Implementation of its new strategy: BTB sells and purchases properties

MONTRÉAL, Aug, 8, 2017

HIGHLIGHTS OF THE QUARTER ENDED JUNE 30, 2017

• Increase in net income and comprehensive income from $4.0 million in 2016 to $4.4 million for the quarter and from $7.5 million to $8.3 million for the first six months of 2017;
• Increase in funds from operations (FFO) from $4.7 million to $4.9 million for the quarter and from $8.9 million to $9.4 million for the first six months of 2017;
• Increase in adjusted funds from operations (AFFO) from $4.3 million to $4.5 million for the quarter and from $8.2 million to $8.7 million for the first six months of 2017;
• Increase in equity from $204 million to $214 million and in market capitalization from $185 million to $201 million;
• Decrease in convertible debenture debt from $69.3 million to $47.9 million;
• Reduction in overall debt rate (excluding cash) of 4%;
• Strong quarter for rental activities: 258,000 square feet were renewed (69% retention rate for the quarter). The average lease rate for leases that matured and were renewed during the second quarter increased by 12.1% and 6.9% on a cumulative basis for the first half of 2017. The Trust leased 124,000 square feet to new tenants.
• It should be noted that due to the issuance of units in June 2016 that was used, among other things, for the early redemption of Series D debentures, the dilutive effect of this issuance affected the results per unit for the quarter by approximately 1.2₵ per unit.

Property sales and purchases

Following a strategic portfolio analysis, the Trust decided to sell certain properties, and the net proceeds of sale will be used to purchase properties more in line with the Trust's repositioning. The Trust accepted purchase offers (all conditions being removed) on two properties: 1125-1135 Saint-Martin Blvd., Laval and 665-669 Thibeau Blvd., Trois-Rivières. The Trust already sold a property located at 3627-3645 Des Sources Blvd., Dollard-des-Ormeaux during the first quarter. The total proceeds of these sales amount to approximately $11.5 million. For fiscal 2017, the Trust budgeted NOI of $590,000 for these three properties.

As part of its asset repositioning, the Trust agreed to purchase a property located on F.X. Sabourin Blvd., St-Hubert, for $23.2 million. This property will generate annualized NOI of approximately $1.7 million. The purchase will close during the third quarter of 2017. This property is producing a better return on investment as compared to the properties sold.

"The Trust is resuming its acquisition activity. During the quarter, it has entered into binding agreements to sell two properties, which brings to three the number of properties sold to date. The Trust will reinvest this capital in accretive acquisitions in 2017. Therefore, the sold properties will be replaced, namely with the purchase of a property on the South Shore of Montreal. The redeployment of this capital will increase NOI significantly. We are acting upon our plan we presented during the first quarter of 2017", declared Michel Léonard, President and Chief Executive Officer.

Summary of significant items as at June 30, 2017