Q3 net profit rises to $21.7 million, reports BSR Trust

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BSR Real Estate Investment Trust of Little Rock said on Tuesday that its third-quarter net operating income jumped 31.6% to $21.7 million on the back of a nearly 28% increase in revenue.

The company increased its adjusted operating funds – the equivalent of earnings per share – by 26.7%, to 19 cents for the period ending September 30, from 15 cents in 2021. Adjusted operating funds and net operating income are financial measures. commonly used by real estate investment trusts to measure performance.

Revenue for the quarter was $40.5 million, compared to $31.7 million last year. Revenue from the same community properties — comparing the same apartments year over year — rose 10.7% to $24 million. These increases were fueled by increases in average rental rates per unit, which jumped 13% from $1,199 to $1,354.

“Positive economic trends in our core Texas markets continued to drive rental demand as we recorded double-digit rent increases on new and renewal leases during the third quarter,” said Dan Oberste, President and CEO. “Even with the rent increases achieved over the past year, our rent as a percentage of household income remains very affordable compared to the national average, and we expect favorable rental conditions to continue.”

Along with the earnings release on Tuesday after the close of trading, BSR announced a leadership transition. Blake Brazeal, co-president and chief operating officer since 2004, is retiring at the end of the year and will be replaced by Susan Koehn, the company’s current chief financial officer. Brandon Barger, currently chief accounting officer, will become chief financial officer.

Brazeal will remain in an advisory role. “He and I have discussed the REIT’s succession plan at length for a few years, and we have confidence in the leadership and expertise of Susie and Brandon,” Oberste said in the earnings report. “We both look forward to the future of BSR.”

During the quarter, property acquisitions accounted for $9.3 million in revenue, partially offset by property sales which reduced revenue by $2.9 million.

BSR owns and operates 31 multi-family residential properties consisting of 8,666 apartments in Arkansas, Oklahoma and Texas.

Shares of the company, which trade on the Toronto Stock Exchange, rose 23 cents on Thursday to close at $14.02. The 52-week high for the shares is $22.70.

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