wimberly acquisition, BSR will own four properties in the DFW MSA comprising 1,492 units, representing approximately 14% of the REIT's portfolio.
"Wimberly is a perfect fit for our clustering strategy in the Dallas-Fort Worth market, building on our acquisition of Riverhill Apartments in December," said John Bailey, Chief Executive Officer of the REIT. "It is a high-quality property and we expect to add significant value to it through our proven capital redevelopment program. We look forward to welcoming Wimberly Apartments to the BSR family."
Wimberly represents the REIT's fourth property acquisition since completing an initial public offering on the Toronto Stock Exchange in May 2018. These four properties have a combined 1,143 units. Following the closing of the Wimberly acquisition, BSR's portfolio will include 51 multifamily properties comprising 10,823 units.
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 50 multifamily garden-style residential properties aggregating 10,451 apartment units located across five bordering states in the Sunbelt region of the United States.
_________________________ (1) AFFO is a non-IFRS financial measure. See "Non-IFRS Financial Measure" in this news release.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT, including statements regarding the extent to which the acquisition of Wimberly is expected to be accretive to AFFO per Unit and the expected closing date. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. The forward-looking statements in this news release are based on certain assumptions, including assumptions regarding the expected financial performance of Wimberly and that all conditions to closing (including lender consents) will be obtained. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's 2018 Management's Discussion & Analysis dated March 7, 2019 which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-IFRS Financial Measure
AFFO is a key measure of performance commonly used by real estate operating companies and real estate investment trusts. It is not a measure recognized under International Financial Reporting Standards ("IFRS") and does not have standardized meanings prescribed by IFRS. AFFO as calculated by the REIT may not be comparable to similar measures presented by other issuers. Please refer to the REIT's Management's Discussion and Analysis for the period ended December 31, 2018 for a reconciliation of the REIT's AFFO to a standardized IFRS measure.
SOURCE BSR Real Estate Investment Trust
View original content: http://www.newswire.ca/en/releases/archive/March2019/22/c4672.html
SOURCE: BSR Real Estate Investment Trust
Susan Koehn, Chief Financial Officer, BSR Real Estate Investment Trust, Tel: 501.371.6335, Fax: 501.374.3383