BTB Real Estate Investment Trust T.BTB.DB.G

BTB Distribution

[15Stanmore]

As a long term investor in BTB.UN I am actually quite happy with the current distribution, given the impact on the various payout ratios. These are now back to more sustainable levels and builds in some prudent capacity to weather future economic challenges. 

Where I see my returns coming from is the removal of the present discount of the unit price to the Net Book Value (actually FMV if you believe the quarterly market adjustments to the carrying values of the real estate portfolio). With the September 30, 2020 NBV at $5.41 per unit, the current $3.18 market price is a 41.2% discount. Historical values have been a discount of 10% to 20%, which suggests a "return to normal" unit market price of $4.32 to $4.87.

I am looking for the Trustees and management to focus on this metric, and to address the current and historical vacancy rates that remain well below those reported by their peers. The rent from every filled vacant square foot goes straight to the bottom line and to the unit holder's benefit. This will have a far greater impact than trying to identify and buy the next great property, IMHO.