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

Executive summary

• Portfolio consists of 74 properties totaling 6 million sq ft, valued at $1.3B, with a focus on industrial assets and densification in Montréal and Ottawa.

• Acquired three industrial properties in Leduc, Alberta (143,118 sq ft) for $31.5M, expected to generate $2.5M annualized NOI; disposed of a Quebec City property for $11.7M; acquired remaining 50% interest in a Gatineau property for $7M.

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

• Strategic shift continues: selling office assets to redeploy capital into industrial properties.

• Net positive effect of recent acquisitions/dispositions is $2.1M annualized NOI.

Financial highlights

• Rental revenue for Q1 2026 was $32.0M, down 7.1% year-over-year, mainly due to a prior year lease cancellation payment and tenant departures.

• NOI and cash NOI decreased by 10.3% and 10.2% year-over-year; excluding the lease cancellation payment, NOI declined 5.5%.

• FFO adjusted per unit was $0.099 (down $0.012), AFFO adjusted per unit was $0.086 (down $0.017) year-over-year.

• AFFO payout ratio rose to 87.2%, up 14.5% year-over-year.

• Available liquidity at quarter-end was $23.7M.

Outlook and guidance

• Strategic focus remains on industrial asset acquisitions, densification projects, and value creation.

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

• Management highlights a robust pipeline of opportunities and ongoing efforts to maximize portfolio value.

• Ongoing efforts to lease vacant spaces, with positive market interest and focus on government tenants.

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