Published on April 23rd, 2026 by Felix Martinez
BSR Real Estate Investment Trust (BSRTF) has three appealing investment characteristics:
#1: It is a REIT, so it has a favorable tax structure and pays out the majority of its earnings as dividends.
Related: List of publicly traded REITs
#2: It is offering an above-average dividend yield of 4.2%.
#3: It pays dividends monthly instead of quarterly.
Related: List of monthly dividend stocks
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BSR Real Estate Investment Trust’s trifecta of favorable tax status as a REIT, an above-average yield, and a monthly dividend makes it appealing to individual investors.
But there’s more to the company than just these factors. Keep reading this article to learn more about BSR Real Estate Investment Trust.
Business Overview
BSR Real Estate Investment Trust is an internally managed, open-ended REIT that owns a portfolio of 32 multifamily garden-style residential properties located in attractive primary and secondary markets in the Sunbelt region of the U.S. The REIT’s residential properties have a total of 8,904 units. It was founded in 1956 and became focused on multifamily housing in 1991.
Source: Investor Presentation
Sunbelt markets have enjoyed superior population and economic growth for decades and are likely to continue growing much faster than the rest of the country. As a result, BSR REIT is ideally positioned to benefit from above-average rent growth in the coming years.
BSR REIT has high-quality, affordable residential properties that enjoy strong demand across all phases of the economic cycle. In addition, its properties require lower maintenance expenses than typical urban properties.
Moreover, multifamily REITs have outperformed most other REIT categories over the last two decades.
Source: Investor Presentation
The company reported weaker fourth-quarter 2025 results, primarily due to asset dispositions and ongoing lease-up of newly acquired properties. Total revenue declined to $34.0 million from $42.2 million year over year, while net income swung to a loss of $2.3 million compared to a $39.8 million gain in Q4 2024.
Net operating income (NOI) fell to $16.0 million from $21.7 million, and funds from operations (FFO) decreased to $5.4 million, or $0.14 per unit, down from $11.9 million, or $0.22 per unit.
For the full year 2025, revenue totaled $144.2 million, down from $168.7 million in 2024, reflecting the impact of property sales and portfolio repositioning. NOI declined to $75.2 million from $91.9 million, while FFO decreased to $34.6 million, or $0.79 per unit, compared to $51.7 million, or $0.96 per unit in the prior year.
The REIT also reported a net loss of $62.7 million, widening from a $40.2 million loss in 2024, largely due to lower revenue and non-cash valuation adjustments.
Overall, performance in both the quarter and full year reflects a transitional period rather than core operational deterioration. While near-term earnings were pressured by dispositions, higher expenses, and lease-up activity, underlying fundamentals such as occupancy (94.1%) and rent growth (average monthly rent of $1,496) remained relatively stable, suggesting potential improvement as newer assets stabilize.
Growth Prospects
Millennials have exhibited a greater propensity to rent as they pursue a more flexible lifestyle. As millennials comprise about 25% of the population in BSR REIT’s core markets, the REIT enjoys strong demand for its properties and has ample room for future growth.
BSR REIT also greatly benefits from the superior population growth and economic growth experienced in Sunbelt markets.
Source: Investor Presentation
Thanks to this characteristic of its core markets, the REIT has enjoyed strong rent growth year after year.
It is also worth noting that BSR REIT divested 39 non-core properties during 2019-2021 for total proceeds of $760.5 million. The company thus reduced the average age of its properties from 29 to 11 years, drastically reducing its capital expenses.
During the last three years, BSR REIT has exhibited a somewhat volatile business performance, primarily due to the pandemic. Nevertheless, it has grown its adjusted FFO per unit by an average of 7.7% per year over this period. Thanks to BSR REIT’s promising growth prospects, we expect an average annual FFO per-unit growth rate of 6.0% over the next five years.
Dividend & Valuation Analysis
In contrast to many REITs, which cut their dividends in 2020-2021 due to the coronavirus crisis, BSR REIT proved resilient to that downturn thanks to its robust business model. The REIT experienced only a 12.5% decrease in its FFO per unit in 2020 while keeping its dividend flat. Even better, it has now fully recovered from the pandemic.
BSR REIT has a short dividend history, having initiated dividends only in 2018. The stock currently offers a 4.5% dividend yield. Thanks to its solid business model and a healthy payout ratio of 78%, the trust is unlikely to cut its dividend.
In reference to the valuation, BSR REIT has traded for 16.5 times its adjusted FFO per unit in the last 12 months. Given the trust’s somewhat volatile and relatively short performance record, we assume a fair price-to-FFO ratio of 17.0 for the stock. Therefore, the current FFO multiple is lower than our assumed fair price-to-FFO ratio. If the stock trades at its fair value in five years, it will experience a 1.0% annualized return expansion.
Taking into account the 6% annual FFO-per-share growth, the 4.5% dividend, and a 1.0% annualized expansion of valuation level, BSR REIT could offer just a 11% average annual total return over the next five years. This is a good expected return, so investors should be an entry point at the current price.
Final Thoughts
BSR REIT has the advantage of owning multifamily properties in Sunbelt markets, which are characterized by robust economic growth and strong demand for this property type. The REIT also proved relatively resilient throughout the coronavirus crisis, defending its dividend, in sharp contrast to many other REITs. As the stock also offers a 4.5% dividend yield with a healthy payout ratio of 78%, it is an attractive candidate for income-oriented investors’ portfolios.
On the other hand, investors should be aware that BSR REIT is not a high-growth REIT; hence, it is prudent to maintain a wide margin of safety in the stock’s valuation. BSR REIT appears slightly undervalued right now. Therefore, investors should consider today’s price as a good entry point.
Don’t miss the resources below for more monthly dividend stock investing research.
- The Monthly Dividend Stocks List
- 20 Highest Yielding Monthly Dividend Stocks
- 10 Cheapest Monthly Dividend Stocks
- 10 Safest Monthly Dividend Stocks
- 3 Top ‘Hold Forever’ Monthly Dividend Stocks
And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
- Dividend Kings: 50+ years of rising dividends
- Dividend Champions: 25+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- Dividend Achievers: 10+ years of rising dividends and in the NASDAQ
- High Dividend Stocks: 4%+ dividend yields
- Blue Chip Stock: Kings, Aristocrats, and Achievers
- MLPs: List of MLPs and more
- REITs: List of REITs and more
- BDCs: List of BDCs and more