BSR Real Estate Investment Trust reported flat earnings in the fourth quarter and the company said that it is continuing to scout for acquisition opportunities.
The Little Rock company reported net operating income on same properties of $6.5 million, essentially the same as the fourth quarter ended in 2019. Revenue for the quarter was up 1.8% to $28.6 million.
For the year, revenue was up 1.5% to $113.3 million. Net operating income increased 2.7% to $26 million.
Chief Executive Officer John Bailey told analysts in a conference call Wednesday that the company prevailed in 2020 "by dramatically upgrading our portfolio." The company, which manages apartment properties in the Sun Belt, has purchased 14 properties and has sold 17 since going public three years ago.
BSR, which has previously targeted Northwest Arkansas as a market for growth, is now focused primarily on growing in Texas, Bailey told the analysts. The company has said it will sell older apartment complexes in rural markets and acquire newer properties in growing markets in Austin, Dallas, Houston and Oklahoma City.
BSR's strategy of selling older properties in rural areas in exchange for buying newer apartment complexes in the Sun Belt region will continue, Bailey said.
The company has about $400 million in potential acquisitions that it hopes to close on by summer, Bailey said. "We're very confident in that number," he said, noting that full disclosure will come as the deals are announced.