MONTRÉAL ,
Nov. 4,
2024 /CNW/ -
BTB Real Estate Investment Trust (TSX: BTB.UN)
("BTB", the "REIT" or the "Trust") announced
today its financial results for the third quarter of 2024 ended
September 30, 2024 (the "Third
Quarter").
"This quarter was marked by a good performance of our
properties, except for one industrial asset where the tenant
declared bankruptcy, resulting in a drop in our occupancy rate to
92.3%" said Michel Léonard, President and CEO of BTB. "For the
cumulative nine-month period, rental income and net operating
income from the same portfolio increased by 1.5% and 4.8%,
respectively, compared to the same period last year. These results
reflect the organic growth of our portfolio and our sound property
management. Our FFO adjusted and AFFO adjusted also increased
compared to the previous quarter, reflecting the good performance
of our assets. Our debt ratios remained relatively stable, with a
total debt ratio of 58.3% and a mortgage debt ratio of 52.5%. In
fact, strategically, we are spreading out our mortgage refinancing
maturities to try to balance the fluctuations in interest rates on
mortgages concluded in recent months, and, with the latest
announcements from the Central Bank of Canada, the outlook appears to bode well for
future mortgage financing. Subsequent to the end of the quarter, we
fully redeemed the Series G debenture that matured on October 31, 2024, using BTB's available funds,
which were generated primarily through mortgage financings. As of
today, only the Series H debenture remains outstanding, which will
mature on October 31, 2025. This
strategy demonstrates our proactive and prudent approach to debt
management in the current environment. We remain committed to our
strategic priorities, including targeted dispositions and
acquisitions, prudent capital management and ongoing property
improvements. We are confident that our disciplined approach will
continue to deliver strong results and drive long-term value
creation for all our stakeholders."
SUMMARY OF SIGNIFICANT ITEMS AS AT SEPTEMBER 30th, 2024
- Total number of properties: 75
- Total leasable area: 6.1 million square feet
- Total value of assets: $1.2
billion
- Market capitalization: $317
million (unit trading price of $3.61 as at September 30,
2024)
OPERATIONAL HIGHLIGHTS
|
Periods ended
September 30
|
Quarter
|
Cumulative (9
months)
|
|
2024
|
2023
|
2024
|
2023
|
|
Occupancy – committed (%)
|
92.3 %
|
93.7 %
|
-
|
-
|
|
Signed new
leases (in sq.ft.)
|
18,713
|
25,476
|
116,855
|
217,900
|
|
Renewed leases
at term (in sq.ft.)
|
47,109
|
52,178
|
297,345
|
258,131
|
|
Renewal rate (%)
|
58.4 %
|
52.2 %
|
75.3 %
|
58.1 %
|
|
Other
([1])
|
45,870
|
-
|
45,870
|
-
|
|
Renewed leases
prior to the end of the term (in
sq.ft.)
|
207,803
|
8,070
|
269,711
|
68,830
|
|
Increase in
average lease renewal rate
|
2.4 %
|
11.9 %
|
4.6 %
|
7.1 %
|
- During the quarter, the Trust completed a total of 254,912
square feet of lease renewals and 18,713 square feet of new leases.
The occupancy rate decreased to 92.3%, representing a 230 basis
points decrease compared to the prior quarter and a 140 basis
points decrease compared to the same period in 2023. The decrease
in occupancy is primarily due to the bankruptcy of Nuera Air. The
Trust has already retained the services of a national commercial
brokerage firm specialized in the industrial segment to lease the
property. Mitigating this decrease is the addition of 45,870 square
feet to the Trusts' total leasable area recorded this quarter, as a
result of the construction of an expansion to a necessity-based
retail property located in Lévis, Québec, which is leased on a
long-term basis to Winners/Home Sense. The increase in the average
rent renewal rate for the current quarter and current
cumulative nine-month period was respectively 2.4%
and 4.6%.
FINANCIAL RESULTS HIGHLIGHTS
|
Periods ended
September 30
|
Quarter
|
Cumulative (9
months)
|
|
(in thousands of dollars,
except for ratios and per unit data)
|
2024
|
2023
|
2024
|
2023
|
|
$
|
$
|
$
|
$
|
|
Rental revenue
|
32,505
|
31,285
|
97,359
|
95,904
|
|
Net operating income (NOI)
|
18,753
|
18,075
|
55,969
|
56,124
|
|
Net income
and comprehensive income
|
5,470
|
15,216
|
19,895
|
34,864
|
|
Adjusted EBITDA
([2])
|
18,030
|
16,544
|
52,606
|
51,654
|
|
Same-property NOI (2)
|
18,594
|
17,323
|
52,508
|
50,085
|
|
FFO Adjusted (2)
|
9,426
|
9,030
|
27,501
|
29,258
|
|
FFO Adjusted payout ratio
|
70.3 %
|
72.5 %
|
71.9 %
|
66.5 %
|
|
AFFO Adjusted (2)
|
8,581
|
7,675
|
24,630
|
25,990
|
|
AFFO Adjusted payout ratio
|
77.2 %
|
85.3 %
|
80.3 %
|
74.8 %
|
|
FINANCIAL RESULTS PER UNIT
|
|
|
|
|
|
Net income
and comprehensive income
|
6.2¢
|
17.5¢
|
22.6¢
|
40.3¢
|
|
Distributions
|
7.5¢
|
7.5¢
|
22.5¢
|
22.5¢
|
|
FFO Adjusted (2)
|
10.7¢
|
10.4¢
|
31.3¢
|
33.8¢
|
|
AFFO Adjusted (2)
|
9.7¢
|
8.8¢
|
28.0¢
|
30.1¢
|
- Rental revenue: Stood at $32.5
million for the current quarter, which represents an
increase of 3.9% compared to the same quarter of 2023. For the
cumulative nine-month period, rental revenue totaled $97.4 million which represents an increase of
1.5% compared to the same period in 2023. During Q1 2023, the Trust
recorded a one-time $1.4 million
increase of rental revenue pursuant to unrecorded revenue for
previous quarters associated to a specific lease (the "One-Time
Adjustment"). Excluding the One-Time Adjustment, rental revenue
for the current cumulative nine-month period vs the same period in
2023 would have increased by 3.1%.
- Net Operating Income (NOI): Totaled $18.8 million for the current quarter, which
represents an increase of 3.8% compared to the same quarter of
2023. The increase for the quarter is due to operating
improvements, higher rent renewal rates, and increases in rental
spreads for in-place leases ($1.4
million). The recorded increase is partially offset by the
bankruptcies of two tenants: (1) Énergie Cardio in Quebec City ($0.3
million), which space was rapidly leased to the group that
purchased the assets of the bankrupt business and (2) Nuera Air, a
tenant occupying 132,665 square feet in an industrial property in
Laval, Québec ($0.5 million). For the cumulative nine-month
period, the NOI totalled $56.0
million which represents a decrease of 0.3% compared to the
same period in 2023. Excluding the One-Time adjustment, the
cumulative nine-month period NOI for Q3 2024 vs the same period in
2023 would have increased by 2.3%.
- Net income and comprehensive income: Totalled
$5.5 million for the quarter compared
to $15.2 million for the same period
in 2023, representing a decrease of $9.7
million. The result for the quarter is affected by a
$6.2 million non-cash net reduction
in the gain of the fair value of investment properties and a
$2.8 million non-cash loss in the net
adjustment of the fair value of derivative financial instruments.
For the cumulative nine-month period, net income and comprehensive
income totalled $19.9 million,
representing a decrease of $15
million. Excluding the One-Time Adjustment, the decrease for
the cumulative nine-month period from Q3 2024 vs Q3 2023 would have
been $13.5 million.
- Same-property NOI (1): For the quarter, the
same-property NOI increased by 7.3% compared to the same period in
2023, and for the cumulative nine-month period, the same-property
NOI increased by 4.8% compared to the same period in 2023. These
increases are due to higher rent renewal rates of 4.6% across all
three segments of the portfolio. For the cumulative nine-month
period, the Trust achieved increases of rent renewal rates of 5.8%
for the industrial segment, 3.2% for the suburban office segment
and 6.1% for the necessity-based retail segment. The industrial
segment is also positively impacted by increases in rental rates
for in-place leases.
- FFO adjusted per unit (1): Was 10.7¢ per unit
for the quarter compared to 10.4¢ per unit for the same period in
2023, representing an increase of 0.3¢ per unit. The increase of
FFO adjusted for the quarter is explained by an increase in NOI of
$0.7 million offset by an increase of
interest expense net of financial income of $0.5 million. For the cumulative nine-month
period, the FFO adjusted was 31.3¢ per unit compared to 33.8¢ per
unit for the same period in 2023, representing a decrease of 2.5¢
per unit. Excluding the One-Time Adjustment, the cumulative
nine-month period FFO adjusted per unit for Q3 2024 vs the same
period in 2023 would have recorded a decrease of 0.9¢ per unit. In
addition, FFO adjusted per unit was negatively impacted by an
increase in weighted average number of units outstanding of 1.4
million units, due to the unitholder's participation in the
distribution reinvestment plan.
- FFO adjusted payout ratio (1): Was 70.3% for
the quarter compared to 72.5% for the same period in 2023, an
improvement of 2.2%. For the cumulative nine-month period, the FFO
adjusted payout ratio was 71.9% compared to 66.5% for the same
period in 2023, an increase of 5.4%. Excluding the One-Time
Adjustment, the cumulative nine-month period FFO adjusted payout
ratio for Q3 2024 vs the same period in 2023 would have increased
by 2.0%.
- AFFO adjusted per unit (1): Was 9.7¢ per unit
for the quarter compared to 8.8¢ per unit for the same period in
2023, representing an increase of 0.9¢ per unit, in line with the
increase of FFO adjusted explained above. For the cumulative
nine-month period, the AFFO adjusted per unit was 28.0¢ per unit
compared to 30.1¢ per unit for the same period in 2023,
representing a decrease of 2.1¢ per unit compared to the same
period in 2023. Excluding the One-Time Adjustment, the cumulative
nine-month period AFFO adjusted per unit would have decreased by
0.4¢ per unit. AFFO adjusted per unit was also negatively impacted
by the increase in weighted average number of units outstanding of
1.4 million units, due to the unitholder's participation in the
distribution reinvestment plan.
- AFFO adjusted payout ratio (1): W as 77.2%
for the quarter compared to 85.3% for the same period in 2023. For
the cumulative nine-month period, the AFFO adjusted payout ratio
was 80.3% compared to 74.8% for the same period in 2023,
representing an increase of 5.5%. Excluding the One-Time
adjustment, the cumulative nine-month period AFFO adjusted payout
ratio for Q3 2024 vs the same period in 2023 would have increased
by 1.1%.
|
_____________________
|
|
(1)
|
Other adjustments on
the occupied area represent mainly area remeasurements and new
leases related to construction projects.
|
|
(2)
|
Non-IFRS financial
measure. See Appendix 1. The referred non-IFRS financial measures
do not have a standardized meaning prescribed by IFRS and these
measures cannot be compared to similar measures used by other
issuers.
|
BALANCE SHEET AND LIQUIDITY HIGHLIGHTS
|
Periods ended
September 30
|
|
|
(in thousands of dollars,
except for ratios and per unit data)
|
September 30,
2024
|
September 30,
2023
|
|
$
|
$
|
|
Total assets
|
1,243,918
|
1,235,555
|
|
Total debt ratio
(1)
|
58.3 %
|
58.4 %
|
|
Mortgage debt
ratio (2)
|
52.5 %
|
52.2 %
|
|
Weighted average
interest rate on mortgage debt
|
4.33 %
|
4.29 %
|
|
Market capitalization
|
316,841
|
258,250
|
|
NAV per unit (1)
|
5.43
|
5.57
|
- Debt metrics: BTB ended the quarter with a total debt
ratio (1) of 58.3%, a decrease of 30 basis points
compared to December 31, 2023. The
Trust ended the quarter with a mortgage debt ratio
(1) of 52.5%, an increase of 30 basis points
compared to December 31, 2023.
- Liquidity position: The Trust held $3.3 million of cash at the end of the quarter
and $29.3 million is available under
its credit facilities. The Trust has the option to increase its
capacity under credit facilities by $10.0
million, subject to lender approval. (1)(3)
SUBSEQUENT EVENTS
- On October 22, 2024, the Trust
closed an additional revolving line of credit in the amount of
$2 million, this increases the
availability under its credit facilities to $31.3 million.
- On October 31,2024, the Trust
fully redeemed and paid at maturity the Series G unsecured
convertible debentures at their nominal value of $24 million plus accrued interest of $0.7 million using proceeds sourced from mortgage
loans.
|
___________________________
|
|
(1)
|
Non-IFRS financial
measure. See Appendix 1. The referred non-IFRS financial measures
do not have a standardized meaning prescribed by IFRS and these
measures cannot be compared to similar measures used by other
issuers.
|
|
(2)
|
This is a non-IFRS
financial measure. The mortgage debt ratio is calculated by
dividing the mortgage loans outstanding by the total gross value of
the assets of the Trust less cash and cash equivalents.
|
|
(3)
|
Credit facilities is a
term used that reconciles with the bank loans as presented and
defined in the Trust's consolidated financial statements and
accompanying notes.
|
QUARTERLY CALL INFORMATION
Management
will hold a conference call on Tuesday, November 5th, 2024,
at 9 am, Eastern Time, to present BTB's financial
results and performance for the third quarter of 2024. Please note
that the usual telephone numbers have changed.
|
DATE:
|
Tuesday, November 5th, 2024
|
|
TIME:
|
9 am, Eastern
Time
|
|
LINK:
|
https://emportal.ink/3Nw17G5
|
|
DIAL:
|
Local: (+1)
289 819 1299
|
|
North
America (toll-free): (+1) 800 990 4777
|
|
URL
ENTRY:
|
https://app.webinar.net/n1mW4VKXKPa
|
|
VISUAL:
|
A presentation will be
uploaded on BTB's website prior to
the call.
https://bit.ly/3IaJ9pj
|
The media and all interested parties
may attend the call-in listening mode
only.
Conference call operators will coordinate the
question-and-answer period (from analysts only) and will instruct
participants regarding the procedures during the call.
The audio recording of the conference call will be available via
playback until November
11th, 2024, by dialing: (+1) 289 819 1450
(local) or, (+1) 888 660
6345 (toll-free) and by entering the following access
code: 44979 #
ABOUT BTB
BTB is a real estate investment trust listed on the Toronto
Stock Exchange. BTB REIT invests in industrial, suburban office and
necessity-based retail properties across Canada for the benefit of
their investors. As of today,
BTB owns and manages
75 properties, representing a total leasable
area of approximately 6.1 million square feet.
People and their stories are at the
heart of our success.
For more detailed information, visit BTB's website
at www.btbreit.com.
FORWARD-LOOKING STATEMENTS
This press release
may contain forward-looking statements with respect
to BTB. These statements generally can be identified
by the use of forward-looking words such as "may", "will",
"expect",
"estimate", "anticipate", "intend", "believe" or "continue" or the negative
thereof or similar variations.
The actual results
and performance of BTB could differ materially from those expressed or implied
by such statements. Such statements are qualified in their entirety
by the inherent risks and uncertainties surrounding future
expectations. Some important factors that could cause actual
results to differ materially from expectations include, among other
things, general economic and
market factors, competition, changes
in government regulation, and the factors
described from time to time in the documents filed by BTB
with the securities regulators in Canada. The cautionary statements qualify all
forward-looking statements attributable to BTB and persons acting
on their
behalf. Unless otherwise stated or required by applicable law, all forward-looking statements speak
only as of the date of this press release.
APPENDIX 1: RECONCILIATION OF NON-IFRS MEASURES
Non-IFRS Financial Measures
Certain terms used in this press release
are listed and defined in the table hereafter, including
any
per unit information if applicable, 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. Explanations on how these non-IFRS financial
measures provide
useful information to investors and additional purposes, if any, for which the Trust uses these non-
IFRS financial measures, are also included in the table
hereafter.
Securities regulations require that non-IFRS financial measures
be clearly defined and that they not be assigned greater weight
than IFRS measures. The referred non-IFRS financial measures, which
are reconciled to the most similar IFRS measure in the table
thereafter if applicable, do not have a standardized meaning
prescribed by IFRS and these measures cannot be compared to similar
measures used by other issuers.
|
NON-IFRS
MEASURE
|
DEFINITION
|
|
Adjusted net income
|
Adjusted net income is
a non-IFRS financial measure that starts with net income and
comprehensive income and removes the effects of: (i) fair value
adjustment of investment properties; (ii) fair value adjustment of
derivative financial instruments; (iii) fair value adjustment of
Class B LP units; and (iv) transaction costs incurred for
acquisitions and dispositions of investment properties and early
repayment fees.
The Trust considers
this to be a useful measure of operating performance, as fair value
adjustments can fluctuate widely with the real estate
market.
|
|
Adjusted
Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted
EBITDA")
|
Adjusted EBITDA income
is a non-IFRS financial measure that starts with net income and
comprehensive income and removes the effects of certain
adjustments, on a proportionate basis, including: (i) interest
expense; (ii) taxes; (iii) depreciation of property and equipment;
(iv) amortization of intangible assets; (v) fair value adjustments
(including adjustments of investment properties, of derivative
financial instruments, of Class B LP units and of unit price
adjustments related to unit-based compensation); (vi) transaction
costs for acquisitions and dispositions of investment properties
and early repayment fees; and (vii) straight-line rental revenue
adjustments.
The most directly
comparable IFRS measure to Adjusted EBITDA is net income and
comprehensive income. The Trust believes Adjusted EBITDA is a
useful metric to determine its ability to service debt, to finance
capital expenditures and to provide distributions to its
Unitholders.
|
|
Same-Property
NOI
|
Same-Property NOI is a
non-IFRS financial measure defined as net operating income ("NOI")
for the properties that the Trust owned and operated for the entire
duration of both the current year and the previous year. The most
directly comparable IFRS measure to same-property NOI is Operating
Income.
The Trust believes this
is a useful measure as NOI growth can be assessed on its portfolio
by excluding the impact of property acquisitions and dispositions
of both the current year and previous year. The Trust uses the
Same-Property NOI to indicate the profitability of its existing
portfolio operations and the Trust's ability to increase its
revenues, reduce its operating costs and generate organic
growth.
|
|
NON-IFRS
MEASURE
|
DEFINITION
|
|
Funds from Operations
("FFO")
and FFO
Adjusted
|
FFO is a non-IFRS
financial measure used by most Canadian real estate investment
trusts based on a standardized definition established by REALPAC in
its January 2022 White Paper ("White Paper"). FFO is defined as net
income and comprehensive income less certain adjustments, on a
proportionate basis, including: (i) fair value adjustments on
investment properties, class B LP units and derivative financial
instruments; (ii) amortization of lease incentives; (iii)
incremental leasing costs; and (iv) distribution on class B LP
units. FFO is reconciled to net income and comprehensive income,
which is the most directly comparable IFRS measure. FFO is also
reconciled with the cash flows from operating activities, which is
an IFRS measure.
FFO Adjusted is also a
non-IFRS financial measure that starts with FFO and removes the
impact of transaction costs on acquisitions and dispositions of
investment properties and early repayment fees.
The Trust believes FFO
and FFO Adjusted are key measures of operating performance and
allow the investors to compare its historical
performance.
|
|
Adjusted Funds from
Operations ("AFFO")
and
AFFO Adjusted
|
AFFO is a non-IFRS
financial measure used by most Canadian real estate investment
trusts based on a standardized definition established by REALPAC in
its White Paper. AFFO is defined as FFO less: (i) straight-line
rental revenue adjustment; (ii) accretion of effective interest;
(iii) amortization of other property and equipment; (iv) unit-based
compensation expenses; (v) provision for non-recoverable capital
expenditures; and (vi) provision for unrecovered rental fees
(related to regular leasing expenditures). AFFO is reconciled to
net income and comprehensive income, which is the most directly
comparable IFRS measure. AFFO is also reconciled with the cash
flows from operating activities, which is an IFRS
measure.
AFFO Adjusted is also a
non-IFRS financial measure that starts with AFFO and removes the
impact of transaction costs on acquisitions and dispositions of
investment properties and early repayment fees.
The Trust considers
AFFO and AFFO Adjusted to be useful measures of economic earnings
and relevant in understanding its ability to service its debt, fund
capital expenditures and provide distributions to
unitholders.
|
|
NON-IFRS
MEASURE
|
DEFINITION
|
|
FFO and AFFO payout
ratios
and
FFO Adjusted
and AFFO Adjusted payout ratios
|
FFO and AFFO payout
ratios and FFO Adjusted and AFFO Adjusted payout ratios are
non-IFRS financial measures used by most Canadian real estate
investment trusts based on a standardized definition established by
REALPAC in its White Paper. These payout ratios are calculated by
dividing the actual distributions per unit by FFO, AFFO and FFO
Adjusted and AFFO Adjusted per unit in each period.
The Trust considers
these metrics a useful way to evaluate its distribution paying
capacity.
|
|
Total debt ratio
|
Total debt ratio is a
non-IFRS financial measure of the Trust financial leverage, which
is calculated by taking the total long-term debt less cash divided
by total gross value of the assets of the Trust less
cash.
The Trust considers
this metric useful as it indicates its ability to meet its debt
obligations and its capacity for future additional
acquisitions.
|
|
Total mortgage debt
ratio
|
Mortgage debt ratio is
a non-IFRS financial measure of the Trust financial leverage, which
is calculated by taking the total mortgage debt less cash divided
by total gross value of the assets of the Trust less
cash.
The Trust considers
this metric useful as it indicates its ability to meet its mortgage
debt obligations and its capacity for future additional
acquisitions.
|
|
Interest
Coverage Ratio
|
Interest coverage ratio
is a non-IFRS financial measure which is calculated by taking the
Adjusted EBITDA divided by interest expenses net of financial
income (interest expenses exclude early repayment fees, accretion
of effective interest, distribution on Class B LP units, accretion
of non-derivative liability component of convertible debentures and
the fair value adjustment on derivative financial instruments and
Class B LP units).
The Trust considers
this metric useful as it indicates its ability to meet its interest
cost obligations for a given period.
|
|
Debt Service
Coverage Ratio
|
Debt service coverage
ratio is a non-IFRS financial measure which is calculated by taking
the Adjusted EBITDA divided by the Debt Service Requirements, which
consists of principal repayments and interest expenses net of
financial income (interest expenses exclude early repayment fees,
accretion of effective interest, distribution on Class B LP units,
accretion of non-derivative liability component of convertible
debentures and the fair value adjustment on derivative financial
instruments and Class B LP units).
The Trust considers
this metric useful as it indicates its ability to meet its interest
cost obligations for a given period.
|
|
Provision For Non-
Recoverable Capital Expenditures
|
In calculating adjusted
AFFO, the Trust deducts a provision for non-
recoverable capital expenditures
to consider capital expenditures invested to
maintain the condition of its properties and to preserve rental
revenue.
The provision for
non-recoverable capital expenditures is calculated based
on 2% of rental revenues. This provision is based on management's
assessment of industry practices and its investment forecasts for
the coming years.
|
NON-IFRS FINANCIAL MEASURES
– QUARTERLY RECONCILIATION
Funds from Operations (FFO) (1)
The following
table provides a reconciliation of net income and comprehensive income established
in accordance with IFRS and FFO (1) for the last
eight quarters:
|
2024
|
2024
|
2024
|
2023
|
2023
|
2023
|
2023
|
2022
|
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
|
(in thousands
of dollars, except for per unit)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
Net income
and comprehensive income (IFRS)
|
5,470
|
7,272
|
7,153
|
1,734
|
15,216
|
10,846
|
8,802
|
1,769
|
|
Fair value
adjustment on investment properties
|
(283)
|
-
|
(6)
|
4,480
|
(6,481)
|
-
|
-
|
7,781
|
|
Fair value
adjustment on Class B LP units
|
335
|
(21)
|
160
|
(42)
|
(159)
|
(775)
|
-
|
160
|
|
Amortization of lease incentives
|
807
|
704
|
690
|
641
|
664
|
750
|
728
|
787
|
|
Fair value
adjustment on derivative financial
instruments
|
2,168
|
379
|
(325)
|
2,396
|
(584)
|
(763)
|
184
|
(1,971)
|
|
Leasing payroll expenses (6)
|
535
|
433
|
591
|
401
|
359
|
327
|
356
|
682
|
|
Distributions – Class B LP
units
|
52
|
53
|
52
|
52
|
56
|
42
|
22
|
26
|
|
Unit-based compensation (Unit price
change) (5)
|
342
|
63
|
409
|
(11)
|
(87)
|
(232)
|
(59)
|
198
|
|
FFO (1)
|
9,426
|
8,883
|
8,724
|
9,651
|
8,984
|
10,195
|
10,033
|
9,432
|
|
Transaction costs
on disposition of investment properties and mortgage early
repayment fees
|
-
|
266
|
201
|
37
|
46
|
-
|
-
|
627
|
|
FFO Adjusted (1)
|
9,426
|
9,149
|
8,925
|
9,688
|
9,030
|
10,195
|
10,033
|
10,059
|
|
FFO per
unit (1) (2) (3)
|
10.7¢
|
10.1¢
|
10.0¢
|
11.1¢
|
10.3¢
|
11.8¢
|
11.7¢
|
11.0¢
|
|
FFO Adjusted per unit (1) (2) (4)
|
10.7¢
|
10.4¢
|
10.2¢
|
11.1¢
|
10.4¢
|
11.8¢
|
11.7¢
|
11.8¢
|
|
FFO payout ratio
(1)
|
70.3 %
|
74.3 %
|
75.2 %
|
67.5 %
|
72.9 %
|
63.8 %
|
64.1 %
|
67.9 %
|
|
FFO Adjusted payout ratio (1)
|
70.3 %
|
72.2 %
|
73.5 %
|
67.2 %
|
72.5 %
|
63.8 %
|
64.1 %
|
63.6 %
|
|
(1)
|
This is a
non-IFRS financial measure. The referred
non-IFRS financial measures
do not have a standardized meaning
prescribed by IFRS and these measures
cannot be compared to similar measures used by other
issuers.
|
|
(2)
|
Including Class B LP
units.
|
|
(3)
|
The FFO per unit ratio is calculated by dividing the FFO (1)
by the Trust's unit outstanding at the end of the period (including
the Class B LP units
at outstanding at the end of the period).
|
|
(4)
|
The
FFO Adjusted per unit ratio is calculated by dividing
the FFO Adjusted (1) by the Trust's unit
outstanding at the end of the period (including
the Class B LP units at outstanding
at the end of the period).
|
|
(5)
|
The impact of the unit
price change on the deferred unit-based compensation plan has been
considered in the calculation of the FFO Adjusted and
AFFO Adjusted starting Q2 2021.
|
|
(6)
|
The impact
of the CIO compensation, hired in
Q2 2022, was added to the Leasing payroll
expenses during Q4 2022 as his duties were
mainly leasing activities throughout the year.
|
Adjusted Funds from Operations (AFFO)
(1)
The following table provides
a reconciliation of FFO (1) and AFFO (1) for the last eight quarters:
|
2024
|
2024
|
2024
|
2023
|
2023
|
2023
|
2023
|
2022
|
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
|
(in thousands
of dollars, except for per unit)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
FFO (1)
|
9,426
|
8,883
|
8,724
|
9,651
|
8,984
|
10,195
|
10,033
|
9,432
|
|
Straight-line rental
revenue adjustment
|
(247)
|
(183)
|
(394)
|
(197)
|
(842)
|
(291)
|
(633)
|
(1,077)
|
|
Accretion of effective interest
|
391
|
361
|
308
|
310
|
271
|
278
|
236
|
336
|
|
Amortization of other property and equipment
|
17
|
17
|
17
|
20
|
33
|
23
|
23
|
31
|
|
Unit-based compensation expenses
|
19
|
(95)
|
(9)
|
159
|
184
|
237
|
256
|
206
|
|
Provision for non-recoverable capital expenditures (1)
|
(650)
|
(644)
|
(653)
|
(639)
|
(626)
|
(634)
|
(658)
|
(630)
|
|
Provision for unrecovered rental
fees (1)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
|
AFFO (1)
|
8,581
|
7,964
|
7,618
|
8,929
|
7,629
|
9,433
|
8,882
|
7,923
|
|
Transaction costs
on disposition of investment properties and mortgage early
repayment fees
|
-
|
266
|
201
|
37
|
46
|
-
|
-
|
627
|
|
AFFO Adjusted (1)
|
8,581
|
8,230
|
7,819
|
8,966
|
7,675
|
9,433
|
8,882
|
8,550
|
|
AFFO per unit (1) (2) (3)
|
9.7¢
|
9.1¢
|
8.7¢
|
10.2¢
|
8.8¢
|
10.9¢
|
10.3¢
|
9.3¢
|
|
AFFO Adjusted per unit (1) (2) (4)
|
9.7¢
|
9.4¢
|
8.9¢
|
10.3¢
|
8.8¢
|
10.9¢
|
10.3¢
|
10.0¢
|
|
AFFO payout
ratio (1)
|
77.2 %
|
82.9 %
|
86.2 %
|
72.9 %
|
85.8 %
|
69.0 %
|
72.4 %
|
80.8 %
|
|
AFFO Adjusted payout ratio (1)
|
77.2 %
|
80.2 %
|
83.9 %
|
72.6 %
|
85.3 %
|
69.0 %
|
72.4 %
|
74.9 %
|
|
(1)
|
This is a
non-IFRS financial measure.
The referred non-IFRS
financial measures do not have a standardized meaning
prescribed by IFRS and these measures
cannot be compared to similar measures used by other
issuers.
|
|
(2)
|
Including Class B LP
units.
|
|
(3)
|
The
AFFO per unit ratio is calculated by dividing
the AFFO (1) by the Trust's unit outstanding
at the end of the period (including the Class B LP
units at outstanding at the end of
the period).
|
|
(4)
|
The AFFO Adjusted
per unit ratio is calculated by dividing the AFFO Adjusted
(1) by the Trust's unit outstanding at the end of the
period
(including the Class B LP units at outstanding at the end of the
period).
|
Debt Ratios
The following table summarizes the Trust's debt ratios as at
September 30, 2024, and 2023 and
December 31, 2023:
|
(in thousands of dollars)
|
September 30,
2024
|
December 31,
2023
|
September 30,
2023
|
|
$
|
$
|
$
|
|
Cash and
cash equivalents
|
(3,252)
|
(912)
|
(2,357)
|
|
Mortgage loans
outstanding (1)
|
655,686
|
640,425
|
644,147
|
|
Convertible debentures (1)
|
43,476
|
43,185
|
43,093
|
|
Credit facilities
|
28,171
|
36,359
|
36,363
|
|
Total long-term debt less cash
and cash equivalents (2) (3)
|
724,081
|
719,057
|
721,246
|
|
Total gross value of
the assets of the Trust less cash and
cash
equivalents (2) (4)
|
1,241,931
|
1,227,949
|
1,234,391
|
|
Mortgage debt
ratio (excluding convertible debentures and credit
facilities) (2) (5)
|
52.5 %
|
52.2 %
|
52.2 %
|
|
Debt ratio
– convertible debentures (2) (6)
|
3.5 %
|
3.5 %
|
3.5 %
|
|
Debt ratio
– credit facilities (2) (7)
|
2.3 %
|
3.0 %
|
2.9 %
|
|
Total debt ratio (2)
|
58.3 %
|
58.6 %
|
58.4 %
|
|
(1)
|
Before
unamortized financing expenses and fair value assumption adjustments.
|
|
(2)
|
This is a
non-IFRS financial measure.
The referred non-IFRS
financial measures do not have a standardized meaning
prescribed by IFRS and these measures
cannot be compared to similar measures used by other
issuers.
|
|
(3)
|
Long-term debt cash and
cash equivalents is a non-IFRS financial
measure, calculated as total
of: (i) fixed rate mortgage
loans payable; (ii) floating rate mortgage
loans payable; (iii) Series G debenture capital
amount; (iv) Series F debenture capital
adjusted with non-derivative component less conversion
options exercised by holders; and (v) credit facilities, less
cash and cash equivalents. The most directly comparable IFRS
measure to net debt is debt.
|
|
(4)
|
Gross value of the assets of
the Trust less cash
and cash equivalent (GVALC) is a
non-IFRS financial
measure defined as the Trust total
assets adding the cumulated amortization property and equipment
and removing the cash
and cash equivalent. The most directly comparable
IFRS measure to GVALC is total assets.
|
|
(5)
|
Mortgage debt ratio is
calculated by dividing the mortgage loans outstanding by the GVALC.
|
|
(6)
|
Debt ratio – convertible debentures is calculated by dividing the convertible debentures by the GVALC.
|
|
(7)
|
Debt ratio
– credit facilities
is calculated by dividing
the credit facilities by the GVALC.
|
SOURCE BTB Real Estate Investment Trust