6 minute read
INTERVIEW Capable of bringing his ship safely to harbour
– Michel Léonard
CONTRE VENTS ET MARÉES
Si BTB a réussi à garder le cap malgré la crise, ce n’est pas seulement en raison des actifs qui composent son portefeuille, mais aussi grâce à son personnel, indique Michel Léonard. «Nous avons la chance de pouvoir compter sur de bons employés, qui ont le cœur à la bonne place. Notre succès passe par eux. Ils ont travaillé fort pour soutenir nos locataires et comprendre leurs besoins, par exemple pour les aider à se qualifier au programme d’aide d’urgence du Canada pour le loyer commercial (AUCLC), auquel BTB a souscrit. Nous avons aussi pris des ententes de report de paiement de loyers avec ceux qui en avaient besoin. On connaît nos locataires et l’on est proches d’eux, on essaye de rester à l’écoute et de comprendre leurs enjeux particuliers», explique-t-il.
L’entreprise va donc pouvoir continuer sur sa lancée et poursuivre la stratégie mise en place il y a 18 mois environ. «Durant les premières années de notre existence, nous avions mis le cap sur la croissance. Plus récemment, nous avons continué à acheter des propriétés tout en gérant une légère décroissance. Ainsi, nous avons ciblé quelques immeubles moins performants que les autres, que nous sommes en train de vendre. Nous en avons acquis d’autres à la place qui affichent de meilleures performances», souligne Michel Léonard.
BTB n’a donc pas fini de grandir et de gagner en notoriété. «Pour certains, bigger is better, comme dit l’expression. Mais ce n’est pas toujours vrai. Même si nous ne sommes pas les plus gros, nous offrons de très belles possibilités d’appréciation de capital et nous avons bien l’intention de demeurer dans cette voie», assure Michel Léonard. Avec une telle détermination, nul doute que le Fonds de placement immobilier BTB a de belles années devant lui.
CAPABLE OF BRINGING HIS SHIP SAFELY TO HARBOUR
BY EMMANUELLE GRIL, JOURNALIST
Against all odds, BTB has established a dominant position among Canadian real estate investment funds. Founder Michel Léonard is a man of action more than capable of bringing his ship safely to harbour, despite the current crisis. A portrait of his vision and outlook.
An important real estate investment trust in eastern Canada that is listed on the Toronto Stock Exchange, BTB owns 64 commercial, office and industrial properties for a total of more than 5.3 million square feet, a portfolio of $930M in assets. It is an impressive outcome for a project that grew out of an idea that the founder and president, Michel Léonard, had when chatting with a neighbour, a businessman, while out walking his dog!
Over 15 years later BTB has become the second largest real estate investment trust in Québec. The founder talked with us about his passion for real estate and how he views the near future.
MICHEL LÉONARD
President and CEO BTB Real Estate Investment Trust
FROM LAWYER TO BROKER
There were no indications that Michel Léonard would eventually pursue a career in real estate. It was something he accidentally stumbled into, discovering a previously unknown realm. Trained as a lawyer, he also had a Master’s in business administration and initially thought he would focus on business law. But soon after working in the legal department of a real estate brokerage, he realized that he enjoyed that sphere of activity and decided to co-found a real estate brokerage firm with Roger Staubach in 1989. He joined Colliers International in 2004, the year that the idea for BTB began to take shape. That idea became reality in 2006.
The real estate investment trust soon acquired some 30 properties. After a few lean years following the recession of 2008, the firm is thriving once again and now definitely has the wind in its sails. The president’s objective is to double the size of the firm.
It must be said that Michel Léonard spares no effort and devotes himself entirely to pursuing his goals. "What I like about real estate is that no two days are alike! When I step into the office in the morning my plan is to work on a few files that need attention, but by the evening I realize I haven’t even touched them. It’s a field that demands a wide range of knowledge. You do a bit of everything, and you have to stay on top of major economic trends, markets and tenants, in order to make informed decisions. It is essential to have an overall vision, to grasp the big picture," he noted. It’s an approach that has been highly successful, one that allows him to remain positive despite the effects of the pandemic.
ISSUES AND CHALLENGES
It must be said that the current period is rich in challenges of all kinds. Fortunately for BTB, the firm does not own any enclosed shopping centres, assets that were hard hit by the repercussions of the confinement period. The investment trust has invested instead in open shopping malls with tenants that are national in scope, such as brand name supermarkets and pharmacies for example, businesses that were not obliged to cease activities this past spring.
Moreover, a clear upturn in sales after the reopening of businesses that had been closed contributes to Mr. Léonard’s optimism. "People need to go out and have fun. I’m confident that social activities will eventually resume almost as before." Although the retail sector demonstrated a certain weakness in terms of collecting rent during the last quarter, BTB was able to count on revenue from office and industrial buildings that are doing well.
"Like many others, I think that the use of offices will be affected, given that so many companies have adopted teleworking. But humans are social animals who crave contact with their peers. Even though teleworking has risen in popularity in recent years and is here to stay, we will continue to use office premises, but some employees will go to the office less frequently. For example, companies have created collaborative spaces to ensure that information is shared and to stimulate creativity.
They want their employees to continue to collaborate. However, there are some functions that can very well be performed remotely, such as those related to routine work. They could eventually be replaced by artificial intelligence. That means that only people who produce value added work will survive, and there will be a need for collaborative spaces in the office building sector," he said.
As for the industrial sector, he noted that prior to the pandemic there was already a shortage of available buildings in Montréal and Toronto, which could be a good business opportunity.
STAYING THE COURSE
While BTB managed to keep on course despite the crisis, that was due not only to the assets in its portfolio but also to its staff, indicated Michel Léonard. "We are lucky to be able to count on good employees, people who are competent and dedicated. They are the key to our success. They worked hard to support our tenants and to understand their needs, helping them, for example, to qualify for the Canada Emergency Commercial Rent Assistance program (CECRA), which BTB applied for. We also established lease deferral agreements for those who needed it. We know our tenants and are close to them. We listen to them so that we can understand their specific concerns," he explained.
The company will thus be able to maintain its momentum and pursue the strategy put into place some 18 months ago. "During the first few years of our existence we focused on growth. More recently we have continued to purchase properties, while also managing a slight decrease in the number owned. We have targeted a few underperforming buildings and are in the process of selling them. The buildings purchased to replace them are better performing properties," he added.
BTB continues to grow in size and in reputation. "Some adopt a bigger is better approach, but that’s not always effective. Even though we aren’t the biggest investment trust, we offer great opportunities for capital appreciation and we intend to continue to do so," declared Michel Léonard. Given that determination, there is no doubt that BTB Real Estate Investment Trust has many good years ahead of it.
