BTB Real Estate Investment (BTB-UN) Q1 2025 earnings summary

Executive summary

• Portfolio consists of 75 properties totaling 6.1 million sq ft, valued at $1.3 billion, with a strategic focus on industrial assets and densification opportunities in Montréal and Ottawa.

• Q1 2025 results reflect strong leasing and operational performance, with improved liquidity and prudent financial management.

• Achieved 8.0% year-over-year NOI growth to $19.8 million, aided by a $1.0 million lease cancellation indemnity and operational improvements.

• Three properties in Saint-Jean-sur-Richelieu were put on the market for disposition, with proceeds aimed at supporting industrial market investments.

• Completed first ground-up development in Lévis, Québec, with Winners/HomeSense as tenant.

Financial highlights

• Rental revenue reached $34.4 million, up 5.4% year-over-year; net operating income (NOI) was $19.8 million, an 8.0% increase.

• Same property NOI rose 7.3% year-over-year.

• FFO adjusted per unit was 11.1¢, up 8.8% year-over-year; AFFO adjusted per unit rose 15.7% to 10.3¢.

• AFFO adjusted payout ratio improved to 72.7% from 83.9% a year ago.

• Net income increased 6.4% to $7.6 million for the quarter.

Outlook and guidance

• Focus remains on industrial asset growth, densification, and value creation opportunities, with ongoing ESG initiatives and a decarbonation strategy.

• Expectation to converge in-place and committed occupancy rates to 92.5% by Q4 2025, with new leases in the pipeline.

• Continued focus on increasing industrial portfolio share to 60%, with careful capital allocation and no forced sales.

• Management emphasizes prudent financial management and operational excellence amid economic uncertainty.

• DRIP suspended in February 2025 to address unit dilution.