Ready for Growth, BTB's 2021 First Quarter Results Demonstrate Stability and Improved Liquidity Ratios

MONTRÉAL, May 10, 2021

HIGHLIGHTS OF THE FIRST QUARTER ENDED MARCH 31^ST, 2021

• The Stability of BTB's Portfolio: whilst at the beginning of the pandemic it was impossible to predict the impact that it would have on the Trust, we are now seeing that the Trust has solidified its operations throughout the past year. Its real estate portfolio continues to improve, and leasing activity is also sustainable. BTB's occupancy rate is maintained at 91 %, its balance sheet is solid with significant liquidity and its debt and distribution ratios reduced. BTB believes it emerges from this pandemic with solid foundations.
  
  
• Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO): For Q1 2021, BTB is reporting a recurring FFO of 8.9¢ per unit compared to 10.0 ¢ per unit for the same period in 2020 and a recurring AFFO of 8.6¢ per unit for Q1 2021 compared to 8.8¢ per unit compared to the same period in 2020:
  
  i. The recurring FFO payout ratio stands at 84 % for the quarter compared to 105.2 % in Q1 2020.
  
  ii. The recurring AFFO payout ratio stands at 87.4 % for the quarter compared to 119.3 % in Q1 2020.
  
  
• Debt Ratio: As of March 31^st, 2021, BTB's total debt ratio stood at 58.9%, recording an improvement of 0.4% compared to the same quarter of 2020. The debt metrics continue to demonstrate BTB's intent to maintain a total debt ratio below 60%.
  
  
• Rent Collections Remain Robust: As of March 31^st, 2021, BTB collected 99.6% of invoiced rents. Rent collection efforts remained strong as BTB is reporting a significant reduction in the balance of receivables from $5.2 million at the end of Q4 2020 to $4.8 million at the end of Q1 2021. Compared to the same quarter last year, the balance has also decreased by $0.4 million, therefore showing a level equivalent to pre-pandemic times.
  
  
• Net Operating Income:
  
  i. Tenant Departures: due to the previously announced departure of an important tenant in January 2021 as well as of two other retail tenants, BTB recorded a negative impact of $0.5 million on its revenues. BTB is pleased to announce the conclusion of a lease for 38,000 sq.ft. in the space left vacant by the tenant previously mentioned. BTB is also in advanced lease negotiations with potential tenants for the two other vacated spaces.
  
  ii. Collection Improvement: collection efforts generated a positive impact resulting in the Trust recording a $0.3 million reduction of expected credit losses in administration expenses due to better rent collection rate compared to the same period in 2020.
  
  
• Leasing Activity: Lease renewal activities remained active throughout the quarter as BTB renewed leases totaling 95,171 sq.ft. of which, 40,694 sq.ft. were renewed for leases expiring in 2021and 54,477 sq.ft. were renewed for leases expiring in the years 2022 and after. For the quarter, BTB achieved a 5.9% increase in average rent renewal rates (compared to a 4.1% increase in Q1 2020), all whilst keeping its weighted average lease term above 5 years.
  
  
• NOI Margin: NOI margin was 52.75 % compared to 53.49 % for the same period in 2020. Excluding COVID-19 special charges, the results would have shown an NOI margin of 54.25 %, an increase of 0.76 % of the NOI margin compared to the same quarter of 2020.
  
  
• Net Income & Comprehensive Income: totalled $2.5 million compared to a loss of $5.6 million for the same period in 2020. In 2020, BTB recorded a reduction in the fair value of its properties and its financial instruments of $8.0 million, thereby impacting net income and comprehensive income.
  
  
• Cash Position: BTB concluded Q1 2021 with a cash position of $6.3 million. At the end of the quarter, the operating line of credit of $8.0 million was fully available, and the acquisition line of credit of $15 million was fully used. Following the issuance of equity announced and concluded in April 2021, the acquisition line of credit has been completely paid and is fully available.
  
  
• CERS Program: BTB continued to work with its tenants that are participating in the CERS program enacted to cover the period ranging from October 2020 to June 2021. The government has since extended the program, as well as the lockdown support top-up, until September 25, 2021. It is important to note that tenants are responsible to apply for subsidies and that BTB has no financial concessions to make in light of this new program.

A MESSAGE FROM MICHEL LÉONARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER

"We can see the "light at end of the Covid tunnel" and it will be beneficial to us all. As Canadians receive the vaccine, the first and second doses, the markets will progressively reopen as will the economy. We will be able to reexperience restaurants, bars, and cinemas, be able to travel to exotic locations. It is coming soon and confidence in the different segments of real estate will abound. In our recent lease negotiations, we could already see tenants' confidence increasing, the desire to go back to office spaces, signing long term lease renewals and securing office and retail locations.

Over the past year we solidified our foundations, and we are embarking in our second quarter with a lot of optimism. We look forward to continuing our rent collection efforts in order to protect our collection rate which is established at 99.6%.

For the quarter, our recurring FFO payout ratio stood at 84% while our AFFO payout ratio is 87.4 %, recording our best performance for the past couple of years.

Our ability to adapt and embrace change has been a determining factor in our resiliency throughout the past year and we are prepared to embrace the changes and opportunities that have been made available to us. To capitalize on these opportunities, we have decided to adopt a positive and opportunistic outlook for the coming year, leaving the past fifteen months' events behind us.