BTB Reit outperforms

  On November3 BTB Reit reported it's third quarter results.It had another in a series of good quarters.Almost all of it's operational statistics were substantially ahead of results a year ago.This is a reit that is gradually getting bigger and more profitable.This blog believes that it is a well managed reit.It's assets have increased considerably over the last two years and so have it's profits.
 Operational Statistics
 BTB had a 9% increase in rental income to $19 million.And it had a 14% increase in operating income to $11 million.Funds from operations (FFO) went from $3.8 to $4.3 million in Q3 2015.While adjusted funds from operations (AFFO) went from $3.6 to $4.7 million.More importantly FFO per share went from 11.3 to 12.5 cents per share for the quarter.And earnings or adjusted funds flow per share went from 10.8 cents to 13.5 cents per share.Annualized earnings per share are on track to hit $.50 to $.60 per share.
  BTB does all the little details well also;as it reports that it's weighted average interest rate went from 4.13% to 3.93%.While the average maturity of it's debt went from 4.7 years to 5.5 years.BTB also had a 5.6% increase in rents on 125,000 square feet of space.And it has kept it's occupancy rate at a healthy 91%.
  It refinanced two properties that had rates of 5.26% and 4.0% and got refinancing at 3.77%.And it acquired two office buildings in Ottawa.BTB  has most of it's properties in Quebec but recently has started to diversify into Ontario.Ottawa is a natural leap for BTB as it is close to the Quebec border and so is easy to manage.These acquisitions bring their total assets from $592 million in Q3 2014 to $650 million in 2015.
     BTB gets bigger
  BTB Reit is a  small junior reit that  is little followed by many analysts.Some brokers show their assets and earnings as less than they actually are because they don't bother to be accurate about a small reit but it is growing.BTB raised it's dividend two quarters ago and their payout ratio became a little high.It didn't appear safe at that time but since they have brought in very good results and now their payout ratio has dropped from 83% to 68%.For awhile it was near 90% but BTB has worked hard to bring it in line.Another good quarter or two and they may be ready to raises it again.As BTB quietly moves up closer and closer to $1 billion in assets.
  see Workathon for financial analysis of reits; view Workathon for analysis of quarterly reports