"BTB's performance in 2025 reflects healthy results across leasing, rental income and financial metrics. Our portfolio continued to demonstrate operational resilience and sustained progress throughout the year." says Michel Léonard, President and CEO of BTB. "During 2025, we have concluded new leases and lease renewals totalling over 742,000 square feet, representing a significant 12.4% of our portfolio's leasable area. Of this annual figure, we concluded lease renewals for over 473,000 square feet, while we concluded new leases with new tenants for more than 268,000 square feet. For the year, the increase in the average rent renewal rate was a positive 10.6%, demonstrating the strength of our assets in supporting rental growth. We own two industrial properties that remained vacant during the year, one of 132,665 square feet and the other of 24,014 square feet, which affected our occupancy rate and brought it to 91.3% at year end. We made significant efforts to lease these two properties and are confident that they will be leased during 2026.
Turning to financial metrics, for the year 2025, our rental revenue totalled $130.1M, representing an increase of $0.1M compared to 2024. Our cash same-property NOI¹ increased by 2.0% compared to the same period in 2024. As for our AFFO adjusted per unit¹, it increased by 0.7¢ per unit compared to the previous year, reaching 38.8¢ per unit for 2025. The AFFO adjusted payout ratio¹ was 77.3% for the year compared to 78.7% for the same period in 2024, a decrease of 1.4%. Our debt metrics are also in good standing, with a total debt ratio¹ of 57.0%, representing a decrease of 90 basis points compared to December 31, 2024.
In 2025, we completed the sale of three non-strategic properties, thereby continuing to redeploy the net proceeds generated by these sales toward industrial assets to optimize our portfolio.
Alongside these investment activities, we proudly highlight our ESG achievements, having obtained 13 new BOMA BEST certifications across our province of Quebec portfolio. Thanks to the close collaboration of our leadership, operations, and property management teams, we continued our efforts towards our shared ESG commitments and sustainability goals.
As we move into 2026, we continue to focus on bringing our vision to fruition, strengthening our portfolio and delivering sustainable value to our stakeholders."
SUMMARY OF SIGNIFICANT ITEMS AS AT DECEMBER 31, 2025
Total number of properties: 72
Total leasable area: 6.0 million square feet
Total asset value: $1.2 billion
Market capitalization: $361 million (unit trading price of $4.09 as at December 31, 2025)
(1) Non-IFRS financial measure. See Appendix 1. The referred non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and these measures cannot be compared to similar measures used by other issuers.
OPERATIONAL HIGHLIGHTS
Periods ended December 31
Quarter
Year
2025
2024
2025
2024
Occupancy - commited (%)
91.3 %
92.7 %
Signed new leases (in sq.ft.)
33,208
68,726
268,325
185,581
Renewed leases at term (in sq.ft.)
8,755
96,071
257,876
393,416
Renewal rate (%)
20.3 %
66.5 %
45.5 %
72.9 %
Early lease renewals (in sq.ft.)
108,435
64,646
215,960
334,356
Increase in average lease renewal rate (%)
6.7 %
18.7 %
10.6 %
8.3 %
During the fourth quarter, the Trust total leasing activity was 150,398 square feet including lease renewals totaling 117,190 square feet and new leases totaling 33,208 square feet. The increase in the average lease renewal rental rate for the current quarter was 6.7%.For the year 2025, the Trust total leasing activity was 742,162 square feet thereby completing lease renewals totaling 473,837 square feet and new leases totaling 268,325 square feet. In 2025, the increase in the average rent renewal rate was 10.6%. At the end of the year, the occupancy rate of the portfolio stood at 91.3%, a 20 basis points decrease compared to the prior quarter and a 140 basis points decrease compared to the same period in 2024. The decrease in the occupancy rate is primarily due to the departure of two industrial tenants that occupied respectively 24,014 square feet (planned departure) and 32,750 square feet (forced departure), both located in Edmonton, Alberta. The Trust has already retained the services of a national commercial brokerage firm specialized in the industrial sector to lease both properties.
(1) Non-IFRS financial measure. See Appendix 1. The referred non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and these measures cannot be compared to similar measures used by other issuers.
FINANCIAL RESULTS HIGHLIGHTS
Periods ended December 31
Quarter
Year
(in thousands of dollars, except for ratios and per unit data)
2025
2024
2025
2024
$
$
$
$
FINANCIAL INFORMATION
Rental revenue
32,339
32,671
130,139
130,030
Net operating income (NOI)
18,238
19,082
75,054
75,051
Cash net operating income (Cash NOI) (1)
18,674
19,674
78,504
77,020
Net income and comprehensive income
(932)
18,847
22,371
38,742
Adjusted net income (1)
6,668
7,938
29,382
30,708
Cash NOI from the same-property portfolio (1)
18,447
19,073
77,528
76,034
FFO Adjusted (1)
8,594
9,656
36,043
37,157
Payout ratio on FFO adjusted (1)
77.3 %
68.8 %
73.9 %
71.1 %
AFFO Adjusted (1)
7,863
8,923
34,446
33,554
Payout ratio on AFFO adjusted (1)
85.2 %
74.5 %
77.3 %
78.7 %
Weighted average number of units and Class B LP units outstanding (000)
88,966
88,593
88,844
88,005
FINANCIAL INFORMATION PER UNIT
Net income and comprehensive income
(1.0)¢
21.3¢
25.2¢
44.0¢
Adjusted net income (1)
7.5¢
9.0¢
33.1¢
34.9¢
Distributions
7.5¢
7.5¢
30.0¢
30.0¢
FFO Adjusted per unit (1)
9.7¢
10.9¢
40.6¢
42.2¢
AFFO Adjusted per unit (1)
8.8¢
10.1¢
38.8¢
38.1¢
Rental revenue: Stood at $32.3 million for the quarter, which represents a decrease of $0.3 million or 1.0% compared to the same quarter of 2024.For the year 2025, rental revenue totalled $130.1 million, representing an increase of $0.1 million or 0.1% compared to the same period in 2024.
Net operating income (NOI):Totalled $18.2 million for the quarter, which represents a decrease of $0.8 million or 4.4% compared to the same quarter of 2024.For the year 2025, the NOI totalled $75.1 million, a stable result compared to the same period in 2024.
Cash net operating income (Cash NOI) (1):Totalled $18.7 million for the quarter, which represents a decrease of $1.0 million or 5.1% compared to the same quarter of 2024.For the year 2025, the Cash NOI totalled $78.5 million, which represents an increase of $1.5 million or 1.9% compared to the same period in 2024. The recorded increase is driven by (1) a $1.1 million lease cancellation payment received from an industrial tenant with a planned departure at the end of the first quarter of 2026, (2) a partial lease cancellation payment of $1.0 million recorded in the first quarter of the year from a tenant in the suburban office segment, which space has already been re-leased by the Trust, (3) operating improvements, new leases concluded, higher lease renewal rental rates, and increases in rental spreads for in-place leases representing an increase of $0.1 million, and (4) a decrease of $0.7 million as a result of dispositions concluded during the year.
Net income (loss) and comprehensive income (loss):As a result of a reduction of the fair value of investment properties of $4.7 million reflecting, in part, a minor increase in capitalization rates (non-cash net decrease of $15.0 million) when compared to the recorded gain in fair value in 2024 of $10.3 million. The Trust recorded a net loss of $0.9 million for the quarter, which represents a decrease of $19.8 million compared to the same quarter of 2024.For the year 2025, net income and comprehensive income totalled $22.4 million, representing a decrease of $16.4 million compared to the same period of 2024.
Cash same-property NOI (1): For the quarter, the cash same-property NOI decreased by 3.3% compared to the same period in 2024. The decrease for the quarter is mostly caused by the industrial segment namely (1) the new short term lease negotiated with the group of investors who purchased Lion Electric showing a rent reduction of $0.2 million and (2) free rent granted to a new tenant in Edmonton with whom a lease was concluded in the third quarter of 2025 ($0.1 million). The office segment was also negatively impacted by (1) non recoverable one-time expenses ($0.4 million) and (2) free rent granted to a new tenant in Ottawa ($0.4 million). The retail segment was positively impacted by a new major tenant in Levis, whose lease began on February 25, 2025.For the year 2025, the cash same-property NOI increased by 2.0% compared to the same period in 2024.
FFO adjusted per unit (1): Was 9.7¢ per unit for the quarter compared to 10.9¢ per unit for the same period in 2024, representing a decrease of 1.2¢ per unit.For the year 2025, the FFO adjusted was 40.6¢ per unit compared to 42.2¢ per unit for the same period in 2024, representing a decrease of 1.6¢ per unit. The decrease was caused by the previously reported non-cash straight-line lease adjustments totalling $1.8 million recorded in the second quarter of 2025, namely : (1) an adjustment of $1.6 million due to the ...
