MONTRÉAL, Aug. 5, 2024
/CNW/ - BTB Real Estate Investment Trust (TSX:
BTB.UN) ("BTB", the "REIT" or the "Trust")
announced today its financial results for the second quarter of
2024 ended June 30, 2024 (the
"Second Quarter").
"This quarter has been marked by a strong performance across our
portfolio, reflecting the effectiveness of our strategic
initiatives and the dedication of our team." says Michel Léonard,
President and CEO of BTB. "I am delighted to report that our
occupancy rate reached a new record high of 94.6%, highlighting the
success of our leasing efforts and our commitment to highquality
properties and our investments in industrial properties. In
addition, for the cumulative sixmonth period, rental revenue and
same-property NOI increased by 0.5% and 1.5%, respectively,
compared to the same period last year. These results are a
testament to the organic growth of our portfolio and our property
management. Our FFO adjusted and AFFO adjusted also saw positive
growth compared to the previous quarter, reflecting the strong
performance of our assets. Our debt ratio is improving, with a
total ratio of 58.1% and a mortgage debt ratio of 51.4%, both down
from December 31, 2023. In fact, we
are spreading out our mortgage refinancing maturities to try to
counteract the fluctuations in interest rates on mortgages of
recent months, and with the latest announcements from the Bank of
Canada, the outlook appears to
bode well for future refinancings of our portfolio. 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 discipline will continue to deliver strong
results and drive long-term value creation for all of our
stakeholders."
SUMMARY OF SIGNIFICANT ITEMS AS AT JUNE 30th, 2024
- Total number of properties: 75
- Total leasable area: 6.1 million square feet
- Total asset value: $1,236
million
- Market capitalization: $274
million (unit trading price of $3.13 as at June 30,
2024)
OPERATIONAL HIGHLIGHTS
|
Periods ended
June 30
|
Quarter
|
Cumulative (6
months)
|
|
2024
|
2023
|
2024
|
2023
|
|
Occupancy – committed (%)
|
94.6 %
|
94.1 %
|
-
|
-
|
|
Signed new
leases (in sq.ft.)
|
40,080
|
125,223
|
98,142
|
192,423
|
|
Renewed leases
at term (in sq.ft.)
|
158,445
|
164,189
|
250,236
|
207,735
|
|
Renewal rate (%)
|
88.7 %
|
70.2 %
|
79.6 %
|
60.0 %
|
|
Renewed leases
prior to the end of the term (in
sq.ft.)
|
58,160
|
44,149
|
61,907
|
60,760
|
|
Average lease
renewal rate
|
5.7 %
|
4.9 %
|
6.6 %
|
6.2 %
|
- During the quarter, the Trust completed a total of 216,605
square feet of lease renewals and 40,080 square feet of new leases.
The occupancy rate increased to 94.6%, representing a 10 basis
points increase compared to the prior quarter and a 50 basis points
increase compared to the same period in 2023. The increase in the
average rent renewal rate for the current quarter and current
cumulative six-month period was respectively 5.7% and 6.6%. Shortly
after the end of the quarter, Nuera Air, a tenant occupying
132,665 square feet in an industrial property located in
Laval, Québec, declared
bankruptcy. The Trust has already retained the services of a
national commercial brokerage firm to lease the property.
FINANCIAL RESULTS HIGHLIGHTS
|
Periods ended June
30
|
Quarter
|
Cumulative (6
months)
|
|
(in thousands of dollars,
except for ratios and per unit data)
|
2024
|
2023
|
2024
|
2023
|
|
$
|
$
|
$
|
$
|
|
Rental revenue
|
32,218
|
31,708
|
64,854
|
64,619
|
|
Net operating income (NOI)
|
18,856
|
19,041
|
37,216
|
38,049
|
|
Net income
and comprehensive income
|
7,272
|
10,846
|
14,425
|
19,648
|
|
Adjusted EBITDA
(1)1
|
17,539
|
17,956
|
34,576
|
35,110
|
|
Same-property NOI (1)
|
18,692
|
18,415
|
34,897
|
34,021
|
|
FFO Adjusted (1)
|
9,149
|
10,195
|
18,075
|
20,228
|
|
FFO Adjusted payout ratio
|
72.2 %
|
63.8 %
|
72.8 %
|
63.8 %
|
|
AFFO Adjusted (1)
|
8,230
|
9,433
|
16,050
|
18,315
|
|
AFFO Adjusted payout ratio
|
80.2 %
|
69.0 %
|
82.0 %
|
70.5 %
|
|
FINANCIAL RESULTS PER UNIT
|
|
|
|
|
|
Net income
and comprehensive income
|
8.3¢
|
12.5¢
|
16.4¢
|
22.8¢
|
|
Distributions
|
7.5¢
|
7.5¢
|
15.0¢
|
15.0¢
|
|
FFO Adjusted (1)
|
10.4¢
|
11.8¢
|
20.6¢
|
23.5¢
|
|
AFFO Adjusted (1)
|
9.4¢
|
10.9¢
|
18.3¢
|
21.3¢
|
- Rental revenue: Stood at $32.2
million for the current quarter, which represents an
increase of 1.6% compared to the same quarter of 2023. For the
cumulative six-month period, rental revenue totalled $64.9 million which represents an increase of
0.5% 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 current cumulative six-month period vs the same period in 2023
would have increased by 2.7%.
- Net Operating Income (NOI): Totalled $18.9 million for the current quarter, which
represents a decrease of 0.5% compared to the same quarter of 2023.
The decrease for the quarter is partially related to the bankruptcy
of a tenant in Quebec City,
Énergie Cardio (causing a negative impact of $0.2 million); which space was rapidly leased to
the group that purchased the assets of the business of the bankrupt
tenant, taking possession of the space in September 2024. For the cumulative six-month
period, the NOI totalled $37.2
million which represents a decrease of 2.1% compared to the
same period in 2023. Excluding the One-Time Adjustment, the
cumulative six-month period NOI for Q2 2024 vs the same period in
2023 would have increased by 1.6%.
- Net income and comprehensive income: Totalled
$7.3 million for the quarter compared
to $10.8 million for the same period
in 2023, representing a decrease of $3.5
million. The decrease for the quarter is primarily due to an
increase in net financial expenses of $2.6
million, an increase in administrative expenses of
$0.8 million and a decrease in NOI of
$0.2 million. For the 2024 cumulative
six-month period, net income and comprehensive income totalled
$14.4 million compared to
$19.7 million, representing a
decrease of $5.3 million. Excluding
the One-Time Adjustment, the decrease for the cumulative six-month
period from Q2 2024 vs Q2 2023 would have been $3.8 million.
- Same-property NOI (1): For the quarter, the
same-property NOI increased by 1.5% compared to the same period in
2023, and for the cumulative six-month period, the same-property
NOI increased by 2.6% compared to the same period in 2023. The
increases are due to an increase of rental rates for lease renewals
of 5.7% for the cumulative six-month period in the industrial
segment as well as an increase in rental spreads for in-place
leases, an increase of rental rates for lease renewals of 7.7% for
the cumulative six-month period in the suburban office segment and
an increase of rental rates for lease renewals of 6.0% for the
cumulative six-month period in the necessity-based retail
segment.
- FFO adjusted per unit (1): Was 10.4¢ per unit
for the quarter compared to 11.8¢ per unit for the same period in
2023, representing a decrease of 1.4¢ per unit. The decrease of FFO
adjusted for the quarter is explained by an increase in interest
expense net of financial income of $0.3
million, an NOI decrease of $0.2
million and an increase in administration expenses of
$0.5 million. For the cumulative
six-month period, the FFO adjusted was 20.6¢ per unit compared to
23.5¢ per unit for the same period in 2023, representing a decrease
of 2.9¢ per unit. Excluding the One-Time adjustment, the cumulative
six-month period FFO adjusted per unit vs the same period in 2023
would have recorded a decrease of 1.2¢ per unit. In addition, FFO
adjusted per unit was negatively impacted by an increase in the
weighted average number of units outstanding of 1.5 million units,
due to the unitholder's participation in the distribution
reinvestment plan.
- FFO adjusted payout ratio (1): Was 72.2% for
the quarter compared to 63.8% for the same period in 2023, an
increase of 8.4%. For the cumulative six-month period, the FFO
adjusted payout ratio was 72.8% compared to 63.8% for the same
period in 2023, an increase of 9%. Excluding the One-Time
Adjustment, the cumulative six-month period FFO adjusted payout
ratio vs the same period in 2023 would have increased by 4.9%.
- AFFO adjusted per unit (1): Was 9.4¢ per unit
for the quarter compared to 10.9¢ per unit for the same period in
2023, representing a decrease of 1.5¢ per unit, in line with the
decrease of the FFO adjusted explained above. For the cumulative
six-month period, the AFFO adjusted per unit was 18.3¢ per unit
compared to 21.3¢ per unit for the same period in 2023,
representing a decrease of 3.0¢ per unit compared to the same
period in 2023. Excluding the One-Time Adjustment, the cumulative
six-month period AFFO adjusted per unit would have decreased by
1.3¢ per unit. AFFO adjusted per unit was also negatively impacted
by the increase in weighted average number of units outstanding of
1.5 million units, due to the unitholder's participation in the
distribution reinvestment plan.
- AFFO adjusted payout ratio (1): Was 80.2% for
the quarter compared to 69.0% for the same period in 2023. For the
cumulative six-month period, the AFFO adjusted payout ratio was
82.0% compared to 70.5% for the same period in 2023, representing
an increase of 11.5%. Excluding the One-Time adjustment, the
cumulative six-month period AFFO adjusted payout ratio vs the same
period in 2023 would have increased by 5.5%.
BALANCE SHEET AND LIQUIDITY HIGHLIGHTS
|
Periods ended June
30
|
Cumulative (6
months)
|
|
(in thousands of dollars,
except for ratios and per unit data)
|
2024
|
2023
|
|
$
|
$
|
|
Total assets
|
1,235,935
|
1,229,249
|
|
Total debt ratio
(1)
|
58.1 %
|
58.9 %
|
|
Mortgage debt
ratio (2)
|
51.4 %
|
52.9 %
|
|
Weighted average
interest rate on mortgage debt
|
4.57 %
|
4.28 %
|
|
Market capitalization
|
273,813
|
277,059
|
|
NAV per unit (1)
|
5.46
|
5.39
|
- Debt metrics: BTB ended the quarter with a total debt
ratio (1) of 58.1%, recording a decrease of 50
basis points compared to December 31,
2023. The Trust ended the quarter with a mortgage debt ratio
(1) of 51.4%, a decrease of 80 basis points
compared to December 31,
2023.
- Liquidity position: The Trust held $0.9 million of cash at the end of the quarter
and $17.9 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)
|
__________________________
|
|
(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, August 6th, 2024,
at 9 am, Eastern Time, to present BTB's financial
results and performance for the second quarter of 2024.
|
DATE:
|
Tuesday, August 6th, 2024
|
|
TIME:
|
9 am, Eastern
Time
|
|
URL ENTRY:
|
https://emportal.ink/3VZ7t5M
|
|
DIAL:
|
Local:
1-416-764-8688
|
|
North
America (toll-free): 1-888-390-0546
|
|
WEB:
|
https://app.webinar.net/LbY2Amxr0MB
|
|
VISUAL:
|
A presentation will be
uploaded on BTB's website prior to
the call
|
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 August
13th, 2024, by dialing: 1 416 764-8677 (local)
or, 1 888 390-0541 (toll-free) and by entering the following
access code: 052162 #
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 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.
|
|
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.
|
|
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.
|
|
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
|
2023
|
2023
|
2023
|
2023
|
2022
|
2022
|
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
|
(in thousands
of dollars, except for per unit)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
Net income
and comprehensive income (IFRS)
|
7,272
|
7,153
|
1,734
|
15,216
|
10,846
|
8,802
|
1,769
|
11,693
|
|
Fair value
adjustment on investment properties
|
-
|
(6)
|
4,480
|
(6,481)
|
-
|
-
|
7,781
|
1,230
|
|
Fair value
adjustment on Class B LP units
|
(21)
|
160
|
(42)
|
(159)
|
(775)
|
-
|
160
|
(142)
|
|
Amortization of lease incentives
|
704
|
690
|
641
|
664
|
750
|
728
|
787
|
773
|
|
Fair value
adjustment on derivative financial
instruments
|
379
|
(325)
|
2,396
|
(584)
|
(763)
|
184
|
(1,971)
|
(3,898)
|
|
Leasing payroll expenses (6)
|
433
|
591
|
401
|
359
|
327
|
356
|
682
|
182
|
|
Distributions – Class B LP
units
|
53
|
52
|
52
|
56
|
42
|
22
|
26
|
26
|
|
Unit-based compensation (Unit price remeasurement) (5)
|
63
|
409
|
(11)
|
(87)
|
(232)
|
(59)
|
198
|
(172)
|
|
FFO (1)
|
8,883
|
8,724
|
9,651
|
8,984
|
10,195
|
10,033
|
9,432
|
9,692
|
|
Transaction costs on
disposition of investment properties and mortgage early repayment
fees
|
266
|
201
|
37
|
46
|
-
|
-
|
627
|
93
|
|
FFO Adjusted (1)
|
9,149
|
8,925
|
9,688
|
9,030
|
10,195
|
10,033
|
10,059
|
9,785
|
|
FFO per
unit (1) (2) (3)
|
10.1¢
|
10.0¢
|
11.1¢
|
10.3¢
|
11.8¢
|
11.7¢
|
11.0¢
|
11.4¢
|
|
FFO Adjusted per unit (1) (2) (4)
|
10.4¢
|
10.2¢
|
11.1¢
|
10.4¢
|
11.8¢
|
11.7¢
|
11.8¢
|
11.5¢
|
|
FFO payout ratio
(1)
|
74.3 %
|
75.2 %
|
67.5 %
|
72.9 %
|
63.8 %
|
64.1 %
|
67.9 %
|
65.9 %
|
|
FFO Adjusted payout ratio (1)
|
72.2 %
|
73.5 %
|
67.2 %
|
72.5 %
|
63.8 %
|
64.1 %
|
63.6 %
|
65.2 %
|
|
(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
|
2024
|
2023
|
2023
|
2023
|
2023
|
2022
|
2022
|
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
Q-2
|
Q-1
|
Q-4
|
Q-3
|
|
(in thousands
of dollars, except for per unit)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
FFO (1)
|
8,883
|
8,724
|
9,651
|
8,984
|
10,195
|
10,033
|
9,432
|
9,692
|
|
Straight-line rental
revenue adjustment
|
(183)
|
(394)
|
(197)
|
(842)
|
(291)
|
(633)
|
(1,077)
|
(521)
|
|
Accretion of effective interest
|
361
|
308
|
310
|
271
|
278
|
236
|
336
|
219
|
|
Amortization of other property and equipment
|
17
|
17
|
20
|
33
|
23
|
23
|
31
|
35
|
|
Unit-based compensation expenses
|
(95)
|
(9)
|
159
|
184
|
237
|
256
|
206
|
130
|
|
Provision for non-recoverable capital expenditures (1)
|
(644)
|
(653)
|
(639)
|
(626)
|
(634)
|
(658)
|
(630)
|
(599)
|
|
Provision for unrecovered rental
fees (1)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
|
AFFO (1)
|
7,964
|
7,618
|
8,929
|
7,629
|
9,433
|
8,882
|
7,923
|
8,581
|
|
Transaction costs on
disposition of investment properties and mortgage early repayment
fees
|
266
|
201
|
37
|
46
|
-
|
-
|
627
|
93
|
|
AFFO Adjusted (1)
|
8,230
|
7,819
|
8,966
|
7,675
|
9,433
|
8,882
|
8,550
|
8,674
|
|
AFFO per unit (1) (2) (3)
|
9.1¢
|
8.7¢
|
10.2¢
|
8.8¢
|
10.9¢
|
10.3¢
|
9.3¢
|
10.1¢
|
|
AFFO Adjusted per unit (1) (2) (4)
|
9.4¢
|
8.9¢
|
10.3¢
|
8.8¢
|
10.9¢
|
10.3¢
|
10.0¢
|
10.2¢
|
|
AFFO payout
ratio (1)
|
82.9 %
|
86.2 %
|
72.9 %
|
85.8 %
|
69.0 %
|
72.4 %
|
80.8 %
|
74.4 %
|
|
AFFO Adjusted payout ratio (1)
|
80.2 %
|
83.9 %
|
72.6 %
|
85.3 %
|
69.0 %
|
72.4 %
|
74.9 %
|
73.6 %
|
|
(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 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
June 30, 2024, and 2023 and
December 31 2023:
|
(in thousands of dollars)
|
June
30,
2024
|
December 31,
2023
|
June 30,
2023
|
|
$
|
$
|
$
|
|
Cash and
cash equivalents
|
(857)
|
(912)
|
(3,744)
|
|
Mortgage loans
outstanding (1)
|
636,492
|
640,425
|
648,348
|
|
Convertible debentures (1)
|
43,375
|
43,185
|
43,001
|
|
Credit facilities
|
39,606
|
36,359
|
34,301
|
|
Total long-term debt less cash
and cash equivalents (2) (3)
|
718,616
|
719,057
|
721,906
|
|
Total gross value of
the assets of the Trust less cash and cash
equivalents (2) (4)
|
1,236,326
|
1,227,949
|
1,226,664
|
|
Mortgage debt
ratio (excluding convertible debentures and credit
facilities) (2) (5)
|
51.4 %
|
52.2 %
|
52.9 %
|
|
Debt ratio
– convertible debentures (2) (6)
|
3.5 %
|
3.5 %
|
3.5 %
|
|
Debt ratio
– credit facilities (2) (7)
|
3.2 %
|
3.0 %
|
2.8 %
|
|
Total debt ratio (2)
|
58.1 %
|
58.6 %
|
58.9 %
|
|
(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