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BTB Real Estate Investment Trust announces today the financial results of its 2009 first quarter

^{Published on 2009-05-25 05:38:47, Last Modified on 2009-05-25 05:40:21 - Market Wire}
 

 MONTREAL, May 25 /CNW Telbec/ - The Trustees of BTB Real Estate Investment Trust (TSX-V: BTB.UN) ("BTB" or the "Trust") announce today the financial results for the first quarter ended March 31, 2009 and the following highlights: 2009 FIRST QUARTER HIGHLIGHTS ------------------------------------------------------------------------- - AN INCREASE OF 28.5% TO $7.5 MILLION IN OPERATING INCOME COMPARED TO THE FIRST QUARTER OF 2008 AS A RESULT OF THE ACQUISITIONS COMPLETED IN 2008 AND THE INCREASE OF THE SAME-PROPERTY PORTFOLIO. - AN INCREASE OF 28.1% IN THE NET OPERATING INCOME (NOI) TO $4.1 MILLION, CREATING A PROFIT MARGIN OF 55.1%. - THE SAME-PROPERTY PORTFOLIO GENERATED AN INCREASE OF 4.1% IN OPERATING INCOME AND OF 6.7% IN NOI. - EBDT OF 736$ AND EBITDA OF $3,697, OR 2.2 CENTS AND 11.0 CENTS PER UNIT, RESPECTIVELY. - AFFO OF $1,099, OR 3.3 CENTS PER UNIT AFTER TAKING INTO ACCOUNT A RESERVE FOR CAPEX AND FOR LEASING FEES OF $209. WITH DISTRIBUTIONS OF 2.7 CENTS PER UNIT FOR THE FIRST QUARTER, AND OF 2.0 CENTS FOR THE FOLLOWING QUARTERS, BTB EXPECTS THAT THE DISTRIBUTIONS WILL BE COVERED AT 150% BY THE AFFO. - RENEWAL TO DATE OF 43% OF ALL THE LEASES EXPIRING IN 2009, WITH AN AVERAGE INCREASE OF 5.7%. - DISTRIBUTABLE INCOME OF $815 AND CASH FLOW OF $1,070, RESPECTIVELY 2.4 CENTS AND 3.2 CENTS PER UNIT, A LIGHT DECREASE COMPARED TO THE CORRESPONDING QUARTER OF 2008, MAINLY DUE TO THE INCREASE IN THE VACANCY RATE. WITH QUARTERLY DISTRIBUTIONS OF 2.0 CENTS PER UNIT ON THE CURRENT BASIS, THE TRUST EXPECTS TO GENERATE SUBSTANTIAL CASH FLOWS. ------------------------------------------------------------------------- Mr. Michel Léonard, President and Chief Executive Officer of BTB stated: "It is the first quarter where BTB can compare its results on the basis of a same-property portfolio. Our investors, as well as the Trustees, are pleased to note that BTB's internal growth is substantial. Indeed, although the vacancy rate slightly decreased, BTB registered an increase of 4.1% of its operating income on the basis of a same-property portfolio and an increase of 6.7% of the NOI of the same-property portfolio. We are very enthusiastic about this situation and the future outlook of BTB" BTB REAL ESTATE INVESTMENT TRUST Interim Consolidated Balance Sheets (Unaudited) March 31, 2009, with comparative figures as of December 31, 2008 (in thousands of dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2009 2008 ------------------------------------------------------------------------- Assets Income-producing properties Buildings $ 168,871 $ 169,964 Land 41,516 41,516 Intangible assets 10,158 10,906 ----------------------------------------------------------------------- 220,545 222,386 Tangible fixed assets 41 41 Deferred charges and other assets 1,925 1,906 Prepaid expenses 2,055 1,460 Accounts receivable 1,860 1,566 Cash and cash equivalents 343 357 ------------------------------------------------------------------------- $ 226,769 $ 227,716 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and unitholders' equity Mortgage loans $ 146,408 $ 146,771 Convertible debentures 22,847 22,621 Bank loans 840 400 Accounts payable and accrued liabilities 5,794 5,139 Distributions payable to unitholders 225 445 ------------------------------------------------------------------------- 176,114 175,376 Unitholders' equity 50,655 52,340 ------------------------------------------------------------------------- $ 226,769 $ 227,716 ------------------------------------------------------------------------- ------------------------------------------------------------------------- See accompanying notes to unaudited interim consolidated financial statements. Approved by the Board Michel Léonard, Trustee -------------- Jocelyn Proteau, Trustee --------------- BTB REAL ESTATE INVESTMENT TRUST Interim Consolidated Statement of Earnings (Unaudited) Three-month period ended March 31, 2009, with comparative figures for the three-month period ended March 31, 2008 (in thousands of dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2009 2008 ------------------------------------------------------------------------- Operating revenues: Rental revenue from income-producing properties $ 7,474 $ 5,818 Operating expenses: Operating costs 1,315 1,030 Property taxes and utilities 2,042 1,568 ----------------------------------------------------------------------- 3,357 2,598 ------------------------------------------------------------------------- Operating income before the undernoted items 4,117 3,220 Interest on loans 2,674 1,914 Amortization of financing costs 188 110 Amortization of buildings and improvements 1,086 875 Amortization of intangible and other assets 522 428 Amortization of deferred leases cost 64 28 Interest accretion expenses on convertible debentures 101 65 Interest income (2) (21) ------------------------------------------------------------------------- 4,633 3,399 ------------------------------------------------------------------------- Loss from real estate assets 516 179 Trust-related administrative expenses 250 207 Property management expenses 170 105 Unit-based compensation 6 18 ------------------------------------------------------------------------- Operating loss before income taxes and discontinued operations 942 509 Future income taxes (107) (300) ------------------------------------------------------------------------- Net loss and comprehensive income $ 835 $ 209 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Loss per unit basic and diluted $ 0.025 $ 0.006 ------------------------------------------------------------------------- ------------------------------------------------------------------------- See accompanying notes to unaudited interim consolidated financial statements. BTB REAL ESTATE INVESTMENT TRUST Interim Consolidated Statement of Cash Flows (Unaudited) Three-month period ended March 31, 2009, with comparative figures for the three-month period ended March 31, 2008 (in thousands of dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2009 2008 ------------------------------------------------------------------------- Cash flows from operating activities: Net loss $ (835) $ (209) Net change in non-cash items: Amortization of income-producing properties 1,086 875 Interest and accretion expense on convertible debentures 101 65 Amortization of financing costs 188 110 Amortization of intangible assets and liabilities 518 427 Amortization of straight-line lease adjustment (81) (102) Amortization of off market value attributable to leases 228 327 Amortization of deferred leases cost 64 28 Unit option-based compensation expenses 6 18 Property management expenses 136 105 Future income taxes (107) (300) Amortization of fixed assets 4 1 Net change in non-cash operating working capital items (238) (115) ----------------------------------------------------------------------- 1,070 1,230 Cash flows from financing activities: Net proceeds from issuance of convertible debentures - 11,825 Mortgage loans, net of financing costs 64 3,708 Reimbursement of mortgage loans (479) (100) Bank loans 440 (3,320) Net proceeds from issuance of units 11 18 Distributions to unitholders (1,116) (2,288) ----------------------------------------------------------------------- (1,080) 9,843 Cash flows from investing activities: Additions to income-producing properties (4) (16,687) Additions to tangible fixed assets (2) (28) Deposits 2 - ----------------------------------------------------------------------- (4) (16,715) ------------------------------------------------------------------------- Net change in cash and cash equivalents (14) (5,642) Cash and cash equivalents, beginning of period 357 6,171 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 343 $ 529 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

For further information: Mr. Mathieu Claise, Optimum Public Relations, (418) 521-3770; 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