BTB Real Estate Investment (BTB-UN) Q4 2024 earnings summary

Executive summary

• Portfolio consists of 75 properties totaling 6.1 million sq ft with a CAD 1.3 billion asset value, focusing on industrial assets, densification, and value creation opportunities.

• Delivered a 45,870 sq ft Winners/HomeSense store on time and on budget; disposed of two office properties for $6.2M in February 2024.

• Leasing activity robust with 959,223 sq ft leased or renewed in 2024, and lease renewal rates up 8.3% for the year.

• Industrial asset allocation increased to 36.7% of property value by 2024, while suburban office exposure decreased.

• Geographic portfolio: 53% Montreal, 21% Quebec City, 13% Ottawa, with smaller allocations in Trois-Rivières, Saskatoon, and Edmonton.

Significant events and developments

• Fully redeemed Series G Debenture in October 2024 and Series H Debenture in February 2025.

• Issued $40.25M Series I Debenture in January 2025 at 7.25% interest, maturing in 2030.

• Suspended dividend distribution program/DRIP in February 2025 to strengthen capital structure and prevent unitholder dilution.

Segment performance

• Total leasing activity for 2024 was 959,223 sq ft; Q4 leasing was 229,000 sq ft.

• Committed occupancy rate at 92.7% at Q4 end, down 150 bps year-over-year, mainly due to tenant bankruptcies.

• Suburban office segment accounted for 80.8% of new leasing activity in 2024.

• Lease renewal rate for 2024 was 72.9%, up 10.5% year-over-year; renewal spread was 8.3% for the year.

• Necessity-based retail and industrial segments saw renewal spreads of 51% and 43.6% in Q4, respectively.