Excellent quarter for BTB: Higher occupancy rate and increase in distributable income



    MONTREAL, Aug. 17 /CNW Telbec/ - "Our rental activity was strong during
the quarter and we are pleased to report that we have renewed to date 70% of
all the leases expiring in 2009, generating an average rental increase of
6.4%. Furthermore, we have leased 38,775 square feet of vacant space. This
activity contributed to the increase in net operating income (NOI) of 3.7% on
a comparable portfolio basis. In addition, we have begun the negotiation
process of leases expiring next year. This demonstrates our clients' intention
to remain in our buildings" said Mr. Michel Léonard, president and chief
executive officer of BTB.

    
    2009 SECOND QUARTER HIGHLIGHTS

    -------------------------------------------------------------------------

    - DURING THE 2009 SECOND QUARTER:

        - INCREASE IN DISTRIBUTABLE INCOME TO 3.6 CENTS PER UNIT FOR A
          DISTRIBUTION OF 2.0 CENTS PER UNIT

        - INCREASE IN FFO TO 3.6 CENTS PER UNIT

        - INCREASE IN AFFO TO 4.1 CENTS PER UNIT

        - INCREASE IN EBTDA TO 3.8 CENTS PER UNIT

    - INCREASE IN THE OCCUPANCY RATE BY 1.0%, TO 92.0%, AS OF JUNE 30, 2009

    - AVERAGE RENT INCREASE OF 6.4% FOR LEASES SO FAR RENEWED IN 2009

    - 70% OF ALL LEASES EXPIRING IN 2009 HAVE BEEN RENEWED

    - IN COMPARISON WITH THE SECOND QUARTER OF 2008:

        - INCREASE OF 7.9% IN OPERATING REVENUES

        - INCREASE OF 2.0% OF OPERATING REVENUES ON A SAME PROPERTY PORTFOLIO
          BASIS

        - INCREASE OF 9.2% IN NET OPERATING INCOME (NOI)

        - INCREASE OF 3.7% OF THE NOI ON A SAME PROPERTY PORTFOLIO BASIS

    -------------------------------------------------------------------------
    

    BTB continued to increase operating revenues. In comparison with the
corresponding quarter in 2008, operating revenues grew by 7.9% for the second
quarter of 2009 and as compared to the same six-month period in 2008, the
operating revenues grew by 17.1% for the six-month period ended June 30, 2009.
Compared to the same quarter in 2008, revenues from the same-property
portfolio increased by 2.0% during the second quarter of 2009, and by 3.0% for
the six-month period ended on June 30, 2009. Our internal growth was generated
from rental increases provided in leases, from increases due to lease renewals
and from leasing vacant space.
    BTB's net operating income is 58.3% of operating revenues for the second
quarter of 2009 compared to 56.7% for the corresponding quarter in 2008. In
comparison to the same periods during fiscal 2008, the net profit increased by
9.2% for the second quarter of 2009 and by 17.4% for the six-month period
ended June 30, 2009.
    In comparison with the corresponding periods of 2008, BTB increased its
net operating income on a same property portfolio basis by 3.7% for the second
quarter of 2009, and by 5.1% for the first six-month period of 2009.
    For the period ended June 30, 2009, the Trust generated FFO of $1.2
million covering the distribution paid by the Trust during the quarter, which
totaled $0.7 million. For the first six months of the year 2009, the Trust
generated FFO of $1.9 million, also covering the distributions paid in the
amount of $1.6 million for the same period.
    The AFFO for the second quarter was $1.3 million and was $2.4 million for
the six month period ended June 30, 2009.
    Rental activity for the second quarter was very dynamic: to date, the
Trust renewed 70% of all the leases expiring in 2009, with an average rental
increase of 6.4%. In addition, the Trust leased some of its vacant space with
the resulting increase in the occupancy rate by 1% during the quarter.

    
    BTB REAL ESTATE INVESTMENT TRUST
    Interim Consolidated Balance Sheets
    (Unaudited)

    June 30, 2009, with comparative figures as of December 31, 2008
    (in thousands of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                            2009        2008
    -------------------------------------------------------------------------

    Assets

    Income-producing properties (note 3):
      Buildings                                        $ 167,877   $ 169,964
      Land                                                41,516      41,516
      Intangible assets                                    9,513      10,906
      -----------------------------------------------------------------------
                                                         218,906     222,386

    Tangible fixed assets                                     42          41
    Deferred charges and other assets (note 4)             2,090       1,906
    Prepaid expenses                                       2,479       1,460
    Accounts receivable (note 5)                           1,431       1,566
    Cash and cash equivalents                                143         357

    -------------------------------------------------------------------------
                                                       $ 225,091   $ 227,716
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and unitholders' equity

    Mortgage loans (note 6)                            $ 145,947   $ 146,771
    Convertible debentures (note 7)                       23,078      22,621
    Bank loans (note 8)                                      640         400
    Accounts payable and accrued liabilities               5,707       5,139
    Distributions payable to unitholders                     226         445
    -------------------------------------------------------------------------
                                                         175,598     175,376

    Unitholders' equity (note 9)                          49,493      52,340

    -------------------------------------------------------------------------
                                                       $ 225,091   $ 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 and six-month period ended June 30, 2009, with comparative
    figures for the three-month and six-month period ended June 30, 2008
    (in thousands of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                   Three-month period       Six-month period
                                     ending June 30,         ending June 30,
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------

    Operating revenues:
      Rental revenue from
       income-producing
       properties              $   7,721   $   7,156   $  15,195   $  12,974

    Operating expenses:
      Operating costs              1,326       1,271       2,641       2,301
      Property taxes and
       utilities                   1,896       1,766       3,938       3,333
      -----------------------------------------------------------------------
                                   3,222       3,037       6,579       5,634

    -------------------------------------------------------------------------
    Operating income before
     the undernoted items          4,499       4,119       8,616       7,340

    Interest on loans              2,617       2,445       5,291       4,360
    Amortization of financing
     costs                           185         217         373         327
    Amortization of buildings
     and improvements              1,098         952       2,184       1,827
    Amortization of intangible
     and other assets                564         490       1,086         918
    Amortization of deferred
     leases cost                      85           9         149          34
    Interest accretion expenses
     on convertible debentures       106          96         207         160
    Interest income                   (3)         (4)         (5)        (25)
    -------------------------------------------------------------------------
                                   4,652       4,205       9,285       7,601

    -------------------------------------------------------------------------
    Loss from real estate
     assets                          153          86         669         261

    Trust-related
     administrative expenses         373         451         623         662
    Property management
     expenses                          -         170         170         275
    Unit-based compensation            6          16          12          34

    -------------------------------------------------------------------------
    Operating loss before
     income taxes and
     discontinued operations         532         723       1,474       1,232

    Future income taxes
     (note 10)                         -        (485)       (107)       (785)

    -------------------------------------------------------------------------
    Net loss and comprehensive
     income                    $     532   $     238   $   1,367   $     447
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Loss per unit basic and
     diluted (note 11)         $   0.016   $   0.007   $   0.041   $   0.014
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to unaudited interim consolidated financial
    statements.


    BTB REAL ESTATE INVESTMENT TRUST
    Interim Consolidated Statement of Cash Flows
    (Unaudited)

    Three-month and six-month period ended June 30, 2009, with comparative
    figures for the three-month and six-month period ended June 30, 2008
    (in thousands of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                   Three-month period       Six-month period
                                     ending June 30,         ending June 30,
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------

    Cash flows from operating
     activities:
      Net loss                 $    (472)  $    (238)  $  (1,521)  $    (447)
      Net change in non-cash
       items:
        Amortization of
         income-producing
         properties and
         intangible items          1,655       1,437       3,259       2,739
        Interest and accretion
         expense on convertible
         debentures                  106          96         207         160
        Amortization of
         deferred financing
         costs                       185         217         374         327
        Amortization of
         straight-line lease
         adjustment                  (75)       (103)       (156)       (205)
        Amortization of off
         market value
        attributable to leases        84         327         312         654
        Amortization of
         deferred leases cost         85           9         149          34
        Unit option-based
         compensation expenses         6          16          12          34
        Property management
         expenses                     41         170         188         275
        Future income taxes            -        (485)       (107)       (785)
        Amortization of fixed
         assets                        7           5          11           6
      -----------------------------------------------------------------------
                                   1,562       1,451       2,881       2,792

      Net change in non-cash
       operating working
       capital items                (277)     (2,261)       (515)     (2,371)
      -----------------------------------------------------------------------
                                   1,285        (810)      2,366         421

    Cash flows from financing
     activities:
      Net proceeds from
       issuance of convertible
       debentures                      -           -           -      11,825
      Mortgage loans, net of
       financing costs                 -       1,611          64       5,541
      Reimbursement of mortgage
       loans                        (510)       (400)       (989)       (722)
      Bank loans                    (200)      1,080         240      (2,240)
      Net proceeds from
       issuance of units               -           -           -          18
      Distributions to
       unitholders                  (676)     (1,639)     (1,792)     (3,927)
      -----------------------------------------------------------------------
                                  (1,386)        652      (2,477)     10,495

    Cash flows from investing
     activities:
      Additions to income-
       producing properties          (91)       (252)        (91)    (16,939)
      Additions to tangible
       fixed assets                   (8)        (14)        (12)        (42)
      -----------------------------------------------------------------------
                                     (99)       (266)       (103)    (16,981)

    -------------------------------------------------------------------------
    Net change in cash and
     cash equivalents               (200)       (424)       (214)     (6,065)

    Cash and cash equivalents,
     beginning of period             343         529         357       6,170

    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period             $     143   $     105   $     143   $     105
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to unaudited interim consolidated financial
    statements.
    




For further information:

For further information: Mr. Benoît Cyr, C.A., Vice-President and Chief
Financial Officer, (514) 286-0188, ext. 230


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890