BTB Real Estate Investment Trust Reports Solid Q3 2024 Results Despite Occupancy Dip
MONTREAL, Nov. 4, 2024 /CNW/ – BTB Real Estate Investment Trust (BTB), a leading Canadian REIT, has announced its financial results for the third quarter of 2024, ending September 30, 2024. While the Trust experienced a slight decline in its occupancy rate, BTB reported positive performance in other key areas, highlighting its resilience and commitment to long-term growth.
Strong Financial Performance Amidst Occupancy Fluctuation
The third quarter saw BTB’s properties perform well, with the exception of one industrial asset where the tenant filed for bankruptcy. This led to a decrease in occupancy rate to 92.3% from the previous quarter. Despite this, BTB’s rental income and net operating income (NOI) demonstrated positive growth for the cumulative nine-month period, increasing by 1.5% and 4.8%, respectively, compared to the same period in 2023. This growth reflects the organic expansion of BTB’s portfolio and its effective property management practices.
Michel Léonard, President and CEO of BTB, stated, “This quarter was marked by a good performance of our properties, except for one industrial asset where the tenant declared bankruptcy, resulting in a drop in our occupancy rate to 92.3%.” He further elaborated on the company’s strong financial position, highlighting the increase in FFO Adjusted and AFFO Adjusted compared to the previous quarter. This demonstrates the continued value creation from BTB’s assets.
Strategic Debt Management and a Focus on Long-Term Growth
BTB’s debt ratios remain stable, with a total debt ratio of 58.3% and a mortgage debt ratio of 52.5%. The company is implementing a proactive approach to managing its debt in the current environment, strategically spreading out mortgage refinancing maturities to mitigate interest rate fluctuations. This proactive strategy, coupled with recent announcements from the Bank of Canada, indicates a positive outlook for future mortgage financing.
Demonstrating its commitment to prudent financial management, BTB fully redeemed its Series G debenture using available funds generated through mortgage financings. As of today, only the Series H debenture remains outstanding, with maturity scheduled for October 31, 2025. This approach underscores BTB’s commitment to maintaining a healthy financial position.
Key Highlights of BTB’s Third Quarter 2024 Performance
*
Total number of properties:
75*
Total leasable area:
6.1 million square feet*
Total value of assets:
$1.2 billion*
Market capitalization:
$317 millionOperational Performance
*
Occupancy Rate:
92.3%*
Signed New Leases:
18,713 square feet*
Renewed Leases:
47,109 square feet*
Renewal Rate:
58.4%*
Average Lease Renewal Rate Increase:
2.4%Financial Performance
*
Rental Revenue:
$32.5 million (3.9% increase year-over-year)*
Net Operating Income (NOI):
$18.8 million (3.8% increase year-over-year)*
FFO Adjusted:
10.7¢ per unit*
AFFO Adjusted:
9.7¢ per unitBTB remains focused on its strategic priorities, including targeted dispositions and acquisitions, prudent capital management, and ongoing property improvements. The company is confident that its disciplined approach will continue to deliver strong results and long-term value creation for all stakeholders.
About BTB Real Estate Investment Trust
BTB is a publicly traded real estate investment trust listed on the Toronto Stock Exchange. BTB REIT invests in industrial, suburban office, and necessity-based retail properties across Canada, providing attractive investment opportunities for its investors. The company currently owns and manages 75 properties, representing a total leasable area of approximately 6.1 million square feet. BTB is dedicated to creating value for its investors through responsible and sustainable real estate investments. For more detailed information about BTB, please visit www.btbreit.com.
