MONTRÉAL, May 6, 2024 /CNW/ - BTB  Real  Estate  Investment  Trust (TSX:BTB) ("BTB", the "REIT" or the "Trust") announced today its financial results for the first quarter of 2024 ended March 31, 2024 (the "First Quarter"). "As we delve into the steady results for the first quarter of 2024, the focus on increasing occupancy rate and reducing debt ratios demonstrates our commitment to financial solidity." says Michel Léonard, President and CEO of BTB. "The REIT's leasing activities were particularly successful, with an occupancy rate increasing to 94.5%, driven by strong leasing efforts and a remarkable growth of 41 basis points compared to the previous quarter. Additionally, our decision to strategically dispose of suburban office buildings in Longueuil, Quebec, illustrates our proactive approach to optimizing our portfolio for sustained success. This quarter marked an important milestone with the successful publication of our first ESG report in January. This historic achievement highlights our strong commitment to corporate responsibility and emphasizes our leadership position in responsible business practices. By making prudent decisions aligned with our long-term objectives, we ensure the resilience and agility of our portfolio in a dynamic market landscape. We remain optimistic regarding lease renewals and new leases and, we are confident in our trajectory throughout the year. We are well positioned to address challenges and seize opportunities, thereby generating value for our unitholders and stakeholders." SUMMARY OF SIGNIFICANT ITEMS AS AT MARCH 31st, 2024 Total number of properties: 75 Total leasable area: 6.1 million square feet Total asset value: $1,229 million Market capitalization: $275 million (unit price of $3.16 as at March 31, 2024) OPERATIONAL HIGHLIGHTS Periods ended March 31 Quarter 2023 2022 Occupancy – committed (%) 94.5 % 93.2 % Signed new leases (in sq.ft.) 58,062 67,200 Renewed leases at term (in sq.ft.) 91,791 41,764 Renewal rate (%) 67.7 % 37.7 % Renewed leases prior to the end of the term (in sq.ft.) 3,747 16,611 Average lease renewal rate 8.4 % 13.9 % BTB completed a total of 95,538 square feet of lease renewals and 58,062 square feet of new leases for the quarter. The occupancy rate stood at 94.5%, representing a 41 basis points increase compared to the prior quarter, and a 130 basis points increase compared to the same period in 2023. The increase in the average renewal rate for the quarter was 8.4%. FINANCIAL RESULTS HIGHLIGHTS Periods ended March 31 Quarter (in thousands of dollars, except for ratios and per unit data)   2024 2023 $ $ Rental revenue 32,636 32,911 Net operating income (NOI) 18,360 19,008 Net income and comprehensive income 7,153 8,802 Adjusted EBITDA (1) 17,036 17,154 Same-property NOI (1) 17,072 16,302 FFO Adjusted (1) 8,925 10,033 FFO adjusted payout ratio 73.5 % 64.1 % AFFO Adjusted (1) 7,819 8 882 AFFO adjusted payout ratio 83.9 % 72.4 % FINANCIAL RESULTS PER UNIT Net income and comprehensive income 8.2¢ 10.2¢ Distributions 7.5¢ 7.5¢ FFO Adjusted (1) 10.2¢ 11.7¢ AFFO Adjusted (1) 8.9¢ 10.3¢   (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. Rental revenue: Stood at $32.6 million for the current quarter, which represents a decrease of 0.8% compared to the same quarter of 2023. During Q1 2023, the Trust recorded a one-time $1.4 million increase of rental revenue pursuant to unrecorded revenue for previous quarters associated to a specific lease (the "One-Time Adjustment"). If one doesn't consider the One-Time Adjustment, the rental revenue for Q1 2024 vs Q1 2023 would have shown an increase of 3.7%. Net Operating Income (NOI): Totalled $18.4 million for the current quarter, which represents a decrease of 3.4% compared to the same quarter of 2023. If one doesn't consider the One-Time adjustment, the NOI for Q1 2024 vs Q1 2023 would have recorded an increase of 4.4%. Net income and comprehensive income: Totalled $7.2 million for the quarter compared to $8.8 million for the same quarter in 2023, representing a decrease of $1.6 million. The decrease for the quarter is primarily due to an increase in net financial expenses of $0.7 million, and a decrease in NOI of $0.6 million. If one doesn't consider the One-Time Adjustment, the decrease from Q1 2024 vs Q1 2023 would have been $0.2 million. Same-property NOI (1): Increased by 4.7% compared to the same quarter in 2023. The increase is primarily due to the increase in rent renewal rates achieved in 2023 of 9.2% across all three operating segments, and inter alia, an increase in rent renewal rates of 8.4% for the suburban office segment and necessity-based retail segment for the current quarter. FFO adjusted per unit (1): Was 10.2¢ per unit for the quarter compared to 11.7¢ per unit for the same period in 2023, representing a decrease of 1.5¢ per unit. The said decrease of adjusted FFO for the quarter is explained by an increase in net financial expenses of $0.7 million and an NOI decrease of $0.6 million. Excluding the One-Time Adjustment , the FFO adjusted would have increased by 0.2¢ per unit. In addition, FFO adjusted per unit was negatively impacted by the increase in weighted average number of units outstanding of 4 million units, due to the unitholder's participation in the distributions reinvested under the distribution reinvestment plan. FFO adjusted payout ratio (1): Was 73.5% for the quarter compared to 64.1% for the same period in 2023. Excluding the One-Time Adjustment FFO adjusted payout ratio for Q1 2024 vs Q1 2023 would have decreased by 130 basis points. AFFO adjusted (1): Was 8.9¢ per unit for the quarter compared to 10.3¢ per unit for the same period in 2023, representing a decrease of 1.4¢ per unit. Excluding the One-Time Adjustment, the adjusted AFFO for Q1 2024 vs Q1 2023would have increased by 0.2¢ per unit. In addition, AFFO adjusted per unit was negatively impacted by the increase in weighted average number of units outstanding of 4 million units, due to the unitholder's participation in the distributions reinvested under the distribution reinvestment plan. AFFO adjusted payout ratio (1): Was 83.9% for the quarter compared to 72.4% for the same period in 2023. Excluding the One-Time Adjustment AFFO adjusted payout ratio for Q1 2024 vs Q1 2023 would have decreased by 25 basis points.   (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 Quarters (in thousands of dollars, except for ratios and per unit data)   2024 2023 $ $ Total assets 1,229,194 1,213,237 Total debt ratio (1) 58.3 % 59.1 % Mortgage debt ratio (2) 51.3 % 53.6 % Weighted average interest rate on mortgage debt 4.40 % 4.20 % Market capitalization 275,102 307,002 NAV per unit (1) 5.47 5.43 Debt metrics: BTB ended the quarter with a total debt ratio (1) of 58.3%, recording a decrease of 22 basis points compared to December 31, 2023. The Trust ended the quarter with a mortgage debt ratio (1) of 51.3%, a decrease of 84 basis points compared to December 31, 2023. Liquidity position: The REIT held $1.8 million of cash at the end of the quarter and $13.2 million is available under its credit facilities. BTB has the option to increase its credit capacity under its credit facilities by $10.0 million (1) (3). Dispositions: On February 29, 2024, the Trust disposed of 2 office properties located at 32 and 50, Saint-Charles Street West, in Longueuil, Québec, for total proceeds of $6.2 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. (2) This is a non-IFRS financial measure. The mortgage debt ratio is calculated by dividing the mortgage loans outstanding by the total gross value of the assets of the Trust less cash and cash equivalents. (3) 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. QUARTERLY CALL INFORMATION Management will hold a conference call on Tuesday, May 7th, 2024, at 9 am, Eastern Time, to present BTB's financial results and performance for the first quarter of 2024. DATE: Tuesday, May 7th, 2024 TIME: 9 am, Eastern Time URL ENTRY: https://emportal.ink/3VCvj7z    DIAL: Local: 1-416-764-8688 North America (toll-free): 1-888-390-0546 WEB: https://app.webinar.net/YN3Lx5bW1o9   VISUAL: A presentation will be uploaded on BTB's website prior to the call https://bit.ly/3IaJ9pj The media and all interested parties may attend the call-in listening mode only. Conference call operators will coordinate 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 via playback until May 14th, 2024, by dialing: 1 416 764-8677 (local) or, 1 888 390-0541 (toll-free) and by entering the following access code: 348898 # ABOUT BTB BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB REIT invests in industrial, suburban office and necessity-based retail properties across Canada for the benefit of their investors. As of today, BTB owns and manages 75 properties, representing a total leasable area ...