BTB Real Estate Investment Trust announces today its 2008 fourth quarter financial and fiscal year-end results



    MONTREAL, April 24 /CNW Telbec/ - The trustees of BTB Real Estate
Investment Trust (TSX-V: BTB.UN) ("BTB" or the "Trust") announce today the
fourth quarter financial and fiscal year end results for the period ended
December 31, 2008 and the following highlights:

    
                         2008 FISCAL YEAR HIGHLIGHTS
                         ---------------------------

    - An increase of the recurring FFO (from operating income) from 6.8 cents
      per unit to 9.5 cents per unit, being 33%, and from 12.4 cents per unit
      to 16.0 cents per unit, being 29% of the adjusted FFO for the fiscal
      year. Decrease in distributions in March 2009 to 8 cents per unit on an
      annualized basis, allowing cash flows to exceed the distributions.

    - An important portion of revenues generated from quality tenants: 38.55%
      of annual revenues being generated from governments and public
      companies.

    - Renewal of 76% of the leases expired during the fiscal year with an
      average increase of 10.6% per square feet.

    - 23 new tenants, for more than 41,200 square feet of leasable area.

    - 30 of the 43 properties are now being managed internally, permitting
      substantial savings in 2009.

    - The acquisition of 11 properties, for a total cost of $50 million,
      representing 406,000 square feet of leasable area.

    - A decrease of the average weighted contractual rate of interest on
      mortgage loans, by 25 basis points, to 5.88%.

    - A decrease of 4.5% in the occupancy rate, of which 1% is attributable
      to the acquisition of properties having a lower occupancy rate than the
      portfolio average occupancy rate.

    The Trust presents below the balance sheets as at December 31, 2008 and
2007 and the statements of income, unitholders' equity and cash flows for the
years then ended. These tables are extracted from the Audited Financial
Statements and should be read together with the accompanying notes.

    BTB REAL ESTATE INVESTMENT TRUST
    Consolidated Balance Sheets

    December 31, 2008 and 2007
    (in thousands of dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2008          2007
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    Assets

    Income-producing properties
      Buildings                                    $   169,964   $   137,466
      Land                                              41,516        31,846
      Intangible assets                                 12,494        12,981
      -----------------------------------------------------------------------
                                                       223,974       182,293

    Fixed assets                                            41             8
    Deferred charges and other assets                    1,906         1,133
    Prepaid expenses                                     1,460           648
    Accounts receivable                                  1,566           755
    Cash and cash equivalents                              357         6,171
    -------------------------------------------------------------------------
                                                   $   229,304   $   191,008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and unitholders' equity

    Mortgage loans                                 $   146,771   $   103,943
    Convertible debentures                              22,621        10,789
    Bank loans                                             400         9,245
    Intangible liabilities                               1,588         2,030
    Accounts payable and accrued liabilities             5,139         3,570
    Distributions payable to unitholders                   445           761
    Future income taxes                                      -           584
    -------------------------------------------------------------------------
                                                       176,964       130,922

    Unitholders' equity                                 52,340        60,086
    -------------------------------------------------------------------------
                                                   $   229,304   $   191,008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    BTB REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Income and Comprehensive Income

    Years ended December 31, 2008 and 2007
    (in thousands of dollars except for per unit amounts)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2008          2007
    -------------------------------------------------------------------------

    Operating revenues:
      Rental revenue from income-producing
       properties                                  $    27,906   $    10,955

    Operating expenses:
      Operating costs                                    4,978         1,800
      Property taxes and utilities                       7,045         2,307
      Property management expenses                         642           208
      -----------------------------------------------------------------------
                                                        12,665         4,315
    -------------------------------------------------------------------------
    Operating income before the undernoted items        15,241         6,640

    Interest on loans                                    9,689         3,642
    Amortization of financing costs                        724           358
    Amortization of buildings and improvements           4,074         1,572
    Amortization of intangible and other assets          1,969           774
    Accretion of liability component of convertible
     debentures                                            357           246
    Interest income                                        (60)         (483)
    -------------------------------------------------------------------------
                                                        16,753         6,109
    -------------------------------------------------------------------------
    Operating (loss) income from real estate assets     (1,512)          531
    Write-off of pre-acquisition costs                     595             -
    Trust-related administrative expenses                1,326         1,247
    Unit-based compensation                                 84            44
    Unusual item                                             -           236
    -------------------------------------------------------------------------
    Operating loss before income taxes and
     discontinued operations                            (3,517)         (996)
    Future income taxes (credits)                         (780)          886
    -------------------------------------------------------------------------
    Net operating loss before discontinued
     operations                                         (2,737)       (1,882)
    Net income from discontinued operations                  -           165
    -------------------------------------------------------------------------
    Net loss and comprehensive income              $    (2,737)  $    (1,717)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per basic and diluted unit
      Loss from operations per unit                $      0.08   $      0.07
      Earnings from discontinued operations per
       unit                                                  -         (0.01)
    -------------------------------------------------------------------------
    Loss per unit                                  $      0.08   $      0.06
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    BTB REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Unitholders' Equity

    Years ended December 31, 2008 and 2007
    (in thousands of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2008          2007
    -------------------------------------------------------------------------
    Unitholders' contributions:
      Balance, beginning of year                   $    69,049   $    24,290
      Issuance of units                                    662        46,762
      Reversal of contributed surplus upon
       exercise of options                                   8            53
      Issuance under options exercised                      16           120
      Unit issuance costs                                    -        (2,479)
      Future income taxes                                 (196)          303
    -------------------------------------------------------------------------
    Balance, end of year                           $    69,539   $    69,049
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cumulative loss:
      Balance, beginning of year                   $    (2,178)  $      (461)
      Loss                                              (2,737)       (1,717)
    -------------------------------------------------------------------------
    Balance, end of year                           $    (4,915)  $    (2,178)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cumulative distributions:
      Balance, beginning of year                   $    (8,354)  $      (964)
      Distributions to unitholders                      (6,256)       (7,390)
    -------------------------------------------------------------------------
    Balance, end of year                           $   (14,610)  $    (8,354)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Contributed surplus:
      Balance, beginning of year                   $        67   $        76
      Unit options vested                                   84            44
      Unit options exercised                                (8)          (53)
    -------------------------------------------------------------------------
    Balance, end of year                           $       143   $        67
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Equity component of convertible debentures :
      Balance, beginning of year                   $     1,502   $     1,502
      Equity component of convertible debentures
       issued during the year                              681             -
    -------------------------------------------------------------------------
    Balance, end of year                           $     2,183   $     1,502
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Unitholders' equity                            $    52,340   $    60,086
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    BTB REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Cash Flows

    Years ended December 31, 2008 and 2007

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2008          2007
    -------------------------------------------------------------------------

    Cash flows from operating activities:
      Net loss                                     $    (2,737)  $    (1,717)
      Net change in non-cash items:
        Amortization of income-producing
         properties                                      4,074         1,572
        Accrued interest expense on convertible
         debentures                                        357           246
        Amortization of financing costs                    724           358
        Amortization of intangible assets and
         liabilities                                     1,953           775
        Amortization of straight-line lease
         adjustment                                       (418)         (198)
        Amortization of off-market value
         attributable to leases                          1,200           772
        Write off of pre-acquisition costs                 595             -
        Unit option-based compensation expenses             84            44
        Property management expenses                       529           713
        Future income taxes                               (780)          584
        Gain on disposal                                     -           (29)
        Amortization of fixed assets                        16             2
      Net change in non-cash working capital items         364         1,136
      -----------------------------------------------------------------------
                                                         5,961         4,258

    Cash flows from financing activities:
      Net proceeds from issuance of convertible
       debentures                                       11,725             -
      Mortgage loans, net of financing costs            17,046        46,900
      Bank loans                                        (8,845)        9,245
      Net proceeds from issuance of units                   16        43,993
      Distributions to unitholders                      (6,572)       (6,961)
      -----------------------------------------------------------------------
                                                        13,370        93,177

    Cash flows from investing activities:
      Net proceeds from disposal of income-
       producing properties                                  -         3,050
      Additions to income-producing properties         (23,559)     (115,217)
      Additions to fixed assets                            (49)           (6)
      Deferred expenses and other assets                (1,536)            -
      -----------------------------------------------------------------------
                                                       (25,144)     (112,173)
    -------------------------------------------------------------------------
    Net change in cash and cash equivalents             (5,813)      (14,738)

    Cash and cash equivalents, beginning of year         6,170        20,909
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of year         $       357   $     6,171
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Mr. Michel Léonard, President and Chief Executive Officer of BTB mentions
that: "2008 has been an eventful year. The financial markets have not helped
BTB's growth. The Trust focused on its internal management and the
internalization of its property management. Currently, the Trust directly
manages 30 of its 43 properties. The managers focused on the active management
of the portfolio by finding new tenants and keeping its current tenants
satisfied. In 2009, BTB will avail itself of any opportunity in the capital
markets, but will not depend on such to carry on with its growth. Considering
the liquidity crisis, BTB elected to reduce its distributions in the first
quarter of 2009 in order to have enough capital to meet its current
obligations related to the management of its properties, the payment of
property related expenses, their financing and the payment of interest on its
debentures and of distributions on its units".

    About BTB Real Estate Investment Trust
    --------------------------------------

    BTB is a growth-oriented real estate investment trust listed on the TSX
Venture Exchange. Its objective is to provide unitholders with stable cash
distributions from investments in a quality portfolio of long-term leased
office, industrial, commercial and retail properties predominantly located in
the province of Quebec. BTB is led by an experienced management team with
in-depth experience in the real estate industry and a Board of Trustees
focused on governance and sound business practices.




For further information:

For further information: Mr. Mathieu Claise, Optimum Public Relations,
(418) 521-3770; Mr. Michel Léonard, President Chief Executive Officer, (514)
286-0188, ext. 228; Mr. Benoît Cyr, C.A., Vice-President and Chief Financial
Officer, (514) 286-0188, ext. 230


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