B
SR Real Estate Investment Trust (BSRTF) maintained a strong occupancy rate of 95.6% despite challenging market conditions, driven by effective leasing strategies. The company strengthened its balance sheet by retiring $8.8 million in long-term debt for the year, with $4.5 million retired in Q4 alone. BSRTF's liquidity position remains robust, with $136 million available, including $8.7 million in cash and a $127.2 million revolving credit facility.

    Same community NOI decreased 2.6% due to increased property tax expenses and lower revenue, while FFO and AFFO per unit declined by $0.02 due to tax issues and health insurance expense timing. Lease rates were down, reflecting the challenging external environment and increased supply. Real estate taxes are expected to grow by 6% in 2025, impacting operating expenses.

    The company did not provide financial guidance for 2025 due to short-term variability and ongoing property sales. However, CEO Daniel Oberste noted that there is a seasonality component to Q4, which typically sees low leasing activity. The strategy was to increase occupancy during this time to better position the company for higher leasing months from May through August. This approach allows BSR to negotiate lease rates from a stronger position.