"The first quarter of 2026 was marked by the acquisition of three fully leased industrial properties totaling 143,118 square feet in the Leduc suburb of Edmonton, Alberta. This accretive acquisition contributes to our geographical diversification and strengthens our industrial portfolio, aligned with our repositioning strategy. As of Closing, this acquisition will contribute $2.5 million of NOI, on an annualized basis.
Q1 2026 results have been impacted, on a comparative basis, by (1) a partial lease cancellation payment which positively affected NOI in the first quarter of 2025; (2) a net decrease of $0.2 million related to dispositions completed throughout 2025; (3) a decrease of $1.3 million resulting from planned tenant departures not yet replaced, (4) free rent granted to new tenants, and (5) a disclosed rent reduction granted to a tenant during 2025. The Trust did record a positive variance of $0.4 million due to operating improvements, new leases concluded, higher lease renewal rental rates, and increases in rental spreads for in-place leases.
Subsequent to the end of the quarter, BTB acquired the remaining 50% interest in a retail/office property. It now owns 100% of this property located in Gatineau, Québec.
Collectively, these acquisitions, totaling $38.5 million (excluding transaction fees and adjustments) and the disposition of the property located in Quebec City, are expected to contribute approximately $2.1 million in annualized NOI.
Our leasing activity totaled over 200,000 square feet for the quarter, including lease renewals of 165,812 square feet and new leases totaling 40,283 square feet. Our occupancy rate rose slightly compared to the previous quarter, reaching 91.8%. The increase in the average rent renewal rate for the quarter was 7.2%.
BTB remains focused on executing its portfolio repositioning strategy and actively managing leasing activities to enhance performance and long-term value for unitholders," says Michel Léonard, President and CEO of BTB.
The Trust also intends to establish its inaugural at-the-market equity program during Q2 2026. This program, once in place, is expected to provide the Trust with an attractive incremental source of capital that will be used in concert with other existing funding sources.
(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.
SUMMARY OF SIGNIFICANT ITEMS AS AT MARCH 31, 2026
Total number of properties: 74
Total leasable area: 6.0 million square feet
Total asset value: $1.3 billion
Market capitalization: $335 million (unit trading price of $3.80 as at March 31, 2026)
OPERATIONAL HIGHLIGHTS
Quarters ended March 31
Quarter
2026
2025
Occupancy - commited (%)
91.8 %
92.5 %
Signed new leases (in sq.ft.)
40,283
56,629
Renewed leases at term (in sq.ft.)
165,812
77,504
Lease renewal rate (%)
93.5 %
54.6 %
Early lease renewals (in sq.ft.)
-
4,372
Increase in average lease renewal rate (%)
7.2 %
5.1 %
During the quarter, leasing activity was 206,095 square feet including lease renewals totaling 165,812 square feet and new leases totaling 40,283 square feet. The increase in the average lease renewal rental rate for the current quarter was 7.2%. The occupancy rate of the portfolio stood at 91.8%, a 30 basis points increase compared to the prior quarter and a 70 basis points decrease compared to the same period in 2025. The decrease in the occupancy rate is primarily related to two known departures in the year 2025: (i) an industrial tenant that occupied 24,014 square feet located in Edmonton, Alberta and (ii) a suburban office tenant that occupied 28,049 square feet located in Ottawa, Ontario.
(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
Quarters ended March 31
Quarter
(in thousands of dollars, except for ratios and per unit data)
2026
2025
$
$
FINANCIAL INFORMATION
Rental revenue
31,959
34,411
Net operating income (NOI)
17,778
19,821
Cash net operating income (Cash NOI) (1)
18,173
20,237
Net income and comprehensive income
8,361
7,608
Adjusted net income (1)
7,174
8,504
Cash NOI from the same-property portfolio (1)
17,964
19,784
FFO Adjusted (1)
8,788
9,880
Payout ratio on FFO adjusted (1)
75.8 %
67.4 %
AFFO Adjusted (1)
7,695
9,167
Payout ratio on AFFO adjusted (1)
87.2 %
72.7 %
Weighted average number of units and Class B LP units outstanding (000)
88,981
88,824
FINANCIAL INFORMATION PER UNIT
Net income and comprehensive income
9.4¢
8.6¢
Adjusted net income (1)
8.1¢
9.6¢
Distributions
7.5¢
7.5¢
FFO Adjusted per unit (1)
9.9¢
11.1¢
AFFO Adjusted per unit (1)
8.6¢
10.3¢
Rental revenue:
Stood at $32.0 million for the quarter, which represents a decrease of $2.5 million or 7.1% compared to the same quarter of 2025. The decrease is caused by (1) a partial lease cancellation payment from a tenant which positively affected the rental revenue in the first quarter of 2025 of $1.0 million, (2) a net decrease of $0.5 million related to dispositions completed throughout 2025, partially offset by acquisitions concluded at the end of the quarter, the impact of said acquisitions will be reflected in future quarters, and (3) a decrease of $1.5 million resulting from planned tenant departures not yet replaced, free rent granted to new tenants, and the rent reduction granted to Lion Electric. The Trust recorded a positive variance of $0.5 million due to new leases concluded, higher lease renewal rental rates, and increases in rental spreads for in-place leases.
Net operating income (NOI):
Totalled $17.8 million for the quarter, which represents a decrease of $2.0 million or 10.3% compared to the same quarter of 2025. The decrease is caused by (1) a partial lease cancellation payment from a tenant which positively affected the NOI in the first quarter of 2025 of $1.0 million. Excluding the said lease cancellation payment recorded in the first quarter of 2025, the NOI would have decreased by 5.5% compared to the same quarter of 2025.
Cash net operating income (Cash NOI) (1):
Totalled $18.2 million for the quarter, which represents a decrease of $2.1 million or 10.2% compared to the same quarter of 2025. The decrease is due to (1) a partiallease cancellation payment which positively affected NOI in the first quarter of 2025 of $1.0 million, (2) a net decrease of $0.2 million related to dispositions completed throughout 2025, partially offset by acquisitions concluded at the end of the quarter, the impact of said acquisitions will be reflected in future quarters, and (3) a decrease of $1.3 million resulting from planned tenant departures not yet replaced, free rent granted to new tenants, and the rent reduction granted to Lion Electric. The Trust recorded a positive variance of $0.4 million due to operating improvements, new leases concluded, higher lease renewal rental rates, and increases in rental spreads for in-place leases. Excluding the partial lease cancellation recorded in the first quarter of 2025, the Cash NOI would have decreased by 5.5% compared to the same quarter of 2025.
Net income and comprehensive income:
The Trust recorded a net gain of $8.4 million for the quarter, which represents an increase of $0.8 million compared to the same quarter of 2025.
Cash same-property NOI (1):
For the quarter, the cash same-property NOI decreased by $1.8 million or 9.2% compared to the same period in 2025. The decrease is mostly caused by the office segment due to (1) a partial lease cancellation payment which positively affected NOI in the first quarter of 2025 of $1.0 million (2) a decrease in NOI recorded in the office segment due to free rent granted to new tenants with whom leases were concluded in the fourth quarter of 2025 and (3) planned departures of tenants which have not yet been replaced. The industrial segment was negatively impacted by a planned departure of a tenant, not yet replaced in Edmonton, Alberta and the lease amendment negotiated with Lion Electric showing a rent reduction of $0.2 million. The retail segment was positively impacted by a new major tenant in Levis, whose lease began on February 25, 2025.
FFO adjusted per unit (1):
Was 9.9¢ per unit for the quarter compared to 11.1¢ per unit for the same period in 2025, representing a decrease of 1.2¢ per unit. The decrease is driven by the previously explained decrease in NOI.
AFFO adjusted per unit (1):
Was 8.6¢ per unit for the quarter compared to 10.3¢ per unit for the same period in 2025, representing a decrease of 1.7¢ per unit. The decrease is explained by the previously outlined $2.1 million decrease in Cash NOI. This decrease is partially offset by a $0.3 million decrease in administration expenses.
AFFO adjusted payout ratio (1):
For the quarter 2026, the AFFO adjusted payout ratio was 87.2% compared to 72.7% for the same quarter in 2025, an increase of 14.5%.
Acquisitions:
On March 18, 2026, the Trust acquired three fully leased industrial properties located at 6304, 6302 and 6207 39th Street in Leduc, Alberta, totalling 143,118 square feet. The purchase price for said properties is $31.5 million, excluding transaction fees and adjustments. On an annualized basis, it is anticipated that this acquisition will contribute $2.5 million to NOI. These acquisitions are in-line with BTB's strategic repositioning of its portfolio.
Dispositions:
On March 24, 2026, the Trust disposed of a retail property located at 909-915 Boulevard Pierre-Bertrand, Québec City, Quebec, for total gross proceeds of $11.7 million, excluding transaction costs and adjustments.
Subsequent event:
On April 30, 2026, the Trust acquired the remaining 50% interest in a mixed-used office property located at 7 & 9, Montclair Boulevard in Gatineau, Quebec. The purchase price for the remaining interest is $7 million, excluding transaction fees and adjustments. On an annualized basis, it is anticipated that this acquisition will contribute $0.5 million to NOI.
(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.
BALANCE SHEET AND LIQUIDITY HIGHLIGHTS
Periods ended March 31
Quarter
2026
2025
Total assets
1,268,793
1,264,459
Total debt ratio (1)
58.0 %
57.7 %
Mortgage debt ratio (2)
52.1 %
52.1 %
Weighted average interest rate on mortgage debt
4.41 %
4.35 %
Market capitalization
335,499
299,979
NAV per unit (1)
5.54
5.58
Debt metrics:
BTB ended the quarter with a total debt ratio(1) of 58.0%, recording ...
