BSR Real Estate Investment Trust Announces Successful Closing Of US$115 Million Bought Deal Equity Offering

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

This news release constitutes a "designated news release" for the purposes of the REIT's prospectus supplement dated December 8, 2021, to its short form base shelf prospectus dated December 1, 2021.

LITTLE ROCK, Ark. and TORONTO, April 29, 2022 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") HOM HOM announced today that it has completed its previously announced public offering (the "Public Offering") of trust units of the REIT ("Units")  to a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets, and CIBC Capital Markets (the "Underwriters") on a bought deal basis. A total of 5,888,000 Units were issued at a price of US$19.55 per Unit for total gross proceeds to the REIT of US$115,110,400, which includes the gross proceeds from the full exercise of the over-allotment option granted to the Underwriters to purchase an additional 768,000 Units.

BSR intends to use the net proceeds from the Public Offering to repay outstanding indebtedness, to fund future acquisitions and for general trust purposes. With today's closing of the Public Offering, BSR expects to have a debt-to-gross book value of approximately 37.9% including the convertible debentures and 35.1% excluding the convertible debentures and access to approximately US$150 million of available liquidity through unrestricted cash and borrowing capacity available under its credit facility.

The Units were offered in each of the provinces and territories of Canada pursuant to the REIT's short form prospectus dated April 26, 2022 (the "Prospectus"). The terms of the Public Offering are described in the Prospectus filed with Canadian securities regulators. A copy of the Prospectus is available under the REIT's profile on the SEDAR website at www.sedar.com.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

ABOUT BSR REAL ESTATE INVESTMENT TRUST

BSR Real Estate Investment Trust 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 and secondary markets in the Sunbelt region of the United States.

Additional information about the REIT is available at www.bsrreit.com or www.sedar.com.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events, including statements about the Public Offering, the anticipated use of proceeds thereof, anticipated leverage, available liquidity, positive industry dynamics, continued execution of the REIT's growth plan,  and acquisition capacity. In some cases forward-looking information can be identified by such terms as "will", "would" and "expected". Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. The REIT's estimates, beliefs and assumptions, which may prove to be incorrect, include those relating to the REIT's ability to finance and complete future acquisitions, and that COVID-19 will not have a material impact on the REIT's operations, business and financial results. The risks and uncertainties that may impact such forward-looking information include, but are not limited to, the impact of COVID-19 on the REIT's operations, business and financial results and the factors discussed under "Risks and Uncertainties" in the REIT's Management's Discussion and Analysis for the year ended December 31, 2021 and under "Risk Factors" in the REIT's annual information form dated March 8, 2022, both of which are available on SEDAR (www.sedar.com). There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

SOURCE BSR Real Estate Investment Trust