BTB REIT: A Strong Year in Lease Renewals and Leasing Activity

BTB Real Estate Investment Trust (BTB REIT) has reported a strong year in 2024, with an 8.3% increase in lease renewal rates and a total leasing activity of 959,223 square feet. These achievements reflect the Trust's strategic focus on industrial assets and necessity-based retail sectors, as well as its commitment to disciplined asset management and financial discipline.

Strategic Focus on Industrial Assets and Necessity-Based Retail

BTB REIT has increased its industrial asset holdings to 36.6% of its portfolio, reducing suburban office holdings to 42%. This strategic shift has contributed to the Trust's strong leasing performance and occupancy rates. Industrial properties, in particular, have seen high demand due to e-commerce growth and supply chain needs. By focusing on these sectors, BTB REIT has positioned itself to capitalize on market trends and maintain a strong occupancy rate.

Lease Renewal Rates and Leasing Activity

The Trust's average rent renewal rate improved by 18.7% during the quarter and by 8.3% for the year 2024 across the three segments. This notable performance was driven by the Trust's leasing momentum and disciplined asset management. The necessity-based retail segment, in particular, saw an increase of 12.9% in 2024 compared to the same period last year. These factors contributed to a 2.6% increase in same-property NOI for the year 2024 compared to the same period last year.

BTB REIT's total leasing activity for 2024 was 959,223 square feet, which was significantly higher than previous years. This increase can be attributed to the Trust's strategic focus on industrial assets, successful leasing strategy, and the construction of a Winners/HomeSense store in Lévis, set to open on February 25th, 2025. This project was delivered on time and on budget, bringing a well-established national brand into the Trust's property portfolio and further solidifying its presence in high-traffic retail corridors.

Financial Performance and Outlook

BTB REIT's strong leasing performance has contributed to an increase in rental revenue and net operating income. Adjusted funds from operations (FFO) per unit increased to $0.107, and the distribution remained at $0.30 per unit, with a 77% adjusted payout ratio. The Trust's conservative debt structure and liquidity position, with approximately $33 million available, including cash and credit facilities, further reinforce its financial stability.

As BTB REIT enters 2025, it remains focused on executing its vision, supporting its portfolio, and creating lasting value for its stakeholders. The Trust is seeking city approval for densification projects that could lead to significant construction in 2026, further diversifying its portfolio and creating additional revenue streams.

Conclusion

BTB Real Estate Investment Trust has demonstrated strong operational performance in 2024, with an 8.3% increase in lease renewal rates and a total leasing activity of 959,223 square feet. The Trust's strategic focus on industrial assets and necessity-based retail sectors, combined with its commitment to disciplined asset management and financial discipline, has contributed to its strong financial performance and outlook. As BTB REIT continues to execute its vision and support its portfolio, it is well-positioned for continued growth and value creation for its stakeholders.