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Price Target Lowered on Real Estate Trust
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Recently released Q1/23 results from BSR Real Estate Investment Trust were in line with the previous forecast. However, based on a 10% discount to Echelon's NAV estimate, the target price was lowered on the stock, noted Echelon Capital Markets analyst David Chrystal.

BSR Real Estate Investment Trust (BSRTF:OTCMKTS) recently released financial results from the first quarter of 2023, which were in line with previous forecast and consensus, noted Echelon Capital Markets analyst David Chrystal in a May 12, 2023 research note.

Chrystal noted that while in line with Echelon's forecast, these results included "exceptional same property NOI growth (+17.8%) partially offset by higher interest expense." As seasonal rebound takes hold in the market, rental lifts will likely remain modest as they were in this quarter.

Chrystal suggested that a "lack of attractive external growth opportunities will likely see management focus on highly accretive buybacks and re-investment in existing assets in the near term."


The report contained multiple upcoming highlights for BSR, including:

  • A market rent rebound is building momentum as the spring leasing season begins, showcasing three months of positive m/m market rent growth. 
  • The development of Phase II f Aura 36Hundred in Austin is progressing within budget and the perceived timeframes. This is scheduled to be finished in 2023, with a total cost projection of US$59.5. 
  • Investment focus is inward.

Chrystal noted, "Though Q1 did not include any activity on the REIT's NCIB, management earmarked US$5M for purchases under an automatic share purchase plan. Given the significant discount of the REIT's units relative to the price of apartment assets in its core markets, management believes that unit buybacks are currently the best use of excess capital."

Structure and Predictions 

In this report, Echelon Capital Markets maintained its Buy rating on BSR, but lowered its target price from US$21 to US$19, "based on a 10% discount to our NAV estimate."

Chrystal's research also shared current market data on the company:

  • Rating: Buy
  • Price: US$12.72, with a 52-week range between US$12.32 and US$20.03
  • Price Target: US$19
  • Market Cap: US$729

Chrystal expects a projected return to target of 53.5% for shareholders. BSR has an enterprise value of US$1,531 million and 57.3 million outstanding shares.

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Important Disclosures:

  1. Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Disclosures for Echelon Capital Markets, BSR Real Estate Investment Trust, May 12, 2023

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients. Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

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Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.


I, David Chrystal, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers.


The Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer: Long Position, Trust Units.

Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer.

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