The REIT Report



CANMARC reports strong growth in operating results in third quarter 2011 & President and CEO Appointed to the Board of Trustees

CANMARC Real Estate Investment Trust  reported strong growth in its financial and operating results for the third quarter of 2011.

The REIT also announced that Mr. James W. Beckerleg, President and Chief Executive Officer of the REIT, has been appointed to the Board of Trustees, effective November 2, 2011.  As founding CEO and leader of the management team, Mr. Beckerleg will sit as a related Trustee.

"We are pleased to have Jim Beckerleg join us on the Board of Trustees," said Karen A. Prentice, Chair of the Board of Trustees. "Mr. Beckerleg's appointment reaffirms the REIT's commitment to strong governance and strategic leadership in the real estate sector", declared Mrs. Prentice. "Jim brings to the Board a wide array of expertise with a depth of experience in real-estate corporate finance and acquisitions, having served as an executive and director of several public companies."

Financial Results

"Our third-quarter results reflect the full benefit of our acquisitions over the past year. The investment properties we acquired are accretive to the REIT'S net operating income, "said Jim Beckerleg, President and Chief Executive Officer. "During the quarter, we became CANMARC, a brand that reflects our mission of building and operating a Canadian commercial real estate portfolio with landmark and other quality properties.  We continue to build an active pipeline of potential acquisitions and look forward to adding properties in both the office and retail sectors."

* : A decrease in the AFFO payout ratio (distributions per Unit and Class B LP Unit divided by diluted AFFO per unit) compared to the previous year represents a positive variance.


    NOI was $26.9 million for the third quarter, a 37.3% increase compared to the same period in 2010. The increase is mainly due to the impact of several acquisitions made during the past year.  The acquisitions increased the REIT's commercial gross leasable area (GLA) by 21.4% from approximately 6.6 million square feet at July 1, 2010 to approximately 8.0 million square feet at September 30, 2011.

    The AFFO payout ratio of 92.2% represents a 6.6% improvement over the 98.8% payout ratio recorded in the second quarter of 2011. The improvement is due to the acquisitions completed in the second quarter of 2011, which contributed fully to the REIT's operating results during the third quarter this year.

    On September 13, 2011, the REIT closed a bought-deal equity financing for net proceeds of approximately $36.6 million.  The net proceeds were used to repay debt, fund acquisitions and for general purposes of the REIT. Units were sold at a price of $11.50 per Unit, resulting in a total of 3,325,000 Units being issued. The proceeds from the equity issue had a minimal impact on the REIT's operating results in the quarter.

    Occupancy rates for the REIT's 83 commercial income properties were relatively stable during the third quarter, increasing slightly to 95.9% at September 30, 2011 from 95.5% at June 30, 2011. However, there is a 1% increase in occupancy rate at September 30, 2011 compared to the 94.9% registered at September 30, 2010.

    The average lease term to maturity on the REIT's commercial properties was approximately 8.6 years at September 30, 2011, consistent with the previous quarter.

    Debt as a percentage of gross book value is at 49.5%, which remains below the REIT's target range of 55% to 60%.

    On August 2, 2011, the REIT announced that it had discontinued the position of Executive Chairman. The Board of Trustees further announced that Karen A. Prentice had been appointed as the first non-executive Chair of the REIT.

    On September 27, 2011 the REIT announced that it had changed its name to CANMARC Real Estate Investment Trust.

Subsequent events

    On October 5, 2011, the REIT closed a transaction to acquire a 100 percent interest in a portfolio of 29 neighborhood shopping centres, of which 24 are leased and anchored by the Jean Coutu Group, for a gross purchase price of $114.9 million excluding closing and transaction costs.

    On October 18, 2011, the REIT closed a transaction to sell its non-strategic Atlantic-Provinces-based multi- family residential portfolio for approximately $65 million.

Conference Call

The REIT's management team will hold a conference call today at 11 a.m. (EDT) to discuss the results for the third quarter. To access the conference call, please call 1-800-704-5375. A taped replay of the call will be available until December 3, 2011 by dialling 1-416-626-4100 or 1-800-558-5253 and entering the playback code 21544038. An audio replay of the conference call will also be available in podcast format in the Investors section of the REIT's website at

BTB Real Estate Investment Trust  announced that, after the conclusion of the due diligence process, it has now closed the acquisition of one retail and two industrial properties in the City of Terrebonne for a total purchase price of $14.4 M excluding closing costs. With the conclusion of this acquisition, BTB has now closed over $326 M worth of properties representing over 3.1 M square feet of leasable area
2175 and 2205 to 2225 Des Entreprises Boulevard, Terrebonne, Québec
These two industrial properties of respectively 60,000 and 154,000 square feet of leasable area are fully-leased for 10 year terms. They are strategically located on one of Montreal´s major highways, 25 kilometers from the Port of Montréal and 40 kilometers from the Pierre-Elliott Trudeau international airport.  These properties generate stable revenues and their tenant is the most important manufacturer of windows and door in the whole of Quebec.

5781 Laurier Boulevard, Terrebonne, Québec
BTB acquired a 50% participation in this commercial property that has a total leasable area of 17,114 square feet.  This fully-leased property harbours a Shoppers/Pharmaprix pharmacy.
As part of this transaction, BTB assumed a first ranking mortgage loan in the amount of $1.2 M for a remaining term of 7 years, bearing interest at an annual rate of 5.68%, with HSBC.

on November 3, 2011