MONTRÉAL, May 6, 2024
/CNW/ - BTB Real Estate Investment Trust
(TSX: BTB.UN) ("BTB", the "REIT" or the
"Trust") announced today its financial results for the first
quarter of 2024 ended March 31, 2024
(the "First Quarter").
"As we delve into the steady results
for the first quarter of 2024, the focus on increasing occupancy
rate and reducing debt ratios demonstrates our commitment to
financial solidity." says Michel
Léonard, President and CEO of BTB. "The REIT's leasing
activities were particularly successful, with an
occupancy rate increasing to 94.5%, driven by strong leasing
efforts and a
remarkable growth of 41 basis points compared
to the previous quarter. Additionally, our decision
to strategically dispose of suburban
office buildings in Longueuil, Quebec,
illustrates our proactive approach to optimizing our
portfolio for sustained success. This quarter marked an important
milestone with the successful publication of our first ESG report
in January. This historic achievement highlights our strong
commitment to corporate responsibility and emphasizes our
leadership position in responsible business practices. By making
prudent decisions aligned with
our long-term objectives, we ensure the resilience and agility of our portfolio
in a dynamic market
landscape. We remain optimistic regarding
lease renewals and new leases and, we are confident
in our trajectory throughout the year. We are well positioned to
address challenges and seize opportunities, thereby generating
value for our unitholders and stakeholders."
SUMMARY OF SIGNIFICANT ITEMS AS AT
MARCH 31st, 2024
- Total number of properties: 75
- Total leasable area: 6.1 million square
feet
- Total asset value: $1,229 million
- Market capitalization: $275 million (unit
price of $3.16 as at March 31,
2024)
OPERATIONAL HIGHLIGHTS
Periods ended
March 31
|
Quarter
|
|
|
2023
|
2022
|
Occupancy – committed (%)
|
94.5 %
|
93.2 %
|
Signed new
leases (in sq.ft.)
|
58,062
|
67,200
|
Renewed leases
at term (in sq.ft.)
|
91,791
|
41,764
|
Renewal rate (%)
|
67.7 %
|
37.7 %
|
Renewed leases
prior to the end of the term (in
sq.ft.)
|
3,747
|
16,611
|
Average lease
renewal rate
|
8.4 %
|
13.9 %
|
- BTB completed a total of 95,538
square feet of lease renewals
and 58,062 square feet of new leases
for the quarter. The occupancy
rate stood at
94.5%, representing a 41 basis
points increase compared to the prior quarter, and a 130 basis points
increase compared to the same period
in 2023. The increase in the average
renewal rate for the quarter was 8.4%.
FINANCIAL RESULTS
HIGHLIGHTS
Periods ended
March 31
|
Quarter
|
|
(in thousands of
dollars, except for ratios and per unit
data)
|
2024
|
2023
|
|
$
|
$
|
Rental revenue
|
32,636
|
32,911
|
Net operating income (NOI)
|
18,360
|
19,008
|
Net income
and comprehensive income
|
7,153
|
8,802
|
Adjusted EBITDA
(1)
|
17,036
|
17,154
|
Same-property NOI (1)
|
17,072
|
16,302
|
FFO Adjusted (1)
|
8,925
|
10,033
|
FFO adjusted payout ratio
|
73.5 %
|
64.1 %
|
AFFO Adjusted (1)
|
7,819
|
8 882
|
AFFO adjusted payout ratio
|
83.9 %
|
72.4 %
|
FINANCIAL RESULTS PER UNIT
|
|
|
Net income
and comprehensive income
|
8.2¢
|
10.2¢
|
Distributions
|
7.5¢
|
7.5¢
|
FFO Adjusted (1)
|
10.2¢
|
11.7¢
|
AFFO Adjusted (1)
|
8.9¢
|
10.3¢
|
(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: Stood at $32.6 million for the current quarter, which
represents a decrease of 0.8% compared to the same quarter of 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"). If one doesn't
consider the One-Time Adjustment, the rental revenue for Q1 2024 vs
Q1 2023 would have shown an increase of 3.7%.
- Net Operating Income (NOI): Totalled $18.4 million for the current quarter, which
represents a decrease of 3.4% compared to the same quarter of 2023.
If one doesn't consider the One-Time
adjustment, the NOI for Q1 2024 vs Q1 2023 would have recorded
an increase of 4.4%.
- Net income and comprehensive income:
Totalled $7.2 million for the quarter
compared to $8.8 million
for the same quarter in 2023, representing
a decrease of $1.6 million. The decrease
for the quarter is primarily due to an increase in
net financial expenses of $0.7
million, and a decrease in NOI of $0.6 million. If one doesn't consider the
One-Time Adjustment, the decrease from Q1 2024 vs Q1 2023 would
have been $0.2 million.
- Same-property NOI (1): Increased by 4.7%
compared to the same quarter in 2023. The increase is primarily due
to the increase in rent renewal rates achieved in 2023 of 9.2%
across all three operating segments, and inter alia, an increase in
rent renewal rates of 8.4% for the suburban office segment and
necessity-based retail segment for the current quarter.
- FFO
adjusted per unit (1): Was 10.2¢ per unit for the quarter
compared to 11.7¢ per unit
for the same period
in 2023, representing a decrease of 1.5¢ per unit. The said decrease
of adjusted FFO for the quarter is explained by an increase in net
financial expenses of $0.7 million
and an NOI decrease of $0.6 million.
Excluding the One-Time Adjustment , the FFO adjusted would have
increased by 0.2¢ per unit. In addition, FFO adjusted per unit was
negatively impacted by the increase in weighted average number of
units outstanding of 4 million units, due to the unitholder's
participation in the distributions reinvested under the
distribution reinvestment plan.
- FFO adjusted payout ratio
(1): Was
73.5% for the quarter compared to 64.1%
for the same period in 2023. Excluding the One-Time
Adjustment FFO adjusted
payout ratio for Q1 2024 vs Q1 2023 would
have decreased by 130 basis points.
- AFFO adjusted (1): Was 8.9¢ per unit for the
quarter compared to 10.3¢ per unit for the same period in 2023,
representing a decrease of 1.4¢ per unit. Excluding the
One-Time Adjustment, the adjusted AFFO for Q1 2024 vs Q1 2023would
have increased by 0.2¢ per unit. In addition, AFFO
adjusted per unit was negatively impacted by the increase in
weighted average number of units outstanding of 4 million units,
due to the unitholder's participation in the distributions
reinvested under the distribution reinvestment plan.
- AFFO adjusted payout ratio (1): Was
83.9% for the quarter compared to 72.4% for the same period in
2023. Excluding the One-Time Adjustment AFFO adjusted payout ratio
for Q1 2024 vs Q1 2023 would have decreased by 25 basis
points.
(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
March 31
|
Quarters
|
(in thousands of
dollars, except for ratios and per unit
data)
|
2024
|
2023
|
|
|
|
|
$
|
$
|
Total assets
|
1,229,194
|
1,213,237
|
Total debt ratio
(1)
|
58.3 %
|
59.1 %
|
Mortgage debt
ratio (2)
|
51.3 %
|
53.6 %
|
Weighted average
interest rate on mortgage debt
|
4.40 %
|
4.20 %
|
Market capitalization
|
275,102
|
307,002
|
NAV per unit (1)
|
5.47
|
5.43
|
- Debt metrics: BTB ended the quarter with a total debt
ratio (1) of 58.3%, recording a decrease of 22
basis points compared to December 31,
2023. The Trust ended the
quarter with a mortgage debt
ratio (1) of 51.3%, a decrease of 84
basis points compared to December
31, 2023.
- Liquidity position: The REIT held $1.8 million of cash at the end of the quarter
and $13.2 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).
- Dispositions: On February 29,
2024, the Trust disposed of 2 office properties located at
32 and 50, Saint-Charles Street West, in Longueuil, Québec, for total proceeds of
$6.2 million, excluding transaction
costs and adjustments.
(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, May 7th, 2024,
at 9 am, Eastern Time, to present BTB's financial
results and performance for the first quarter of 2024.
DATE:
|
Tuesday, May 7th, 2024
|
TIME:
|
9 am, Eastern
Time
|
URL ENTRY:
|
https://emportal.ink/3VCvj7z
|
DIAL:
|
Local:
1-416-764-8688
|
North
America (toll-free): 1-888-390-0546
|
WEB:
|
https://app.webinar.net/YN3Lx5bW1o9
|
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 May 14th,
2024, by dialing: 1 416 764-8677 (local) or, 1 888 390-0541
(toll-free) and by entering the following access
code: 348898 #
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 and
transaction costs are non-recurring in nature.
|
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.
|
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 remove the
impact of non-recurring items such as transaction cost
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 non-recurring items
such as 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
recurring 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 per unit
and
FFO adjusted
and AFFO adjusted per unit
|
FFO and AFFO per unit
and FFO adjusted and AFFO adjusted per unit 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 ratios
are calculated by dividing the
FFO, AFFO, FFO adjusted and AFFO adjusted by the Weighted average
number of units and Class B LP units outstanding.
The Trust believes
these metrics to be key measures of operating
performances allowing the
investors to compare its historical performance
in relation to an individual per unit investment in the
Trust.
|
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.
|
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.
|
NON-IFRS
MEASURE
|
DEFINITION
|
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
|
2023
|
2023
|
2023
|
2023
|
2022
|
2022
|
2022
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
(in thousands
of dollars, except for per unit)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
Net income
and comprehensive income (IFRS)
|
7,153
|
1,734
|
15,216
|
10,846
|
8,802
|
1,769
|
11,693
|
18,243
|
Fair value
adjustment on investment properties
|
(6)
|
4,480
|
(6,481)
|
-
|
-
|
7,781
|
1,230
|
197
|
Fair value
adjustment on Class B LP units
|
160
|
(42)
|
(159)
|
(775)
|
-
|
160
|
(142)
|
(233)
|
Amortization of lease incentives
|
690
|
641
|
664
|
750
|
728
|
787
|
773
|
818
|
Fair value
adjustment on derivative financial
instruments
|
(325)
|
2,396
|
(584)
|
(763)
|
184
|
(1,971)
|
(3,898)
|
(9,344)
|
Leasing payroll expenses (6)
|
591
|
401
|
359
|
327
|
356
|
682
|
182
|
158
|
Distributions – Class B LP
units
|
52
|
52
|
56
|
42
|
22
|
26
|
26
|
26
|
Unit-based compensation (Unit price remeasurement) (5)
|
409
|
(11)
|
(87)
|
(232)
|
(59)
|
198
|
(172)
|
(285)
|
FFO (1)
|
8,724
|
9,651
|
8,984
|
10,195
|
10,033
|
9,432
|
9,692
|
9,580
|
Transaction costs
on disposition of investment properties and mortgage early
repayment fees
|
201
|
37
|
46
|
-
|
-
|
627
|
93
|
138
|
FFO Adjusted (1)
|
8,925
|
9,688
|
9,030
|
10,195
|
10,033
|
10,059
|
9,785
|
9,718
|
FFO per
unit (1) (2) (3)
|
10.0¢
|
11.1¢
|
10.3¢
|
11.8¢
|
11.7¢
|
11.0¢
|
11.4¢
|
11.3¢
|
FFO Adjusted per unit (1) (2) (4)
|
10.2¢
|
11.1¢
|
10.4¢
|
11.8¢
|
11.7¢
|
11.8¢
|
11.5¢
|
11.4¢
|
FFO payout ratio
(1)
|
75.2 %
|
67.5 %
|
72.9 %
|
63.8 %
|
64.1 %
|
67.9 %
|
65.9 %
|
66.4 %
|
FFO Adjusted payout ratio (1)
|
73.5 %
|
67.2 %
|
72.5 %
|
63.8 %
|
64.1 %
|
63.6 %
|
65.2 %
|
65.5 %
|
(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:
|
2024
|
2023
|
2023
|
2023
|
2023
|
2022
|
2022
|
2022
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
(in thousands
of dollars, except for per unit)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
FFO (1)
|
8,724
|
9,651
|
8,984
|
10,195
|
10,033
|
9,432
|
9,692
|
9,580
|
Straight-line rental
revenue adjustment
|
(394)
|
(197)
|
(842)
|
(291)
|
(633)
|
(1,077)
|
(521)
|
(74)
|
Accretion of effective interest
|
308
|
310
|
271
|
278
|
236
|
336
|
219
|
284
|
Amortization of other property and equipment
|
17
|
20
|
33
|
23
|
23
|
31
|
35
|
26
|
Unit-based compensation expenses
|
(9)
|
159
|
184
|
237
|
256
|
206
|
130
|
312
|
Provision for non-recoverable capital expenditures (1)
|
(653)
|
(639)
|
(626)
|
(634)
|
(658)
|
(630)
|
(599)
|
(580)
|
Provision for unrecovered rental
fees (1)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
AFFO (1)
|
7,618
|
8,929
|
7,629
|
9,433
|
8,882
|
7,923
|
8,581
|
9,173
|
Transaction costs
on disposition of investment properties and mortgage early
repayment fees
|
201
|
37
|
46
|
-
|
-
|
627
|
93
|
138
|
AFFO Adjusted (1)
|
7,819
|
8,966
|
7,675
|
9,433
|
8,882
|
8,550
|
8,674
|
9,311
|
AFFO per unit (1) (2) (3)
|
8.7¢
|
10.2¢
|
8.8¢
|
10.9¢
|
10.3¢
|
9.3¢
|
10.1¢
|
10.8¢
|
AFFO Adjusted per unit (1) (2) (4)
|
8.9¢
|
10.3¢
|
8.8¢
|
10.9¢
|
10.3¢
|
10.0¢
|
10.2¢
|
11.0¢
|
AFFO payout
ratio (1)
|
86.2 %
|
72.9 %
|
85.8 %
|
69.0 %
|
72.4 %
|
80.8 %
|
74.4 %
|
69.4 %
|
AFFO Adjusted payout ratio (1)
|
83.9 %
|
72.6 %
|
85.3 %
|
69.0 %
|
72.4 %
|
74.9 %
|
73.6 %
|
68.3 %
|
(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
March 31, 2024, and 2023 and
December 31 2023:
(in thousands of dollars)
|
March 31,
2024
|
December 31,
2023
|
March 31,
2023
|
|
$
|
$
|
$
|
Cash and
cash equivalents
|
(1,781)
|
(912)
|
(1,669)
|
Mortgage loans
outstanding (1)
|
630,513
|
640,425
|
650,454
|
Convertible debentures (1)
|
43,277
|
43,185
|
42,912
|
Credit facilities
|
44,797
|
36,359
|
25,050
|
Total long-term debt less cash
and cash equivalents (2) (3)
|
716,806
|
719,057
|
716,747
|
Total gross value of
the assets of the Trust less cash and
cash
equivalents (2) (4)
|
1,228,643
|
1,227,949
|
1,212,704
|
Mortgage debt
ratio (excluding convertible debentures and credit
facilities) (2) (5)
|
51.3 %
|
52.2 %
|
53.6 %
|
Debt ratio
– convertible debentures (2) (6)
|
3.5 %
|
3.5 %
|
3.5 %
|
Debt ratio
– credit facilities (2) (7)
|
3.6 %
|
3.0 %
|
2.1 %
|
Total debt ratio (2)
|
58.3 %
|
58.6 %
|
59.1 %
|
(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