BTB - 2017 - Strategic repositioning
MONTRÉAL, March 13, 2018 /CNW Telbec/ - BTB Real Estate Investment Trust (TSX: BTB.UN) ("BTB" or the "Trust") releases today its financial results for the fourth quarter and year ended December 31, 2017, and announces the following highlights:
HIGHLIGHTS OF THE YEAR ENDED DECEMBER 31, 2017
Dispositions and acquisitions
Issuance of Units
Summary of other significant highlights as at December 31, 2017
In January and February 2018, the Trust sold four properties for a total consideration of $12.4 million. The net proceeds from the sale of these properties were applied against the Trust's credit facilities.
In February 2018, the Trust purchased a retail property located in the city of Delson, Québec, for a consideration of $1,865.
Message from Michel Léonard, President and Chief Executive Officer
"In 2017 more than 16% of our leases were maturing. This, in itself, was a major challenge. We are proud to say that our leasing and property management teams, supported by all others involved in our operations understood the scope of the challenge and they rose to it extremely successfully. BTB leased 526,000 square feet to new tenants and renewed leases for 591,000 square feet. Our leasing activities therefore totalled 1,117,000 square feet. Regarding our lease renewals, they were concluded at an average increase of revenue of 5.6%.Because of this colossal effort in lease renewals and concluding transactions with new tenants, our occupancy rate increased from 90.5% (in 2016) to 91.4% (in 2017). This increase of our occupancy rate combined with the repositioning our portfolio has given us the opportunity to start 2018 on solid foundations."
NON-IFRS FINANCIAL MEASURES
Net operating income, net operating income of the same-property portfolio, recurring distributable income, recurring funds from operations and recurring adjusted funds from operations 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 reported by such other entities.
The following table shows the reconciliation of distributable income and adjusted funds from operations (non-IFRS measure) with cash flows from operating activities presented in the financial statements.
On Wednesday, March 14, 2018, at 10:00 a.m. (ET) management will hold a conference call to present BTB's financial results and performance for the fourth quarter 2017 and for the fiscal year ended on December 31, 2017:
The media and all interested parties may attend the call in listening mode only.
Conference call operators will coordinate the question and answer period, and will instruct participants regarding the procedures for the call.
BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. Today, BTB owns 71 commercial, office and industrial properties for a total leasable area of 5.4 million square feet. BTB's asset value is approximately $760M. The objectives of BTB are: (i) to grow its revenues from its assets to increase distributable income and therefore fund distributions; (ii) to maximize the value of its assets through dynamic management of its properties in order to sustain the long-term value of its units; and (iii) to generate cash distributions that are fiscally beneficial to unitholders.
BTB offers a distribution reinvestment plan to unitholders whereby the participants may elect to have their monthly cash distribution reinvested in additional units of BTB at a price based on the weighted average price for BTB's units on the Toronto Stock Exchange for the five trading days immediately preceding the distribution date, discounted by 3%.
This press release may contain forward-looking statements with respect to BTB. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "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.
SOURCE BTB Real Estate Investment Trust