MONTRÉAL, Aug. 7, 2023
/CNW/ - BTB Real Estate Investment Trust (TSX: BTB.UN)
("BTB" or the "REIT") releases today its financial
results for the second quarter of 2023, compared to the same period
of 2022 and announces the following highlights and information.
- Rental revenue: Stood at $31.7 million for the current quarter, which
represents an increase of 9.4% compared to the same quarter of
2022. For the cumulative six-month period, the rental revenue
totalled $64.6 million which
represents an increase of 11.3% compared to the same period in
2022.
- Net Operating Income (NOI): Stood at $19.0 million for the current quarter, which
represents an increase of 8.2% compared to the same quarter of
2022. For the cumulative six-month period, the NOI totalled
$38.0 million which represents an
increase of 12.5% compared to the same period in 2022.
- Net operating and comprehensive income: Totalled
$10.8 million for the quarter
($19.6 million for the 2023
cumulative six-month period) compared to $18.2 million for the same period in 2022
($24.7 million for the 2022
cumulative six-month period), representing a decrease of
$7.4 million. The decrease is caused
by a reduction of non-cash gain in net adjustment to fair value of
derivative financial instruments of $8.6
million and an increase in the financial expenses of
$1.2 million. Adjusted earnings
before interest, taxes, depreciation and amortization (EBIDTA)
(1) for the quarter increased by
$1.6 million compared to the same
period last year.
- Same-property NOI (1): Increased
by 1.7% compared to the same quarter last year. The NOI of the
industrial segment decreased by 3.9% due a planned tenant departure
(which space was leased to a new tenant during the quarter at a
higher rental rate than that of the previous tenant) compared to
the same quarter last year and the NOI for the necessity-based
retail segment increased by 15.9% compared to the same quarter last
year due to strong leasing efforts. For the cumulative six-month
period, the same-property NOI increased by 0.9%.
- Recurring FFO payout ratio
(1): Was 63.8% for the quarter
compared to 65.5% for the same period in 2022. For the cumulative
six-month period, the recurring FFO payout ratio was 63.8% compared
to 67.8% for the same period in 2022.
- Recurring FFO (1): Was 11.8¢ per unit for the
quarter compared to 11.4¢ per unit for the same period in 2022,
representing an increase of 3.1%. For the cumulative six-month
period, the recurring FFO was 23.5¢ per unit which represents an
increase of 6.1% compared to the same period in 2022.
- Recurring AFFO payout ratio
(1): Was 69.0% for the quarter compared
to 68.3% for the same period in 2022. For the cumulative six-month
period, the recurring AFFO payout ratio was 70.5% compared to 72.3%
for the same period in 2022.
- Recurring AFFO (1): Was 10.9¢ per unit for
the quarter compared to 11.0¢ per unit for the same period in 2022,
representing a decrease of 0.5%. For the cumulative six-month
period, the recurring AFFO was 21.3¢ per unit which represent an
increase of 2.4% compared to the same period in 2022.
- Leasing Activity: The Trust completed a total of
208,338 square feet of lease renewals and 125,223 square feet of
new leases for the quarter. The occupancy rate stood at 94.1%,
representing a 0.9 % increase compared to the prior quarter, and a
0.3% increase compared to the same period in 2022. The increase in
the average rent renewal rate for the quarter was 4.9%.
- Acquisition: On May 1,
2023, the Trust acquired a fully leased industrial property
located at 8810, 48 Avenue NW, in Edmonton, Alberta (83,292 square feet). As
part of the transaction the Trust satisfied a portion of the
purchase price through the issuance to the vendor of 550,000 Class
B LP units at a per unit price of $4.50 and the balance of the purchase price was
funded by the credit facility. The revenue from this acquisition
contributed to the second quarter financial results.
- Debt metrics: BTB ended the quarter with a total
debt ratio (1) of 58.9%, recording an
increase of 0.4% compared to December 31,
2022. The Trust ended the quarter with a mortgage debt ratio
(1) of 52.9%, a decrease of 1.3% compared to
December 31, 2022.
- Liquidity position: BTB held $3.7 million of cash at the end of the quarter.
During the quarter the Trust, as provided in the initial agreement,
increased the available amount under its credit facilities
(2) (2) by $10.0 million leaving $23.7 million available on its credit facilities
with a remaining option to increase by an additional $10.0 million.
- Base Shelf Prospectus: On June 12,2023, since its initial short form base
shelf prospectus was nearing maturity, the Trust filed a final base
shelf prospectus, generally under the same terms and conditions as
the previous base shelf, valid for a 25-month period for the total
amount of $200.0 million.
_____________________________________
|
(1)
|
Non-IFRS financial
measure. See Appendix 1.
|
A MESSAGE FROM MICHEL LÉONARD, PRESIDENT & CEO
"One of the main indicators of BTB's strong performance is the
persistent leasing activity during the last quarters. The occupancy
rate rose to 94.1% which represents a 0.9% increase compared to Q1
2023. Our leasing team successfully maintained high occupancy
levels across our diverse portfolio, showcasing the REIT's ability
to attract and retain quality clients. In this perspective, our
aptitude to foster long-term relationships with clients (208,338
square feet of leases renewed) and attract new businesses to our
properties (125,223 square feet of new leases) should bolstered
investor confidence."
_____________________________________
|
(1)
|
Non-IFRS financial
measure. See Appendix 1.
|
(2)
|
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
None.
SUMMARY OF SIGNIFICANT ITEMS AS AT
JUNE 30th, 2023
- Total number of properties: 75
- Total leasable area: 6.1 million square
feet
- Total asset value: $1,229 million
- Market capitalization: $277 million (unit price of
$3.22 as at June 30, 2023)
FINANCIAL INFORMATION
The following two tables summarize our results for the periods
ended June 30, 2023, and June 30, 2022, as well as the cumulative periods
for the first six months of 2023 and 2022.
Quarterly Financial
Results
|
|
|
Periods ended June
30
|
Quarter
|
Cumulative (6
months)
|
(in thousands of
dollars, except for ratios and per unit data)
|
2023
|
2022
|
∆
|
2023
|
2022
|
∆
|
|
$
|
$
|
%
|
$
|
$
|
%
|
FINANCIAL
INFORMATION
|
|
|
|
|
|
|
Rental
revenue
|
31,708
|
28,979
|
9.4
|
64,619
|
58,047
|
11.3
|
Net operating income
(NOI)
|
19,041
|
17,598
|
8.2
|
38,049
|
33,832
|
12.5
|
Net income and
comprehensive income
|
10,846
|
18,243
|
(40.5)
|
19,648
|
24,692
|
(20.4)
|
Adjusted earnings
before interest, taxes, depreciation, and amortization (EBITDA)
(1)
|
17,956
|
16,413
|
9.4
|
35,110
|
31,555
|
11.3
|
NOI from the
same-property portfolio (1)
|
17,527
|
17,232
|
1.7
|
33,509
|
33,197
|
0.9
|
Distributions
|
6,489
|
6,374
|
1.8
|
12,932
|
12,225
|
5.8
|
Recurring funds from
operations (FFO) (1)
|
10,195
|
9,718
|
4.9
|
20,228
|
18,035
|
12.2
|
Recurring adjusted
funds from operations (AFFO) (1)
|
9,433
|
9,311
|
1.3
|
18,315
|
16,913
|
8.3
|
Cash flow from
operating activities
|
17,320
|
15,516
|
11.6
|
32,977
|
26,920
|
22.5
|
Total assets
|
|
|
|
1,229,249
|
1,185,148
|
3.7
|
Total debt ratio
(1)
|
|
|
|
58.85 %
|
58.79 %
|
0.1
|
Weighted average
interest rate on mortgage debt
|
|
|
|
4.28 %
|
3.62 %
|
0.7
|
Market
capitalization
|
|
|
|
277,059
|
305,035
|
(9.2)
|
FINANCIAL
INFORMATION PER UNIT
|
|
|
|
|
|
|
Net income and
comprehensive income
|
12.5¢
|
21.5¢
|
-8.9¢
|
22.8¢
|
30.3¢
|
-7.5¢
|
Distributions
|
7.5¢
|
7.5¢
|
0.0¢
|
15.0¢
|
15.0¢
|
0.0¢
|
Recurring FFO
(1)
|
11.8¢
|
11.4¢
|
0.4¢
|
23.5¢
|
22.1¢
|
1.3¢
|
Recurring AFFO
(1)
|
10.9¢
|
11.0¢
|
-0.1¢
|
21.3¢
|
20.8¢
|
0.5¢
|
|
|
(1)
|
Non-IFRS financial
measure. See Appendix 1.
|
Reconciliation of
Cash Flows from Operating Activities and Adjusted Funds from
Operations (AFFO) (1)
|
|
|
Periods ended June
30
|
Quarter
|
Cumulative (6
months)
|
(in thousands of
dollars, except per unit data)
|
2023
|
2022
|
2023
|
2022
|
|
$
|
$
|
$
|
$
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
17,320
|
15,516
|
32,977
|
26,920
|
Leasing payroll
expenses
|
327
|
158
|
683
|
379
|
Transaction costs on
purchase and disposition of investment properties and early
repayment fees
|
-
|
(138)
|
-
|
(891)
|
Adjustments for changes
in other working capital items
|
649
|
1,186
|
2,200
|
4,960
|
Financial
income
|
355
|
132
|
661
|
277
|
Interest
expenses
|
(8,120)
|
(6,643)
|
(15,993)
|
(13,547)
|
Provision for
non-recoverable capital expenditures (1)
|
(634)
|
(580)
|
(1,292)
|
(1,161)
|
Provision for
non-recovered rental fees (1)
|
(375)
|
(375)
|
(750)
|
(750)
|
Accretion of
non-derivative liability component of convertible
debentures
|
(89)
|
(83)
|
(171)
|
(165)
|
AFFO
(1)
|
9,433
|
9,173
|
18,315
|
16,022
|
NON-RECURRING
ITEM
|
|
|
-
|
-
|
Transaction costs on
purchase and disposition of investment properties and early
repayment fees
|
-
|
138
|
-
|
891
|
RECURRING AFFO
(1)
|
9,433
|
9,311
|
18,315
|
16,913
|
|
(1) Non IFRS
financial measures. See Appendix 1.
|
QUARTERLY CALL INFORMATION
Management will hold a conference call on Tuesday,
August 8th, 2023, at
9 am, Eastern Time, to present BTB's
financial results and performance for the second quarter of
2023.
DATE:
|
Tuesday, August
8th, 2023
|
TIME:
|
9 am, Eastern
Time
|
URL ENTRY:
|
https://emportal.ink/3pJ1iFo
|
DIAL:
|
Local:
1-416-764-8688
|
North America
(toll-free): 1-888-390-0546
|
WEB:
|
https://app.webinar.net/90EYMxdMmoW
|
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
August 15th, 2023, by
dialing: 1 416 764-8677 (local) or, 1 888 390-0541 (toll-free) and
by entering the following access code: 345398 #
ABOUT BTB
BTB is a real estate investment trust listed on the Toronto
Stock Exchange. BTB REIT invests in industrial, off-downtown core
office and necessity-based retail properties across Canada for the benefit of their investors. As
of today, BTB owns and manages 75 properties, representing a
total leasable area of approximately 6.1 million square
feet.
People and their stories are at the heart of our
success.
For more detailed information, visit BTB's website at
www.btbreit.com.
FORWARD-LOOKING
STATEMENTS
This press release may contain forward-looking statements with
respect to BTB. These statements generally can be identified by the
use of forward-looking words such as "may", "will", "expect",
"estimate", "anticipate", "intend", "believe" or "continue" or the
negative thereof or similar variations. The actual results and
performance of BTB could differ materially from those expressed or
implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Some important factors that could cause actual
results to differ materially from expectations include, among other
things, general economic and market factors, competition, changes
in government regulation, and the factors described from time to
time in the documents filed by BTB with the securities regulators
in Canada. The
cautionary statements qualify all forward-looking statements
attributable to BTB and persons acting on their behalf. Unless
otherwise stated or required by applicable law, all forward-looking
statements speak only as of the date of this press release.
APPENDIX 1: RECONCILIATION OF
NON-IFRS MEASURES
Non-IFRS Financial Measures
Certain terms used in this press release are listed and defined
in the table hereafter, including any per unit information if
applicable, are not measures recognized by International Financial
Reporting Standards ("IFRS") and do not have standardized meanings
prescribed by IFRS. Such measures may differ from similar
computations as reported by similar entities and, accordingly, may
not be comparable to similar measures. Explanations on how these
non-IFRS financial measures provide useful information to investors
and additional purposes, if any, for which the Trust uses these
non-IFRS financial measures, are also included in the table
hereafter.
Securities regulations require that non-IFRS financial measures
be clearly defined and that they not be assigned greater weight
than IFRS measures. The referred non-IFRS financial measures, which
are reconciled to the most similar IFRS measure in the table
thereafter if applicable, do not have a standardized meaning
prescribed by IFRS and these measures cannot be compared to similar
measures used by other issuers.
NON-IFRS
MEASURES
|
DEFINITION
|
SAME-PROPERTY
NOI
|
Same-property NOI is a
non-IFRS financial measure defined as net operating income ("NOI")
for the properties that the Trust owned and operated for the entire
duration of both the current year and the previous year. The most
directly comparable IFRS measure to same-property NOI is Operating
Income.
|
|
|
FUNDS FROM
OPERATIONS (FFO)
& RECURRING
FFO
|
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.
Recurring FFO is also a
non-IFRS financial measure that starts with FFO and removes 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 recurring FFO are key measures of operating performance and
allow the investors to compare its historical
performance.
|
|
|
ADJUSTED FUNDS FROM
OPERATIONS (AFFO) &
RECURRING AFFO
|
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 January 2022 White Paper ("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.
Recurring AFFO 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 recurring AFFO 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.
|
FFO & AFFO
PAYOUT RATIOS
AND
RECURRING FFO &
RECURRING AFFO PAYOUT RATIOS
|
FFO and AFFO payout
ratios and recurring FFO and recurring AFFO payout ratios are
non-IFRS financial measures. These payout ratios are calculated by
dividing the actual distributions per unit by FFO, AFFO, and
recurring FFO and recurring AFFO per unit in each
period.
The Trust considers
these metrics a useful way to evaluate its distribution paying
capacity.
|
TOTAL DEBT
RATIO
|
The total debt ratio is
a non-IFRS financial measure of the Trust's financial
leverage, which is calculated by taking the total long-term debt
less cash divided by the total gross value of the assets of the
Trust less cash.
The Trust considers
this metric useful as it indicates its ability to meet its debt
obligations and its capacity for future additional
acquisitions.
|
|
|
PROVISION
FOR
NON-RECOVERABLE
CAPITAL EXPENDITURES
|
In calculating AFFO,
the Trust deducts a provision for non-recoverable capital
expenditures to consider capital expenditures invested to
maintain the condition of its
properties and to preserve rental revenue.
The provision for
non-recoverable capital expenditures is calculated based on 2% of
rental revenues. This provision is based on management's assessment
of industry practices and its investment forecasts for the coming
years.
|
|
|
PROVISION FOR
UNRECOVERED RENTAL FEES
|
The Trust also deducts
a provision for unrecovered rental fees in the amount of
approximately 25¢ per sq. ft. on an annualized basis. Even though
quarterly rental fee disbursements vary significantly from one
quarter to another, management considers that this provision fairly
presents, in the long term, the average disbursements not recovered
directly in establishing the rent that the Trust will undertake.
These disbursements consist of inducements paid or granted when
leases are signed that are generally amortized over the term of the
lease and are subject to an equivalent increase in rent per square
foot, and of brokerage commissions and leasing payroll
expenses.
|
|
|
TOTAL LONG-TERM DEBT
LESS CASH AND CASH EQUIVALENTS
|
This is a non-IFRS
financial measure. Long-term debt less cash and cash equivalent is
a non-IFRS financial measure, calculated as the total of (i)
fixed-rate mortgage loans payable; (ii) floating rate mortgage
loans payable; (iii) Series G debenture capital amount; (iv) Series
F debenture capital adjusted with non-derivative component fewer
conversion options exercised by holders; and (v) credit facilities,
less cash, and cash equivalents. The most directly comparable IFRS
measure to net debt is debt.
|
TOTAL GROSS VALUE OF
THE ASSETS OF THE TRUST LESS CASH AND CASH
EQUIVALENT
|
This is a non-IFRS
financial measure. Gross value of the assets of the Trust less cash
and cash equivalent ("GVALC") is a non-IFRS financial measure
defined as the Trust's total assets adding the cumulated
amortization property and equipment and removing the cash and cash
equivalent. The most directly comparable IFRS measure to GVALC is
total assets.
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("ADJUSTED
EBITDA")
|
Adjusted EBITDA income
is a non-IFRS financial measure that starts with net income and
comprehensive income and removes the effects of certain
adjustments, on a proportionate basis, including: (i) interest
expense; (ii) taxes; (iii) depreciation of property and equipment;
(iv) amortization of intangible assets; (v) fair value adjustments
(including investment properties, financial instruments, Class B LP
units and unit price remeasurement for unit-based compensation);
(vi) transaction costs on acquisitions and dispositions of
investment properties and early repayment fees; and (vii)
straight-line rental revenue adjustment.
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 its debt, finance
capital expenditures and provide distributions to its
Unitholders.
|
NON-IFRS FINANCIAL MEASURES – QUARTERLY RECONCILIATION
Funds from Operations (FFO) (1)
The following table provides a reconciliation of net income and
comprehensive income established in accordance with IFRS and FFO
(1) for the last eight quarters:
|
2023
|
2023
|
2022
|
2022
|
2022
|
2022
|
2021
|
2021
|
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)
|
10,846
|
8,802
|
1,769
|
11,693
|
18,243
|
6,449
|
23,219
|
8,678
|
Fair value adjustment
on investment properties
|
-
|
-
|
7,781
|
1,230
|
197
|
(1,007)
|
(19,571)
|
-
|
Fair value adjustment
on Class B LP units
|
(775)
|
-
|
160
|
(142)
|
(233)
|
66
|
21
|
(18)
|
Amortization of lease
incentives
|
750
|
728
|
787
|
773
|
818
|
735
|
858
|
780
|
Fair value adjustment
on derivative financial instruments
|
(763)
|
184
|
(1,971)
|
(3,898)
|
(9,344)
|
997
|
3,297
|
(2,598)
|
Leasing payroll
expenses (6)
|
327
|
356
|
682
|
182
|
158
|
221
|
208
|
173
|
Distributions – Class B
LP units
|
42
|
22
|
26
|
26
|
26
|
26
|
30
|
22
|
Unit-based compensation
(Unit price remeasurement) (5)
|
(232)
|
(59)
|
198
|
(172)
|
(285)
|
77
|
23
|
(19)
|
FFO (1)
|
10,195
|
10,033
|
9,432
|
9,692
|
9,580
|
7,564
|
8,085
|
7,018
|
Non-recurring item
|
|
|
|
|
|
|
|
|
Transaction costs on
disposition of investment properties and mortgage early repayment
fees
|
-
|
-
|
627
|
93
|
138
|
753
|
109
|
-
|
Recurring FFO (1)
|
10,195
|
10,033
|
10,059
|
9,785
|
9,718
|
8,317
|
8,194
|
7,018
|
FFO per unit (1) (2)
(3)
|
11.8¢
|
11.7¢
|
11.0¢
|
11.4¢
|
11.3¢
|
9.7¢
|
10.9¢
|
9.5¢
|
Recurring FFO per unit (1) (2)
(4)
|
11.8¢
|
11.7¢
|
11.8¢
|
11.5¢
|
11.4¢
|
10.7¢
|
11.0¢
|
9.5¢
|
FFO payout ratio
(1)
|
63.8 %
|
64.1 %
|
67.9 %
|
65.9 %
|
66.4 %
|
77.2 %
|
68.9 %
|
79.0 %
|
Recurring FFO payout
ratio (1)
|
63.8 %
|
64.1 %
|
63.6 %
|
65.2 %
|
65.5 %
|
70.2 %
|
68.0 %
|
79.0 %
|
(1)
|
This is a non-IFRS
financial measure.
|
(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 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.
|
Adjusted Funds from Operations (AFFO) (1)
The following table provides a reconciliation of FFO
(1) and AFFO (1) for
the last eight quarters:
|
|
2023
|
2023
|
2022
|
2022
|
2022
|
2022
|
2021
|
2021
|
|
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)
|
10,195
|
10,033
|
9,432
|
9,692
|
9,580
|
7,564
|
8,085
|
7,018
|
Straight-line rental
revenue adjustment
|
(291)
|
(633)
|
(1,077)
|
(521)
|
(74)
|
(150)
|
(758)
|
(88)
|
Accretion of effective
interest
|
278
|
236
|
336
|
219
|
284
|
288
|
275
|
239
|
Amortization of other
property and equipment
|
23
|
23
|
31
|
35
|
26
|
30
|
22
|
23
|
Unit-based compensation
expenses
|
237
|
256
|
206
|
130
|
312
|
73
|
143
|
114
|
Provision for
non-recoverable capital expenditures (1)
|
(634)
|
(658)
|
(630)
|
(599)
|
(580)
|
(581)
|
(539)
|
(478)
|
Provision for
unrecovered rental fees (1)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
(375)
|
AFFO (1)
|
9,433
|
8,882
|
7,923
|
8,581
|
9,173
|
6,849
|
6,853
|
6,453
|
Non-recurring item
|
|
|
|
|
|
|
|
|
Transaction costs on
disposition of investment properties and mortgage early repayment
fees
|
-
|
-
|
627
|
93
|
138
|
753
|
109
|
-
|
Recurring AFFO (1)
|
9,433
|
8,882
|
8,550
|
8,674
|
9,311
|
7,602
|
6,962
|
6,453
|
AFFO per unit (1) (2)
(3)
|
10.9¢
|
10.3¢
|
9.3¢
|
10.1¢
|
10.8¢
|
8.8¢
|
9.2¢
|
8.7¢
|
Recurring AFFO per unit (1) (2)
(4)
|
10.9¢
|
10.3¢
|
10.0¢
|
10.2¢
|
11.0¢
|
9.7¢
|
9.4¢
|
8.7¢
|
AFFO payout ratio
(1)
|
69.0 %
|
72.4 %
|
80.8 %
|
74.4 %
|
69.4 %
|
85.3 %
|
81.3 %
|
85.9 %
|
Recurring AFFO payout
ratio (1)
|
69.0 %
|
72.4 %
|
74.9 %
|
73.6 %
|
68.3 %
|
76.8 %
|
80.0 %
|
85.9 %
|
|
|
(1)
|
This is a non-IFRS
financial measure.
|
(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 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.
|
Debt Ratios
The following table summarizes the Trust's debt ratios as at
June 30, 2023 and June 30, 2022 and December
31, 2022:
(in thousands of
dollars)
|
June 30,
2023
|
December 31,
2022
|
June 30,
2022
|
|
$
|
$
|
$
|
Cash and cash
equivalents
|
(3,744)
|
(2,404)
|
(3,020)
|
Mortgage loans
outstanding (1)
|
648,348
|
638,441
|
630,786
|
Convertible debentures
(1)
|
43,001
|
43,170
|
43,011
|
Credit
facilities
|
34,301
|
9,897
|
24,174
|
Total long-term debt
less cash and cash equivalents (2) (3)
|
721,906
|
689,104
|
694,951
|
Total gross value of
the assets of the Trust less cash and cash equivalents (2)
(4)
|
1,226,664
|
1,178,049
|
1,182,128
|
Mortgage debt ratio
(excluding convertible debentures and credit facilities) (2)
(5)
|
52.9 %
|
54.2 %
|
53.4 %
|
Debt ratio –
convertible debentures (2) (6)
|
3.5 %
|
3.7 %
|
3.6 %
|
Debt ratio – credit
facilities (2) (7)
|
2.8 %
|
0.8 %
|
2.0 %
|
Total debt ratio
(2)
|
58.9 %
|
58.5 %
|
58.8 %
|
(1)
|
Before unamortized
financing expenses and fair value assumption
adjustments.
|
(2)
|
This is a non-IFRS
financial measure.
|
(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