Mr. Dan Oberste reports

BSR REIT ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

BSR Real Estate Investment Trust has released its financial results for the three and six months ended June 30, 2023. All comparisons are with 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 second quarter 2023 and year-to-date 2023 and the three months and six months ended June 30, 2022, 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, 2023, are available on the REIT's website and at SEDAR+.

"The REIT delivered same community [net operating income] growth of 11.7 per cent and [funds from operations] per-unit growth of 9.5 per cent in Q2 2023 over Q2 2022, reflecting the strong fundamentals in our core Sunbelt multifamily markets and the outstanding performance of the BSR management platform," said Dan Oberste, the REIT's president and chief executive officer. "With our prudent balance sheet and leverage profile, the REIT is well positioned to capitalize on new growth opportunities that are expected to emerge as the Federal Reserve continues to respond to improving inflation numbers."

Q2 2023 highlights:

• FFO per unit (1) for Q2 2023 of 23 cents increased 9.5 per cent over Q2 2022.
• Adjusted funds from operations per unit (1) for Q2 2023 of 20 cents increased 5.3 per cent over Q2 2022.
• Weighted-average rent increased 6.3 per cent to $1,501 per apartment unit as of June 30, 2023, compared with $1,412 as of June 30, 2022, and 0.8 per cent sequentially from $1,489 as of March 31, 2023.
• Excluding short-term leases, rental rates for new leases and renewals increased 1.1 per cent and 6.7 per cent, respectively, over the prior leases, resulting in a blended increase of 3.7 per cent.
• Same community (1) revenues for Q2 2023 increased 8.5 per cent over Q2 2022.
• Same community (1) net operating income (1) for Q2 2023 increased 11.7 per cent over Q2 2022.
• During Q2 2023, the REIT's AFFO payout ratio (1) was 63.9 per cent compared with 71.8 per cent during Q2 2022.
• Weighted-average occupancy was 95.3 per cent as of June 30, 2023, compared with 95.0 per cent as of June 30, 2022.
• Debt to gross book value (1) excluding convertible debentures (as defined below) as of June 30, 2023, was 37.3 per cent.
• In May, 2023, the REIT entered into a $50-million interest rate swap at a fixed rate of 2.25 per cent, effective Oct. 1, 2024, and maturing July 1, 2031, subject to the counterparty's optional early termination date of Feb. 1, 2027.
• In June, 2023, the REIT exercised its option pursuant to the terms of its revolving credit facility to extend the maturity for a 12-month period, now maturing on Sept. 30, 2026.
• During Q2 2023, the REIT purchased and cancelled 390,477 units under its normal course issuer bid and automatic securities purchase plan at an average price of $12.43 per unit. Through June 30, 2023, the REIT has purchased and cancelled 1,469,984 units under its NCIB at an average price of $13.25 per unit.

(1) Same community, NOI, NOI margin, FFO, FFO per unit, AFFO, AFFO per unit, AFFO payout ratio, debt to gross book value and net asset value per unit are non-international financial reporting standard measures.

Distributions and units outstanding

Cash distributions declared to holders of units and holders of Class B units totalled $7.4-million for Q2 2023, representing an AFFO payout ratio of 63.9 per cent. One hundred per cent of the REIT's cash distributions were classified as return of capital. As of June 30, 2023, the total number of units outstanding was 36,059,551. There were also 20,519,791 Class B units outstanding, which are redeemable for units on a one-for-one basis.

2023 earnings and same community portfolio guidance

The REIT's 2023 guidance is outlined herein for FFO per unit and AFFO per unit, along with its expectations for same community properties for revenue, property operating expenses and NOI in 2023. The guidance does not include potential acquisitions, dispositions or future growth from the impact of properties currently under development.

During July, 2023, the Texas House and Senate agreed to lower real estate taxes for Texans, including multifamily residential rental properties. A constitutional election is expected to be held on Nov. 7, 2023. If passed, the decrease in real estate taxes will apply to the 2023 tax year. Initial estimates indicate a potential annualized savings of approximately $1.3-million to $1.5-million in real estate taxes. Due to the pending ratification, the potential reduction in real estate taxes is not reflected in the guidance for 2023 and the REIT will address this and any impact to other property operating expenses, including increases in property insurance, as well as additional real estate tax refunds in future quarters as necessary. As of June 30, 2023, there have been no revisions to the initial 2023 guidance.

The REIT will update this guidance on a quarterly basis as necessary.

Conference call

Dan Oberste, president and chief executive officer, and Brandon Barger, chief financial officer, will host a conference call for analysts and investors on Thursday, Aug. 10, 2023, at 12 p.m. ET. Participants can register and enter their phone number to receive an instant automated callback. Alternatively, they can dial 416-764-8688 or 1-888-390-0546 to reach a live operator who will join them into the call. In addition, the call will be webcast live.

A replay of the call will be available until Thursday, Aug. 17, 2023. To listen to the replay, dial 416-764-8677 or 888-390-0541 (passcode: 136726 followed by the number sign). A transcript of the call will be archived on the REIT's website.

About BSR Real Estate Investment Trust

BSR REIT 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 markets in the Sunbelt region of the United States.

We seek Safe Harbor.