BTB REIT demonstrates strong operational performance, with an increase in lease renewal rates of 8.3% and total leasing activity of 959,223 square feet for the year 2024
Canada NewsWire
MONTRÉAL, Feb. 24, 2025
MONTRÉAL, Feb. 24, 2025 /CNW/ - BTB Real Estate Investment Trust (TSX: BTB.UN) ("BTB" or the "Trust") releases today its financial results for the fourth quarter and year ended December 31(st) , 2024.
"As we closed 2024, BTB continues to demonstrate resilience and strong operational performance. This year was marked by strategic initiatives that strengthened our portfolio, enhanced our financial position, and reinforced our commitment to long-term growth." says Michel Léonard, President and Chief Executive Officer.
"Our leasing efforts have led to a 2.3% increase in rental revenue for the quarter and 1.7% for the year 2024. This growth was fueled by securing key lease agreements, reflecting the strength of our assets and tenant relationships. Our average rent renewal rate improved by 18.7% during the quarter and by 8.3% for the year 2024 across the three segments, with a notable performance in the necessity-based retail segment, increasing by 12.9% in 2024 compared to the same period last year. These factors contributed to a 2.6% increase in same-property NOI (1) for the year 2024 compared to the same period last year, underscoring the impact of our leasing momentum and disciplined asset management.
A major milestone this year was the first ground-up development performed by BTB namely, the construction of a Winners/HomeSense store in Lévis, set to open on February 25(th) , 2025. This project was delivered on time and on budget, bringing well-established national brand into our property and further solidifying our presence in high-traffic retail corridors. By securing long-term leases with national retailers, we are enhancing the stability of our retail segment while responding to evolving consumer demand. This initiative reflects our ability to optimize the performance of our properties.
Our commitment to ESG initiatives remains strong, as we continue to integrate sustainability into our operations and decision-making. In 2024, we have taken meaningful steps to improve energy efficiency of our properties, raise awareness with our staff, and foster sustainable partnerships with our tenants. During 2025, we will issue our second ESG report which will showcase progress made since our inaugural report publication, offering insights into our initiatives, and reinforcing our dedication to responsible management.
On the financial front, we successfully redeemed and fully paid our Series G convertible debentures at maturity, in the amount of $24.0 million (plus accrued interest of $0.7 million). As a subsequent event of the year 2024, we issued the Series I convertible, unsecured, subordinated debentures to redeem, prior to maturity, the Series H convertible debentures. This strategic decision positions us to seize new opportunities while ensuring long-term financial stability for the Trust.
As we enter 2025, we remain focused on executing our vision, supporting our portfolio, and creating lasting value for our stakeholders".
___________________________
(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.
OPERATIONAL HIGHLIGHTS
Periods ended December 31 Quarter Year
2024 2023 2024 2023
Committed occupancy rate (%) 92.7 % 94.2 %
Signed new leases (in sq.ft.) 68,726 78,340 185,581 296,240
New leases related to a development project
(in sq.ft.) - - 45,870 -
Renewed leases at term (in sq.ft.) 96,071 126,427 393,416 384,558
Renewal rate (%) 66.5 % 73.4 % 72.9 % 62.4 %
Renewed leases prior to the end of the term
(in sq.ft.) 64,646 32,363 334,356 101,193
Average increase in lease renewal rate 18.7 % 14.3 % 8.3 % 9.2 %
-- During the quarter, the Trust completed lease renewals totaling 160,717
square feet and new leases totaling 68,726 square feet. For the year, the
Trust completed lease renewals totaling 727,772 square feet and new
leases totaling 231,451 square feet, which includes the lease with
Winners/Home Sense in Lévis, Québec. The increase in the
average rent renewal rate for the current quarter and for the year was
respectively 18.7% and 8.3%. The occupancy rate stood at 92.7%, a 40
basis points increase compared to the prior quarter and a 150 basis
points decrease compared to the same period in 2023. The decrease in the
occupancy rate is primarily due to the bankruptcy of Nuera Air. The Trust
has retained the services of a national commercial brokerage firm
specialized in the industrial segment to lease that property.
FINANCIAL RESULTS HIGHLIGHTS
Periods ended December 31 Quarter Year
(in thousands of dollars, except for ratios 2024 2023 2024 2023
and per
unit data)
$ $ $ $
Rental revenue 32,671 31,922 130,030 127,826
Net operating income (NOI) 19,082 19,255 75,051 75,379
Net income and comprehensive income 18,847 1,734 38,742 36,598
Adjusted EBITDA (1) 17,556 18,065 70,162 69,719
Same-property NOI (1) 18,351 18,882 69,709 67,926
FFO Adjusted (1) 9,656 9,688 37,157 38,946
FFO adjusted payout ratio 68.8 % 67.2 % 71.1 % 66.5 %
AFFO Adjusted (1) 8,923 8,966 33,554 34,956
AFFO adjusted payout ratio 74.5 % 72.6 % 78.7 % 74.1 %
FINANCIAL RESULTS PER UNIT
Net income and comprehensive income 21.3c 2.0c 44.0c 42.4c
Distributions 7.5c 7.5c 30.0c 30.0c
FFO Adjusted (1) 10.9c 11.1c 42.2c 45.1c
AFFO Adjusted (1) 10.1c 10.3c 38.1c 40.5c
_______________________
(1) Non-IFRS financial measure. See Appendix 1.
-- Rental revenue: Stood at $32.7 million for the current quarter, which
represents an increase of 2.3% compared to the same quarter of 2023. For
the year 2024, rental revenue totalled $130.0 million which represents an
increase of 1.7% 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 year 2024 compared to the same period
in 2023 would have increased by 2.9%.
-- Net Operating Income (NOI): Totalled $19.1 million for the current
quarter, which represents a decrease of 0.9% compared to the same quarter
of 2023. The decrease for the quarter is due to the bankruptcy of two
tenants: (1) Énergie Cardio in Quebec City ($0.2 million), which
space was rapidly leased to the group that purchased the assets of the
business of the bankrupt tenant and (2) Nuera Air, a tenant occupying
132,665 square feet in an industrial property in Laval ($0.5 million)
partially offset by operating improvements, higher rent renewal rates,
and increases in rental spreads for in-place leases ($0.5 million). For
the year 2024, the NOI totalled $75.1 million which represents a decrease
of 0.4% compared to 2023. Excluding the One-Time Adjustment, NOI for the
year compared to the same period in 2023 would have increased by 1.4%.
-- Net income and comprehensive income: Totalled $18.8 million for the
current quarter compared to $1.7 million for the same period in 2023,
representing an increase of $17.1 million. The result for the quarter is
affected by a $14.5 million non-cash net increase of the fair value of
investment properties and $3.2 million non-cash gain in the fair value of
derivative financial instruments. For the year 2024, net income and
comprehensive income totalled $38.7 million, representing an increase of
$2.1 million. Excluding the One-Time Adjustment, the increase for the
year, compared to the same period in 2023, would have been $3.5 million.
-- Same-property NOI (1): For the quarter, the same-property NOI decreased
by 2.8% compared to the same period in 2023. The decrease is due to the
two previously outlined bankruptcies. For the year 2024, the
same-property NOI increased by 2.6% compared to 2023. The increase for
the year 2024, is due to higher rent renewal rates of 8.3% across all
three segments of the portfolio. For the year, the Trust achieved
increases of rent renewal rates of 10.3% for the industrial segment, 5.5%
for the suburban office segment and 12.9% for the necessity-based retail
segment.
-- FFO adjusted per unit (1): Was 10.9c per unit for the quarter compared to
11.1c per unit for the same period in 2023, representing a decrease of
0.2c per unit. The decrease is explained by an increase in weighted
average number of units outstanding of 1.7 million units, due to the
unitholder's participation in the distribution reinvestment plan. For the
year 2024, the FFO adjusted was 42.2c per unit compared to 45.1c per unit
for the same period in 2023, representing a decrease of 2.9c per unit.
The decrease of FFO adjusted per unit for the year is explained by a
decrease in NOI of $0.3 million and an increase in interest expenses net
of financial income of $1.5 million. Excluding the One-Time Adjustment,
the FFO adjusted per unit for the year 2024 compared to the same period
in 2023 would have decreased by 1.3c per unit.
-- FFO adjusted payout ratio (1): Was 68.8% for the quarter compared to
67.2% for the same period in 2023, an increase of 1.6%. For the year
2024, the FFO adjusted payout ratio was 71.1% compared to 66.5% for the
same period in 2023, an increase of 4.6%. Excluding the One-Time
Adjustment, the FFO adjusted payout ratio for year 2024 compared to the
same period in 2023 would have increased by 2.1%.
-- AFFO adjusted per unit (1): Was 10.1c per unit for the quarter compared
to 10.3c per unit for the same period in 2023, representing a decrease of
0.2c per unit, in line with the decrease of FFO adjusted explained above.
For the year 2024, the AFFO adjusted per unit was 38.1c per unit compared
to 40.5c per unit for the same period in 2023, representing a decrease of
2.4c per unit compared to the same period in 2023. Excluding the One-Time
Adjustment, the AFFO adjusted per unit would have decreased by 0.8c per
unit. AFFO adjusted per unit was also negatively impacted by the increase
in weighted average number of units outstanding of 1.7 million units, due
to the unitholder's participation in the distribution reinvestment plan.
-- AFFO adjusted payout ratio (1): Was 74.5% for the fourth quarter compared
to 72.6% for the same period in 2023, an increase of 1.9%. For the year
2024, the AFFO adjusted payout ratio was 78.7% compared to 74.1% for the
same period in 2023, an increase of 4.6%. Excluding the One-Time
Adjustment, the AFFO adjusted payout ratio for the year 2024 compared to
the same period in 2023 would have increased by 1.5%.
______________________
(1) Non-IFRS financial measure. See Appendix 1.
BALANCE SHEET AND LIQUIDITY HIGHLIGHTS
Periods ended December 31 Year
(in thousands of dollars, except for ratios and per 2024 2023
unit data)
$ $
Total asset value 1,256,003 1,227,648
Total debt ratio (1) 57.9 % 58.6 %
Mortgage debt ratio (2) 52.8 % 52.2 %
Weighted average interest rate on mortgage debt 4.35 % 4.37 %
Market capitalization 295,761 254,048
Market price of units 3.36 2.93
NAV per unit (1) 5.57 5.46
-- Investment properties: At December 31, 2024, 56% of the fair value of
investment properties was externally appraised for an aggregate fair
value of $687.6 million. For the year, the Trust recorded a gain of $10.3
million of net changes in fair value, reflecting stability in
capitalization rates across all 3 asset classes as well as the updated
cash flows assumptions.
-- Debt metrics: BTB ended the year with a total debt ratio (1) of 57.9%,
recording a decrease of 70 basis points compared to December 31, 2023.
The Trust ended the year with a mortgage debt ratio (1) of 52.8%, an
increase of 60 basis points compared to December 31, 2023.
-- Liquidity position: BTB held $2.5 million of cash at the end of the year
and $15.2 million is available under its credit facilities (3).
-- Debentures: During the quarter, the Trust fully redeemed and paid at
maturity the Series G unsecured subordinated convertible debentures at
their nominal value of $24.0 million plus accrued interest of $0.7
million using proceeds sourced from mortgage loans refinancings.
SUMMARY OF SIGNIFICANT ITEMS AS AT DECEMBER 31(st) , 2024
-- Total number of properties: 75
-- Total leasable area: approximately 6.1 million square feet
-- Total asset value: approximately $1.3 billion
-- Market capitalization as at December 31, 2024: $295.8 million (unit
trading price of $3.36)
__________________________
(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.
SUBSEQUENT EVENTS
-- On January 23, 2025, the Trust issued Series I convertible, unsecured,
subordinated debentures bearing 7.25% interest payable semi-annually and
maturing on February 28, 2030, in the amount of $40.25 million. The Serie
I debentures are convertible at the holder's option at any time before
February 28, 2030, at a conversion price of $4.10 per unit.
-- On February 24, 2025, the Trust fully redeemed and paid at maturity the
Series H convertible debentures at their nominal value of $19.9 million.
-- On February 24, 2025, the Trust undertook the initiative to strengthen
its capital structure and unitholder value strategy by suspending the
distribution reinvestment plan ("DRIP"). The suspension of the DRIP is
intended to nullify unfavorable unitholder dilution, and this decision is
aligned with the Trust's objective to maximize total return to
unitholders. Until further notice, unitholders who were enrolled in the
DRIP will automatically receive distribution payments in the form of
cash. Computershare Trust Company of Canada, as administrator of the DRIP,
will forward a notice and related documentation to all current DRIP
participants in the coming days.
QUARTERLY CALL INFORMATION
Management will hold a conference call on Tuesday, February 25(th) , 2025, at 9 am, Eastern Time, to present BTB's financial results and performance for the fourth quarter of 2024.
DATE: Tuesday, February 25(th) , 2025
TIME: 9 am, Eastern Time
URL ENTRY: https://emportal.ink/42kpmQ2
DIAL: Montréal: (+1) 514 400 3794 (local)Toronto: (+1) 289 819 1299
(local)
North America (toll-free): (+1) 800 990 4777
WEB: https://app.webinar.net/9BEYq9p42kP
VISUAL: A presentation will be uploaded on BTB's website prior
to the callhttps://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 by via playback until March 3(rd) , 2025, by dialing: (+1) 289 819 1450 (local) or, (+1) 888 660 6345 (toll-free) and by entering the following access code: 38021 #
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, Adjusted EBITDA income is a non-IFRS
Taxes, Depreciation financial measure
and Amortization ("Adjusted EBITDA") 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 FFO is a non-IFRS financial measure
Adjusted 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 is a non-IFRS financial measure
("AFFO")andAFFO Adjusted 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 per unitandFFO adjusted FFO and AFFO per unit and FFO adjusted
and AFFO adjusted per unit 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 ratiosandFFO FFO and AFFO payout ratios and FFO
Adjusted and AFFO Adjusted payout Adjusted and AFFO
ratios 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 In calculating adjusted AFFO, the
Expenditures 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 25c 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 This is a non-IFRS financial measure.
Cash Equivalents 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 This is a non-IFRS financial measure.
Trust Less Gross value
Cash And Cash Equivalent 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.
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 2024 2023 2023 2023 2023
Q-4 Q-3 Q-2 Q-1 Q-4 Q-3 Q-2 Q-1
(in thousands $ $ $ $ $ $ $ $
of dollars,
except for per
unit)
Net income and
comprehensive
income (IFRS) 18,847 5,470 7,272 7,153 1,734 15,216 10,846 8,802
Fair value
adjustment on
investment
properties (9,975) (283) - (6) 4,480 (6,481) - -
Fair value
adjustment on
Class B LP
units (174) 335 (21) 160 (42) (159) (775) -
Amortization of
lease
incentives 966 807 704 690 641 664 750 728
Fair value
adjustment on
derivative
financial
instruments (760) 2,168 379 (325) 2,396 $(584.SI)$ (763) 184
Leasing payroll
expenses (6) 739 535 433 591 401 359 327 356
Distributions
-- Class B LP
units 52 52 53 52 52 56 42 22
Unit-based
compensation
(Unit price
remeasurement)
(5) (39) 342 63 409 (11) (87) (232) (59)
FFO (1) 9,656 9,426 8,883 8,724 9,651 8,984 10,195 10,033
Transaction
costs on
disposition of
investment
properties and
mortgage early
repayment fees - - 267 202 37 46 - -
FFO Adjusted
(1) 9,656 9,426 9,150 8,926 9,688 9,030 10,195 10,033
FFO per unit
(1) (2) (3) 10.9c 10.7c 10.1c 10.0c 11.1c 10.3c 11.8c 11.7c
FFO Adjusted
per unit (1)
(2) (4) 10.9c 10.7c 10.4c 10.2c 11.1c 10.4c 11.8c 11.7c
FFO payout
ratio (1) 68.8 % 70.0 % 74.3 % 75.2 % 67.5 % 72.9 % 63.8 % 64.1 %
FFO Adjusted
payout ratio
(1) 68.8 % 70.3 % 72.2 % 73.5 % 67.2 % 72.5 % 63.8 % 64.1 %
(1) This is a non-IFRS financial measure.
(2) Including Class B LP units.
(3) This is a non-IFRS financial measure. 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) This is a non-IFRS financial measure. The recurring
FFO per unit ratio is calculated by dividing the recurring
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).
(5) The impact of the unit price remeasurement on the
deferred unit-based compensation plan has been considered
in the calculation of the recurring FFO and AFFO 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 2024 2023 2023 2023 2023
Q-4 Q-3 Q-2 Q-1 Q-4 Q-3 Q-2 Q-1
(in thousands of $ $ $ $ $ $ $ $
dollars, except
for per unit)
FFO (1) 9,656 9,426 8,883 8,724 9,651 8,984 10,195 10,033
Straight-line
rental revenue
adjustment (374) (247) (183) (394) (197) (842) (291) (633)
Accretion of
effective
interest 402 391 361 308 310 271 278 236
Amortization of
other property
and equipment 21 17 17 17 20 33 23 23
Unit-based
compensation
expenses 247 19 (95) (9) 159 184 237 256
Provision for
non-recoverable
capital
expenditures
(1) (654) (650) (644) (653) (639) (626) (634) (658)
Provision for
unrecovered
rental fees (1) (375) (375) (375) (375) (375) (375) (375) (375)
AFFO (1) 8,923 8,581 7,964 7,618 8,929 7,629 9,433 8,882
Transaction
costs on
disposition of
investment
properties and
mortgage early
repayment fees - - 267 201 37 46 - -
AFFO Adjusted
(1) 8,923 8,581 8,231 7,819 8,966 7,675 9,433 8,882
AFFO per unit
(1) (2) (3) 10.1c 9.7c 9.1c 8.7c 10.2c 8.8c 10.9c 10.3c
AFFO Adjusted
per unit (1)
(2) (4) 10.1c 9.7c 9.4c 8.9c 10.3c 8.8c 10.9c 10.3c
AFFO payout
ratio (1) 74.5 % 76.8 % 82.9 % 86.2 % 72.9 % 85.8 % 69.0 % 72.4 %
AFFO Adjusted
payout ratio
(1) 74.5 % 77.2 % 80.2 % 83.9 % 72.6 % 85.3 % 69.0 % 72.4 %
(1) This is a non-IFRS financial measure.
(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 recurring AFFO per unit ratio is calculated by
dividing the recurring 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).
Debt Ratios
The following table summarizes the Trust's debt ratios as at December 31, 2024, and December 31 2023:
(in thousands of dollars) December 31, December 31,
2024 2023
$ $
Cash and cash equivalents (2,471) (912)
Mortgage loans outstanding (1) 665,607 640,425
Convertible debentures (1) 19,576 43,185
Credit facilities 44,298 36,359
Total long-term debt less cash and cash
equivalents
(2) (3) 727,010 719,057
Total gross value of the assets of the Trust less
cash and cash equivalents (2) (4) 1,254,818 1,227,949
Mortgage debt ratio (excluding convertible
debentures
and credit facilities) (2) (5) 52.8 % 52.2 %
Debt ratio -- convertible debentures (2) (6) 1.6 % 3.5 %
Debt ratio -- credit facilities (2) (7) 3.5 % 3.0 %
Total debt ratio (2) 57.9 % 58.6 %
(1) Before unamortized financing expenses and fair value
assumption adjustments.
(2) This is a non-IFRS financial measure.
(3) Long-term debt less free cash flow 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 GVALC.
(7) Debt ratio -- credit facilities is calculated by dividing
the credit facilities by the GVALC.
SOURCE BTB Real Estate Investment Trust
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February 24, 2025 17:00 ET (22:00 GMT)