BTB Real Estate Investment (BTB-UN) Q3 2025 earnings summary

Executive summary

• Portfolio totals 6 million sq ft across 73 properties, with a fair value of $1.2–$1.3B and 280,635 sq ft of new and renewed leases in Q3 2025.

• Achieved resilient operational performance, with strong leasing momentum and a 14.5% increase in average rent renewal rates.

• Disposed of two properties for $13.6M, including an office in Quebec City ($10.5M) and a 50% interest in a Terrebonne retail property ($3.1M).

• Actively pursuing densification and zoning changes to add residential units in Montreal and Ottawa.

• Portfolio occupancy at 91.5%, up 30 bps sequentially but down 80 bps year-over-year due to a planned industrial tenant departure.

Financial highlights

• Rental revenue for Q3 2025 was $32.9M, up 1.1% year-over-year; NOI grew 5.9% to $19.9M; cash NOI increased 4.2% to $20.1M.

• FFO adjusted per unit was 11.5¢, up 7.5%; AFFO adjusted per unit was 10.1¢, up 4.1% year-over-year.

• AFFO payout ratio improved to 74.3% from 77.2% year-over-year.

• Net income for Q3 was $9.5M, up 73.7% year-over-year.

• Distribution per unit was 7.5¢ for the quarter.

Outlook and guidance

• Management remains focused on stability, long-term value creation, and densification, with a strong leasing pipeline and healthy fundamentals.

• Strategic plan targets increased industrial asset concentration and continued proactive leasing and asset management.

• Expecting continued leasing momentum in suburban office and industrial segments, with positive trends into Q1 2026.

• Anticipating closure of a Saint-Hilaire office asset sale before year-end; three other office buildings remain on the market.