MONTRÃAL, May 9, 2016 /CNW Telbec/ – BTB Real Estate Investment Trust (TSX: BTB.UN) (“BTB” or the “Trust“) releases today its financial results for the first quarter ended March 31, 2016, and announces the following highlights:
HIGHLIGHTS OF THE FIRST QUARTER 2016
As at March 31, 2016
- 72 properties
- More than 5.1 million leasable square feet
- More than $646 million in assets
- More than $161 million in market capitalization
Increase
- 1.2% in rental income
- 4.1% in assets
- 3.7% in FFO
Improvement
- In the weighted average interest rate on mortgage debt from 4.08% to 3.93%
Leasing activities
- 185,000 square feet of leases renewed, for a retention rate of 31.3% of leases expiring in 2016
- 3.41% increase in the average rate of expired and renewed leases
Acquisition
- On February 15, 2016, an office building located in downtown Montréal for $11 million. The property, entirely leased to a single tenant under a long-term lease, has a leasable area of 52,500 square feet.
” Two of our portfolio properties mainly contributed to the lower same-property portfolio net operating income (SPNOI) and occupancy rate, i.e. 1001 Sherbrooke East in Montréal and 50 Saint-Charles West in Longueuil. We are actively seeking occupants for these properties and have already found very interesting potential tenants. These two properties contributed to lowering the SPNOI by approximately $700,000. Moreover, based on current activity levels, we believe a significant portion of the vacant spaces will be rented out before the end of 2016 “, declared Michel Léonard, President and Chief Executive Officer.
|
Quarters ended March 31 |
2016 |
2015 |
|
$ |
$ |
|
|
Financial information |
||
|
Rental income |
18,550 |
18,329 |
|
Net operating income(1) |
10,119 |
10,132 |
|
Net property income from the same-property portfolio(1) |
5,743 |
6,349 |
|
Distributable income(1) |
4,455 |
4,497 |
|
Distributions |
3,655 |
3,596 |
|
Funds from operations (FFO) (1) |
4,216 |
4,066 |
|
Adjusted funds from operations (AFFO)(1) |
3,840 |
3,876 |
|
Total assets |
646,742 |
621,279 |
|
Mortgage liability ratio |
58.1% |
56.6 % |
|
Weighted average interest rate on mortgage debt |
3.93% |
4.08 % |
|
Market capitalization |
161,007 |
171,429 |
|
Financial information per unit |
||
|
Distributable income |
12.8 ¢ |
13.1 ¢ |
|
Distributions |
10.5 ¢ |
10.5 ¢ |
|
Payout ratio on distributable income |
82.0 % |
80.0 % |
|
FFO |
12.1 ¢ |
11.9 ¢ |
|
AFFO |
11.0 ¢ |
11.3 ¢ |
|
(1) Financial term not defined by IFRS |
NON-IFRS FINANCIAL MEASURES
Net operating income, distributable income, funds from operations and adjusted funds from operations are not measures recognized by International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS. Such measures may differ from similar computations as reported by similar entities and, accordingly, may not be comparable to similar measures reported by such other entities.
The following table shows the reconciliation of distributable income and adjusted funds from operations (non-IFRS measure) with cash flows from operating activities presented in the financial statements.
|
Quarters ended March 31 (in thousands of dollars) |
2016 |
2015 |
|
$ |
$ |
|
|
Cash flows from operating activities (IFRS) |
6,709 |
5,589 |
|
+ Financial revenues |
21 |
13 |
|
+ Net change in operating items |
2,857 |
3,810 |
|
– Interest expense on mortgage loans payable |
(3,658) |
(3,513) |
|
– Interest expense on convertible debentures |
(1,291) |
(1,274) |
|
– Interest expense on acquisition line of credit |
(156) |
(101) |
|
– Interest expense on operating line of credit and other interest expenses |
(27) |
(27) |
|
Distributable income |
4,455 |
4,497 |
|
+ Leasing payroll expenses |
75 |
— |
|
– Provision for non-recoverable capital expenses |
(370) |
(366) |
|
– Provision for rental fees |
(320) |
(255) |
|
Adjusted funds from operations |
3,840 |
3,876 |
On Tuesday, May 10, 2016, at 10:00 a.m. (ET) management will hold a conference call to present BTB’s financial results and performance for the first quarter ended March 31, 2016:
|
DATE: |
Tuesday, May 10, 2016 |
|
TIME: |
10:00 a.m. (Eastern Standard Time) |
|
DIAL: |
1-647-427-7450 (from Toronto and overseas) access code 95836010#, 1â888â231-8191 (from North America) toll free, access code 95836010#. To ensure your participation, please dial in fifteen minutes prior to the start of the conference call. |
|
WEBCAST: |
http://event.on24.com/r.htm?e=1176810&s=1&k=BBA8886749D03509D867F6EF533A1952 |
|
REPLAY: |
From Tuesday, May 10, 2016, 1:00 p.m. until 11:59 p.m. on May 17, 2016, dial 1â416â849â0833 conference ID number 95836010#, or dial toll free 1â855â859-2056 conference ID number 95836010#. |
The media and all interested parties may attend the call in listening mode only.
Conference call operators will coordinate the question and answer period, and will instruct participants regarding the procedures for the call.
About BTB
BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. Today, BTB owns 72 commercial, office and industrial properties for a total leasable area of more than 5.1 million square feet. BTB’s asset value is more than $646M. The objectives of BTB are: i) to grow its revenues from its assets to increase distributable income and therefore fund distributions; (ii) to maximize the value of its assets through dynamic management of its properties in order to sustain the long-term value of its units; and (iii) to generate cash distributions that are fiscally beneficial to unitholders.
BTB offers a distribution reinvestment plan to unitholders whereby the participants may elect to have their monthly cash distribution reinvested in additional units of BTB at a price based on the weighted average price for BTB’s Units on the Toronto Stock Exchange for the five trading days immediately preceding the distribution date, discounted by 3%.
SOURCE BTB Real Estate Investment Trust
