MONTRÉAL, Nov. 6, 2023
/CNW/ - BTB Real Estate Investment Trust (TSX: BTB.UN)
("BTB", the "REIT" or the "Trust") announced
today its financial results for the three- and nine-months period
ended September 30, 2023 (the
"Third Quarter").
"We are pleased with the sustained leasing activity that we see
across all our three business segments," said Michel Leonard, President and CEO of BTB.
"During the quarter, we completed 85,724 sq. ft. of lease
agreements with existing and new tenants. In addition, a few days
after the end of the quarter, we entered a lease, representing
26,000 sq. ft., with a well-known chartered accounting firm in the
province of Quebec, as well as the
renewal of a lease with one of our tenants in the City of Ottawa representing 27,638 sq. ft. In
the last city, one of our tenants has completed a 16,000 sq. ft.
expansion of its current premises. These last three leases have
been completed into three of our office buildings. These are
examples of major transactions in our portfolio that demonstrate
good traction. Indeed, our occupancy rate for the Montreal area now stands at 96.3%, a
demonstration of the positioning of our assets and the occupancy
rate never seen before in this region. Our total rental activity
year-to-date is approximately 612,000 sq. ft., representing around
10% of the square footage in our portfolio. It is also worth
highlighting the excellent performance of our retail properties,
which have an occupancy rate of 98.0%. Our properties are in demand
and national commercial tenants have demonstrated their interest in
our properties. Our shift to industrial properties also supports
our results. With an occupancy rate of 99.7% and with leases whose
rents are mostly below-market, BTB could eventually see increases
in revenues related to these lease renewals. Finally, we are
proactive as we approach mortgage maturities in our portfolio. As a
result, several mortgages that will mature in the first quarter of
2024 are already under negotiation and we continue to partner well
with our lenders to optimize the financing for the remaining
properties of next year."
SUMMARY OF SIGNIFICANT ITEMS AS AT SEPTEMBER 30th, 2023
- Total number of properties: 75
(1)
- Total leasable area: 6.1 million square feet
- Total asset value: $1,236
million
- Market capitalization: $258
million (unit price of $2.99
as at September 30, 2023)
_______________________________
|
(1) Includes
a property in Edmonton reclassified as a finance lease and not
included in fair value.
|
OPERATIONAL HIGHLIGHTS
Periods ended September
30
|
Quarter
|
Cumulative (9
months)
|
|
2023
|
2022
|
2023
|
2022
|
Occupancy – committed
(%)
|
93.7 %
|
93.5 %
|
93.7 %
|
93.5 %
|
Signed new leases (in
sq.ft.)
|
25,476
|
57,353
|
217,900
|
118,034
|
Renewed leases at term
(in sq.ft.)
|
52,178
|
94,282
|
258,131
|
269,055
|
Renewal rate
(%)
|
52.2 %
|
54.8 %
|
58.1 %
|
67.1 %
|
Renewed leases prior to
the end of the term (in sq.ft.)
|
8,070
|
2,266
|
68,830
|
82,103
|
Average lease renewal
rate
|
11.9 %
|
8.8 %
|
7.1 %
|
13.9 %
|
- BTB completed a total of 60,248 square feet of lease renewals
and 25,476 square feet of new leases for the quarter. The occupancy
rate stood at 93.7%, representing a 40 basis points decrease
compared to the prior quarter, and a 20 basis points increase
compared to the same period in 2022. The increase in the average
renewal rate for the quarter was 11.9%.
- Shortly after the end of the quarter, due to increased leasing
efforts in the Québec City region, the Trust leased 26,000 square
feet to a major Quebec based
accounting firm, increasing the Québec city region committed
occupancy rate from 81.8% to 83.7%, the decrease compared to the
same quarter last year is now 3.3% instead of 5.2%.
FINANCIAL RESULTS HIGHLIGHTS
|
Quarter
Cumulative (9
months)
|
(in thousands of
dollars, except for ratios and per unit data)
|
2023
|
2022
|
2023
|
2022
|
|
$
|
$
|
$
|
$
|
Rental
revenue
|
31,285
|
29,962
|
95,904
|
88,009
|
Net operating income
(NOI)
|
18,075
|
17,974
|
56,124
|
51,806
|
Net income and
comprehensive income
|
15,216
|
11,693
|
34,864
|
36,385
|
Adjusted EBITDA
(1)
|
16,544
|
16,507
|
51,654
|
48,062
|
Same-property NOI
(1)
|
17,060
|
17,407
|
50,221
|
50,132
|
FFO Adjusted
(1)
|
9,030
|
9,785
|
29,258
|
27,820
|
FFO adjusted payout
ratio
|
72.5 %
|
65.2 %
|
66.5 %
|
66.9 %
|
AFFO Adjusted
(1)
|
7,675
|
8,674
|
25,990
|
25,587
|
AFFO adjusted payout
ratio
|
85.3 %
|
73.6 %
|
74.8 %
|
72.8 %
|
FINANCIAL RESULTS
PER UNIT
|
|
|
|
|
Net income and
comprehensive income
|
17.5¢
|
13.7¢
|
40.3¢
|
44.0¢
|
Distributions
|
7.5¢
|
7.5¢
|
22.5¢
|
22.5¢
|
FFO Adjusted
(2)
|
10.4¢
|
11.5¢
|
33.8¢
|
33.6¢
|
AFFO Adjusted
(1)
|
8.8¢
|
10.2¢
|
30.1¢
|
30.9¢
|
_____________________________
|
(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.
|
- Rental revenue: Increased by 4.4% compared to the same
quarter of 2022 and an increase of 9.0% for cumulative nine-month
period compared to the same period in 2022.
- Net Operating Income (NOI): Increased by 0.6% compared
to the same quarter of 2022 and increased by 8.3% for the
cumulative nine-month period compared to the same period in
2022.
- Net income and comprehensive income: Increased by 29.9%
compared to the same quarter of 2022 and decreased by 4.2% for the
cumulative nine-month period compared to the same period in
2022.
- Same-property NOI
(1): Decreased by 2% compared
to the same quarter of 2022 and increased by 1.2% for the
cumulative nine-month period compared to the same period in
2022.
- FFO adjusted per unit (1): Was 10.4¢ per unit
for the quarter compared to 11.5¢ per unit for the same period in
2022, representing a decrease of 1.1¢ per unit. The decrease is
attributable to a gain of $0.2
million recorded in the same quarter of the previous year
due to a lease termination fee revenue, a one-time insurance
deductible expense of $0.1 million in
the current quarter, with the remaining variance of $0.5 million due to an increase in net financial
expenses. For the cumulative nine-month period, the FFO adjusted
was 33.8¢ per unit which represents an increase of 0.7% compared to
the same period in 2022.
- FFO adjusted payout ratio (1): Was 72.5% for
the quarter compared to 65.2% for the same period in 2022. For the
cumulative nine-month period, the FFO adjusted payout ratio was
66.5% compared to 66.9% for the same period in 2022.
- AFFO adjusted (1): Was 8.8¢ per unit for the
quarter compared to 10.2¢ per unit for the same period in 2022,
representing a decrease of 1.4¢ per unit. The decrease is
attributable to the adjusted variances of FFO and a $0.3 million increase of straight-line rent
compared to the same period in 2022. The $0.8 million increase of net financial expenses
had an impact of 1.0¢ per unit on the adjusted AFFO. For the
cumulative nine-month period, the AFFO adjusted was 30.1¢ per unit
which represent a decrease of 2.6% compared to the same period in
2022.
- AFFO adjusted payout ratio (1): Was 85.3% for
the quarter compared to 73.6% for the same period in 2022. For the
cumulative nine-month period, the AFFO adjusted payout ratio was
74.8% compared to 72.8% for the same period in 2022.
_________________________________
|
(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.
|
BALANCE SHEET AND LIQUIDITY HIGHLIGHTS
|
Periods ended September
30 and 12-month period ended December 31
|
|
September
30,
2023
|
|
December 31,
2022
|
|
(in thousands of
dollars, except for ratios and per unit data)
|
|
|
$
|
$
|
Total
assets
|
|
|
1,235,555
|
1,206,916
|
|
Total debt ratio
([4])
|
|
|
58.4 %
|
58.5 %
|
|
Mortgage debt
ratio ([5])
|
|
|
52.2 %
|
52.8 %
|
|
Weighted average
interest rate on mortgage debt
|
|
|
4.3 %
|
3.6 %
|
|
Market
capitalization
|
|
|
258,250
|
271,104
|
|
NAV per unit
(1)
|
|
|
5,57
|
5,42
|
|
|
|
|
|
|
|
|
- Investment properties: 57% of BTB's properties were
appraised by a third party during the quarter, resulting in a net
gain of $6.5 million. The result is
driven by an increase in the fair value of the Trust's industrial
properties, offsetting a decrease in the fair value of it's
off-downtown core office and necessity-based retail
properties.
- Debt metrics: BTB ended the quarter with a total debt
ratio (1) of 58.4%, recording a decrease of 10
basis points compared to December 31,
2022. The Trust ended the quarter with a mortgage debt ratio
(1) of 52.2%, a decrease of 200 basis points
compared to December 31, 2022.
- Liquidity position: The REIT held $2.4 million of cash at the end of the quarter
and $21.6 million is available under
its credit facilities. BTB has the option to increase its credit
capacity under its credit facilities by $10.0 million (1)
(3).
- Tenant exercise of an option to purchase a
property: On August
22,2023, an industrial tenant exercised its option to
purchase the property with a closing date of December 1, 2026, for a purchase price of
$10.3 million. Consequently, the
Trust derecognized the property from investment properties to
classify it as a finance lease.
_______________________
|
(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 7th, 2023, at
9 am, Eastern Time, to present BTB's
financial results and performance for the third quarter of
2023.
DATE:
|
Tuesday, November
7th, 2023
|
TIME:
|
9 am, Eastern
Time
|
URL ENTRY:
|
https://emportal.ink/3rFb10E
|
DIAL:
|
Local:
1-416-764-8688
|
North America
(toll-free): 1-888-390-0546
|
WEB:
|
https://app.webinar.net/63r0K7qkzom
|
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 14th, 2023, by
dialing: 1 416 764-8677 (local) or, 1 888 390-0541 (toll-free) and
by entering the following access code: 829432 #
ABOUT BTB
BTB is a real estate investment trust listed on the Toronto
Stock Exchange. BTB REIT invests in industrial, off-downtown core
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
MEASURES
|
DEFINITION
|
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.
|
|
|
FUNDS FROM
OPERATIONS (FFO)
& 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)
& 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.
|
|
|
FFO & AFFO
PAYOUT RATIOS
AND
FFO ADJUSTED &
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
|
The total debt ratio is
a non-IFRS financial measure of the Trust's financial leverage,
which is calculated by taking the total long-term debt less cash
divided by the 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.
|
|
|
PROVISION
FOR
NON-RECOVERABLE
CAPITAL EXPENDITURES
|
In calculating 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.
|
|
|
PROVISION FOR
UNRECOVERED RENTAL FEES
|
The Trust also deducts
a provision for unrecovered rental fees in the amount of
approximately 25¢ per sq. ft. on an annualized basis. Even though
quarterly rental fee disbursements vary significantly from one
quarter to another, management considers that this provision fairly
presents, in the long term, the average disbursements not recovered
directly in establishing the rent that the Trust will undertake.
These disbursements consist of inducements paid or granted when
leases are signed that are generally amortized over the term of the
lease and are subject to an equivalent increase in rent per square
foot, and of brokerage commissions and leasing payroll
expenses.
|
|
|
TOTAL LONG-TERM DEBT
LESS CASH AND CASH EQUIVALENTS
|
This is a non-IFRS
financial measure. Long-term debt less cash and cash equivalent is
a non-IFRS financial measure, calculated as the 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 fewer
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.
|
|
|
TOTAL GROSS VALUE OF
THE ASSETS OF THE TRUST LESS CASH AND CASH
EQUIVALENT
|
This is a non-IFRS
financial measure. Gross value of the assets of the Trust less cash
and cash equivalent ("GVALC") is a non-IFRS financial measure
defined as the Trust's 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.
|
|
|
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 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.
|
|
|
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:
|
2023
|
2023
|
2023
|
2022
|
2022
|
2022
|
2022
|
2021
|
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)
|
15,216
|
10,846
|
8,802
|
1,769
|
11,693
|
18,243
|
6,449
|
23,219
|
Fair value adjustment
on investment properties
|
(6,481)
|
-
|
-
|
7,781
|
1,230
|
197
|
(1,007)
|
(19,571)
|
Fair value adjustment
on Class B LP units
|
(159)
|
(775)
|
-
|
160
|
(142)
|
(233)
|
66
|
21
|
Amortization of lease
incentives
|
664
|
750
|
728
|
787
|
773
|
818
|
735
|
858
|
Fair value adjustment
on derivative financial instruments
|
(584)
|
(763)
|
184
|
(1,971)
|
(3,898)
|
(9,344)
|
997
|
3,297
|
Leasing payroll
expenses (6)
|
359
|
327
|
356
|
682
|
182
|
158
|
221
|
208
|
Distributions – Class B
LP units
|
56
|
42
|
22
|
26
|
26
|
26
|
26
|
30
|
Unit-based compensation
(Unit price remeasurement) (5)
|
(87)
|
(232)
|
(59)
|
198
|
(172)
|
(285)
|
77
|
23
|
FFO
(1)
|
8,984
|
10,195
|
10,033
|
9,432
|
9,692
|
9,580
|
7,564
|
8,085
|
Transaction costs on
disposition of investment properties and mortgage early repayment
fees
|
46
|
-
|
-
|
627
|
93
|
138
|
753
|
109
|
FFO Adjusted
(1)
|
9,030
|
10,195
|
10,033
|
10,059
|
9,785
|
9,718
|
8,317
|
8,194
|
FFO per unit
(1) (2) (3)
|
10.3¢
|
11.8¢
|
11.7¢
|
11.0¢
|
11.4¢
|
11.3¢
|
9.7¢
|
10.9¢
|
FFO Adjusted per
unit (1) (2) (4)
|
10.4¢
|
11.8¢
|
11.7¢
|
11.8¢
|
11.5¢
|
11.4¢
|
10.7¢
|
11.0¢
|
FFO payout ratio
(1)
|
72.9 %
|
63.8 %
|
64.1 %
|
67.9 %
|
65.9 %
|
66.4 %
|
77.2 %
|
68.9 %
|
FFO Adjusted payout
ratio (1)
|
72.5 %
|
63.8 %
|
64.1 %
|
63.6 %
|
65.2 %
|
65.5 %
|
70.2 %
|
68.0 %
|
(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 remeasurement 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:
|
2023
|
2023
|
2023
|
2022
|
2022
|
2022
|
2022
|
2021
|
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)
|
8,984
|
10,195
|
10,033
|
9,432
|
9,692
|
9,580
|
7,564
|
8,085
|
Straight-line rental
revenue adjustment
|
(842)
|
(291)
|
(633)
|
(1,077)
|
(521)
|
(74)
|
(150)
|
(758)
|
Accretion of effective
interest
|
271
|
278
|
236
|
336
|
219
|
284
|
288
|
275
|
Amortization of other
property and equipment
|
33
|
23
|
23
|
31
|
35
|
26
|
30
|
22
|
Unit-based compensation
expenses
|
184
|
237
|
256
|
206
|
130
|
312
|
73
|
143
|
Provision for
non-recoverable capital expenditures (1)
|
(626)
|
(634)
|
(658)
|
(630)
|
(599)
|
(580)
|
(581)
|
(539)
|
Provision for
unrecovered rental fees (1)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
AFFO
(1)
|
7,629
|
9,433
|
8,882
|
7,923
|
8,581
|
9,173
|
6,849
|
6,853
|
Transaction costs on
disposition of investment properties and mortgage early repayment
fees
|
46
|
-
|
-
|
627
|
93
|
138
|
753
|
109
|
AFFO Adjusted
(1)
|
7,675
|
9,433
|
8,882
|
8,550
|
8,674
|
9,311
|
7,602
|
6,962
|
AFFO per unit
(1) (2) (3)
|
8.8¢
|
10.9¢
|
10.3¢
|
9.3¢
|
10.1¢
|
10.8¢
|
8.8¢
|
9.2¢
|
AFFO Adjusted per
unit (1) (2) (4)
|
8.8¢
|
10.9¢
|
10.3¢
|
10.0¢
|
10.2¢
|
11.0¢
|
9.7¢
|
9.4¢
|
AFFO payout ratio
(1)
|
85.8 %
|
69.0 %
|
72.4 %
|
80.8 %
|
74.4 %
|
69.4 %
|
85.3 %
|
81.3 %
|
AFFO Adjusted payout
ratio (1)
|
85.3 %
|
69.0 %
|
72.4 %
|
74.9 %
|
73.6 %
|
68.3 %
|
76.8 %
|
80.0 %
|
(7)
|
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.
|
(8)
|
Including Class B LP
units.
|
(9)
|
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).
|
(10)
|
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, 2023 and September 30, 2022 and December 31, 2022
(in thousands of
dollars)
|
September 30,
2023
|
December 31,
2022
|
September 30,
2022
|
|
$
|
$
|
$
|
Cash and cash
equivalents
|
(2,357)
|
(2,404)
|
(10,417)
|
Mortgage loans
outstanding (1)
|
644,147
|
638,441
|
631,808
|
Convertible debentures
(1)
|
43,093
|
43,170
|
43,086
|
Credit
facilities
|
36,363
|
9,897
|
36,991
|
Total long-term debt
less cash and cash equivalents (2) (3)
|
721,246
|
689,104
|
701,468
|
Total gross value of
the assets of the Trust less cash and cash equivalents (2)
(4)
|
1,234,391
|
1,178,049
|
1,197,582
|
Mortgage debt ratio
(excluding convertible debentures and credit facilities) (2)
(5)
|
52.2 %
|
54.2 %
|
52.8 %
|
Debt ratio –
convertible debentures (2) (6)
|
3.5 %
|
3.7 %
|
3.6 %
|
Debt ratio – credit
facilities (2) (7)
|
2.9 %
|
0.8 %
|
3.1 %
|
Total debt ratio
(2)
|
58.4 %
|
58.5 %
|
58.6 %
|
(1)
|
Before unamortized
financing expenses and fair value assumption
adjustments.
|
(11)
|
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)
|
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.
|
(3)
|
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.
|
(4)
|
Mortgage debt ratio is
calculated by dividing the mortgage loans outstanding by the
GVALC.
|
(5)
|
Debt ratio –
convertible debentures is calculated by dividing the convertible
debentures by the GVALC.
|
(6)
|
Debt ratio – credit
facilities is calculated by dividing the credit facilities by the
GVALC.
|
SOURCE BTB Real Estate Investment Trust