BTB Real Estate Investment (BTB-UN) Q1 2026 earnings summary

Executive summary

• Acquired three fully leased industrial properties in Leduc, Alberta, totaling 143,118 sq. ft., supporting portfolio repositioning and diversification; expected to add $2.5M in annualized NOI.

• Completed acquisition of remaining 50% interest in a Gatineau, Québec retail/office property post-quarter, now fully owned.

• Disposed of a retail property in Québec City for $11.7M, contributing to portfolio optimization.

• Leasing activity exceeded 200,000 sq. ft. in Q1, with occupancy rate rising to 91.8%, up 30 bps sequentially but down 70 bps year-over-year.

• Announced intention to launch an at-the-market equity program in Q2 2026 to enhance capital flexibility.

Financial highlights

• Rental revenue was $32.0M, down $2.5M or 7.1% year-over-year, mainly due to prior year lease cancellation payment and tenant departures.

• Net operating income (NOI) was $17.8M, down $2.0M or 10.3% year-over-year; excluding the prior year lease cancellation, NOI declined 5.5%.

• Net income and comprehensive income increased to $8.4M, up $0.8M year-over-year.

• Adjusted net income was $7.2M, down from $8.5M in Q1 2025.

• FFO Adjusted was $8.8M (9.9¢ per unit), down from $9.9M (11.1¢ per unit) year-over-year.

• AFFO Adjusted was $7.7M (8.6¢ per unit), down from $9.2M (10.3¢ per unit) year-over-year.

• AFFO Adjusted payout ratio rose to 87.2% from 72.7% year-over-year.

Outlook and guidance

• Acquisitions and dispositions totaling $38.5M are expected to contribute $2.1M in annualized NOI.

• Focus remains on portfolio repositioning, active leasing, and enhancing long-term value for unitholders.

• At-the-market equity program to provide incremental capital for future growth.