BTB Real Estate Investment (BTB-UN) Q2 2025 earnings summary

Executive summary

• Portfolio consists of 74 properties totaling 6.1M sq. ft. with a $1.26B–$1.3B asset value, focusing on industrial assets and densification opportunities in Montréal and Ottawa.

• Released second ESG report for 2024, highlighting sustainability initiatives.

• Disposed of an industrial property in Saskatoon for $6.1M and an office property in Quebec City for $10.5M post-quarter.

• No new investments or densification activities this quarter; focus remains on portfolio optimization and selective acquisitions.

• Net income for Q2 2025 was $6.2M, down from $7.3M in Q2 2024.

Financial highlights

• Rental revenue for Q2 2025 was $30.5M, down 5.3% year-over-year due to $1.8M in non-cash straight-line rent adjustments.

• Cash NOI grew 0.5% to $19.5M for the quarter; cash same property NOI declined 1.5% year-over-year.

• AFFO adjusted per unit rose to 9.5¢, with a payout ratio of 79.2%.

• FFO adjusted per unit was 8.3¢, down from 10.4¢ year-over-year.

• Distribution maintained at $0.075 per unit; total distributions to unitholders were $13.2M for H1 2025.

Segment performance

• Leasing activity totaled 173,000 sq. ft. for the quarter, with 49,809–50,000 sq. ft. from new leases.

• Notable new lease: 30,297 sq. ft. in Hamilton with XCMG Canada Limited, replacing a defaulting tenant with no downtime.

• Occupancy rate at quarter-end was 91.2%, down 340 bps year-over-year, improving to 92.0% post-disposition.

• Average rent renewal rate increased 4.7% for the quarter, led by retail and suburban office segments.

• Industrial segment impacted by tenant bankruptcy, but space was rapidly re-leased.