About BTB Reit
BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important property owner in eastern Canada. BTB owns 72 commercial, office and industrial properties for a total of more than 5.1 million square feet.
The objectives of the REIT are: (i) to generate stable and growing cash distributions on a tax efficient basis from investments in a diverse portfolio of income producing properties, with a primary focus in Québec; (ii) to expand the real estate asset base of the REIT and increase its income available for distribution through an accretive acquisition program; and (iii) to enhance the value of the REIT’s assets and maximize long-term Unit value through the active management of its assets.
BTB believes that the income-producing, mid-market office, retail and industrial property segments represent a favorable risk/return investment environment with fewer national competitors than other segments of the market. By concentrating on both primary and secondary markets, BTB believes it will be afforded greater opportunities to make accretive acquisitions that will contribute to achieving attractive yields for Unitholders.
The Trustees of BTB are committed to maximizing income from the REIT’s portfolio of properties through sophisticated and prudent financial and asset management. Leverage will be used within the overall debt limits set by the Contract of Trust to optimize returns from the property portfolio. Whenever possible, BTB will utilize fixed rate debt financing with terms that are appropriate for the nature of the leases and the properties being financed to reduce refinancing risk.
BTB finances a portion of the purchase price of its properties by way of mortgage and hypothecary loans from third party lenders. The Contract of Trust provides that BTB may not incur or assume any indebtedness if, after incurring or assuming such indebtedness, the total consolidated indebtedness of BTB would be more than 75% of its Gross Book Value. Long term fixed rate amortizing debt are preferred, some with interest only, and short term floating rate loans are used in appropriate circumstances. BTB’s long-term strategy includes using the current favorable debt and interest rate environment to prudently manage its overall financial leverage within a range of 65% to 70% of its Gross Book Value in order to maximize its return on equity while mitigating financial risk to BTB and maintaining stable cash flows.