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 olde ders June 12 th th , , 2018

Forwa ward rd-look ooking 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 out 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 22 nd , 2018 which can be found at www.sedar.com. BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 1

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

Continu tinued ed growth wth

Evolut ution on of Rental tal Income ome for the years ending December 31 st st (in thousa sands ds of $) 80,000 72,892 73,384 73,317 67,170 70,000 63,435 60,000 48,118 50,000 41,459 40,000 34,595 30,325 27,906 30,000 20,000 10,995 10,000 302 - 2006-2009: Amounts presented in accordance with Canadian GAAP before the changeover to International Financial Reporting Standar ds (“IFRS”). 2010- 2017: Presented in accordance with International Financial Reporting Standards (“IFRS”). BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 4

Evolut ution on of Net Opera rati ting g Income ome (NOI OI) for the years ending December 31 st st (in thousa sands ds of $) 45,000 41,294 41,339 40,394 40,000 37,983 35,336 35,000 30,000 26,996 25,000 22,122 19,356 20,000 17,509 15,241 15,000 10,000 6,640 5,000 207 - 2006-2009: Amounts presented in accordance with Canadian GAAP before the changeover to International Financial Reporting Standar ds (“IFRS”). 2010- 2017: Presented in accordance with International Financial Reporting Standards (“IFRS”). BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 5

Asse set t Value for the years ending December 31 st st (in thousa sands ds of $) 900,000 800,000 762,390 658,462 700,000 633,082 586,737 600,000 546,559 504,927 500,000 400,000 358,938 292,758 300,000 227,716 214,480 191,007 200,000 100,000 36,239 - 2006-2009: Amounts presented in accordance with Canadian GAAP before the changeover to International Financial Reporting Standar ds (“IFRS”). 2010- 2017: Presented in accordance with International Financial Reporting Standards (“IFRS”). BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 6

Distri ributio bution n Ratio io At December 31 31 st st 120% 112.1% 109.9% 98.1% 100% 93.7% 83.4% 82.6% 77.9% 77.3% 80% 60% 40% 20% 0% 2010 2011 2012 2013 2014 2015 2016 2017 BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 7

Number ber of proper perties ties At December 31 st st 80 73 72 71 71 69 70 65 60 54 49 50 43 43 40 32 30 20 10 2 0 BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 8

Total al Leasabl able e Area At December 31 st st (in thousa sands ds of square feet) t) 6,000 5,435 4,821 5,095 5,144 5,000 4,580 4,341 4,000 3,271 2,857 3,000 2,269 2,269 1,863 2,000 1,000 124 - BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 9

BTB’s performance ormance

BTB undervalued ued relative ve to peers BTB remains undervalued relative to other Canadian REITs despite having solid sustainable operating metrics. As at March 31 st , 2018:  Mortgage Debt Ratio: 56.1%  Debenture Debt Ratio: 6.5%  Market CAP: $224.8 million (as at June 11 th , 2018)  Current unit price: $4.62 (as at June 11 th , 2018)  Unitholders’ equity: $5.17/unit (as at March 31 st , 2018)  FFO Payout Ratio: 88.9% (as at March 31 st , 2018)  AFFO Payout Ratio: 97.6% (as at March 31 st , 2018) BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 11

BTB Real Estate Investment Trust BTB’s Market Relative Value 100 110 120 130 140 150 160 80 90 Apr 1, 2013 May 1, 2013 Jun 1, 2013 Jul 1, 2013 Aug 1, 2013 Sep 1, 2013 et performance Oct 1, 2013 Nov 1, 2013 Dec 1, 2013 Jan 1, 2014 Feb 1, 2014 Mar 1, 2014 ormance 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 12 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 Annual Meeting of Unitholders – June 12 th , 2018 Aug 1, 2017 Sep 1, 2017 Oct 1, 2017 Nov 1, 2017 Dec 1, 2017 Jan 1, 2018 Feb 1, 2018 Mar 1, 2018 Mar 31, 2018 Capped REIT Index Total Return Total Return Total Return S&P/TSX S&P/TSX BTB

BTB’s portfoli tfolio

BTB’s portfoli tfolio Breakdown by geographical region Breakdown by asset type At December 31 st , 2017 At December 31 st , 2017 (per leasable area) (per leasable area) Greater Montreal Region 49.4% Office 38.6% Greater Quebec City Region 24.0% Retail 24.6% Ottawa Region 17.8% Industrial 29.1% Sherbrooke 5.0% Mixed-use 7.7% Toronto Region 3.8% TOTAL 100% TOTAL 100% Toronto to Mixe xed-use se Regi gion on Sherbro rbrook oke Ottaw awa Regi gion on Industri strial Office Great ater Montre treal al Regi gion on Great ater r Quebe bec City y Regi gion on Retai tail BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 14

BTB’s top 10 tenants At March 31 st st , 2018 34% of BTB’s total revenues are generated by leases with government agencies and publicly traded companies % of Lease sed area % of Lease sed area rev even enue ues (in sq.ft ft.) .) rev even enue ues (in sq.ft ft.) .) 6.1 205,836 1.6 76,003 2.2 61,485 1.6 81,442 2.0 107,642 1.5 34,920 1.7 251,878 1.4 109,185 1.7 64,304 1.4 45,796 BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 15

Lease maturi rity ty profi file e for the next five years 25% 20.5% 20% 15% 11.6% 10.0% 10% 7.4% 6.0% 5% 0% 2018 2019 2020 2021 2022 BTB Real Estate Investment Trust Annual Meeting of Unitholders – June 12 th , 2018 16