BTB Real Estate Investment (BTB-UN) Q4 2025 earnings summary

Executive summary

• Portfolio valued at CAD 1.2 billion, spanning 6.0M sq. ft. across 72 properties, with a focus on industrial assets and densification in Montréal and Ottawa.

• Leasing activity in 2025 totaled 742,162 sq. ft., with 473,837 sq. ft. in renewals and 268,325 sq. ft. in new leases, representing 12.4% of leasable area.

• Occupancy rate ended at 91.3%, down 140 basis points year-over-year, mainly due to industrial vacancies and tenant departures.

• Achieved strong rent growth, with average rent renewal rates up 10.6% year-over-year, especially in necessity-based retail and suburban office segments.

• Released second ESG report for 2024 and obtained 13 new BOMA BEST certifications in Quebec.

Financial highlights

• Rental revenue for 2025 was CAD 130.1 million, up 0.1% year-over-year, but down 1% from Q4 2024.

• Net operating income (NOI) for 2025 was CAD 75.1 million, stable year-over-year but down 4.4% from Q4 2024.

• Cash NOI for 2025 increased 1.9% to CAD 78.5 million, driven by lease cancellation payments and higher renewal rates.

• AFFO adjusted per unit for 2025 was CAD 0.388 (38.8¢), up CAD 0.007 (0.7¢) year-over-year; payout ratio improved to 77.3%.

• Net income for 2025 was CAD 22.4 million, down CAD 16.4 million from 2024, mainly due to a CAD 15 million non-cash decrease in property fair value.

Outlook and guidance

• Management expects to lease large Montreal industrial vacancy in 2026 and remains focused on industrial asset growth and densification projects.

• Only one significant known non-renewal in 2026: a 100,000 sq. ft. federal government lease in Ottawa expiring in August.

• Forward-looking statements highlight risks from economic conditions, competition, regulatory changes, and refinancing needs.

• Sustained leasing activity anticipated, especially in financial and necessity-based retail sectors.