BTB Real Estate Investment Trust announces today its 2008 second quarter results, ended June 30, 2008



    MONTREAL, Aug. 14 /CNW Telbec/ - The Board of trustees of BTB Real Estate
Investment Trust (TSX Venture Exchange: BTB.UN and BTB.DB) ("BTB" or the
"Trust") today released financial statements for the second quarter 2008,
ending June 30, 2008.

    
    2008 SECOND QUARTER HIGHLIGHTS
    ------------------------------

    - Growth of adjusted      An AFFO of $1.4 million for the second quarter,
      funds from operations   or $0.041 per unit. Due to a charge for bad
      ("AFFO"):               debts and related legal fees, the AFFO
                              decreased unexpectedly by approximately $0.005
                              per unit. However, on an annualized basis, the
                              estimated AFFO, derived from the existing
                              portfolio as at June 30, 2008, is more than
                              $0.18 per unit.

    - Increased cash          BTB's portfolio has generated cash of
      generated from          $1.5 million and distributable income of more
      portfolio growth:       than $1.1 million for the second quarter of
                              2008 compared to $0.6 million and $0.5 million
                              for the second quarter in 2007.

    - Revenue growth:         Increase in rental income by more than 23%
                              compared to the previous quarter and generating
                              more than $7.2 million of rental income for the
                              second quarter. In accordance with current
                              portfolio, annual income is estimated at
                              $29 million.

    - Reduction of monthly    On April 28, 2008, the Board of Trustees
      distributions:          announced the reduction of distributions, from
                              $0.28 per unit per year to $0.16 per unit per
                              year. The Trustees wished to ensure that BTB's
                              capital and funds from financing will be used
                              to fulfill BTB's mission: the acquisition of
                              good quality properties.

    SUBSEQUENT EVENTS
    -----------------

    - Refinancing:            In July 2008, the Trust entered into financing
                              agreements pertaining to the financing and
                              refinancing of certain properties that it owns
                              for an aggregate amount of $16.9 million at a
                              weighted average rate of 5.90%. Of this amount,
                              $8.1 million will be used to reimburse existing
                              financings.

    - Acquisition:            On August 13, 2008, the Trust closed the
                              acquisition of four commercial properties
                              located in the province of Québec, for an
                              approximate leasable area of 103,000 square
                              feet, at an estimated capitalisation rate of 9%
                              and a purchase price of $15.6 million. BTB
                              management estimates that, on an annualized
                              basis, this transaction will generate an
                              accretive cash flow of $0.013 per outstanding
                              unit.
    

    "BTB's cash provided by operations is at over $0.04 per unit per quarter,
and over $0.18 per unit on an annualized basis. This will help ensure a
distribution of $0.04 per quarter to our unitholders, or $0.16 on an
annualized basis" indicated Michel Léonard, President and Chief Executive
Officer. He adds that: "additional funding obtained by recently completed
financing and refinancing will allow us to proceed with accretive acquisitions
during the third quarter which will, in turn, increase our cash provided by
operations".

    ABOUT BTB

    BTB is a 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 a team that boasts in-depth experience in the real
estate field and a governance and business-focused board of trustees.

    FORWARD LOOKING STATEMENTS

    This press release contains forward looking statements. Forward-looking
statements are subject to risks, uncertainties and assumptions. Although the
trustees of BTB believe that the expectations represented in such
forward-looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct. Some of the factors and risks which
could affect future results and could cause results to differ materially from
those expressed in the forward-looking statements contained herein include the
impact of general economic conditions, industry conditions, laws and
regulations, environmental risks, competition from other industry
participants, stock market volatility, the ability to access sufficient
capital from internal and external sources and the risk of fluctuation and
variation in actual operating results, which variation may be material. A full
description of these risks and uncertainties can be found in BTB's Short Form
Prospectus dated March 13, 2008 and Annual Information Form dated April 28,
2008 which are available electronically at www.sedar.com.
    The forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. The forward-looking statements
included herein are made as of the date hereof and BTB does not undertake any
obligation to publicly update such forward-looking statements to reflect new
information, subsequent events or otherwise.

    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this press release. The TSX Venture Exchange does not accept
    responsibility for the adequacy or accuracy of this press release.

    Appendix: Selected Financial Information


    
    BTB REAL ESTATE INVESTMENT TRUST
    Interim Consolidated Balance Sheet
    (Unaudited)

    June 30, 2008, with comparative figures as of December 31, 2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                      June 30,   December 31,
                                                         2008           2007
    -------------------------------------------------------------------------

    Assets

    Income-producing properties:
      Buildings and improvements                $ 156,575,981  $ 137,465,467
      Land                                         37,058,154     31,846,153
      Intangible assets                            12,398,917     12,981,069
      Intangible liabilities                       (1,823,274)    (2,030,005)
      -----------------------------------------------------------------------
                                                  204,209,778    180,262,684

    Future income taxes                                 5,300              -
    Fixed assets                                       44,731          7,521
    Prepaid expenses and deposits                   4,304,596      1,781,269
    Accounts receivable                             1,617,873        755,398
    Cash and cash equivalents                         104,818      6,170,554
    -------------------------------------------------------------------------
                                                $ 210,287,096  $ 188,977,426
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Unitholders' Equity

    Mortgage loans                              $ 119,431,693  $ 103,943,246
    Convertible debentures                         22,177,162     10,788,691
    Bank loans                                      7,005,000      9,245,000
    Accounts payable and accrued liabilities        4,366,414      3,569,709
    Distributions payable to unitholders              439,150        761,395
    Future income taxes                                     -        583,700
    -------------------------------------------------------------------------
                                                  153,419,419    128,891,741
    Unitholders' equity:
      Unitholders' equity                          56,867,677     60,085,685

    Subsequent event
    -------------------------------------------------------------------------
                                                $ 210,287,096  $ 188,977,426
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    BTB REAL ESTATE INVESTMENT TRUST
    Interim Consolidated Statement of Earnings
    (Unaudited)

    Periods ended June 30, 2008 and 2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                Three-month                  Six-month
                               period ended                 period ended
                                 June 30,                      June 30,
                  ----------------------------- -----------------------------
                           2008           2007           2008           2007
    -------------------------------------------------------------------------

    Operating
     revenues:
      Rental
       revenue
       from
       income-
       producing
       properties $   7,156,399  $   1,941,562  $  12,974,348  $   2,783,709

    Operating
     expenses:
      Operating
       costs          1,270,643        306,429      2,326,510        418,240
      Property
       taxes and
       utilities      1,765,682        345,163      3,333,216        484,663
      Property
       management
       expenses         169,841         39,036        274,800         55,974
      -----------------------------------------------------------------------
                      3,206,166        690,628      5,934,526        958,877

    -------------------------------------------------------------------------
    Operating
     income before
     the undernoted
     items            3,950,233      1,250,934      7,039,822      1,824,832

    Interest on
     loans            2,445,869        719,496      4,360,322      1,241,365
    Amortization
     of financing
     costs              216,510         69,639        326,633        135,729
    Amortization
     of buildings
     and
     improvements       961,979        244,655      1,837,038        370,911
    Amortization
     of intangible
     and other
     assets             489,452         44,479        917,005         68,717
    Interest
     accretion
     expenses on
     convertible
     debentures          95,580         61,404        160,392        119,579
    Interest income      (4,364)      (180,339)       (25,148)      (417,387)
    -------------------------------------------------------------------------
                      4,205,026        959,334      7,576,242      1,518,914

    -------------------------------------------------------------------------
    Operating (loss)
     income from
     real estate
     assets            (254,793)       291,600       (536,420)       305,918

    Trust-related
     administrative
     expenses           451,788        259,905        661,373        619,653
    Unit-based
     compensation        16,187          6,264         34,318          8,328

    -------------------------------------------------------------------------
    Operating income
     (loss) before
     income taxes and
     discontinued
     operations        (722,768)        25,431     (1,232,111)      (322,063)

    Future income
     taxes             (485,000)       256,400       (785,000)       256,400

    -------------------------------------------------------------------------
    Net operating
     loss before
     discontinued
     operations         237,768        230,969        447,111        578,463

    Net income
     from
     discontinued
     operations               -         54,476              -         59,663

    -------------------------------------------------------------------------
    Net loss and
     comprehensive
     income       $     237,768  $     176,493  $     447,111  $     518,800
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    BTB REAL ESTATE INVESTMENT TRUST
    Interim Consolidated Statement of Cash Flows
    (Unaudited)

    Periods ended June 30, 2008 and 2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                Three-month                  Six-month
                               period ended                 period ended
                                 June 30,                      June 30,
                  ----------------------------- -----------------------------
                           2008           2007           2008           2007
    -------------------------------------------------------------------------

    Cash flows
     from
     operating
     activities:
      Net loss    $    (237,768) $    (176,493) $    (447,111) $    (518,800)
      Net change
       in non-cash
       items:
        Amortization
         of income-
         producing
         properties     961,979        261,861      1,837,038        399,562
        Interest
         and
         accretion
         expense on
         convertible
         debentures      95,580         61,404        160,392        119,579
        Amortization
         of financing
         costs          216,510         69,639        326,633        135,729
        Amortization
         of intangible
         assets and
         liabilities    484,749         45,880        912,302         71,490
        Amortization
         of straight-
         line lease
         adjustment    (103,843)       (37,009)      (205,853)       (39,142)
        Amortization
         of above or
         below-market
         trusts         327,425        103,083        654,449        100,508
        Unit option-
         based
         compensation
         expenses        16,187          6,264         34,318          8,328
        Property
         management
         expenses       169,841         39,036        274,800         55,974
        Future income
         taxes         (485,000)       256,400       (785,000)       256,400
        Amortization
         of fixed
         assets           4,703            845          4,703            930
      Net change in
       non-cash
       operating
       working
       capital
       items         (2,259,725)        90,661     (2,345,705)       198,894
      -----------------------------------------------------------------------
                       (809,362)       721,571        420,966        789,452

    Cash flows
     from
     financing
     activities:
      Net proceeds
       from
       issuance of
       convertible
       debentures             -              -     11,825,318              -
      Mortgage
       loans, net
       of financing
       costs          1,210,510      9,237,377      4,818,719     36,978,741
      Bank loans      1,080,000              -     (2,240,000)             -
      Net proceeds
       from
       issuance
       of units               -     43,551,440         17,500     43,571,440
      Distributions
       to
       unitholders   (1,639,468)    (1,420,805)    (3,927,275)    (2,418,672)
      -----------------------------------------------------------------------
                        651,042     51,368,012     10,494,262     78,131,509

    Cash flows from
     investing
     activities:
      Additions to
       income-
       producing
       properties      (251,745)   (73,117,028)   (16,939,052)   (99,774,916)
      Additions to
       fixed assets     (14,461)        (2,007)       (41,912)        (2,007)
      Deferred
       expenses               -        250,806              -        250,806
      -----------------------------------------------------------------------
                       (266,206)   (72,868,229)   (16,980,964)   (99,526,117)

    -------------------------------------------------------------------------
    Net change in
     cash and cash
     equivalents       (424,526)   (20,778,646)    (6,065,736)   (20,605,156)

    Cash and cash
     equivalents,
     beginning of
     period             529,344     21,083,438      6,170,554     20,909,948

    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of
     period       $     104,818  $     304,792  $     104,818  $     304,793
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




For further information:

For further information: Mr. Michel Léonard, President and Chief
Executive Officer, (514) 286-0188 # 228, mleonard@btbreit.com; Mr. Benoit Cyr,
Vice-president and Chief Financial Officer, (514) 286-0188 # 230,
bcyr@btbreit.com; For Media and others: Mr. Mathieu Claise, Optimum Public
Relations, (418) 521-3770


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