BTB REIT demonstrates strong operational performance, with an increase in lease renewal rates of 8.3% and total leasing activity of 959,223 square feet for the year 2024

___________________________

⁽¹⁾ Non-IFRS financial measure. See Appendix 1. The referred non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and these measures cannot be compared to similar measures used by other issuers.

OPERATIONAL HIGHLIGHTS

Quarter

Year

2024

2023

2024

2023

Committed occupancy rate (%)

92.7 %

94.2 %

Signed new leases (in sq.ft.)

68,726

78,340

185,581

296,240

New leases related to a development project (in sq.ft.)

-

-

45,870

-

Renewed leases at term (in sq.ft.)

96,071

126,427

393,416

384,558

Renewal rate (%)

66.5 %

73.4 %

72.9 %

62.4 %

Renewed leases prior to the end of the term (in sq.ft.)

64,646

32,363

334,356

101,193

Average increase in lease renewal rate

18.7 %

14.3 %

8.3 %

9.2 %

FINANCIAL RESULTS HIGHLIGHTS

Periods ended December 31

Quarter

Year

(in thousands of dollars, except for ratios and per unit data)

2024

2023

2024

2023

$

$

$

$

Rental revenue

32,671

31,922

130,030

127,826

Net operating income (NOI)

19,082

19,255

75,051

75,379

Net income and comprehensive income

18,847

1,734

38,742

36,598

Adjusted EBITDA ⁽¹⁾

17,556

18,065

70,162

69,719

Same-property NOI ⁽¹⁾

18,351

18,882

69,709

67,926

FFO Adjusted ⁽¹⁾

9,656

9,688

37,157

38,946

FFO adjusted payout ratio

68.8 %

67.2 %

71.1 %

66.5 %

AFFO Adjusted ⁽¹⁾

8,923

8,966

33,554

34,956

AFFO adjusted payout ratio

74.5 %

72.6 %

78.7 %

74.1 %

FINANCIAL RESULTS PER UNIT

Net income and comprehensive income

21.3¢

2.0¢

44.0¢

42.4¢

Distributions

7.5¢

7.5¢

30.0¢

30.0¢

FFO Adjusted ⁽¹⁾

10.9¢

11.1¢

42.2¢

45.1¢

AFFO Adjusted ⁽¹⁾

10.1¢

10.3¢

38.1¢

40.5¢

_______________________

⁽¹⁾ Non-IFRS financial measure. See Appendix 1.

______________________

⁽¹⁾ Non-IFRS financial measure. See Appendix 1.

BALANCE SHEET AND LIQUIDITY HIGHLIGHTS

Periods ended December 31

Year

(in thousands of dollars, except for ratios and per unit data)

2024

2023

$

$

Total asset value

1,256,003

1,227,648

Total debt ratio ⁽¹⁾

57.9 %

58.6 %

Mortgage debt ratio ⁽²⁾

52.8 %

52.2 %

Weighted average interest rate on mortgage debt

4.35 %

4.37 %

Market capitalization

295,761

254,048

Market price of units

3.36

2.93

NAV per unit ⁽¹⁾

5.57

5.46

__________________________

⁽¹⁾ Non-IFRS financial measure. See Appendix 1. The referred non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and these measures cannot be compared to similar measures used by other issuers. 

⁽²⁾ This is a non-IFRS financial measure. The mortgage debt ratio is calculated by dividing the mortgage loans outstanding by the total gross value of the assets of the Trust less cash and cash equivalents.

⁽³⁾ Credit facilities is a term used that reconciles with the bank loans as presented and defined in the Trust's consolidated financial statements and accompanying notes.

TIME:

9 am, Eastern Time

URL ENTRY:

https://emportal.ink/42kpmQ2

DIAL:

Montréal: (+1) 514 400 3794 (local)

Toronto: (+1) 289 819 1299 (local)

North America (toll-free): (+1) 800 990 4777

WEB:

https://app.webinar.net/9BEYq9p42kP

VISUAL:

A presentation will be uploaded on BTB's website prior to the call

https://bit.ly/3IaJ9pj

 NON-IFRS MEASURE

Adjusted net income

Adjusted net income is a non-IFRS financial measure that starts with net income and comprehensive income and removes the effects of: (i) fair value adjustment of investment properties; (ii) fair value adjustment of derivative financial instruments; (iii) fair value adjustment of Class B LP units; and (iv) transaction costs incurred for acquisitions and dispositions of investment properties and early repayment fees.

The Trust considers this to be a useful measure of operating performance, as fair value adjustments can fluctuate widely with the real estate market.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")

Adjusted EBITDA income is a non-IFRS financial measure that starts with net income and comprehensive income and removes the effects of certain adjustments, on a proportionate basis, including: (i) interest expense; (ii) taxes; (iii) depreciation of property and equipment; (iv) amortization of intangible assets; (v) fair value adjustments (including adjustments of investment properties, of financial instruments, of Class B LP units and of unit price adjustments related to unit-based compensation); (vi) transaction costs for acquisitions and dispositions of investment properties and early repayment fees; and (vii) straight-line rental revenue adjustments.

The most directly comparable IFRS measure to Adjusted EBITDA is net income and comprehensive income. The Trust believes Adjusted EBITDA is a useful metric to determine its ability to service debt, to finance capital expenditures and to provide distributions to its Unitholders.

Same-Property NOI

Same-Property NOI is a non-IFRS financial measure defined as net operating income ("NOI") for the properties that the Trust owned and operated for the entire duration of both the current year and the previous year. The most directly comparable IFRS measure to same-property NOI is Operating Income.

The Trust believes this is a useful measure as NOI growth can be assessed on its portfolio by excluding the impact of property acquisitions and dispositions of both the current year and previous year. The Trust uses the Same-Property NOI to indicate the profitability of its existing portfolio operations and the Trust's ability to increase its revenues, reduce its operating costs and generate organic growth.

Funds from Operations ("FFO")

and FFO Adjusted

FFO is a non-IFRS financial measure used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its January 2022 White Paper ("White Paper"). FFO is defined as net income and comprehensive income less certain adjustments, on a proportionate basis, including: (i) fair value adjustments on investment properties, class B LP units and derivative financial instruments; (ii) amortization of lease incentives; (iii) incremental leasing costs; and (iv) distribution on class B LP units. FFO is reconciled to net income and comprehensive income, which is the most directly comparable IFRS measure. FFO is also reconciled with the cash flows from operating activities, which is an IFRS measure.

FFO Adjusted is also a non-IFRS financial measure that starts with FFO and removes the impact of transaction costs on acquisitions and dispositions of investment properties and early repayment fees.

The Trust believes FFO and FFO Adjusted are key measures of operating performance and allow the investors to compare its historical performance.

Adjusted Funds from Operations ("AFFO")

and

AFFO Adjusted

AFFO is a non-IFRS financial measure used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its White Paper. AFFO is defined as FFO less: (i) straight-line rental revenue adjustment; (ii) accretion of effective interest; (iii) amortization of other property and equipment; (iv) unit-based compensation expenses; (v) provision for non-recoverable capital expenditures; and (vi) provision for unrecovered rental fees (related to regular leasing expenditures). AFFO is reconciled to net income and comprehensive income, which is the most directly comparable IFRS measure. AFFO is also reconciled with the cash flows from operating activities, which is an IFRS measure.

AFFO Adjusted is also a non-IFRS financial measure that starts with AFFO and removes the impact of transaction costs on acquisitions and dispositions of investment properties and early repayment fees.

The Trust considers AFFO and AFFO Adjusted to be useful measures of economic earnings and relevant in understanding its ability to service its debt, fund capital expenditures and provide distributions to unitholders.

FFO and AFFO per unit

and

FFO adjusted and AFFO adjusted per unit

FFO and AFFO per unit and FFO adjusted and AFFO adjusted per unit are non-IFRS financial measures used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its White Paper. These ratios are calculated by dividing the FFO, AFFO, FFO adjusted and AFFO adjusted by the Weighted average number of units and Class B LP units outstanding.

The Trust believes these metrics to be key measures of operating performances allowing the investors to compare its historical performance in relation to an individual per unit investment in the Trust.

FFO and AFFO payout ratios

and

FFO Adjusted and AFFO Adjusted payout ratios

FFO and AFFO payout ratios and FFO Adjusted and AFFO Adjusted payout ratios are non-IFRS financial measures used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its White Paper. These payout ratios are calculated by dividing the actual distributions per unit by FFO, AFFO and FFO Adjusted and AFFO Adjusted per unit in each period.

The Trust considers these metrics a useful way to evaluate its distribution paying capacity.

Total Debt Ratio

Total debt ratio is a non-IFRS financial measure of the Trust financial leverage, which is calculated by taking the total long-term debt less cash divided by total gross value of the assets of the Trust less cash.

The Trust considers this metric useful as it indicates its ability to meet its debt obligations and its capacity for future additional acquisitions.

Total Mortgage Debt Ratio

Mortgage debt ratio is a non-IFRS financial measure of the Trust financial leverage, which is calculated by taking the total mortgage debt less cash divided by total gross value of the assets of the Trust less cash. The Trust considers this metric useful as it indicates its ability to meet its mortgage debt obligations and its capacity for future additional acquisitions.

Interest Coverage Ratio

Interest coverage ratio is a non-IFRS financial measure which is calculated by taking the Adjusted EBITDA divided by interest expenses net of financial income (interest expenses exclude early repayment fees, accretion of effective interest, distribution on Class B LP units, accretion of non-derivative liability component of convertible debentures and the fair value adjustment on derivative financial instruments and Class B LP units).

The Trust considers this metric useful as it indicates its ability to meet its interest cost obligations for a given period.

Debt Service Coverage Ratio

Debt service coverage ratio is a non-IFRS financial measure which is calculated by taking the Adjusted EBITDA divided by the Debt Service Requirements, which consists of principal repayments and interest expenses net of financial income (interest expenses exclude early repayment fees, accretion of effective interest, distribution on Class B LP units, accretion of non-derivative liability component of convertible debentures and the fair value adjustment on derivative financial instruments and Class B LP units).

The Trust considers this metric useful as it indicates its ability to meet its interest cost obligations for a given period.

Provision For Non-Recoverable Capital Expenditures

In calculating adjusted AFFO, the Trust deducts a provision for non-recoverable capital expenditures to consider capital expenditures invested to maintain the condition of its properties and to preserve rental revenue.

The provision for non-recoverable capital expenditures is calculated based on 2% of rental revenues. This provision is based on management's assessment of industry practices and its investment forecasts for the coming years.

Provision For Unrecovered Rental Fees

The Trust also deducts a provision for unrecovered rental fees in the amount of approximately 25¢ per sq. ft. on an annualized basis. Even though quarterly rental fee disbursements vary significantly from one quarter to another, management considers that this provision fairly presents, in the long term, the average disbursements not recovered directly in establishing the rent that the Trust will undertake. These disbursements consist of inducements paid or granted when leases are signed that are generally amortized over the term of the lease and are subject to an equivalent increase in rent per square foot, and of brokerage commissions and leasing payroll expenses.

Total Long-Term Debt Less Cash And Cash Equivalents

This is a non-IFRS financial measure. Long-term debt less cash and cash equivalent is a non-IFRS financial measure, calculated as the total of (i) fixed-rate mortgage loans payable; (ii) floating rate mortgage loans payable; (iii) Series G debenture capital amount; (iv) Series F debenture capital adjusted with non-derivative component fewer conversion options exercised by holders; and (v) credit facilities, less cash, and cash equivalents. The most directly comparable IFRS measure to net debt is debt.

Total Gross Value Of The Assets Of The Trust Less Cash And Cash Equivalent

This is a non-IFRS financial measure. Gross value of the assets of the Trust less cash and cash equivalent ("GVALC") is a non-IFRS financial measure defined as the Trust's total assets adding the cumulated amortization property and equipment and removing the cash and cash equivalent. The most directly comparable IFRS measure to GVALC is total assets.

2024

2024

2024

2024

2023

2023

2023

2023

Q-4

Q-3

Q-2

Q-1

Q-4

Q-3

Q-2

Q-1

(in thousands of dollars, except for per unit)

$

$

$

$

$

$

$

$

Net income and comprehensive income (IFRS)

18,847

5,470

7,272

7,153

1,734

15,216

10,846

8,802

Fair value adjustment on investment properties

(9,975)

(283)

-

(6)

4,480

(6,481)

-

-

Fair value adjustment on Class B LP units

(174)

335

(21)

160

(42)

(159)

(775)

-

Amortization of lease incentives

966

807

704

690

641

664

750

728

Fair value adjustment on derivative financial
instruments

(760)

2,168

379

(325)

2,396

(584)

(763)

184

Leasing payroll expenses ⁽⁶⁾

739

535

433

591

401

359

327

356

Distributions – Class B LP units

52

52

53

52

52

56

42

22

Unit-based compensation (Unit price
remeasurement) ⁽⁵⁾

(39)

342

63

409

(11)

(87)

(232)

(59)

FFO ⁽¹⁾

9,656

9,426

8,883

8,724

9,651

8,984

10,195

10,033

Transaction costs on disposition of investment
properties and mortgage early repayment fees

-

-

267

202

37

46

-

-

FFO Adjusted ⁽¹⁾

9,656

9,426

9,150

8,926

9,688

9,030

10,195

10,033

FFO per unit ^{(1) (2) (3)}

10.9¢

10.7¢

10.1¢

10.0¢

11.1¢

10.3¢

11.8¢

11.7¢

FFO Adjusted per unit ^{(1) (2) (4)}

10.9¢

10.7¢

10.4¢

10.2¢

11.1¢

10.4¢

11.8¢

11.7¢

FFO payout ratio ⁽¹⁾

68.8 %

70.0 %

74.3 %

75.2 %

67.5 %

72.9 %

63.8 %

64.1 %

FFO Adjusted payout ratio ⁽¹⁾

68.8 %

70.3 %

72.2 %

73.5 %

67.2 %

72.5 %

63.8 %

64.1 %

⁽¹⁾

This is a non-IFRS financial measure.

⁽²⁾

Including Class B LP units.

⁽³⁾

This is a non-IFRS financial measure. The FFO per unit ratio is calculated by dividing the FFO ⁽¹⁾ by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period).

⁽⁴⁾

This is a non-IFRS financial measure. The recurring FFO per unit ratio is calculated by dividing the recurring FFO ⁽¹⁾ by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period).

⁽⁵⁾

The impact of the unit price remeasurement on the deferred unit-based compensation plan has been considered in the calculation of the recurring FFO and AFFO starting Q2 2021.

⁽⁶⁾

The impact of the CIO compensation, hired in Q2 2022, was added to the Leasing payroll expenses during Q4 2022 as his duties were mainly leasing activities throughout the year.

2024

2024

2024

2024

2023

2023

2023

2023

Q-4

Q-3

Q-2

Q-1

Q-4

Q-3

Q-2

Q-1

(in thousands of dollars, except for per unit)

$

$

$

$

$

$

$

$

FFO ⁽¹⁾

9,656

9,426

8,883

8,724

9,651

8,984

10,195

10,033

Straight-line rental revenue adjustment

(374)

(247)

(183)

(394)

(197)

(842)

(291)

(633)

Accretion of effective interest

402

391

361

308

310

271

278

236

Amortization of other property and equipment

21

17

17

17

20

33

23

23

Unit-based compensation expenses

247

19

(95)

(9)

159

184

237

256

Provision for non-recoverable capital
expenditures ⁽¹⁾

(654)

(650)

(644)

(653)

(639)

(626)

(634)

(658)

Provision for unrecovered rental fees ⁽¹⁾

(375)

(375)

(375)

(375)

(375)

(375)

(375)

(375)

AFFO ⁽¹⁾

8,923

8,581

7,964

7,618

8,929

7,629

9,433

8,882

Transaction costs on disposition of investment
properties and mortgage early repayment fees

-

-

267

201

37

46

-

-

AFFO Adjusted ⁽¹⁾

8,923

8,581

8,231

7,819

8,966

7,675

9,433

8,882

AFFO per unit ^{(1) (2) (3)}

10.1¢

9.7¢

9.1¢

8.7¢

10.2¢

8.8¢

10.9¢

10.3¢

AFFO Adjusted per unit ^{(1) (2) (4)}

10.1¢

9.7¢

9.4¢

8.9¢

10.3¢

8.8¢

10.9¢

10.3¢

AFFO payout ratio ⁽¹⁾

74.5 %

76.8 %

82.9 %

86.2 %

72.9 %

85.8 %

69.0 %

72.4 %

AFFO Adjusted payout ratio ⁽¹⁾

74.5 %

77.2 %

80.2 %

83.9 %

72.6 %

85.3 %

69.0 %

72.4 %

⁽¹⁾

This is a non-IFRS financial measure.

⁽²⁾

Including Class B LP units.

⁽³⁾

The AFFO per unit ratio is calculated by dividing the AFFO ⁽¹⁾ by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period).

⁽⁴⁾

The recurring AFFO per unit ratio is calculated by dividing the recurring AFFO ⁽¹⁾ by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period).

December 31,
2024

December 31,
2023

$

$

Cash and cash equivalents

(2,471)

(912)

Mortgage loans outstanding ⁽¹⁾

665,607

640,425

Convertible debentures ⁽¹⁾

19,576

43,185

Credit facilities

44,298

36,359

Total long-term debt less cash and cash equivalents ^{(2) (3)}

727,010

719,057

Total gross value of the assets of the Trust less cash and cash equivalents ^{(2) (4)}

1,254,818

1,227,949

Mortgage debt ratio (excluding convertible debentures and credit facilities) ^{(2) (5)}

52.8 %

52.2 %

Debt ratio – convertible debentures ^{(2) (6)}

1.6 %

3.5 %

Debt ratio – credit facilities ^{(2) (7)}

3.5 %

3.0 %

Total debt ratio ⁽²⁾

57.9 %

58.6 %

⁽¹⁾

Before unamortized financing expenses and fair value assumption adjustments.

⁽²⁾

This is a non-IFRS financial measure.

⁽³⁾

Long-term debt less free cash flow is a non-IFRS financial measure, calculated as total of: (i) fixed rate mortgage loans payable; (ii) floating rate mortgage loans payable; (iii) Series G debenture capital amount; (iv) Series F debenture capital adjusted with non-derivative component less conversion options exercised by holders; and (v) credit facilities, less cash and cash equivalents. The most directly comparable IFRS measure to net debt is debt.

⁽⁴⁾

Gross value of the assets of the Trust less cash and cash equivalent ("GVALC") is a non-IFRS financial measure defined as the Trust total assets adding the cumulated amortization property and equipment and removing the cash and cash equivalent. The most directly comparable IFRS measure to GVALC is total assets.

⁽⁵⁾

Mortgage debt ratio is calculated by dividing the mortgage loans outstanding by the GVALC.

⁽⁶⁾

Debt ratio – convertible debentures is calculated by dividing the convertible debentures by GVALC.

⁽⁷⁾

Debt ratio – credit facilities is calculated by dividing the credit facilities by the GVALC.