Building on quality BTB B REAL ESTAT TATE INV NVESTMENT STMENT - - PowerPoint PPT Presentation

Building on quality

BTB B REAL ESTAT TATE INV NVESTMENT STMENT TRUS UST

Annual and Special al Meeting of Unith thol

• lde

ders June 12th

th,

, 2018

1 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Forwa ward rd-look

• oking

ng statements ements

This presentation includes certain “forward-looking statements”. All statements, other than statements of historical fact, included herein, including, without limitation, statements and future plans and objectives of BTB Real Estate Investment Trust (“BTB”), are forward-looking statements that involve various risks, assumptions, estimates and uncertainties. These statements reflect the current internal projections, expectations or beliefs of BTB and are based on information currently available to BTB. There can be no assurance and no representation or warranty is made by any person that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All of the forward looking statements contained in this presentation are qualified by these cautionary statements described above. Furthermore, all such statements are made as of the date this presentation is given and BTB assumes no obligation to update or revise these statements other than as required by applicable laws. BTB cannot assure investors that actual results will be consistent with these forward looking statements and BTB assumes no obligation to update or revise the forward looking statements contained in this confidential investor presentation to reflect actual events or new circumstances. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Material assumptions that were applied in drawing a conclusion or making an estimate set

• ut in the forward-looking statements include: the ability of the REIT to identify additional properties, the credit and

financial stability of current and future tenants, the current hypothec and mortgage loan to value ratio and hypothec and mortgage interest rates remaining constant, equity and debt capital markets continuing to provide access to fund the REIT’s future growth on terms acceptable to the management of the REIT and the REIT being able to refinance its credit facilities, mortgage, hypothec loans and any other debts not reimbursed on terms acceptable to the management of the REIT. BTB is subject to significant risks and uncertainties which may cause the actual results, performance or achievements of BTB to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A description of a number of these risk factors can be found in BTB’s Annual Information Form dated March 22nd, 2018 which can be found at www.sedar.com.

2 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

BTB’s objectives

BTB’s mission is to maximize total return for unitholders by:  Generating stable monthly cash distributions that are reliable and tax- efficient;  Increasing the Trust’s assets value through internal growth and acquisition strategies in order to increase available income and fund distributions;  Managing assets internally in a centralized and controlled fashion in order to reduce operating expenses, management fees and rental expenses;  Maximising the value of its assets through dynamic and responsible management in order to ensure the long-term value of its units.

Continu tinued ed growth wth

4 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

302 10,995 27,906 30,325 34,595 41,459 48,118 63,435 67,170 72,892 73,384 73,317

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000

2006-2009: Amounts presented in accordance with Canadian GAAP before the changeover to International Financial Reporting Standards (“IFRS”). 2010-2017: Presented in accordance with International Financial Reporting Standards (“IFRS”).

Evolut ution

• n of Rental

tal Income

• me

for the years ending December 31st

st (in thousa sands ds of $)

5 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

207 6,640 15,241 17,509 19,356 22,122 26,996 35,336 37,983 41,294 41,339 40,394

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

2006-2009: Amounts presented in accordance with Canadian GAAP before the changeover to International Financial Reporting Standards (“IFRS”). 2010-2017: Presented in accordance with International Financial Reporting Standards (“IFRS”).

Evolut ution

• n of Net Opera

rati ting g Income

• me (NOI

OI)

for the years ending December 31st

st (in thousa sands ds of $)

6 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Asse set t Value

for the years ending December 31st

st (in thousa sands ds of $)

36,239 191,007 227,716 214,480 292,758 358,938 504,927 546,559 586,737 633,082 658,462

762,390

• 100,000

200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

2006-2009: Amounts presented in accordance with Canadian GAAP before the changeover to International Financial Reporting Standards (“IFRS”). 2010-2017: Presented in accordance with International Financial Reporting Standards (“IFRS”).

7 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

109.9% 112.1% 98.1% 82.6% 77.9% 77.3% 83.4% 93.7%

0% 20% 40% 60% 80% 100% 120%

2010 2011 2012 2013 2014 2015 2016 2017

Distri ributio bution n Ratio io

At December 31 31st

st

8 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

2 32 43 43 49 54 65 69 71 71 72 73

10 20 30 40 50 60 70 80

Number ber of proper perties ties

At December 31st

st

9 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

124 1,863 2,269 2,269 2,857 3,271 4,341 4,580 4,821 5,095 5,144 5,435

• 1,000

2,000 3,000 4,000 5,000 6,000

Total al Leasabl able e Area

At December 31st

st (in thousa sands ds of square feet) t)

BTB’s performance

• rmance

11 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

BTB undervalued ued relative ve to peers

BTB remains undervalued relative to other Canadian REITs despite having solid sustainable operating metrics. As at March 31st, 2018:

• Mortgage Debt Ratio: 56.1%
• Debenture Debt Ratio: 6.5%
• Market CAP: $224.8 million (as at June 11th, 2018)
• Current unit price: $4.62 (as at June 11th, 2018)
• Unitholders’ equity: $5.17/unit (as at March 31st, 2018)
• FFO Payout Ratio: 88.9% (as at March 31st, 2018)
• AFFO Payout Ratio: 97.6% (as at March 31st, 2018)

12 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

BTB’s Market et performance

• rmance

80 90 100 110 120 130 140 150 160 Apr 1, 2013 May 1, 2013 Jun 1, 2013 Jul 1, 2013 Aug 1, 2013 Sep 1, 2013 Oct 1, 2013 Nov 1, 2013 Dec 1, 2013 Jan 1, 2014 Feb 1, 2014 Mar 1, 2014 Apr 1, 2014 May 1, 2014 Jun 1, 2014 Jul 1, 2014 Aug 1, 2014 Sep 1, 2014 Oct 1, 2014 Nov 1, 2014 Dec 1, 2014 Jan 1, 2015 Feb 1, 2015 Mar 1, 2015 Apr 1, 2015 May 1, 2015 Jun 1, 2015 Jul 1, 2015 Aug 1, 2015 Sep 1, 2015 Oct 1, 2015 Nov 1, 2015 Dec 1, 2015 Jan 1, 2016 Feb 1, 2016 Mar 1, 2016 Apr 1, 2016 May 1, 2016 Jun 1, 2016 Jul 1, 2016 Aug 1, 2016 Sep 1, 2016 Oct 1, 2016 Nov 1, 2016 Dec 1, 2016 Jan 1, 2017 Feb 1, 2017 Mar 1, 2017 Apr 1, 2017 May 1, 2017 Jun 1, 2017 Jul 1, 2017 Aug 1, 2017 Sep 1, 2017 Oct 1, 2017 Nov 1, 2017 Dec 1, 2017 Jan 1, 2018 Feb 1, 2018 Mar 1, 2018 Relative Value Mar 31, 2018

BTB Total Return S&P/TSX Total Return S&P/TSX Capped REIT Index Total Return

BTB’s portfoli tfolio

14 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

BTB’s portfoli tfolio

Breakdown by asset type At December 31st, 2017 (per leasable area)

Office

38.6%

Retail

24.6%

Industrial

29.1%

Mixed-use

7.7% TOTAL 100%

Office Industri strial Retai tail Mixe xed-use se

Breakdown by geographical region At December 31st, 2017 (per leasable area)

Greater Montreal Region

49.4%

Greater Quebec City Region

24.0%

Ottawa Region

17.8%

Sherbrooke

5.0%

Toronto Region

3.8% TOTAL 100%

Great ater Montre treal al Regi gion

• n

Great ater r Quebe bec City y Regi gion

• n

Sherbro rbrook

• ke

Toronto to Regi gion

• n

Ottaw awa Regi gion

• n

15 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

BTB’s top 10 tenants

At March 31st

st, 2018

34% of BTB’s total revenues are generated by leases with government agencies and publicly traded companies % of rev even enue ues 6.1 2.2 2.0 1.7 1.7 % of rev even enue ues 1.6 1.6 1.5 1.4 1.4 Lease sed area (in sq.ft ft.) .) 205,836 61,485 107,642 251,878 64,304 Lease sed area (in sq.ft ft.) .) 76,003 81,442 34,920 109,185 45,796

16 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Lease maturi rity ty profi file e for the next five years

7.4% 11.6% 6.0% 20.5% 10.0%

0% 5% 10% 15% 20% 25% 2018 2019 2020 2021 2022

17 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Balance of convertible debentures Balance of mortgages payable Weighted average contractual interest rate $ $ % Year of maturity 2018 — 36,605 3.92 2019 — 52,548 4.21 2020 49,700 25,592 5.92 2021 — 37,419 2.96 2022 — 38,857 3.46 2023 and thereafter — 236,538 3.83 Total 49,700 427,559 4.11

Long-te term rm debt

As at March ch 31 31st

st,

, 2018 18 (in (in thousa usands nds of $)

Strat ategic gic repos

• siti

tion

• ning

ing of portfoli tfolio

19 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n Strategy

tegy

• BTB focuses on geographic markets in Ontario and Quebec, acquiring assets

with:

 Long-term leases;  Low vacancy rates; or  High credit tenants including government, national, or multinational

businesses.

• The Trust concentrates its activities in the major markets of the Provinces of

Québec and Ontario, mainly in the greater Montreal, Quebec City, Ottawa and eventually Toronto areas.

• BTB acquires properties in the range of $5 to $50 million per asset.
• In these target markets, this category of assets is typically too large for local

investors to acquire or too small to be attractive to larger real estate investment trusts or institutional buyers, reducing overall buyer competition in this segment.

20 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Strat ategic gic repos

• siti

tion

• ning

ing of portfoli tfolio

• Following a strategic evaluation process, the Trust has sold and will sell certain

assets when the circumstances are right. The proceeds of disposal from the sale

• f these assets will be used to repay related mortgages and the remaining

proceeds will be allocated to the acquisition of accretive properties.

21 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Sold

In March 2017, the Trust sold this property at 3627-3645 des Sources Boulevard, in Dollard-des-Ormeaux, for $7 million.

3627-3645 des Sources Boulevard, Dollard-des-Ormeaux, QC

Area: 35,823 sq.ft. Occupancy rate: 86.5%

22 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Sold

• In September 2017, the Trust sold these two properties for a total consideration
• f $4,450 million.
• The total proceeds of these dispositions amount to approximately $11.5 million.

For fiscal 2017, the Trust derived a NOI of $590,000 from these three properties.

1125-1135 St-Martin Blvd, Laval, QC 665-669 Thibeau Blvd, Trois-Rivières, QC

23 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Sold

1863-1865, Trans-Canada Highway, Dorval, QC

• In January 2018, the Trust sold this property for $5,650,000

Area: 42,310 sq.ft. Occupancy rate: 100%

24 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Sold

2153-2155 Crescent Street, Montreal, QC

• In February 2018, the Trust sold its head office for $3,150,000

Area: 7,977 sq.ft. Occupancy rate: 100%

25 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Sold

1100-1104 and 1108-1136 St-Joseph Blvd, Drummondville, QC

• In February 2018, the Trust sold this property for $3,075,000

Area: 22,680 sq.ft. Occupancy rate: 66.7%

26 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Sold

2905 Marleau Avenue, Cornwall, ON

• In February 2018, the Trust sold this property for $490,000.

Area: 3,640 sq.ft. Occupancy rate: 0%

27 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Strat ategic gic repos

• siti

tion

• ning

ing of portfoli tfolio

• We have 5 properties remaining on the market from our 2017 disposition effort.

They include Harvey (Saguenay), Thetford Mines, Magog, Chambly and Antonio- Barbeau.

• The contribution of acquisition completed in the third and fourth quarters of 2017

largely offsets the shortfall generated by the properties sold by the Trust.

28 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

For sale

• 3885 Harvey Boulevard, Jonquière (Saguenay), Qc.

Area: 67,829 sq.ft. Occupancy rate: 77.4%

3885 Harvey Blvd, Jonquière (Saguenay), QC

29 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

For sale

• 100 1st Street West, Thetford Mines, Qc.

Area: 56,014 sq.ft. Occupancy rate: 0%

100 1st Street West, Thetford Mines, QC

30 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

For sale

• 2059 René-Patenaude Street, Magog, Qc.

Area: 29,271 sq.ft. Occupancy rate: 14.6%

2059 René-Patenaude Street, Magog, QC

31 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

For sale

• 3036-3094 chemin de Chambly, Longueuil, Qc.

Area: 38,304 sq.ft. Occupancy rate: 85.3%

3036-3094 chemin de Chambly, Longueuil, QC

32 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

For sale

• 1400-1440 Antonio-Barbeau Street, Montreal, Qc.

Area: 110,758 sq.ft. Occupancy rate: 95.8%

1400-1440 Antonio-Barbeau Street, Montreal, QC

33 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2017 (St-Hube

bert, t, QC)

• In August 2017, the Trust acquired a property on the south shore of Montreal for

$23.2 million. It is expected that this property will generate an annualized NOI of approximately $1.7 million.

1939-1979 F.-X.-Sabourin Street, St-Hubert, QC

34 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2017 (Lévis,

s, QC)

• In November 2017, the Trust acquired a property located in the Quebec City area

for $35.9 million. It is expected that this property, known as “Carrefour Saint- Romuald” will generate an annualized NOI of approximately $2.5 million.

35 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2017 (Lévis,

s, QC)

1200-1252 de la Concorde Street, Lévis, QC

36 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2017 (St-La

Laurent, t, QC)

• In November 2017, the Trust acquired 2 properties located in the St-Laurent

borough of Montreal for $35.1 million. It is expected that these properties will generate an annualized NOI of approximately $2.4 million. The combined

• ccupancy rate is 98.4% and the purchase price was calculated on the basis of a

7% cap rate on “in place” NOI.

2250 Alfred-Nobel Blvd, St-Laurent, QC 7150 Alexander-Fleming Street, St-Laurent, QC

37 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2018

18 (Quebec City

ty, QC)

• In 2018, the Trust acquired the 25% residual portion of this Building in Quebec

City, in the Lebourgneuf borough. The net acquisition price has been fully paid in BTB units, at a price of $4.68 per unit, for a total of 532,265 units issued.

815 Lebourgneuf Blvd, Quebec City, QC

38 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2018

18 (Lévis,

s, QC)

• In 2018, the Trust plans to acquire a property known as “Méga Centre Rive-Sud”,

a commercial centre located in close proximity to our “Carrefour Saint-Romuald.” The acquisition price of this property is $43M based on an approximate NOI of $2,977,000, for a capitalisation rate of 6.9%.

625-675 de la Concorde Street, Lévis, QC

39 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2018

18 (Lévis,

s, QC)

625-675 de la Concorde Street, Lévis, QC

40 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Acqui quisiti sition

• n in 2018

18 (Montr

treal al, QC)

• In 2018, the Trust plans to acquire a property located on the corners of Crescent

and Ste-Catherine Streets in Montreal, hoping to relocate its head office there. The acquisition price is $30.2M, excluding transaction costs. 60% to 65% of its net acquisition price will be financed by a new mortgage, and the balance from the product of our public emission of June 2018.

1325 Ste-Catherine Street West and 1411 Crescent Street, Montreal, QC

41 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Rece centl tly y put up for sale

All our properties located in Sherbrooke have been offered for sale. The proceeds of disposition are estimated at more than $32 million.

• 2865-2885 de Portland Boulevard, Sherbrooke, Qc.

Area: 16,720 sq.ft. Occupancy rate: 100%

2865-2885 de Portland Boulevard, Sherbrooke, QC

42 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Rece centl tly y put up for sale

• 1635 & 1645 King Street East and 150-170 Duplessis Street, Sherbrooke, Qc.

1635 & 1645 King Street East and 150-170 Duplessis Street, Sherbrooke, QC

Area: 76,974 sq.ft. Occupancy rate: 97.0%

43 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Rece centl tly y put up for sale

• 1640-1650 King Street West, Sherbrooke, Qc.

1640-1650 King Street West, Sherbrooke, QC

Area: 60,394 sq.ft. Occupancy rate: 77.4%

44 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Rece centl tly y put up for sale

• 747-805 King Street East, Sherbrooke, Qc.

Area: 33,021 sq.ft. Occupancy rate: 80.1%

747-805 King Street East, Sherbrooke, QC

45 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Rece centl tly y put up for sale

• 30-66 Jacques-Cartier Boulevard North, Sherbrooke, Qc.

Area: 31,367 sq.ft. Occupancy rate: 96.2%

30-66 Jacques-Cartier Blvd North, Sherbrooke, QC

46 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Rece centl tly y put up for sale

• 3705 Industriel Boulevard, Sherbrooke, Qc.

Area: 15,000 sq.ft. Occupancy rate: 100%

3705 Industriel Boulevard, Sherbrooke, QC

BTB’s internal growth wth

48 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Grow

• wth

th Strat ategy egy

• BTB’s internal growth strategy is to increase rental income by:

 Maintaining harmonious relations with its tenants;  Rapidly leasing vacant or soon to be vacant spaces;  Being proactive in day-to-day property management.

• BTB listens to its clients’ needs. By initiating lease renewals early in the process,

BTB minimizes transaction costs associated with marketing, leasing and tenant improvements and minimizes costs associated with renovations and interruptions in rental income resulting from periods of vacancy.

49 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Our tenant’s testimonies

Olivier Marcadet

Chief Financial Officer Veolia Water Technologies 4105 Sartelon, Saint-Laurent In 2017, Veolia and BTB renewed their commitment and signed a 10-year lease that has consolidated their partnership. BTB brought their support and financing resources to Veolia Water Technologies Canada by working with us on the renovation

• f the building and its

amenities. BTB is a very effective partner, always available and responsive to

• ur needs. They have been very

supportive when it came time for us to choose to renew our lease agreement, and the outcome is an indication of the trust and mutual respect that we have developed.

Marjorie Théodore

Chief Executive Officer Vues et Voix 1001 Sherbrooke East, Montreal Vues et Voix is a non-profit

• rganization, and the individuals

that benefit from our establishment have their share of

• disabilities. BTB has been

responsive to our needs in accessibility so that our clients can enjoy a safe environment. When we met BTB’s property managers, we were pleasantly

• surprised. BTB welcomed us

with open arms, and made it easy for us to move into the building.

50 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Our tenant’s testimonies

Marc Parent

CEO Commissionnaires du Québec 1001 Sherbrooke East, Montreal We decided to lease space in BTB’s building at 1001 Sherbrooke East because of its location, and for the openness exhibited by BTB from the moment we started negotiations. We’ve been in the building for a little more than four months, and we can say without reservation that we are completely satisfied with our space and the profile it

• ffers us. BTB is always available

and flexible, and those qualities are what characterize our business

• relationship. Perhaps even more

importantly, we have direct access to the decision makers at BTB when we need to reach them.

Bruno Tobelem

Owner and Franchisee Dunn’s West Island 11602 de Salaberry Blvd, DDO Marché de l’Ouest has been

• n my mind for several years to
• pen a version 2.0 of Dunn’s,

because of its location, and because it’s at the epicentre of the West Island. We’ve had great help from BTB to achieve great success in this new market. They listened to my needs and tried to find the right deal for me and for my

• company. It’s always a big

challenge to build a new restaurant, and BTB’s response has always been quick and

• efficient. I’m very happy to be

here.

51 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Grow

• wth

th Strat ategy egy

• Occupancy rate decreased 0.2% to 89.3% for the first quarter of 2018

compared to the first quarter 2017. It showed a decrease of 2.1% from the last quarter of 2017 as a result of the departure of an industrial tenant in Cornwall.

• In 2017, the Trust’s leasing activities were the best since its inception. BTB leased

526,000 square feet to new tenants and renewed leases for 591,000 square feet, totalling 1,117,000 square feet.

• In Q1-2018, the Tenant retention rate was 40.7% as at March 31st, 2018, down for

the same period in 2017, due to the loss of an industrial tenant.

• SPNOI increased by 1.0%

52 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Grow

• wth

th Strat ategy egy

• BTB actively manages its capital improvement program to ensure that the quality of

the portfolio meets the standards of competitive properties and allows the properties to retain structural and aesthetic integrity for their intended use.

• Management’s extensive experience capitalizes on upside potential for its

properties.

53 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

The BTB advantage age

• BTB can count on a team of experienced managers, officers and trustees in real

estate, whether it be for office, commercial and industrial buildings, from purchase

• f a property to asset management, development and management of leases.
• BTB received the BOMA BESt (Building Environmental Standards) certification

for 26 of its properties. BOMA BESt certification recognizes excellence in energy and environmental management and performance in commercial real estate.

2017 7 financi cial al presen entat tation n

55 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Significan nificant t events s of 2017

• In October, issuance of 5,561,400 units at $4.55 for a net product of

$24.1 million.

• In August and November, acquisition of 4 investment properties at a total cost of

close to $95 million, for an annual NOI of $6.5 million.

• As part of our strategic repositioning, sale of 3 investment properties for a

counterpart of $11.5 million.

56 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Highli light ghts s of 2017 17

• 27.6% increase in net income and comprehensive income, from $22.1 million to

$28.2 million.

• Record leasing activities with the renewal of close to 591,000 square feet of

leasable area and the leasing of almost 526,000 square feet to new tenants.

• Increase in occupation rate from 90.5% to 91.4%.
• Decrease in mortgage debt ratio from 59.1% to 56.5%.
• Increase of 8.8% in recurring FFO, from $17.7 million to $19.3 million.
• 15.8% increase in assets, from $658 million to $762 million.
• Slight decrease of 3.5% in net cash from operating activities, from $39.8 million

to $38.5 million.

• 11.5% decrease in recurring distributable income per unit and 10.6% for recurring

AFFO because of a lower effective occupancy rate in 2017 as compared to 2016.

57 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Auditors’ Report

58 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

2017 7 Financi cial al Stateme tements ts

Resul ults ts (in

(in thousa usand nd of $) $)

2017 2016  Rental income 73,317 73,384

• 0.1%

Operating expenses Operating costs 12,209 11,558 5.6% Taxes and public utilities 20,714 20,487 1.1% 32,923 32,045 2.7% NOI 40,394 41,339

• 2.3%

59 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Resul ults ts (in

(in thousa usand nd of $)

2017 7 Financi cial al Stateme tements ts (conti

tinue ued) d)

2017 2016  NOI 40,394 41,339

• 2.3%

Financial expenses Interest expenses (mortgages,

debentures & lines of credit)

18,835 19,700

• 4.4%

Non-monetary elements and

• ther

(74) 1,731 s/o 18,761 21,431

• 12.5%

Revenus from interest (83) (95) s/o 18,678 21,336

• 12.5%

Other revenu — (212) — Net income before administration

costs and other fair value adjustments

21,716 20,215 7.4%

60 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

2017 7 Financi cial al Stateme tements ts (conti

tinue ued) d)

Resul ults ts (in

(in thousa usand nd of $)

2017 2016  Net income before administration costs and

fair value adjustments

21,716 20,215 7.43% Trust administration expenses 4,317 4,330

• 0.30%

Fair value adjustment on properties (10,855) (6,200) 75.08% Disposal costs 83 s/o Net income 28,171 22,085 27.56%

61 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Balance ce She heet (in thous

usands ds of $)

2017 7 Financi cial al Stateme tements ts (conti

tinue ued) d)

2017 2016  Assets Properties, at F.M.V 751,110 645,485 16.4% Other assets 11,280 13,231

• 14.7%

762,390 658,716 15.7% Liabilities Mortgages 428,382 384,350 11.5% Debentures 48,183 47,692 1.0% Bank loans 18,130 — s/o Accounts payable and other liabilities 18,748 13,711 36.7% 513,443 445,753 15.2% Equity 248,947 212,963 16.9% 762,390 658,716 15.7%

62 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Cash flow

• w (in

(in thousa usands nds of $)

2017 7 Financi cial al Stateme tements ts (conti

tinue ued) d)

2017 2016 Operating activities 38,556 39,528 Net change in non-cash operating items (107) 322 38,449 39,850 Financing activities Before distributions et issue of units 43,057 (36,144) Distributions (16,041) (14,216) Issue of units 23,963 30,908 50,979 (19,452) Investing activities (94,177) (17,869) Net variation (4,749) 2,529 Cash, beginning of year 6,667 4,138 Cash, end of year 1,918 6,667

63 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

2017 7 Financi cial al Stateme tements ts (conti

tinue ued) d)

Financial cial ratio io (in thous

usands nds of $, ex excep ept t for per unit it data ta)

 Recurring distributable income 19,721 19,711 0.1% Per unit 45.2¢ 51.1¢

• 11.5%

Distributions 18,486 16,444 12.4% Per unit 42.0¢ 42.0¢ 0.0% Payout ratio 93.7% 83.4% 12.3% 2016 2017

64 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

2017 7 Financi cial al Stateme tements ts (conti

tinue ued) d)

Financial cial ratio io (in

in thousa usands nds of $, ex excep ept t for per unit it data ta) )

 Recurring FFO 19,262 17,710 8.76% Per unit 44.1¢ 45.9¢

• 3.92%

Recurring AFFO 17,599 17,391 1.20% Per unit 40.3¢ 45.1¢

• 10.64%

2017 2016

65 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Resul ults ts of same-pr prop

• per

erty ty portfol folio io (in thousa

usands nds of $)

(68 8 build lding ings continuous inuously ly ow

• wned

ed betwe ween en Janua uary y 1st

st 2016

6 and Decem ember ber 31st

st,

, 2017)

2017 7 Financi cial al Stateme tements ts (conti

tinue ued) d)

2017 2016  Rental income 69,608 70,959

• 1.9%

Operating expenses 31,419 30,664 2.5% NOI 38,189 40,295

• 5.2%

Financial expenses (mortgages) 13,856 14,003

• 1.0%

Net property income 24,333 26,292

• 7.5%

Q1 Q1-2018 2018 Financia cial l present ntati tion

• n

67 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Q1 Q1-2018 2018 Highligh hlights ts

• As a result of acquisitions concluded at the end of 2017, the Funds saw an

increase in the value of its investment properties from $641M to $745M;

• 12.6% increase in rental income and 16.3% increase in NOI as a result of its 2017

accretive acquisitions;

• Same-property portfolio saw a 1% increase in NOI(1);
• Increase in net income and comprehensive income from $4.0 million to $6.6

million;

• 8.0% decrease of recurring payout ratio of FFO (1) to 88.9% and a 6.9%

decrease of AFFO(1) to 97.6%;

• Decrease of mortgage debt ratio from 58.0% to 56.1% and in total debt ratio

from 65.3% to 64.2%;

• Slight decrease in its occupancy rate to 89.3% caused by an early lease

termination of an industrial tenant occupying approximately 91,000 square feet;

• Increase in equity from $213M to $251M.

(1) Non-IFRS Financial Measures

68 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Dispo posi siti tion

• ns

s and acquis isit itions

• ns
• Further to the strategic repositioning strategy, the Trust sold four properties for a

total consideration of $12.4 million. The net proceeds from the sale of these properties were applied against the Trust's credit facilities.

• The Trust purchased a recently build retail property located adjacent to its Delson

retail property, for a purchase price of $1.8M.

69 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Q1 Q1-2018 2018 Financi cial al Stateme tements ts

Q1 Q1-201 018 vs Q1-2017 17 (in thousa

usand nds of $)

 Rental income 21,440 19,046

(1)

12.6% Operating expenses Operating costs 3,087 3,092

• 0.2%

Taxes and public utilities 6,895 6,106

(1)

12.9% 9,982 9,198 8.5% NOI 11,458 9,848 16.3% 2017 2018

(1) Adjusted to reflect the retroactive implementation of IFRS 15.

70 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Q1 Q1-2018 2018 Financi cial al Stateme tements ts (conti

tinue ued) d)

Q1 Q1-2018 18 vs Q1-2017 17 (in thous

usand nds of $)

2018 2017  NOI 11,458 9,848 16.3% Financial expenses Interest expenses (mortgages,

debentures & lines of credit)

5,224 4,564 14.5% Non-monetary elements (270) 312 s/o Revenus from interest (9) (12) s/o 4,945 4,864 1.7% Net income before administration costs

and other fair value adjustments

6,513 4,984 30.7%

71 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Q1 Q1-201 018 vs Q1-2017 17 (in thousa

usand nds of $)

2018 2017  Income before the following: 6,513 4,984 30.7% Trust administration expenses 1,283 1,132 13.3% Gain on write-off of debt (133) s/o Gain on disposal of an item of property (1,192) (132) s/o Net income 6,555 3,984 64.5%

Q1 Q1-2018 2018 Financi cial al Stateme tements ts (conti

tinue ued) d)

72 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Financial cial ratios ios Q1 Q1-201 018 vs Q1-2017 017 (in

n thousa usand nds of $)

2018 2017  Distribuable income 5,686 4,943 15.0% Per unit 11.7¢ 11.7¢ 0.0% Payout ratio 89.7% 90.1%

• 0.4%

FFO FFO 5,736 4,611 24.4% Per unit 11.8¢ 10.9¢ 8.3% AFFO 5,222 4,250 22.9% Per unit 10.8¢ 10.0¢ 8.0%

Q1 Q1-2018 2018 Financi cial al Stateme tements ts (conti

tinue ued) d)

73 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Resul ults ts of same-pr prop

• per

erty ty portfol folio io Q1 Q1-2018 18 vs Q1-2017 17 (in thousa

usands nds of $)

Q1 Q1-2018 2018 Financi cial al Stateme tements ts (conti

tinue ued) d)

2018 2017  Rental income 18,815 18,911

• 0.5%

Operating expenses 8,924 9,031

• 1.2%

NOI 9,891 9,880 0.1% Financial expenses (mortgages) 3,531 3,581

• 1.4%

Net property income 6,360 6,299 1.0%

(on building ngs continuou nuously y ow

• wned

ed betwee een Janua uary y 1st

st 2017 and March 31st st,

, 2018)

Board of Trustees tees

75 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Joce celyn yn Proteau au

• CHAIRMAN OF THE

BOARD A Corporate Director, Mr. Proteau has held senior management positions with various financial institutions. From March 1989 to June 2001, he was Chairman of the Board and Chief Executive Officer of the Fédération des Caisses populaires Desjardins de Montréal et de l’Ouest du Québec. From 1990 to April 2005, he was a member of the board of Desjardins Venture Capital and he also acted as President of its Investment Committee from 1995 to 2005.

• Mr. Proteau has acquired an extensive experience as a director of several companies

within the financial, service and retail fields. Since April 2005 he is a member of the board of Richelieu Hardware Ltd. and became its Chairman in January 2013. Mr. Proteau also sits on several other boards, including CO2 Solutions Inc. and Familiprix

• Inc. Mr. Proteau is a member of the Canadian Public Accountability Board since June

2008 (CPAB-CCRC).

• Mr. Proteau served on the board of the École des Hautes Études Commerciales (HEC

Montréal) from 2000 to December 2015. He also served on the board of 20-20 Technologies Inc. from July 2002 until September 2012, from November 2002 to January 2007 he was its Chairman of the Board and subsequently he became Vice Chairman and Senior Director until 2012. Mr. Proteau was a member of the Board of Standard Life Assurance Company PLC whose head office is located in Edinburgh, Scotland from August 2003 to May 2009. He was also a director of Standard Life Insurance Company of Canada from August 2003 to May 2009, and became Chairman from January 2005 to May 2009. Mr. Proteau studied Commercial Sciences at the École des Hautes Études Commerciales in Montréal.

76 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Jean-Pie ierr rre Janson

• VICE CHAIRMAN OF

THE BOARD

• MEMBER OF THE

HUMAN RESOURCES

AND GOVERNANCE

COMMITTEE

• Mr. Janson has been Managing Director and Member of the Executive Committee,

National Wealth Management of Richardson GMP Limited since January 2005. Over the past 20 years, Mr. Janson has acted as Managing Director of CIBC Wood Gundy Financial Services (Québec) Inc. (Eastern Canada). He held senior management positions with Merrill Lynch Canada Inc. and Midland Walwyn Inc. Intensively involved in the Canadian financial community, he held many directorships for several organizations such as: Tri Origin Exploration Ltd (since May 2004), Midland Exploration Inc. (since February 2007), SIDEX (SIDEX is a limited partnership created by the Québec government and the Fonds de solidarité FTQ - since 2015) and lastly, Harfang Exploration Inc., since June 2017. Finally, from 2005 to 2008, Mr. Janson was a trustee of Opensky Capital.

77 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Luc Martin in

• PRESIDENT OF THE

AUDIT COMMITTEE

• Mr. Martin is a corporate director has over 30 years of experience in the field of

finance, accounting and business management. From 2002 to November 2014, Mr. Martin was a partner at Deloitte where he held various positions, including managing partner of finance and operations for Deloitte

• Canada. In this capacity, he was responsible for all the office space of Deloitte in
• Canada. He was also responsible for external audit services offered to publicly traded

and private companies. From 1979 to 2002, Mr. Martin worked at Andersen, where he was a partner from 1990 to 2002. He was a partner offering external audit services to publicly traded and private companies while holding various management positions for Andersen in Canada.

• Mr. Martin is a CPA and holds a Bachelor in Business Administration from the École

des Hautes Études Commerciales (1979).

78 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Fernand Perreault

• PRESIDENT OF THE

INVESTMENT COMMITTEE As a corporate director, Mr. Perreault has over 30 years of experience in the field of real estate. From 1995 to December 2009, Mr. Perreault held senior managerial positions at the Caisse de depôt et placement du Québec where he supervised real estate investments and coordinated activities of its real estate subsidiaries where he sat as Chairman of each subsidiary’s board of directors. From 1987 to 1995 Mr. Perreault was President and Chief Executive Officer of SITQ’s Real Estate group where he was instrumental in its growth, playing a key role in propelling it to the rank of leader in Quebec. He also spent several years at the Canada Mortgage and Housing Corporation.

• Mr. Perreault studied at the University of Ottawa where he obtained a law degree.

79 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Lucie e Ducharme harme

• CHAIRWOMAN OF

HUMAN RESOURCES

AND GOVERNANCE

COMMITTEE

• MEMBER OF THE

AUDIT COMMITTEE

• Mrs. Ducharme is a Corporate Director. From 2004 to June 2017, Mrs. Ducharme

was Executive Vice President of Groupe Petra, a company which owns an important real estate portfolio comprising office, commercial and industrial buildings mainly located in Montréal. Prior to joining Groupe Petra, she held various management positions in the real estate industry for companies such as Canadian National Railway Company, Laurentian Bank, Banque Nationale de Paris as well as in the transportation industry (international) and the legal sector.

• Mrs. Ducharme holds a bachelor’s degree in business administration from Université

du Québec and is a certified director (ICD.D) of the Institute of Corporate Directors.

80 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Sylvi vie Lach chan ance ce

• MEMBER OF THE

INVESTMENT COMMITTEE

• Mrs. Lachance is a corporate director. From 2010 to April 2017, Mrs. Lachance was

Executive Vice President, Real Estate Development for Sobeys Inc., a retail and food distribution company. Prior to joining Sobeys Inc., she was Executive Vice President and Chief Operating Officer of First Capital Reality Inc., Canadian leader in the area of neighborhood shopping centers. She previously held senior real estate positions with both regional and national grocery retailers.

• Mrs. Lachance holds a MBA from McGill University in addition to a law degree from

Université Laval and was admitted to the Québec Bar in 1982. She is a certified director (ICD.D) of the Institute of Corporate Directors.

81 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Luc Lacha hape pell lle

• MEMBER OF THE

AUDIT COMMITTEE

• CORPORATE

SECRETARY

• Mr. Luc Lachapelle is a corporate director and has close to 30 years of experience in

the field of commercial real estate From February 2010 to November 2016, Mr. Lachapelle was President and Chief Executive Officer of Corlac Real Estate Inc. In October 1990, he joined Bombardier Inc., where he has been Vice-President, Real Estate Services up to January 29, 2010. Throughout his professional career, he has participated in all aspects of the development and redevelopment of industrial, commercial and residential projects in Canada, the United States and Europe. Before joining Bombardier Inc. Mr. Lachapelle was a partner in the law firm Pépin, Létourneau, where he specialized in the area of construction surety bonds.

• Mr. Lachapelle was President of the Chamber of Commerce of Saint-Laurent in
• 1995. Mr. Lachapelle obtained a Master’s Degree in Real Estate in 1990 from New

York University and a Bachelor of Civil Law in 1975 from the University of Montréal. He has been a member of the Québec Bar Association since 1977.

82 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Peter Polatos tos

• MEMBER OF THE

INVESTMENT COMMITTEE

• Mr. Polatos is, since April 2009, President of AMTB Management Inc. a firm

specialized in the acquisition, financing and property management. He has also co- started and chaired two private equity funds offering alternative mortgage financing solutions to businesses and individuals.

• Mr. Polatos possesses nearly 35 years of experience in the field of commercial real

estate and is a member of the OACIQ. Upon the creation of BTB, he held the position

• f Vice President, Acquisitions and Assistant Secretary until March 31, 2009. He

was until September 2005 Associate Vice-President at Colliers International (Québec) Inc. From November 2001 to July 2005, he acted as Vice-President, Business Development for Technoparc Saint-Laurent and from March 1996 to September 2001 he acted as a senior consultant for the National Bank of Canada. He has extensive experience in real estate including with respect to the reorganization, development, management, acquisition or sale of real estate.

• Mr. Polatos obtained a Masters of Business Administration (MBA) degree in March

1997 from Concordia University.

83 Annual Meeting of Unitholders – June 12th, 2018 BTB Real Estate Investment Trust

Michel hel Léonard rd

• PRESIDENT AND

CHIEF EXECUTIVE OFFICER

• Mr. Léonard possesses more than 30 years of experience in the field of commercial

real estate.

• Mr. Léonard has often played a fundamental role in helping numerous organizations of

regional and national scale with strategic planning, analysis, renegotiation assignments and the implementation of complex relocation. He joined Colliers International (Québec) Inc. as senior Vice-President in November 2004 until 2009. Mr. Léonard was one of the founders of Staubach Canada Inc. and held the position of President from 1989 to November 2004.

• Mr. Léonard is Chairman of the Board of the Organisme d’autoréglementation du

courtage immobilier du Québec (OACIQ) and a former Chairman of the Board of the Fonds d’assurance professionnelle du courtage immobilier du Québec (FARCIQ). Since September 2016, Mr. Léonard is designated ASC (Administrateur de sociétés certifié) of the Collège des administrateurs de sociétés. Mr. Léonard has been a member of the Québec Bar Association since 1982.

• Mr. Léonard obtained a Bachelor of Commerce in 1978 and a Bachelor of Civil Law in

1981, both from McGill University.

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