The following is a summary of the BTB Real Estate Investment Trust (BTBIF) Q1 2024 Earnings Call Transcript:
Financial Performance:
BTB reported Q1 rent revenue of $32.6 million, a 3.7% increase excluding a one-time revenue adjustment taken in Q1 2023.
Same property Net Operating Income (NOI) grew by 4.7% to $17 million year-over-year.
Adjusted Funds From Operations (AFFO) per unit increased by $0.02 to $8.9 cents.
Distribution remained at $0.30 and AFFO payout ratio for the quarter was 83.9%.
Increase in interest income was observed, 50% of which can be attributed to swap-related activities and remaining to a finance lease receivable.
Debt maturities of $113.4 million are due, with an expected refinancing amount of $50 - $60 million at rates between 1.5% - 2% in Q3, Q4.
Business Progress:
The firm achieved an occupancy rate of 94.5%, marking a record high with renewal rates averaging 8.4% during the quarter.
BTB disposed of two small suburban office properties, aligning with their plan to focus on the industrial segment.
The Trust is investing in three sites for densification, anticipating changes in zoning within the year.
New developments, such as the construction of a store adjacent to their Walmart, are expected to start paying rent in 2025.
BTB remains geographically diversified, having properties across several cities like Quebec City, Montreal, Ottawa, Saskatoon, and Edmonton.
Changes in tenancy are likely to drive revenue significantly, as indicated by the move with an industrial lease that could increase leasing price.
Also noteworthy is the company's focus on leasing efforts to improve its position and reach an occupancy rate of 92% in the suburban office environment. Ongoing negotiations with federal government tenants are expected to give a boost to these efforts.
More details: BTB REAL ESTATE INVESTMENT TRUST IR
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