BTB Real Estate Investment Trust
TSX VENTURE : BTB.UN
TSX VENTURE : BTB.DB

BTB Real Estate Investment Trust

April 30, 2007 18:12 ET

BTB REIT Announces Fourth Quarter and 2006 Financial Results

MONTREAL, QUEBEC--(CCNMatthews - April 30, 2007) - The trustees of BTB Real Estate Investment Trust (TSX VENTURE:BTB.UN)(TSX VENTURE:BTB.DB) ("BTB") announce the financial results for the year and the three-month period ended December 31, 2006.

BTB reports for the fourth quarter ending December 31, 2006 a net loss of $179,374. This is the first quarter of operating activities. BTB concluded two major financing activities in which the Trust issued 11,627,907 units, raising $25,000,000, and $12,833,000 of convertible debentures. During this same three-month period, two income-producing properties with a combined value of $14,000,000 were purchased and are currently managed by BTB.

For the 12-month period ending December 31, 2006, the net loss is $461,125, reflecting the conclusion of the first year start-up for BTB and its predecessor corporation, Capital ABTB Inc.

Mr. Jocelyn Proteau, Chairman of the Board, stated that the time at which this enterprise was launched was considered excellent and the opportunity was unequal. The current year served to assemble a diversified group of experienced trustees, complemented by a management team with in-depth real estate knowledge.

Mr. Michel Leonard, President and Chief Executive Officer, acknowledged that he was proud of the achievements in 2006, but was even more satisfied of the progress and growth announced to date.

2006 HIGHLIGHTS

- Assembled trustees and management team;

- Capital ABTB Inc. initial financing of $1.6 million;

- BTB IPO trust units for $25 million;

- Convertible debentures for $12.8 million

- Acquired first two properties for $14 million;and

- Monthly distributions initiated.

2007 GROWTH TO DATE

- Acquired 11 properties valued at $34 million;

- Concluded mortgage financing for $28 million;

- Announced engagement letters and negotiations on properties valued at $175 million;

- Announced engagement letter and negotiations for a private placement for maximum gross proceeds of $46 million; and

- Monthly distributions of $.02329 per unit.

These acquisitions were completed with the strictest selection criteria set from the on-start, concluded the Chief Executive Officer.

FIRST ANNUAL AND SPECIAL MEETING OF THE UNITHOLDERS

BTB will hold its first annual and special meeting of the unitholders on May 31, 2007. In that respect, the notice of meeting, proxy circular and financial statements are available on SEDAR at www.sedar.com, and the required documents will be mailed to all BTB unitholders next week.

ABOUT BTB

BTB is a growth-oriented real estate investment trust listed on the TSX Venture Exchange. Its objective is to provide unitholders with stable and growing cash distributions from investments in a high quality portfolio of long-term leased office, industrial, commercial and retail properties predominantly located in the province of Quebec. BTB is lead by a management 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, governmental regulation, 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 risk factors can be found in BTB's final prospectus dated September 26, 2006 which is 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 in no way passed upon the merits of the proposed transactions and 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.



BTB REAL ESTATE INVESTMENT TRUST
Consolidated Balance Sheets

December 31, 2006 and 2005

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2006 2005
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(Audited) (Audited)
Assets

Income producing properties $13,899,997 $-
Fixed assets 3,058 -
Deferred expenses 371,858 105,418
Deferred financing cost 1,135,845 -
Prepaid expenses and deposits 860,837 -
Accounts receivable 193,603 350
Cash and cash equivalents 20,909,948 366,232

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$37,375,146 $472,000
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Liabilities and Unitholders' Equity

Convertible debentures $11,439,616 $-
Deferred rent liability 11,598 -
Accounts payable and accrued liabilities 1,149,691 82,000
Distributions payable to unitholders 332,412 -
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12,933,317 82,000

Unitholders' equity:
Unitholders' equity 24,441,829 390,000

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$37,375,146 $472,000
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BTB REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Income

Period ended December 31, 2006

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3 months 12 months
ended ended
December 31, December 31,
2006 2006
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(Unaudited) (Audited)

Operating revenues:
Rental revenue from income producing
properties $302,896 $302,896

Operating expenses:
Operating costs 78,601 78,601
Realty taxes and services 8,135 8,135
Property management expenses 8,650 8,650
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95,386 95,386

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Operating income before the undernoted 207,510 207,510

Administrative expense and professional fees 185,251 341,231
Unit-based compensation 1,900 154,300
Interest on convertible debenture 257,660 257,660
Amortization of income producing properties 54,835 54,835
Amortization of deferred financing costs 59,782 59,782
Interest accretion expenses on convertible
debenture 58,175 58,175
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617,603 925,983

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Operating loss from real estate assets 410,093 718,473

Other revenues 230,719 257,348

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Net loss $179,374 $461,125
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Basic net loss per unit $0.01 $0.09
Diluted net loss per unit 0.01 0.09

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BTB REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Cash Flows

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3 months 12 months
ended ended
December 31, December 31,
2006 2006
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(Unaudited) (Audited)

Cash flows from operating activities:
Net loss $(179,374) $(461,125)
Net change in non-cash items:
Amortization of income producing
properties 54,835 54,835
Interest accretion expenses on
convertible debenture 58,175 58,175
Amortization of deferred financing
costs 59,782 59,782
Unit-based compensation 1,900 154,300
Change in non-cash operating working
capital items 137,735 119,019
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133,053 (15,014)

Cash flows from financing activities:
Net proceeds from issue of convertible
debentures 11,687,373 11,687,373
Net proceeds from issue of units 23,056,256 23,821,049
Distributions to unitholders (631,542) (631,542)
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34,112,087 34,876,880

Cash flows from investing activities:
Acquisition of income producing
properties (14,315,092) (14,315,092)
Additions to fixed assets (3,058) (3,058)
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(14,318,150) (14,318,150)

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Net change in cash and cash equivalents 19,926,990 20,543,716

Cash and cash equivalents, beginning
of period 982,958 366,232

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Cash and cash equivalents, end of period $20,909,948 $20,909,948
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Contact Information

  • BTB Real Estate Investment Trust
    Mr. Michel Leonard
    President and Chief Executive Officer
    514-866-1990 ext. 236
    or
    BTB Real Estate Investment Trust
    Mr. Benoit Cyr
    Chief Financial Officer
    514-866-1990 ext. 231