BTB REIT (BTB.UN) AI Stock Analysis

• Market Cap: C$332.77M
• Dividend Yield: 8.03%
• Average Volume (3M): 107.12K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.79
• Revenue Growth: 0.92%
• EPS Growth: 92.93%
• Country: CA
• Employees: 81
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.11
• Shares Outstanding: 88,268,680
• 10 Day Avg. Volume: 159,813
• 30 Day Avg. Volume: 107,124
• PEG Ratio: 1.60
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 4.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.00
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$4.50 ▲(15.98% Upside)

BTB REIT's overall stock score is driven by strong financial performance and valuation metrics. The company's solid profitability, cash flow generation, and attractive dividend yield are significant strengths. The positive sentiment from the recent earnings call further supports the score, despite some challenges in industrial vacancies. Technical indicators suggest a stable trend, contributing positively to the overall assessment.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates financial health and the ability to reinvest in growth opportunities, supporting long-term stability.

Leasing Activity

Robust leasing activity enhances revenue stability and reflects effective asset management, contributing to sustained cash flows.

Rental Spread Increase

Significant increase in rental spreads indicates strong demand and pricing power, enhancing revenue potential and profitability.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to navigate economic downturns.

Industrial Vacancy Challenges

High vacancy in industrial properties can reduce income and affect overall occupancy rates, posing a risk to revenue consistency.

Negative Revenue Growth

Negative revenue growth suggests potential challenges in maintaining income levels, which could impact long-term financial performance.

BTB REIT Business Overview & Revenue Model

Company Description

BTB 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 Money

BTB REIT generates revenue primarily through the rental income derived from its properties. This includes leasing agreements with commercial tenants in its diversified portfolio, which spans office spaces, retail units, and industrial properties. The company benefits from long-term lease contracts that provide consistent cash flow and contribute to its financial stability. Additionally, BTB REIT may realize capital appreciation through property improvements and strategic acquisitions, further enhancing its income potential. Partnerships with property management firms and local real estate brokers can also contribute to optimizing occupancy rates and tenant retention, thereby boosting overall revenue.

BTB REIT Financial Statement Overview

Summary

BTB REIT demonstrates solid profitability and cash flow generation, with strong margins and positive free cash flow growth. However, the high debt-to-equity ratio suggests potential leverage risks. The negative revenue growth rate in the TTM period is a concern that needs monitoring. Overall, the company maintains a stable financial position with room for improvement in revenue growth.

Income Statement

BTB REIT shows a stable gross profit margin around 58% and a consistent net profit margin close to 30% over the TTM period. However, the revenue growth rate has turned negative at -1.29% in the TTM, indicating a potential slowdown in revenue generation. The EBIT and EBITDA margins remain strong, reflecting efficient cost management.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.49, indicating significant leverage, which could pose risks if not managed properly. Return on equity is modest at 8.03%, suggesting moderate profitability. The equity ratio is stable, indicating a balanced asset structure.

Cash Flow

BTB REIT's free cash flow growth rate is positive at 15.07% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.37, and the free cash flow to net income ratio is 1.0, indicating efficient conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.10M	130.03M	127.83M	119.50M	100.34M	92.97M
Gross Profit	74.78M	75.05M	75.38M	70.43M	56.34M	51.26M
EBITDA	75.62M	75.84M	71.30M	63.12M	49.58M	44.61M
Net Income	38.12M	38.74M	36.60M	38.15M	17.36M	-22.60M
Balance Sheet
Total Assets	1.26B	1.26B	1.23B	1.18B	1.13B	926.67M
Cash, Cash Equivalents and Short-Term Investments	5.68M	2.47M	912.00K	2.40M	7.19M	9.06M
Total Debt	731.14M	735.24M	724.23M	692.15M	687.72M	552.49M
Total Liabilities	766.94M	761.72M	749.99M	717.27M	725.48M	584.60M
Stockholders Equity	495.64M	494.28M	477.65M	462.07M	404.43M	342.07M
Cash Flow
Free Cash Flow	60.91M	66.00M	70.80M	131.95M	56.34M	45.97M
Operating Cash Flow	60.91M	66.00M	70.85M	66.24M	56.54M	46.15M
Investing Cash Flow	-16.97M	-19.58M	-46.38M	-65.71M	-71.73M	12.13M
Financing Cash Flow	-47.26M	-44.87M	-25.96M	19.48M	13.32M	-51.02M

BTB REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.88 is above the 20-day moving average (MA) of 3.88, above the 50-day MA of 3.79, and above the 200-day MA of 3.46, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 39.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRV.UN	79 Outperform	C$399.16M	14.17	5.27%	7.44%	-0.28%	206.65%
BTB.UN	75 Outperform	C$332.77M	7.94	8.60%	8.03%	0.92%	92.93%
FCD.UN	75 Outperform	C$220.82M	9.22	7.90%	9.05%	3.24%	3.36%
NET.UN	75 Outperform	C$112.26M	4.75	18.62%	6.36%	-0.21%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MRT.UN	51 Neutral	C$383.68M	-8.51	-4.91%	4.30%	-5.37%	13.86%

BTB REIT Corporate Events

BTB REIT Earnings Call Highlights Strong Leasing and Financial Gains

BTB REIT’s latest earnings call conveyed a generally positive sentiment, driven by strong leasing and financial performance. The company reported significant increases in rental spreads and improvements in payout ratios, although it acknowledged challenges in industrial vacancies and impacts from lease cancellations. Overall, the highlights outweighed the challenges, painting a positive picture for the quarter.

BTB REIT Earnings Call: Mixed Sentiments and Strategic Shifts

The recent earnings call for BTB REIT revealed a mixed sentiment among stakeholders. While the company demonstrated stability in portfolio management and success in lease renewals, challenges such as noncash adjustments and a decreased occupancy rate were significant concerns. These mixed signals reflect the company’s current position in a volatile market.