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Building on solid

foundations

BTB REAL ESTATE


INVESTMENT TRUST
April 6, 2017

0
FORWARD-LOOKING STATEMENTS
____________________________________________________________________________________________________________________________________________________________

This investor presentation includes certain forward-looking statements. All statements, other than statements of
historical fact, included herein, including, without limitation, statements and future plans and objectives of BTB Real Estate
Investment Trust (BTB), are forward-looking statements that involve various risks, assumptions, estimates and
uncertainties. These statements reflect the current internal projections, expectations or beliefs of BTB and are based on
information currently available to BTB. There can be no assurance and no representation or warranty is made by any
person that such statements will prove to be accurate, and actual results and future events could differ materially from
those anticipated in such statements. All of the forward looking statements contained in this presentation are qualified by
these cautionary statements described above. Furthermore, all such statements are made as of the date this presentation
is given and BTB assumes no obligation to update or revise these statements other than as required by applicable laws.
BTB cannot assure investors that actual results will be consistent with these forward looking statements and BTB assumes
no obligation to update or revise the forward looking statements contained in this confidential investor presentation to
reflect actual events or new circumstances.
An investment in BTB is highly speculative due to the nature of BTB's business. The ability of BTB to carry out its
business plan and achieve its objectives as described in this confidential investor presentation is dependant on many
factors, including BTB obtaining additional capital. There is no assurance that BTB will be able to successfully raise the
capital required or to complete each of the growth initiatives described. Investors must rely upon the ability, expertise,
judgment, discretion, integrity and good faith of the management of BTB .
BTB is subject to significant risks and uncertainties which may cause the actual results, performance or
achievements of BTB to be materially different from any future results, performance or achievements expressed or implied
by the forward looking statements contained in this release. A description of a number of these risk factors can be found in
the BTB s Annual Information Form dated March 30, 2017 which can be found at www.sedar.com.
By accepting delivery of this confidential investor presentation, the Investor agrees, (i) to keep strictly confidential
the contents of this confidential investor presentation and not to disclose such contents to any third party or otherwise use
the contents for any purpose other than evaluation by such offeree of an investment in the securities; (ii) not to copy all or
any portion of this confidential investor presentation; and (iii) to return this confidential investor presentation to BTB upon
request of BTB .

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BTBS OBJECTIVES
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i) to expand its real estate asset base and increase its net operating
income to fund distributions through an accretive acquisition and
property management program;

ii) to increase its asset value and maximize long-term unit value
through active portfolio management; and

iii) to generate stable and growing cash distributions on a tax efficient


basis for unitholders.

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ACQUISITION STRATEGY
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BTB focuses on geographic markets located in Ontario and


Quebec, acquiring assets with:
Long-term leases;
Low vacancy rates; or
High credit tenants including government, national, or multinational
businesses.
BTB acquires properties in the range of $10 to $50 million per
asset.
In these target markets, this category of assets is typically too large
for local investors to acquire or too small to be attractive to larger
real estate investment trusts or institutional buyers, reducing overall
buyer competition in this segment.
BTB is internally managed.

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CONTINUED GROWTH
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Rental income at December 31


(in thousands of dollars)
80 000 73 384
72 892
67 170
70 000
63 435

60 000
48 118
50 000
41 459
40 000 34 595
30 325
27 906
30 000

20 000
10 995
10 000
302
-

2006-2009: Amounts presented in accordance with Canadian


GAAP before the changeover to International Financial Reporting
Standards (IFRS).

2010-2016: Presented in accordance with International Financial


Reporting Standards (IFRS).

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CONTINUED GROWTH
____________________________________________________________________________________________________________________________________________________________

Net operating income (NOI) at December 31


(in thousands of dollars)

45 000 41 339
41 294

40 000 37 983
35 336
35 000

30 000
26 996

25 000
22 122
19 357
20 000 17 509
15 241
15 000

10 000
6 640
5 000
207
-

2006-2009: Amounts presented in accordance with Canadian


GAAP before the changeover to International Financial Reporting
Standards (IFRS).

2010-2016: Presented in accordance with International Financial


Reporting Standards (IFRS).

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CONTINUED GROWTH
____________________________________________________________________________________________________________________________________________________________

Distribution ratio at December 31


(Distributable income)
140%
135.3%

130%

120%

112.1%
110%

100% 98.1%

90%
83,4%
82.6%
80% 77.9% 77.3%

70%

60%
2010 2011 2012 2013 2014 2015 2016

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CONTINUED GROWTH
____________________________________________________________________________________________________________________________________________________________

Asset value at December 31


(in thousands of dollars)

700 000 658 462


633 082
586 737
600 000
546 559
504 927
500 000

400 000 358 938

292 758
300 000
227 716 214 480
191 007
200 000

100 000
36 239

2006-2009: Amounts presented in accordance with Canadian


GAAP before the changeover to International Financial Reporting
Standards (IFRS).

2010-2016: Presented in accordance with International Financial


Reporting Standards (IFRS).
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CONTINUED GROWTH
____________________________________________________________________________________________________________________________________________________________

Number of properties at December 31

80
71 71 72
69
70 65

60
54
49
50
43 43
40
32
30

20

10
2
0

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CONTINUED GROWTH
____________________________________________________________________________________________________________________________________________________________

Total leasable area at December 31


(in thousands of sq.ft.)

6 000

5 095 5 144
4 821
5 000
4 580
4 341

4 000
3 271
2 857
3 000
2 269 2 269
1 863
2 000

1 000

124
-

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BTBs PERFORMANCE
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From January 1st, 2012 to December 31, 2016, BTB generated a


return of approximately 54% to its unitholders (compared to
approximately 7% for the S&P/TSX Capped Reit Index Total
Return).
Mortgage debt ratio: 59.1%
Debenture debt ratio: 7.6%
Market CAP: $202.4 million (at March 31, 2017)
Current market price of its units: $4.77 (at March 31, 2017)
Unitholders equity (at December31, 2016): $5.04/unit
BTB remains undervalued relative to other Canadian REITs
despite having solid sustainable operating metrics.

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BTBs PERFORMANCE
(on the markets)
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BTBs PORTFOLIO
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Breakdown by geographical region Breakdown by asset type


At December. 31, 2016 at December 31, 2016
(per leasable area) (per leasable area)

Greater Montral 48.3%


Office 38.6%
Greater Qubec city area 23.4%
Industrial 30.2%
Ottawa region 19.0%
Retail 22.3%
Sherbrooke 5.3%
Mixed-use 8.9%
London region 4.0%

TOTAL 100%
TOTAL 100%
Sherbrooke Mixed-use

Greater
Montreal

Greater
Montreal Office Industrial
London
Region

Ottawa
Region

Retail

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BTB - TOP 10 TENANTS
(at December 31, 2016)
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34% of BTBs total revenues are generated by leases with government


agencies and publicly traded companies
% of Leased area % of Leased area
Tenant revenues (in ft2) Tenant revenues (in ft2)

5.8 205,836 1.7 81,442

2.5 122,112 1.7 48,731

2.2 107,642 1.5 109,185

1.9 219,941 1.5 101,194

1.8 64,304 1.5 70,242

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BTB - LEASE MATURITY
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45%

40% 30.9%

35%

30%

25%

20% 21.1 %
18.2%
15% 14.9%

10%
8.3%
6.6%
5%

0%
2017 2018 2019 2020 2021 2022
and after

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BTB LONG TERM DEBT
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Balance of Weighted average


Balance of
convertible contractual interest
Year of maturity mortgages
debentures rate
payable ($)
($) (%)

2017 66,181 3.84

2018 40,294 3.83

2019 41,038 3,57

2020 49,700 24,818 5.92

2021 38,783 2.96

2022 and thereafter 174,967 4.01

As at December 31, 2016, the weighted average contractual interest rate of the REITs long-
term debt stood at 4.16%, i.e. 3.79% for mortgages payable and 7.03% for convertible
debentures. The average maturity of mortgage loans is 5.9 years.

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SIGNIFICANT EVENT IN 2016
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On June 30, 2016, and July 19, 2016, on the exercising of the overallotment
option, the Trust issued approximately 7.2 million units at $4.55 by public
subscription, for approximately $31 million in proceeds, net of underwriting
fees and issue expenses.

The proceeds of issue were used to redeem the Series D debentures in the
amount of $23 million bearing interest at 7.25% and a portion of the
acquisition line of credit in the amount of $6.1 million bearing interest at
5.95%.

These transactions reduced the Trusts overall debt rate by 400 basis points.

These transactions also reduced the per-unit ratios by 1.2 per quarter and
significantly increased the various payout ratios, FFO by 10% and AFFO by
6%.

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SIGNIFICANT EVENT IN 2016 (contd)
____________________________________________________________________________________________________________________________________________________________

These transactions also resulted in the write-off of unamortized financing


expenses and the liability component of the convertible debenture. This write-
off, a non-recurring transaction totalling $1,088, is not, in accordance with
REALpacs recommendations, adjusted into the calculation of FFO. If it had
been taken into account, FFO and recurring FFO would have increased by
2.6 per unit for the quarter.
Although our FFO increased from 2015 to 2016, from $16M to $17M, because
of the reduction of the debentures, our FFO ratio increased from 88,6% to
92.8%. Had we not redeemed the debentures, we would have ended the year
at 82.4%.
Although our AFFO increased from 2015 to 2016, from $17M to $17,3M, our
AFFO ratio increased from 89% to 94.5%. Had we not redeemed the
debentures, we would have ended the year at 88%.
Management considers that the long term benefits of the reduced debt rate
outweigh the short term consequences of the deterioration in the various per-
unit and payout ratios.

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HIGHLIGHTS 2016
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Slight increase

In rental income, net operating income(1), recurring distributable income(1),


recurring funds from operations (FFO)(1), recurring adjusted funds from
operations (AFFO)(1) and total assets.
(1) Non-IFRS financial measures.

Slight decrease

In net income of the same-property portfolio.


Reduction

In the total debt ratio (from 71% to 65.7%) and the average interest rate
on mortgage debt.

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HIGHLIGHTS 2016
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Leasing activities

More than 520,000 square feet of leases renewed and new leases signed
during the year.
5.6% increase in the average rental rate of renewed leases during the
year.
Financing activities

$9.9 million in financings, with an average term of 4.2 years and an


average rate of 3.59%.
$87.2 million in refinancings, with terms varying from 1 year to 10 years,
for a weighted average term of 7.5 years, as well as fixed rates of 2.88%
to 4.11% and a weighted average rate of 3.50%. These refinancings
allowed for an equity take-out of approximately $16 million.

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BTBs INTERNAL GROWTH
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BTB increased its rental revenues by 5.6% for its 2016 lease renewals and
by 10.1% for its lease renewals for Q4-2016.

BTB has implemented and actively manages its capital improvement


program to ensure that the quality of the portfolio meets the standards of
competitive properties and allows the properties to retain structural and
aesthetic integrity for their intended useful life.

Managements extensive experience capitalizes on upside potential for its


properties.

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BTBs INTERNAL GROWTH
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BTBs internal growth strategy focuses on increasing rental income


by:

Maintaining harmonious relations with its tenants


Leasing rapidly vacant or soon to be vacated spaces
Being proactive in its day-to-day property management
BTB listens to its clients needs. By initiating lease renewals early
in the process, BTB minimizes transaction costs associated with
marketing, leasing and tenant improvements and minimizes costs
associated with renovations and interruptions in rental income
resulting from periods of vacancy.

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BOARD OF TRUSTEES
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PROTEAU, JOCELYN CHAIRMAN INDEPENDENT TRUSTEE


Held senior management positions with various financial institutions
Former Chairman of the Board and Chief Executive Officer of the Fdration des Caisses populaires Desjardins de
Montral et de lOuest du Qubec
Sits on several other boards, including Richelieu Hardware Ltd., Canadian Public Accountability Board, CO2 Solutions
Inc., Familiprix Inc., and cole des Hautes tudes Commerciales in Montreal (HEC Montral)

JANSON, JEAN-PIERRE VICE CHAIRMAN INDEPENDENT TRUSTEE


Executive Vice President of Richardson Partners Financial Limited
Former Managing Director of CIBC Wood Gundy Financial Services (Qubec) Inc. (Eastern Canada)
Held senior management positions with Merrill Lynch Canada Inc. and Midland Walwyn Inc.
Director of Tri Origin Exploration Ltd. and of Midland Exploration Inc.

MARTIN, LUC PRESIDENT OF THE AUDIT COMMITTEE INDEPENDENT TRUSTEE


Corporate director with over 30 years of experience in finance, accounting and business management
Former partner at Deloitte and at Andersen
Experience in external audit services to publicly traded and private companies

PERREAULT, FERNAND PRESIDENT OF THE INVESTMENT COMMITTEE INDEPENDENT TRUSTEE


Held senior managerial positions at the Caisse de dpt et placement du Qubec
Former President and Chief Executive Officer of SITQs Real Estate group
Over 30 years of experience in the field of real estate

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BOARD OF TRUSTEES
____________________________________________________________________________________________________________________________________________________________

DUCHARME, LUCIE PRESIDENT OF THE HUMAN RESOURCES AND GOVERNANCE COMMITTEE


INDEPENDENT TRUSTEE
Executive Vice President of Groupe Petra, a company which owns an important real estate portfolio comprising
office, commercial and industrial buildings mainly located in Montral
Held various management positions in the real estate industry for companies such as Canadian National Railway
Company, Laurentian Bank, Banque Nationale de Paris as well as in the transportation industry and the legal sector.

LACHANCE, SYLVIE INDEPENDENT TRUSTEE


Executive Vice President, Real Estate Development for Sobeys Inc.
Prior to joining Sobeys Inc., Executive Vice President and Chief Operating Officer of First Capital Realty Inc.
Previously held senior real estate positions with both regional and national grocery retailers

LACHAPELLE, LUC CORPORATE SECRETARY INDEPENDENT TRUSTEE


Former President and Chief Executive Officer of Corlac Real Estate Inc.
Former Vice President, Real Estate Services, Bombardier Inc.
More than 27 years of experience in the field of commercial real estate

POLATOS, PETER INDEPENDENT TRUSTEE


President of AMTB Management Inc. a firm specialized in the acquisition, financing and management of commercial
real estate
Former Vice President, Acquisition and Assistant Secretary of BTB
Former Associate Vice President at Colliers International (Qubec) Inc.
Former Vice President, Business Development for Technoparc Saint-Laurent, and consultant for the National Bank
of Canada

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BOARD OF TRUSTEES/MANAGEMENT
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LONARD, MICHEL PRESIDENT & CHIEF EXECUTIVE OFFICER


More than 30 years of experience in the field of commercial real estate (strategic planning, analysis,
renegotiation assignments and the implementation of complex relocation)
In 2015, finalist of the Entrepreneur of the Year Award awarded by Ernst and Young
In 2016, received the Chartered Director certification
Former Vice-President at Colliers International (Qubec) Inc.
Co-Founder and former President of Staubach Canada Inc.
Member of the Qubec Bar
Chairman of the Board of the Organisme dautorglementation du courtage immobilier du Qubec (OACIQ)
Former Chairman of the Board of Directors of the Fonds dassurance professionnelle du courtage immobilier du
Qubec (FARCIQ)

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MANAGEMENT
____________________________________________________________________________________________________________________________________________________________

CYR, BENOIT, CPA, CA VICE PRESIDENT AND CHIEF FINANCIAL OFFICER


Chartered professional accountant
Held various positions as Chief Financial Officer and Vice President, Finance and Administration, within several
companies
Former member and partner of the firm Groupe Mallette Maheu

DOMINIC GILBERT, B.B.A. VICE PRESIDENT, LEASING


More than 15 years of experience in management of office, commercial, industrial and residential properties
for Canderel Management, Ivanhoe Cambridge (formerly SITQ Immobilier) and Socit Immobilire Trillion
Member of the Board of BOMA Canada and of the Montreal Real Estate Foundation for Kids
Former Chairman of the Board of BOMA Qubec Building Owners and Managers Association

SYLVIE LAPORTE VICE PRESIDENT, PROPERTY MANAGEMENT


More than 15 years of experience in the commercial real estate industry.
Former General Manager for Simon Property Group (Premium Outlets Montreal)
Former Regional Property Manager Eastern Portfolio with Calloway Real Estate Investment Trust
Former member of the Board of Directors of the Institute of Real Estate Management (IREM Qubec)

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TSX: BTB.UN

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