Canada's Minto Apartment REIT Q2 revenue drops

Overview

• Minto Apartment REIT Q2 revenue down 1.1%

• Normalized FFO per unit falls 2.5%, AFFO per unit down 3.2%

• REIT reports net loss of C$1.1 mln, impacted by fair value losses

Outlook

• Company expects to reposition 50 to 70 suites in 2025

• Company sees commercial lease commencements in November 2025 and January 2026

Result Drivers

• SPP REVENUE GROWTH - Driven by a 5.2% increase in average monthly rent, despite higher suite turnover and vacancy

• LEASING STRATEGIES - Implemented flexible pricing and early renewals to bolster occupancy

• COMMERCIAL LEASING - Executed new leases expected to generate over $1.0 mln in annual rent

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for Minto Apartment Real Estate Investment Trust is C$16.00, about 14.8% above its August 12 closing price of C$13.63

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nCNWYhcbDa