BTB Real estate lags behind
On March 27 BTB Real estate investment trust came out with a financial update for Q4 2013 and for the year.Most of it's financial indicators have improved over the year.For example,there was a 23% increase in rental income and 20%in net operating income as well as a 77%increase in funds from operations and 60% increase in adjusted funds from operations(Affo).Affo is taken as a proxy for earnings per share for most REIT's and Affo per unit was also up 11%.
Most if not all of it's properties are in Quebec and it bought 3 more buildings in Quebec this year and acquired a 60% interest in a retail complex.Now it has 69 commercial properties and industrial properties.The average property it owns has a value of $7 to $8 million.It sold one recently for $14 million.
The share price
It has moved up steadily this year and is trading around the $4.70 per share area.With the increase in Affo per share of more than 10% it seems poised to move up again.At the same time it has kept it's distribuable income under 100% for seven straight quarters.This avoids the mistake that some small REITs have made to increase their share price.It has raised small amounts of equity which has dragged it's Affo per unit down somewhat but it is still conservatively managing it's capital (both equity and debt).
A good comparison
I have compared BTB REIT to a few other small real estate REITs and it looks like a good investment.It's P/E ratio at 6 is below most small REITs and also below Riocan(at 12).It's yield at 8.6% is higher than all but a few REITs.Partners REIT comes in higher but more mature REITs like Riocan come in at closer to 5%.The bonus with BTB is that it's price to book value is very low at .24 in comparison to Interrent at .55 and Riocan at .58.It looks like BTB's assets are very cheaply priced while offering a darn good yield. read blogdaleup for advice on REITs
Most if not all of it's properties are in Quebec and it bought 3 more buildings in Quebec this year and acquired a 60% interest in a retail complex.Now it has 69 commercial properties and industrial properties.The average property it owns has a value of $7 to $8 million.It sold one recently for $14 million.
The share price
It has moved up steadily this year and is trading around the $4.70 per share area.With the increase in Affo per share of more than 10% it seems poised to move up again.At the same time it has kept it's distribuable income under 100% for seven straight quarters.This avoids the mistake that some small REITs have made to increase their share price.It has raised small amounts of equity which has dragged it's Affo per unit down somewhat but it is still conservatively managing it's capital (both equity and debt).
A good comparison
I have compared BTB REIT to a few other small real estate REITs and it looks like a good investment.It's P/E ratio at 6 is below most small REITs and also below Riocan(at 12).It's yield at 8.6% is higher than all but a few REITs.Partners REIT comes in higher but more mature REITs like Riocan come in at closer to 5%.The bonus with BTB is that it's price to book value is very low at .24 in comparison to Interrent at .55 and Riocan at .58.It looks like BTB's assets are very cheaply priced while offering a darn good yield. read blogdaleup for advice on REITs
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