The Board of trustees of BTB Real Estate Investment Trust (TSX Venture Exchange: BTB.UN and BTB.DB) released today its financial statements for the third quarter of 2008, ending September 30, 2008.
2008 THIRD QUARTER HIGHLIGHTS
- Growth of adjusted funds from operations ("AFFO"): An AFFO of $1.5 million for the third quarter, or $0.045 per unit. On an annualized and recurring basis, the estimated AFFO, from the existing portfolio as at September 30, 2008, is approximately $0.20 per unit.
- Increased cash generated from portfolio growth: BTB's portfolio has generated cash of $1.6 million and distributable income of approximately $1.2 million for the third quarter of 2008 compared to $1.3 million and $1.2 million respectively for the third quarter of 2007.
- Revenue growth: At $7.2 million of rental income for the third quarter, rental income has more than doubled compared to the 2007 third quarter. In accordance with the current portfolio, annual income is estimated at $30.5 million.
- Excellent rental activities: More than 74% of the space where leases were expiring in 2008, has been renewed as at September 30, 2008 at an average growth rate of 11%. Management is already negotiating the renewal of leases with respect to most of the remaining space expiring this year at equally advantageous conditions.
- Internalization of the management of real estate assets: The Trust has commenced procedures for the internalization of the management of its real estate assets, which will eventually result in the reduction of its operating expenses.
- Refinancing: In July 2008, the Trust entered into financing agreements pertaining to the financing and refinancing of certain properties it owns for an aggregate amount of $16.9 million at a weighted average interest rate of 5.90%. $8.1 million of the proceeds has been used to reimburse existing financings.
- Acquisition: During the third quarter, the Trust closed on the acquisition of five commercial properties located in the province of Quebec, for an approximate leasable area of 153,000 square feet, at an estimated capitalisation rate of 9.0% and a total purchase price of $22.6 million. BTB management estimates that these transactions will generate an accretive cash flow of $0.02 per outstanding unit and, on an annualized basis, generate total cash flow of $0.20 per unit.
"BTB's cash from by operations is more than 4.5 cents per unit for the quarter, and approximately 20 cents per unit on an annualized basis. This will help ensure a yearly distribution of 16 cents per unit to our unitholders" indicated Michel Leonard, President and Chief Executive Officer. He adds that: "Our excellent rental activities and stricter management policies with respect to the operating expenses, namely the commencement of the internalization of real estate management activities, will ensure that the cash provided by operations continues to grow". -- www.cnxmarketlink.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
