Can you please comment on their latest earning reports with REIT related metrics and on future guidance ?
Thanks,
BTB cash flow per unit was 10.9c, vs estimates of 11c; revenue of $32.67M matched estimates. Operational performance was strong, with lease renewal rates +8.3% for the year, and a 2.3% increase in rental revenue. Occupancy is 92.7%, down from 94.2%. Payout ratio 74.5%, up from 72.6%. Nothing spectacular here, but nothing of overly concern. Its small size adds risks, but this is reflected in its very low valuation of 7X cash flow.
NXR.UN cash flow per unit was 17.5c, vs estimates 18.6c; revenue was $44.7M, missing estimates of $46.1M. Net operating income rose 10%. It continues to advance towards a pure play industrial REIT, and continues to sell office properties. Payout is very high at 99.6%, but at least down from 106.9%. Occupancy 96%, down from 99%. Guidance calls for marginal growth at BTB and essentially flatness at NXR. This is not unusual for the sector. NXR is more expensive on valuation at 9X earnings. We would consider both fairly high risk income stocks.