Mr. Michel Leonard reports

ACCRETIVE ACQUISITIONS CONCLUDED IN 2022 AND STRONG LEASING ACTIVITIES MADE A NOTABLE CONTRIBUTION TO THE FIRST QUARTER OF 2023. OVERALL, BTB'S RENTAL REVENUE INCREASED BY 13.2% AND THE NET OPERATING INCOME BY 17.1% COMPARED TO THE FIRST QUARTER OF 2022, DEMONSTRATING ANOTHER QUARTER WITH SOLID RESULTS

BTB Real Estate Investment Trust has released its financial results for the first quarter of 2023, compared with the same period of 2022, and has released the following highlights and information:

• Rental revenue: stood at $32.9-million for the current quarter, which represents an increase of 13.2 per cent compared with the same quarter of 2022; BTB REIT recorded a non-recurrent adjustment impacting positively the revenues by $1.4-million;
• Net operating income (NOI): stood at $19.0-million for the current quarter, which represents an increase of 17.1 per cent compared with the same quarter of 2022; same-property NOI was stable for the first quarter of 2023 compared with the same period in 2022;
• Net operating and comprehensive income: totalled $8.8-million for the current quarter compared with $6.4-million for the same period in 2022, representing an increase of 37.5 per cent that is driven by the accretive acquisitions made in 2022;
• Recurring funds from operations payout ratio (1): were 64.1 per cent for the quarter compared with 70.2 per cent for the same period in 2022;
• Recurring FFO (1): was 11.7 cents per unit for the quarter compared with 10.7 cents per unit for the same period in 2022, representing an increase of 9.3 per cent compared with the same period in 2022;
• Recurring AFFO payout ratio (1): was 72.4 per cent for the quarter compared with 76.8 per cent for the same period in 2022;
• Recurring adjusted funds from operations (1): were 10.3 cents per unit for the quarter compared with 9.7 cents per unit for the same period in 2022, representing an increase of 6.2 per cent compared with the same period in 2022;
• Leasing activity: BTB REIT experienced strong leasing activity with an occupancy rate that remained at 93.2 per cent at the end of the first quarter of 2023; the REIT completed lease renewals totalling 58,375 square feet and concluded new leases totalling 67,200 square feet; the increase in the average rent renewal rate for the quarter was 13.9 per cent;
• Acquisition: on Feb. 2, 2023, BTB REIT acquired a Class A industrial property located at 9900 Irenee-Vachon St. in the industrial park of Mirabel airport in the province of Quebec (176,819 square feet), and the revenue from this acquisition contributed to the first quarter financial results; the acquisition of this high-quality sustainable industrial property allows the REIT to continue to build on its industrial growth strategy;
• Debt metrics: BTB REIT ended the quarter with a total debt ratio (1) of 59.1 per cent, recording an increase of 0.6 per cent compared with Dec. 31, 2022; the REIT ended the quarter with a mortgage debt ratio (1) of 53.6 per cent, a decrease of 0.6 per cent compared with Dec. 31, 2022;
• Liquidity position: BTB REIT held $1.7-million of cash at the end of the quarter, and $22.9-million is available under its credit facilities (2); as of the date of this report, the trust increased the available amount under its credit facilities by $10.0-million, increasing the availability to $32.9-million with a remaining option to increase by a further $10.0-million.

(1) Non-international financial reporting standard measure.

(2) Credit facilities is a term used that reconciles with the bank loans as presented and defined in the trust's consolidated financial statements and accompanying notes.

A message from Michel Leonard, president and chief executive officer

"We continue to pivot into the industrial property segment. Since 2020, we have nearly doubled our percentage of industrial asset holdings from 18 per cent to 32 per cent across our portfolio. Our latest investment in Quebec is further proof of our well-founded direction. The acquisition of a 177,000-square-foot industrial factory also anchors BTB REIT's commitment to a more sustainable future given the activities carried out by our client within this property (production of batteries for electric buses and trucks) and its quality of construction, developed to be a reference in environmental sustainability (materials promoting energy recovery).

"Great achievements await BTB in 2023, and our teams are working tirelessly to satisfy our investors, clients, employees and trustees as it has been the case in recent years."

Subsequent events

On April 28, 2023, BTB REIT secured an additional $10.0-million under the revolving credit facility, increasing the capacity to $50.0-million.

On May 1, 2023, the REIT concluded the acquisition of a fully leased industrial property located at 8810 48th Ave. Northwest in Edmonton, Alta., for $7.4-million. As part of the transaction, BTB REIT satisfied a portion of the purchase price through the issuance to the vendor of 550,000 Class B limited partnership units at a price of $4.50 per unit, and the balance of the purchase price will be financed by a mortgage. This fully leased property increased the total leasable area owned by the REIT by 83,292 square feet.

Summary of significant items as at March 31, 2023:

• Total number of properties: 74;
• Total leasable area: 6.0 million square feet;
• Total asset value: $1,213-million;
• Market capitalization: $307-million (unit price of $3.58 as at March 31, 2023).

Financial information

The attached table summarizes its results for the periods ended March 31, 2023, and March 31, 2022.

Quarterly call information

Management will hold a conference call on Tuesday, May 9, 2023, at 9 a.m. Eastern Time to present BTB REIT's financial results and performance for the first quarter of 2023.

Date:  Tuesday, May 9, 2023

Time:  9 a.m. Eastern Time

Dial:  local: 1-416-764-8688 or North America (toll-free): 1-888-390-0546

A webinar will be available.

Visual:  A presentation will be uploaded on BTB REIT's website prior to the call.

The media and all interested parties may attend the call in listening mode only. Conference call operators will co-ordinate the question-and-answer period (from analysts only), and will instruct participants regarding the procedures during the call.

The audio recording of the conference call will be available by playback until May 16, 2023, by dialling: 1-416-764-8677 (local) or 1-888-390-0541 (toll-free) and by entering the access code: 518570 followed by the number sign.

About BTB Real Estate Investment Trust

BTB REIT is a real estate investment trust listed on the Toronto Stock Exchange. BTB REIT invests in industrial, off-downtown core office and necessity-based retail properties across Canada for the benefit of its investors. As of today, BTB REIT owns and manages 75 properties, representing a total leasable area of approximately 6.1 million square feet.

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