BTB Real Estate Investment Trust BTBIF

BTB Posts Strong 2021 Second Quarter Results

[Betteryear2]

MONTRAL, Aug. 9, 2021 /CNW/ - BTB Real Estate Investment Trust (TSX: BTB.UN) ("BTB" or the "REIT") releases today its financial results for the second quarter ended June 30th, 2021, compared to the second quarter of 2020 and present the following highlights and information:

HIGHLIGHTS OF THE SECOND QUARTER ENDED JUNE 30TH, 2021

• Improved Results and Continued Stability: during the quarter, BTB showed improved financial results and stability through its retail, office, and industrial operating segments.
  
  As a reminder, the results of the second quarter of last year were impacted by the financial effect of the Canada Emergency Commercial Rent Assistance ("CECRA") program. This program, in addition to rent concessions granted to tenants, impacted 2020's NOI by $0.5 million. NOI was also impacted by $1.1 million as a result of a higher provision for credit losses and by a reduction of the fair value of properties of $10.5 million.
  
  During the first and second quarter of 2021, BTB did not have to record any major impact caused by COVID-19. Revenues have improved and BTB's results for Q2 2021, demonstrate the improvement in its financial performance.
   
• Cash Position: BTB concluded Q2 2021 with a cash position of $25.3 million. The $19.0 million increase in cash since the last quarter is mainly due to the net proceeds received from the equity issue of $31.6 million (excluding transaction costs). The operating and acquisition lines of credit were fully repaid and thus our cash on hand and on our lines of credit of $23 million are fully available and ready to be deployed.
  
  Beyond BTB's cash position of $25.3 million, the Trusts' financial capacity is beyond $40 million, which would allow BTB to acquire approximately
  $100 million in assets without going to market.
   
• NOI Margin: stands at 59.8 % compared to 53.8 % for the same period last year. The Trust recorded additional recoveries of $1.4 million and not considering these recoveries, the NOI margin would be 57.5%, still representing a 3.7% increase compared to the same period last year. 
   
• SPNOI Margin: stands at 59.7% for the quarter compared to 54.2% for the same period last year. Excluding non-recurring items, SPNOI increased by 3.3% compared to Q2 2020.
   
• Lease Renewals and New Leases Concluded: leasing activities were strong as BTB renewed and leased vacant spaces totaling 175,193 sq. ft. Lease renewal activities showed an 86.2% renewal rate, a 10.2% increase as compared to the prior quarter. Leases representing a total of 97,193 sq. ft. were renewed, and leases representing 78,000 sq. ft. were signed with new tenants. This leasing activity resulted in a 1.2% increase in the occupancy rate to 92.2%, compared to the last quarter.
   
• Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO): For Q2 2021, BTB is reporting a recurring FFO of 12.5 ¢ per unit compared to
  7.5 ¢ per unit for the same period in 2020 and a recurring AFFO of 11.8¢ per unit for Q2 2021 compared to 6.7¢ per unit compared to the same period in 2020:

			i.	The recurring FFO payout ratio is 59.9% for the quarter compared to 113.9% in Q2 2020.
			ii.	The recurring AFFO payout ratio is 63.7 % for the quarter compared to 126.6 % in Q2 2020.

• Debt Ratio: As of June 30th, 2021, BTB's total debt ratio stood at 56.0%, a reduction of 2.6% compared to the same quarter of 2020. The debt metrics continue to demonstrate BTB's intent to maintain its total debt ratio below 60%. This reduction is primarily due to the recent equity issue, the conversion of Series H debentures by certain holders throughout the past quarters, combined with the full repayment of the outstanding amount on the acquisition line of credit.
   
• Industrial Building Acquisition: On June 29th, 2021, BTB acquired an industrial property located at 6000 Kieran Street, in the Saint-Laurent borough of Montral, for a total consideration of $15.25 million, (excluding transaction costs). With a total leasable area of 99,000 sq. ft., this property is entirely leased to Kore Outdoor Inc, a global leader in the manufacturing of high-quality paintball products.
   
• Bought-Deal: on April 28th, 2021, BTB closed a bought-deal public offering. BTB sold an aggregate of 7,809,650 units at a price of $4.05 per unit for aggregate gross proceeds of $31.6 million (excluding transaction costs).
   
• Short Form Base Shelf Prospectus: On June 15th, 2021, BTB filed and obtained a receipt for a final short form base shelf prospectus, providing BTB with efficient access to Canadian capital markets for an aggregate offering amount up to $200 million.

https://www.newswire.ca/news-releases/with-cash-on-hand-ready-to-be-deployed-for-acquisitions-btb-posts-strong-2021-second-quarter-results-891224839.html

 

 

[TimeBuilder]

This important going  forward IMO   :>O Cash Position: BTB concluded Q2 2021 with a cash position of $25.3 million. The $19.0 million increase in cash since the last quarter is mainly due to the net proceeds received from the equity issue of $31.6 million (excluding transaction costs). The operating and acquisition lines of credit were fully repaid

[apollojetic]

Perhaps another industrial aquisition although the competition is fierce for these properties and reit's like Nexus are already off to a great start in buying these industrial properties. They seem to have a good pipeline and good business contacts in the industrial space. Sometimes it's those reationships that help you make the big purchases. The market isn't overly impressed so far

[bcsc]

Increasing the distribution to prepandemic levels would also help the price reach prepandemic levels. The payout ratio in this quarters results would seem to justify some increase.

[apollojetic]

Definitely agree Although management may be comfortable with the wiggle room and an attractive payout ratio.  As an investor I want to see it raised back where it was as well and some indication from management that they are at least considering raising it in the future. Perhaps early 2022 if the pandemic co-operates.

[perplexed01]

am in the same boat missing the old dividend since it forms a major part of my retirement income.  that said the market does not tend to reward share prices of REITs with high payout ratios.  further, it seems interest rates must start rising which impact REITs more than other equities.  a smart aquisition will definitely help but next year could actually be worse for btb