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 first quarter of 2008, which ended on March 31, 2008.
2008 FIRST QUARTER HIGHLIGHTS
- Growth of adjusted funds from operations
The Trust's AFFO was $1.4 million for the first quarter, or $0.042 per unit. On an annualized basis, the estimated AFFO generated by BTB's portfolio, as at March 31, 2008, is more than $0.18 per unit.
- Increased cash generated from portfolio growth:
BTB's real estate portfolio has generated cash of $1.3 million and distributable income of more than $1.1 million for the first quarter of 2008, compared to, respectively, $1.2 million and $1.0 million for the fourth quarter of 2007.
- Revenue growth:
Rental income increased by more than 31% compared to the previous quarter and generated, in the first quarter, more than $5.8 million of rental income. The annualized rental income derived from the properties owned by the Trust at the end of the quarter is estimated at $28.4 million.
- Portfolio growth:
Acquisition of six properties during the first quarter, bringing the total value of BTB's portfolio to $210.5 million (non depreciated) and a total of more than 2.1 million square feet of renatble space.
- Public Offering:
On March 20, 2008, the Trust completed a public offering, issuing convertible debentures, Series B, at 8.5%, the proceeds of which were more than $13 million.
SUBSEQUENT EVENT
- Reduction of monthly distributions:
On April 28, 2008, the Board of Trustees announced the reduction of distributions, from $0.28 per unit, per year to $0.16 per unit, per year. The Trustees wished to ensure that BTB's capital and funds from financing would be used to acquire good quality properties.
"BTB generates more than $0.04 per unit, per quarter from its cash from operations or, on an annualized basis, over $0.18 per unit. The Trust's cash from operations sustains a distribution of $0.04 per unit per quarter to our unitholders, or $0.16 per unit on an annualized basis" indicated Michel Léonard, president and CEO of the Trust.
"Our responsible decision to reduce distribution protects both BTB's future and the income of our unitholders. The Trust is no longer returning capital to its unitholders. Distributions are entirely funded from BTB's cash from operations. Sustainability of return on investment for our unitholders is a priority for us, and we are confident that, as we move forward, this level of distribution is sustainable. We are therefore beginning the second quarter of 2008 on a solid financial footing and have the tools needed to reach our objectives."
"During the first quarter, we continued to grow our assets. We acquired six commercial and office buildings in the province of Quebec. Together, they added 250,000 square feet of rentable area to our real estate portfolio," he concluded. -- www.cnxmarketlink.com
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