MONTREAL, QUEBEC--(CCNMatthews - May 31, 2007) - The trustees of BTB Real Estate Investment Trust (TSX VENTURE:BTB.UN)) ("BTB") publish the financial results for the first 2007 quarter, namely the period ended March 31, 2007 and announce that, during said period, its real estate portfolio has increased from $13.9 M to $40.2 M.
BTB reports for the quarter ended March 31, 2007 operating income related to real estate assets of $14,592 and a net loss of $342,307. During the first 2007 quarter of operating activities, BTB purchased a real estate portfolio composed of eight properties for a total acquisition price of $26.7 M and also concluded mortgage financing in connection with the aforementioned acquisition as well as for the properties that it had already acquired by the end of the 2006 financial year. This $28 M financing is a short-term loan at a fixed interest rate of 5.909% for seven years having a five-year exemption for the reimbursement of capital.
After the first quarter, BTB continued to follow its real estate acquisition program and, as at this date, has added to its existing portfolio eight more properties worth over $36 M and with 370,000 square feet of leasable area. Furthermore, on May 15, 2007, BTB closed a private placement under which 18,055,000 units were issued at an agreed price of $2.55. The gross proceeds from the issuance of the units were over $46 M, such proceeds will be used for the financing of the acquisition of real estate properties.
Mr. Jocelyn Proteau, Chairman of the Board, emphasizes that the strict criteria followed by the members of the Investment Committee is highlighted by the quality of the real estate portfolio that BTB in currently putting together. He adds: "We are confident that the objectives set out in October 2006 upon the creation of the Trust will be surpassed".
According to Mr. Michel Leonard, President and Chief Executive Officer, "the new acquisitions have launched us towards profitability and we find ourselves well ahead of our business plan". As at today's date, BTB has closed the acquisition of 18 properties, for a total of $77.1 M and has signed conditional offers on 23 other properties representing an approximate value of $163 M." He concludes that "the closing of these transactions will bring the portfolio's value to more than $240 M".
FIRST ANNUAL AND SPECIAL MEETING OF THE UNITHOLDERS
BTB held its first annual and special meeting of the unitholders today at 11:00 a.m. at the Centre VIP of the 1000 De La Gauchetiere Street West in Montreal.
ABOUT BTB
BTB is a growth-oriented real estate investment trust listed on the TSX Venture Exchange. Its objective is to provide unitholders with stable and growing cash distributions from investments in a high quality portfolio of long-term leased office, industrial, commercial and retail properties predominantly located in the province of Quebec. BTB is lead by a management team that boasts
in-depth experience in the real estate field and a governance and business focused board of trustees.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions. Although the trustees of BTB believe that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the factors and risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include the impact of general economic conditions, industry conditions, governmental regulation, environmental risks, competition from other industry participants, stock market volatility, the ability to access sufficient capital from internal and external sources and the risk of fluctuation and variation in actual operating results, which variation may be material. A full description of these risks and uncertainties can be found in BTB's annual Management's Discussion and Analysis dated April 27, 2007 which is available electronically at www.sedar.com.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
BTB REIT
Highlights
Consolidated Results
Q-1 - 2007
$000
--------------------------------------------------------------
Rental Revenue from Income Producing Properties 912
Property Management Expenses 325
--------------------------------------------------------------
Net Operating Income 587
Amortization of Income Producing Properties 163
Interest and Financing Expenses 646
Interest Income (237)
--------------------------------------------------------------
Operating Income from Real Estate Assets 15
Administrative Expenses and Professional Fees (357)
--------------------------------------------------------------
Net Loss (342)
--------------------------------------------------------------
Basic and Diluted Net Loss per Unit ($0.02)
--------------------------------------------------------------
BTB Real Estate Investment Trust
Highlights
Consolidated Balance Sheet
March 31, 2007
ASSETS $000
-------------------------------------------------------
Income Producing Properties 40,229
Cash and Cash Equivalents 21,083
Other Assets 2,573
-------------------------------------------------------
63,885
-------------------------------------------------------
LIABILITIES AND UNITHOLDERS' EQUITY
Mortgage Loan 27,741
Convertible Debentures 10,421
Other Liabilities 2,574
-------------------------------------------------------
40,736
Unitholders' Equity 23,149
-------------------------------------------------------
$63,885
-------------------------------------------------------
FOR FURTHER INFORMATION PLEASE CONTACT:
BTB Real Estate Investment Trust
Mr. Michel Leonard
President et Chief Executive Officer
514-866-1990 ext. 236
Mr. Benoît Cy
Chief Financial Officer
514-866-1990 ext. 231
