BTB REIT (BTB.UN) AI Stock Analysis

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TSE:BTB.UN Dividends

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BTB REIT

(TSX:BTB.UN)

73Outperform

BTB REIT's overall performance is solid, driven by strong financial health and attractive valuation. The company faces challenges such as increasing debt and tenant bankruptcies, but its strong lease activity and capital structure improvements provide optimism. Technical indicators suggest caution due to mixed signals.

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$300.86M

Dividend Yield8.8%

Average Volume (3M)91.43K

Price to Earnings (P/E)7.6

Beta (1Y)0.83

Revenue Growth3.34%

EPS Growth10.20%

CountryCA

Employees81

SectorReal Estate

Sector Strength80

IndustryREIT - Diversified

Share Statistics

EPS (TTM)0.09

Shares Outstanding88,229,140

10 Day Avg. Volume52,332

30 Day Avg. Volume91,431

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$3.68

Price Target Upside7.92% Upside

Rating ConsensusHold

Number of Analyst Covering2

BTB REIT Business Overview & Revenue Model

Company DescriptionBTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. As at November 10th, 2020, BTB owns 64 retail, office and industrial properties for a total leasable area of approximately 5.3 million square feet and an approximate total asset value as of September 30th, 2020 of approximately of $946M.

How the Company Makes MoneyBTB REIT generates revenue primarily through the leasing of its commercial properties. The company earns rental income from tenants who occupy its office, retail, and industrial spaces under long-term lease agreements. BTB REIT's revenue model is supported by the strategic acquisition of properties with high occupancy rates and favorable lease agreements, ensuring consistent cash flow. Additionally, the company may engage in property development or redevelopment projects to enhance the value of its portfolio, thus potentially increasing rental income. BTB REIT also benefits from economies of scale and operational efficiencies achieved through effective property management and cost control measures. Significant partnerships with real estate brokers, contractors, and property management firms also contribute to its earnings by enhancing the value and appeal of its assets.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price3.41

Price Trends

50DMA

3.32

Positive

100DMA

3.29

Positive

200DMA

3.30

Positive

Market Momentum

MACD

0.03

Negative

RSI

60.54

Neutral

STOCH

71.91

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BTB.UN, the sentiment is Positive. The current price of 3.41 is above the 20-day moving average (MA) of 3.31, above the 50-day MA of 3.32, and above the 200-day MA of 3.30, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BTB.UN.

BTB REIT Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCD.UN	84 Outperform	C$223.03M	6.57	11.33%	8.61%	5.71%	120.65%
BTB.UN	73 Outperform	C$300.86M	7.59	8.03%	8.80%	3.34%	10.20%
NET.UN	73 Outperform	C$107.95M	15.19	5.49%	6.48%	-1.61%	-60.98%
Sector *	60 Neutral	$2.81B	11.39	0.21%	8508.43%	6.31%	-14.32%
MRT.UN	59 Neutral	C$358.26M	―	-3.77%	4.35%	0.18%	68.25%
PRV.UN	59 Neutral	C$308.03M	130.36	0.50%	8.86%	-0.68%	-90.87%
MR.UN	56 Neutral	C$71.17M	―	-16.65%	0.73%	-2.12%	-287.56%

* Real Estate Sector Average

Performance Comparison

TSE:BTB.UN

BTB REIT

3.42

0.51

17.53%

TSE:FCD.UN

Firm Capital Property

5.98

1.40

30.57%

TSE:NET.UN

Canadian Net Real Estate Investment Trust Trust Units

5.32

0.68

14.66%

TSE:MR.UN

Melcor REIT

5.49

2.71

97.48%

TSE:MRT.UN

Morguard Real Estate ate

5.53

0.42

8.22%

TSE:PRV.UN

PRO Real Estate Investment

5.11

0.45

9.66%

BTB REIT Earnings Call Summary

Earnings Call Date:May 05, 2025

(Q4-2024)

% Change Since: 1.49%|

Next Earnings Date:Aug 11, 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.

Q4-2024 Updates

Positive Updates

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.

Negative Updates

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.