Minto Apartment Real Estate Investment Trust (MI) Q2 2025 earnings summary

Executive summary

• Unfurnished suite revenue grew 3.3% year-over-year, driven by a 5.2% increase in average market rent, partially offset by lower occupancy and declines in furnished suite and commercial revenue.

• Normalized FFO and AFFO per unit declined by 2.5% and 3.2% respectively, mainly due to lower NOI from asset disposition and lower interest income, partially offset by unit buybacks and NOI growth.

• Executed significant commercial leases, expected to add over $1 million in annual rent, and remained active in unit repurchases under the NCIB program.

• 18 suites repositioned in Q2 2025, generating an 8.1% unlevered return; 31 furnished suites converted to unfurnished since Q2 2024.

• Net loss and comprehensive loss was $1.1 million, compared to net income of $32.8 million in Q2 2024, mainly due to non-cash fair value loss on Class B LP Units.

Financial highlights

• Same property revenue was $38.5 million, up 2.3% year-over-year, with average monthly rent for unfurnished suites reaching $2,048.

• SPP NOI was $24.4 million, up 1.6% year-over-year, with NOI margin at 63.5%, down 40 bps.

• Normalized FFO was $15.1 million, down 5.9% year-over-year; normalized AFFO was $13.5 million, down 6.6%.

• AFFO payout ratio rose to 60.9%, up 370 basis points from Q2 last year.

• NAV per unit increased to $23.10 as of June 30, 2025, up from $22.73 at March 31, 2025.

Outlook and guidance

• Expect to maintain current occupancy levels (95%-96%) through Q3, with flat occupancy considered a positive outcome in the current market.

• Forecast gain to lease in the 0%-5% range, with renewals growing at 3%-3.5%.

• Operating expenses expected to remain elevated, trending in the 3.5%-5% range for the remainder of the year.

• Commercial segment expected to become a tailwind in 2026, with new leases generating over $1 million in annual rent.

• Continue measured wind-down of the furnished suite portfolio, adapting pace to market conditions.