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BTB REIT (TSE:BTB.UN)
:BTB.UN
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BTB REIT
(TSX:BTB.UN)
75Outperform
Positive Factors
Analyst Recommendation
Analyst recommends BTB REIT a BUY, largely supported by a highly attractive distribution that is supported by existing cash flow.
Industrial Segment Performance
Healthy operating performance from the industrial segment drives growth.
Valuation
BTB’s units currently trade at an implied cap rate of 7.8% or a discount to NAV estimate of 13.3%, which compares favorably to the REIT’s peers.
Negative Factors
FFO Performance
FFO per unit drops 14% year-over-year.
Interest Expense
Greater interest expense and tenant bankruptcy negatively impacted interest expense.
Refinancing Impact
Refinancing mortgages over the past year at higher rates led to greater interest expense and the weighted average interest rate rose 41 bps year-over-year to 4.69%.
BTB REIT (BTB.UN) vs. S&P 500 (SPY)
Market Cap
C$284.10M
Dividend Yield9.32%
Average Volume (3M)97.28K
Price to Earnings (P/E)7.3
Beta (1Y)0.82
Revenue Growth1.72%
EPS Growth3.88%
CountryCA
Employees81
SectorReal Estate
Sector Strength78
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.44
Shares Outstanding88,229,140
10 Day Avg. Volume104,889
30 Day Avg. Volume97,276
Financial Highlights & Ratios
PEG Ratio1.88
Price to Book (P/B)N/A
Price to Sales (P/S)2.29
Price to Cash Flow (P/CF)4.00
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.68Price Target Upside14.29% Upside
Rating ConsensusHold
Number of Analyst Covering2
BTB REIT Business Overview & Revenue Model
Company DescriptionBTB Real Estate Investment Trust (BTB REIT) is a Canadian real estate investment trust that focuses on owning and managing commercial properties across Canada's major urban centers. The trust's portfolio primarily includes office, industrial, and retail properties. BTB REIT aims to provide stable and growing cash distributions to its unitholders through its diversified property holdings and active asset management strategies.
How the Company Makes MoneyBTB REIT generates revenue primarily through the leasing of its commercial real estate properties. By renting out office, industrial, and retail spaces, the trust collects rental income from tenants as its primary revenue stream. Additionally, BTB REIT may engage in property acquisitions and sales to realize capital appreciation, thereby enhancing its portfolio value and income potential. The trust's earnings are further supported by strategic property management and cost control initiatives that optimize operational efficiency. Significant partnerships with commercial tenants and real estate brokers also play a vital role in sustaining occupancy rates and rental income.
BTB REIT Financial Statement Overview
Summary
BTB REIT demonstrates solid financial health with consistent revenue and profit growth, strong cash flow generation, and a stable balance sheet. The company effectively manages its operational and capital expenses, although increasing leverage could pose a future risk. Overall, BTB REIT is well-positioned for sustainable growth while maintaining financial stability.Income Statement
BTB REIT has demonstrated consistent revenue growth over the years, with a revenue increase from $100.34M in 2021 to $130.03M in 2024. Gross Profit Margin remains strong at around 57%, indicating efficient cost management. The Net Profit Margin has improved significantly from losses in 2020 to 29.8% in 2024, showcasing improved profitability. EBIT and EBITDA margins are stable, reflecting strong operational performance.78
Positive
Balance Sheet
The company's Debt-to-Equity ratio has increased over the years, standing at approximately 1.49 in 2024, indicating a higher reliance on debt financing. However, Stockholders' Equity has steadily increased, suggesting reinvestment in the business. The Equity Ratio is stable at around 39.3%, indicating a balanced capital structure with moderate financial risk.72
Positive
Cash Flow
Operating Cash Flow has shown steady growth, reaching $66M in 2024, supporting strong liquidity. Free Cash Flow remains positive, with a Free Cash Flow to Net Income ratio exceeding 1 in recent years, indicating efficient cash generation. The company has managed its capital expenditures effectively, contributing to its robust cash flow position.81
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 130.03M | 127.83M | 119.50M | 100.34M | 92.97M | Gross Profit |
| 75.05M | 75.38M | 70.43M | 56.34M | 51.26M | EBIT |
| 75.05M | 75.38M | 70.43M | 56.34M | 51.26M | EBITDA |
| 75.84M | 71.30M | 63.12M | 49.58M | 44.61M | Net Income Common Stockholders |
| 38.74M | 36.60M | 38.15M | 17.36M | -22.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.47M | 912.00K | 2.40M | 7.19M | 9.06M | Total Assets |
| 1.26B | 1.23B | 1.18B | 1.13B | 926.67M | Total Debt |
| 735.24M | 724.23M | 692.15M | 687.72M | 552.49M | Net Debt |
| 732.77M | 723.32M | 689.75M | 680.52M | 543.42M | Total Liabilities |
| 761.72M | 749.99M | 717.27M | 725.48M | 584.60M | Stockholders Equity |
| 494.28M | 477.65M | 462.07M | 404.43M | 342.07M |
| Cash Flow | Free Cash Flow | |||
| 66.00M | 70.80M | 131.95M | 56.34M | 45.97M | Operating Cash Flow |
| 66.00M | 70.85M | 66.24M | 56.54M | 46.15M | Investing Cash Flow |
| -19.58M | -46.38M | -65.71M | -71.73M | 12.13M | Financing Cash Flow |
| -44.87M | -25.96M | 19.48M | 13.32M | -51.02M |
BTB REIT Technical Analysis
Negative
3.22
Price Trends
3.33
Negative
3.35
Negative
3.28
Negative
Market Momentum
0.02
Negative
58.11
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BTB.UN, the sentiment is Negative. The current price of 3.22 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.33, and below the 200-day MA of 3.28, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BTB.UN.
BTB REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$4.20B | 18.55 | 4.50% | 7.51% | 9.46% | -42.77% | |
75 Outperform | C$284.10M | 7.31 | 7.97% | 9.32% | 1.72% | 3.88% | |
73 Outperform | C$3.06B | 11.65 | 5.58% | 6.68% | 7.62% | 139.80% | |
68 Neutral | $4.94B | 10.54 | 6.34% | 6.91% | 11.62% | 1120.60% | |
67 Neutral | $709.39M | ― | -2.86% | 8.41% | -10.56% | 81.41% | |
63 Neutral | C$2.66B | ― | -2.29% | 6.17% | -6.92% | -310.05% | |
61 Neutral | $4.44B | 16.16 | -3.31% | 11.40% | 5.81% | -21.40% |
* Real Estate Sector Average
Performance Comparison
TSE:BTB.UN
BTB REIT
3.22
0.25
8.42%
TSE:REI.UN
RioCan Real Estate Investment
16.61
-0.79
-4.53%
TSE:AX.UN
Artis Real Estate Investment
7.17
1.19
19.90%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
24.65
3.17
14.76%
TSE:HR.UN
H&R Real Estate ate Staple
9.72
1.04
11.98%
TSE:DIR.UN
Dream Industrl REIT
10.47
-1.92
-15.50%
BTB REIT Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -2.72% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The call presented a mix of positive achievements such as strong leasing activity, project completion, and capital structure improvements. However, these were balanced by challenges including tenant bankruptcies affecting NOI, a delayed financial filing, and the suspension of the dividend distribution program. The sentiment is balanced with both strong performance in some areas and significant challenges in others.Highlights
Strong Leasing Activity
Total leasing activity for the year was 959,000 square feet, with a committed occupancy rate of 92.7%, up 0.4% from the previous quarter. Notable leases include a long-term tenancy with Belden and Canadian Tire.
Successful Project Completion
Delivery of a new 45,000 square feet store for Winners HomeSense in Lévis, Quebec, was completed on time and on budget.
Positive Same-Property NOI Growth
Same-property NOI increased by 2.6% for the full year 2024 due to a higher rent renewal rate of 8.3% across all segments.
Capital Structure Strengthening
Issued a new Series I debenture with a 7.25% interest rate, raising over $40 million to strengthen the capital structure and repay Series H debentures.
Record High Lease Renewal Spread
Achieved an 18.7% lease renewal spread for the quarter, with a notable 51% increase in the necessity-based retail segment.
Lowlights
Delayed Financial Filing
Experienced a delay in filing financial statements with SEDAR, although the MD&A and press release were filed on time.
Tenant Bankruptcies Impacting NOI
NOI decreased by 0.9% due to the bankruptcies of two tenants, Energy Cardio and Nuera Air, impacting financial performance.
Suspension of Dividend Distribution Program
Suspended the dividend distribution program as part of efforts to strengthen the capital structure.
Industrial Leasing Challenges
Facing challenges with leasing a 133,000 square feet industrial property in Laval, leading to potential multi-tenancy solutions.
Company Guidance
During the BTB Real Estate Investment Trust's 2024 Fourth Quarter and Annual Results Conference Call, key metrics revealed that the company owns 6.1 million square feet across 75 properties, with a total asset value of $1.3 billion. The occupancy rate stood at 92.7%, while the total leasing activity for 2024 was nearly 1 million square feet. The fair value of investment properties was reported at $1.2 billion. The company issued a new Series I debenture with a 7.25% interest rate, raising over $40 million, and suspended its dividend distribution program to strengthen its capital structure. Additionally, BTB reported a same-property NOI increase of 2.6% for the year, despite challenges from tenant bankruptcies. Looking ahead, BTB anticipates maintaining or slightly improving occupancy rates and achieving a same-property NOI growth between 2% and 4% in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.