BTB Reit consolidates in 2016

       BTB Reit released it's fourth quarter and annual results on March14.They were not astonishing but it was a continuous steady growth in financial and operating performance.Slight increases in revenues and the average rental rate and a slight reduction in the average interest rate.Rental income was up 1% to $73 million.This allowed for a $17 million release in equity and also a 4% reduction in the debt to equity ratio.This blog expects only slight increases in the federal reserve interest rate in 2017 and so only a minimal impact on it's price in 2017.BTB will be more greatly affected by a possible acquisition and increases in rental revenues.
                2016 Financing
         BTB arranged for $87 million  refinancing and obtained a reduction in it's average interest rate from 3.95% to 3.79%.And it was proud of it's 2016 public share offering of equity that brought in $33 million of proceeds.This helped to reduce it's debt ratio from 71 to 66% but increase it's payout ratio from 77 to 83%.As a result net income per share went from $.25 to $.27 per share.
        What's Ahead?
        2017 promises to be a steady but not spectacular year for BTB.This blog has commented in the past on the fact that this is a well managed reit.It does all the small things well.Since it's debt ratio has come down it is likely that it will but another small property in 2017.And as leases come up the renewal rate will be a little higher.This blog expects a new debenture series for about $50 to $60 million and maybe a small equity issue of $15 to $25 million.All part of the plan to make BTB move ahead gradually in 2017.This blog sees BTB shares trading in the $5 to $5.50 area in early 2017.                     use Blogdaleupsome for business forecasts ;   use Blogdaleupsome for business forecasts