Minto Apartment Real Estate Investment Trust (MI) Q3 2025 earnings summary

Executive summary

• Achieved year-over-year Same Property Portfolio (SPP) revenue growth of 1.6% in Q3 2025, driven by a 2.4% increase in unfurnished suite revenue and 10.3% growth in commercial revenue, despite elevated supply and slower population growth.

• Sequential increase in closing occupancy to 96.5% through targeted leasing initiatives.

• Board approved a 2.9% increase in annual distributions, marking the seventh consecutive annual increase since 2018.

• Normalized FFO and AFFO per unit grew slightly, aided by unit buybacks but offset by NOI loss from asset disposition and lower interest income.

Financial highlights

• SPP revenue rose 1.6% year-over-year to CAD 39.1 million; commercial revenue up 10.3%.

• SPP NOI increased 0.7% to CAD 25.6 million; NOI margin declined to 65.5% from 66.1%.

• Normalized FFO per unit increased 0.6% to $0.2604; Normalized AFFO per unit rose 0.1% to $0.2348.

• Total portfolio revenue declined 1.9% year-over-year due to asset sales.

• CAD 3.6 million of units repurchased in Q3 under NCIB at CAD 14.25 average price; maximum allowable units acquired for CAD 43.9 million.

Outlook and guidance

• Revenue growth for 2026 expected in the 3%-5% range, with expense growth similar or slightly higher; NOI margin expected flat to slightly compress.

• Management expects to reposition 50 to 70 suites in 2025 to optimize yields and FFO/AFFO per unit.

• Commercial segment to be a tailwind, while furnished suite headwinds are expected to diminish.

• Interest expense anticipated to rise modestly in 2026 due to refinancing.

• Continued focus on occupancy, rent optimization, and capital returns through unit buybacks.