BTB Real Estate Investment Trust announces today its 2009 fourth quarter
financial and fiscal year-end results
MONTREAL, April 26 /CNW Telbec/ - The trustees of BTB Real Estate Investment Trust (TSX-V: BTB.UN) ("BTB" or the "Trust") announce today the 4th quarter financial and fiscal year end results for the period ended December 31, 2008 and the following highlights:
2009 A YEAR OF CONSOLIDATION
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- Stabilization of the financial position: first year since inception in
which funds from operations (FFO) cover distributions
- Increase of : - 8.7% of the Operating Income(1)
- 9,6% of the Net Operating Income (NOI)
- 48% of the EBTD
- 18% of the EBITDA
- 24% of the FFO
- 12% reduction of real estate management fees and administrative costs:
$1.732M (2009) vs $1.963M (2008)
- Renewal of important leases: - Hydro-Québec (for 10 years - Complexe de
Léry)
- CSST (for 10 years - Saint-Jean-sur-
Richelieu)
- SIQ (for 5 years - Montréal)
- Redevelopment of an important space: lease of 18,000 to Pharmaprix -
Shoppers Drug Mart (Dollard-des-Ormeaux)
BTB READY FOR THE ECONOMIC REVIVAL
- Execution of a $25M acquisition credit line
- Take-over bid on the shares of Cagim Real Estate Corporation, owner of
$48M real estate portfolio and substantial liquidity
With its growth being slowed down by the financial crisis, BTB Real Estate Investment Trust consolidated its activities in 2009 by internalizing most of its building management, thereby improving its operational ratios, providing a tighter control of its real estate operating expenses as well as lowering its administrative costs. Funds from operations in 2009 have for the first time exceeded distributions paid to Unitholders, thereby preserving liquidity.
The Trust is also pleased to announced the renewal of the lease with Hydro-Québec in Trois-Rivières for 10 years, as well as the renewal of the leases with Société immobilière du Québec and other paragovernmental organizations. Finally, the Trust commenced the redevelopment of a building in Montréal in order to welcome in June a Pharmaprix / Shoppers Drug Mart pharmacy.
"As was the case for many small REITs, the financial crisis has been a major obstacle to BTB's development. Throughout 2009, our efforts were dedicated to the stabilization of our financial position and to put BTB in a situation where it will benefit from the economic revival. We now have many business opportunities, such as Cagim, and aim to achieve growth and efficiency as envisaged under our initial business plan" stated Michel Léonard, President and Chief Executive Officer of BTB.
The Trust presents below the balance sheets as at December 31, 2009 and 2008 and the statements of income, and cash flows for the years then ended. These tables are extracted from the Audited Financial Statements and should be read together with the accompanying notes.
(1) 8.7% increase in rental income form income producing building
($30,325M vs $27,906M)
BTB REAL ESTATE INVESTMENT TRUST
Consolidated Balance Sheets
December 31, 2009 and 2008
(in thousands of dollars)
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2009 2008
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Assets
Income producing properties
Buildings $ 163,437 $ 169,964
Land 39,676 41,516
Intangible assets 8,252 10,906
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211,365 222,386
Property under development 4,224 -
Fixed assets 29 41
Capitalized charges and other assets 2,821 1,906
Prepaid expenses 1,883 1,460
Accounts receivable 1,570 1,566
Cash and cash equivalents 376 357
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$ 222,268 $ 227,716
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Liabilities and Unitholders' Equity
Mortgage loans $ 144,950 $ 146,771
Convertible debentures 23,544 22,621
Bank loans 720 400
Accounts payable and accrued liabilities 6,092 5,139
Distributions payable to unitholders 226 445
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175,532 175,376
Unitholders' equity 46,736 52,340
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$ 222,268 $ 227,716
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Approved by the Board
(s) Michel Léonard , Trustee
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(s) Jocelyn Proteau , Trustee
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BTB REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Income and Comprehensive Income
Years ended 31 December, 2009 and 2008
(in thousands of dollars except for per unit amounts)
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2009 2008
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Operating revenues:
Rental revenue from income producing properties $ 30,325 $ 27,906
Operating expenses:
Operating costs 5,191 4,890
Property taxes and utilities 7,625 7,045
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12,816 11,935
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Operating income from property before the
undernoted items 17,509 15,971
Interest expense 10,598 9,689
Amortization of financing costs 758 724
Amortization of buildings and improvements 4,380 3,991
Amortization of intangible and other assets 2,111 1,969
Amortization of capitalized rental costs 382 176
Accretion of liability component of convertible
debentures 424 357
Interest income (12) (60)
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18,641 16,846
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Operating losses from property (1,132) (875)
Write-off of pre-acquisition costs - 595
Trust administration expenses 1,562 1,321
Property management expenses 170 642
Unit-based compensation 24 84
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Losses before income taxes (2,888) (3,517)
Future income taxes (credits) (107) (780)
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Net loss and comprehensive income $ (2,781) $ (2,737)
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Loss per basic and diluted unit $ (0.08) $ (0.08)
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BTB REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Cash Flows
Years ended 31 December, 2009 and 2008
(in thousands of dollars)
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2009 2008
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Cash flow from operating activities:
Net loss $ (2,781) $ (2,737)
Net change in non-cash items:
Amortization of income producing properties 4,380 3,991
Amortization of intangible assets and liabilities 2,087 1,953
Amortization of financing costs 758 724
Amortization of below-market leases 494 1,200
Amortization of deferred charges 382 176
Amortization of fixed assets 24 16
Amortization of straight-line lease adjustment (284) (418)
Accretion of liability component of convertible
debentures 424 357
Property management expenses 188 489
Unit option-based compensation expenses 24 84
Write-off of pre-acquisition costs - 595
Future income taxes (107) (780)
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5,589 5,650
Net change in non-cash working capital items 746 190
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6,335 5,840
Cash flows from financing activities:
Net proceeds from issuance of convertible debentures - 11,725
Mortgage loans, net of financing costs 18 21,126
Reimbursement of mortgage loans (2,056) (3,669)
Bank loans 320 (8,845)
Net proceeds from issuance of units - 16
Distributions to unitholders (3,147) (6,572)
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(4,865) 13,781
Cash flows from investment activities:
Additions to income producing properties (164) (24,016)
Additions to deferred charges and other assets (1,275) (1,370)
Additions to fixed assets (12) (49)
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(1,451) (25,435)
Net change in cash and cash equivalents 19 (5,814)
Cash balances at beginning of year 357 6,171
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Cash at end of year $ 376 $ 357
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About BTB Real Estate Investment Trust
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BTB is a growth-oriented real estate investment trust listed on the TSX Venture Exchange. Its objective is to provide unitholders with stable cash distributions from investments in a quality portfolio of long-term leased office, industrial, commercial and retail properties predominantly located in the province of Quebec. BTB is led by an experienced management team with in-depth experience in the real estate industry and a Board of Trustees focused on governance and sound business practices.
For further information: Mrs. Marie-Ève Plamondon, Optimum Public Relations, (418)-521-3749; Mr. Michel Léonard, President Chief Executive Officer, (514) 286-0188, ext. 228; Mr. Benoît Cyr, C.A., Vice-President and Chief Financial Officer, (514)-286-0188, ext. 230
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