"The third quarter reflected BTB's continued growth in rental income, stronger operating results, and sustained leasing momentum across our portfolio" says Michel Léonard, President and CEO of BTB. "Our leasing activities delivered healthy results, with 151,956 square feet of lease renewals and 128,679 square feet of new leases concluded during the quarter. The increase in the average rent renewal rate was 14.5% this quarter. For the nine-month period of 2025, the increase in the average rent renewal rate was 11.3%. Occupancy stood at 91.5% this quarter, an increase of 30 basis points from the previous quarter, reflecting the positive impact of our strategic leasing initiatives. Compared to the same quarter last year, occupancy decreased by 80 basis points, primarily due to the known departure of an industrial tenant in Edmonton, for which leasing efforts are already ongoing.
Our AFFO adjusted per unit¹ rose to 10.1¢ for the quarter, up 4.1% from the same period last year. For the nine-month period of the year, it reached 29.9¢ per unit, marking a 6.8% increase from the same period last year. Both these increases highlight our efficient and disciplined approach to capital management. Rental revenue for Q3 reached $32.9M, up by 1.1% from the same quarter last year. Cash net operating income (Cash NOI)1 grew by 4.2% compared to the same quarter of 2024, totalling $20.1M. This positive increase is driven by higher rent in lease renewals, operational efficiencies, and a $1.1M lease cancellation payment received from an industrial tenant with a planned departure at the end of the first quarter of 2026.
We also continued our portfolio optimization strategy with the sale, in July 2025, of an office property in Quebec City, Province of Québec, for total gross proceeds of $10.5M, excluding transaction costs and adjustments. Subsequently to the quarter, we disposed of a small retail property located in Terrebonne, Québec, in which the Trust held a 50% interest, for total gross proceeds of $3.1M, excluding transaction costs and adjustments.
We remain focused on stability and long-term value creation for our portfolio, while maintaining an opportunistic view to navigate the current economic environment. With healthy fundamentals and a strong leasing pipeline, we enter the final quarter in a solid position, reflecting the ongoing resilience of our portfolio."
SUMMARY OF SIGNIFICANT ITEMS AS AT SEPTEMBER 30, 2025
Total number of properties: 73
Total leasable area: 6.0 million square feet
Total asset value: $1.3 billion
Market capitalization: $330 million (unit trading price of $3.74 as at September 30, 2025)
OPERATIONAL HIGHLIGHTS
Periods ended September 30
Quarter
2025
2024
Occupancy – committed (%)
91.5
92.3 %
Signed new leases (in sq.ft.)
128,679
18,713
Renewed leases at term (in sq.ft.)
89,995
47,109
Renewal rate (%)
41.0 %
58.4 %
Early lease renewals (in sq.ft.)
61,961
207,803
Increase in average lease renewal rate
14.5 %
2.4 %
During the quarter, the Trust total leasing activity was 280,635 square feet, thereby completing lease renewals totaling 151,956 square feet and new leases totaling 128,679 square feet. The increase in the average lease renewal rental rate for the current quarter was 14.5%. For the nine-month period of the year, the increase in the average rent renewal rate was 11.3%. The occupancy rate of the portfolio stood at 91.5%, a 30 basis points increase compared to the prior quarter and an 80 basis points decrease compared to the same period in 2024. The decrease in the occupancy rate is primarily due to the planned departure of an industrial tenant that occupied 24,014 square feet located in Edmonton, Alberta. The Trust has already retained the services of a national commercial brokerage firm specialized in the industrial sector to lease the property.
FINANCIAL RESULTS HIGHLIGHTS
Periods ended September 30
Quarter
(in thousands of dollars, except for ratios and per unit data)
2025
2024
$
$
Rental revenue
32,876
32,505
Net operating income (NOI)
19,866
18,753
Cash net operating income (Cash NOI) (1)
20,128
19,313
Net income and comprehensive income
9,501
5,470
Adjusted net income (1)
8,459
7,690
Cash NOI from the same-property portfolio (1)
19,967
19,165
FFO Adjusted (1)
10,204
9,426
Payout ratio on FFO adjusted (1)
65.2 %
70.3 %
AFFO Adjusted (1)
8,993
8,581
Payout ratio on AFFO adjusted (1)
74.3 %
77.2 %
Weighted average number of units and Class B LP units outstanding (000)
88,966
88,321
FINANCIAL RESULTS PER UNIT
Net income and comprehensive income
10.7¢
6.2¢
Adjusted net income (1)
9.5¢
8.7¢
Distributions
7.5¢
7.5¢
FFO Adjusted (1)
11.5¢
10.7¢
AFFO Adjusted (1)
10.1¢
9.7¢
Rental revenue: Stood at $32.9 million for the quarter, which represents an increase of $0.4 million or 1.1% compared to the same quarter of 2024. For the nine-month period of the year, rental revenue totalled $97.8 million, representing an increase of $0.4 million or 0.5% compared to the same period in 2024.
Net operating income (NOI): Totalled $19.9 million for the quarter, which represents an increase of 5.9% compared to the same quarter of 2024. For the nine-month period of the year, the NOI totalled $56.8 million which represents an increase of 1.5% compared to the same period in 2024.
Cash net operating income (Cash NOI) (1): Totalled $20.1 million for the quarter, which represents an increase of $0.8 million or 4.2% compared to the same quarter of 2024. For the nine-month period of the year, the Cash NOI totalled $59.8 million, which represents an increase of $2.5 million or 4.3% compared to the same period in 2024. The recorded increase is driven by (1) a payment received of $1.1 million triggered by a lease cancellation notice 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, and (3) operating improvements, new leases concluded, higher lease renewal rental rates, and increases in rental spreads for in-place leases representing an increase of $0.4 million.
Net income and comprehensive income: Totalled $9.5 million for the quarter, which represents an increase of 73.7% or $4.0 million compared to the same quarter of 2024. For the nine-month period of the year, net income and comprehensive income totalled $23.3 million, representing an increase of 17.1% or $3.4 million compared to the same period of 2024.
Cash same-property NOI (1): For the quarter, the cash same-property NOI increased by 4.2% compared to the same period in 2024. For the nine-month period, the cash same-property NOI increased by 3.7% compared to the same period in 2024.
FFO adjusted per unit (1): Was 11.5¢ per unit for the quarter compared to 10.7¢ per unit for the same period in 2024, representing an increase of 0.8¢ per unit. For the nine-month period of the year, the FFO adjusted was 30.9¢ per unit compared to 31.3¢ per unit for the same period in 2024, representing a decrease of 0.4¢ per unit. The decrease was caused by the previously reported 2 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 2 year term lease negotiated with the group of investors who purchased Lion Electric; and, (2) an adjustment of $0.2 million due to the early departure of an industrial tenant, Big Rig Trailers, in Edmonton, which property was rapidly entirely re-leased, on a long-term basis, to XCMG Canada Ltd.
AFFO adjusted per unit (1): Was 10.1¢ per unit for the quarter compared to 9.7¢ per unit for the same period in 2024, representing an increase of 0.4¢ per unit or 4.1%. For the nine-month period of the year, the AFFO adjusted per unit was 29.9¢ per unit compared to 28.0¢ per unit for the same period in 2024, representing an increase of 1.9¢ per unit or 6.8%. The nine-month period increase is explained by (1) the previously outlined $2.5 million increase in Cash NOI, (2) a $0.3 million increase in administrative expenses and, (3) a 0.6$ million increase in the net financial expenses before fair value adjustments
AFFO adjusted payout ratio (1): Was 74.3% for the current quarter compared to 77.2% for the same period in 2024. For the nine-month period of the year, the AFFO adjusted payout ratio was 75.3% compared to 80.3% for the same period in 2024, a decrease of 5.0%.
Dispositions: On July 11, 2025, the Trust disposed of an office property located at 1170, Lebourgneuf Blvd., in Quebec City, for total gross proceeds of $10.5 million, excluding transaction costs and adjustments. To conclude the transaction, the Trust granted to the purchaser a balance of sale of $1.0 million, maturing on March 24,2027, at an interest rate of 5.0%.
On October 30, 2025, the Trust disposed of its 50% interest in a small retail property located at 5791 Laurier Blvd, Terrebonne, for total gross proceeds of $3.1 million, excluding transaction costs and adjustments.
_____________________
(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 September 30
Quarters
(in thousands of dollars, except for ratios and per unit data)
2025
2024
$
$
Total assets
1,255,512
1,243,918
Total debt ratio (1)
56.8 %
58.3 %
Mortgage debt ratio (2)
51.2 %
52.5 %
Weighted average interest rate on mortgage debt
4.39 %
4.33 %
Market capitalization
330,125
316,841
NAV per unit (1)
5.60
5.43
Debt metrics: BTB ended the quarter with a total debt ratio (1) of 56.8%, recording a decrease of 110 basis points compared to December 31, 2024. The Trust ended the quarter with a mortgage debt ratio (2) of 51.2%, a decrease of 160 basis points ...
