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Minto Apartment Real Estate Investment Trust (TSE:MI.UN)
TSX:MI.UN
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Minto Apartment Real Estate Investment Trust
(TSX:MI.UN)
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Rating:70Outperform
Price Target:
C$14.50
▲(9.10% Upside)
Minto Apartment REIT's overall score is driven by strong financial performance and attractive valuation. The earnings call provided a positive outlook with increased distributions, though technical analysis indicates bearish momentum. Challenges in revenue growth and increased operating expenses are notable risks.
Positive Factors
Revenue Growth
The increase in revenue from the unfurnished suite portfolio and rent growth indicates a strong demand for Minto's properties, supporting long-term revenue stability.
Cash Flow Management
Strong cash flow growth enhances Minto's ability to reinvest in properties, support distributions, and manage debt, reinforcing financial health.
Distribution Growth
Consistent distribution growth reflects management's confidence in cash flow stability and commitment to returning value to shareholders.
Negative Factors
Operating Expenses
Rising operating expenses can pressure margins and reduce profitability, potentially impacting Minto's ability to maintain current distribution levels.
Occupancy Challenges
Lower occupancy rates and reliance on promotions may indicate market saturation or competitive pressures, challenging revenue growth.
Revenue Decline in Furnished Suites
Declining revenue in the furnished suites segment suggests potential issues in demand or pricing strategy, affecting overall revenue diversification.
Minto Apartment Real Estate Investment Trust (MI.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$486.85M
Dividend Yield3.91%
Average Volume (3M)92.21K
Price to Earnings (P/E)7.0
Beta (1Y)0.84
Revenue Growth-0.69%
EPS GrowthN/A
CountryCA
Employees252
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)N/A
Shares Outstanding36,633,076
10 Day Avg. Volume70,998
30 Day Avg. Volume92,211
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.50Price Target Upside16.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Minto Apartment Real Estate Investment Trust Business Overview & Revenue Model
Company DescriptionMinto Apartment Real Estate Investment Trust, an open-ended real estate investment trust, owns and operates a portfolio of income-producing multi-residential rental properties located in Canada. As of December 31, 2020, its portfolio consists of interests in 29 multi-residential rental properties, including three mixed-use residential apartment and commercial buildings in Toronto, Ottawa, Montréal, Calgary, and Edmonton. Minto Apartment Real Estate Investment Trust was founded in 2018 and is headquartered in Ottawa, Canada.
How the Company Makes MoneyMinto Apartment REIT generates revenue primarily through rental income derived from its portfolio of residential properties. The company leases units to tenants under long-term lease agreements, benefiting from stable cash flows and high occupancy rates. Additionally, Minto REIT may benefit from property appreciation and value-added renovations that increase rental prices over time. The company also capitalizes on operational efficiencies and economies of scale through its property management practices. Partnerships with developers and local community organizations can enhance its market presence and tenant engagement, further contributing to its financial performance.
Minto Apartment Real Estate Investment Trust Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted steady revenue growth, increased distributions, and a robust unit buyback program, indicating confidence in the company's outlook. However, challenges such as lower occupancy, decreased furnished suite revenue, and increased operating expenses were noted.Q3-2025 Updates
Positive Updates
Steady Revenue Growth
The unfurnished suite portfolio revenue increased by 2.4% with an average monthly rent growth of 4.5%. Commercial revenue increased by 10.3% compared to Q3 of last year.
Increased Distributions
The Board of Trustees approved a 2.9% increase to the REIT's distributions, marking the seventh consecutive year of distribution increases.
Unit Buyback Program
Minto Apartment REIT purchased $3.6 million of units under its NCIB program at a weighted average price of $14.25 per unit, acquiring the maximum number of units allowable under the program.
Progress in Development Pipeline
Stabilization of 88 Beachwood in Ottawa is expected later in Q4 2025, and leasing at University Heights in Victoria has begun.
Negative Updates
Lower Occupancy and Use of Promotions
The average monthly rent growth was partially offset by lower occupancy and the use of promotions.
Decrease in Furnished Suite Revenue
Revenue from furnished suites decreased 14.5% from Q3 2024 due to a lower number of occupied suites and a decrease in average monthly rent.
Increase in Operating Expenses
Same-property portfolio operating expenses increased 3.6% due primarily to higher property operating costs and increased marketing costs.
Reduced Turnover Gains
Realized gain on lease was 3.2% in Q3, down from 4.7% in the previous quarter.
Company Guidance
During Minto Apartment REIT's 2025 third quarter financial results conference call, the management provided guidance emphasizing steady revenue growth despite market challenges. The unfurnished suite portfolio saw a revenue increase of 2.4%, supported by a 4.5% growth in average monthly rent, though partially offset by lower occupancy and promotional activities. Closing occupancy improved by 50 basis points to 96.5%, while commercial revenue increased by 10.3% year-over-year. Same-property portfolio revenue grew by 1.6%, and same-property NOI rose by 0.7%, with a slight increase in operating expenses. Normalized FFO and AFFO per unit increased by 0.6% and 0.1% respectively, aided by unit buybacks and reduced G&A costs. Despite a decrease in capitalized interest and lower interest income, the REIT's NCIB program facilitated the purchase of $3.6 million in units, with plans to acquire more through September 2026. Additionally, a 2.9% increase in distributions was approved by the Board, marking the seventh consecutive year of distribution growth, reflecting confidence in the 2026 business outlook.Minto Apartment Real Estate Investment Trust Financial Statement Overview
Summary
Minto Apartment REIT shows strong operational efficiency with robust EBIT and EBITDA margins. The cash flow position is solid, supported by a 22% growth in free cash flow. However, challenges in revenue growth and fluctuating profitability margins, along with increasing leverage, require attention.Income Statement
The income statement shows a mixed performance. The gross profit margin remains strong at around 64%, indicating efficient cost management. However, the net profit margin has fluctuated significantly, with a notable decline in the TTM period to 62% from 40% in the previous year. Revenue growth has been negative recently, suggesting challenges in revenue generation. Despite these issues, the EBIT and EBITDA margins are robust, reflecting good operational efficiency.Balance Sheet
The balance sheet is relatively stable with a debt-to-equity ratio of 0.81, which is manageable for a REIT. The equity ratio is healthy, indicating a strong capital structure. Return on equity has improved in the TTM period to 9%, showing better profitability from equity. However, the overall leverage has increased slightly over the years, which could pose risks if not managed properly.Cash Flow
Cash flow analysis reveals a positive trend with a 22% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The free cash flow to net income ratio is also high, suggesting efficient cash management. These factors contribute to a solid cash flow position, supporting the company's financial health.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 155.74M | 157.09M | 157.93M | 143.79M | 123.55M | 124.93M |
| Gross Profit | 98.97M | 100.57M | 99.17M | 87.80M | 76.25M | 78.62M |
| EBITDA | 153.08M | 90.93M | -82.39M | 86.65M | 112.42M | 121.94M |
| Net Income | 63.82M | 63.24M | -116.66M | 388.88M | 54.24M | 96.17M |
Balance Sheet | ||||||
| Total Assets | 2.60B | 2.65B | 2.70B | 2.73B | 2.44B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 6.67M | 5.88M | 3.74M | 5.32M | 2.85M | 2.61M |
| Total Debt | 919.15M | 910.98M | 930.05M | 903.48M | 681.67M | 630.03M |
| Total Liabilities | 1.52B | 1.53B | 1.62B | 1.52B | 1.43B | 1.35B |
| Stockholders Equity | 1.08B | 1.12B | 1.08B | 1.21B | 1.01B | 850.22M |
Cash Flow | ||||||
| Free Cash Flow | 93.90M | 95.87M | 44.88M | 33.30M | 72.12M | 69.86M |
| Operating Cash Flow | 93.90M | 95.87M | 92.97M | 82.50M | 72.12M | 69.86M |
| Investing Cash Flow | 12.99M | 16.28M | -86.93M | -125.69M | -153.11M | -51.24M |
| Financing Cash Flow | -107.33M | -110.01M | -7.62M | 45.66M | 81.24M | -17.94M |
Minto Apartment Real Estate Investment Trust Technical Analysis
Negative
13.29
Price Trends
13.61
Negative
13.81
Negative
13.37
Negative
Market Momentum
-0.03
Positive
39.29
Neutral
20.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MI.UN, the sentiment is Negative. The current price of 13.29 is below the 20-day moving average (MA) of 13.65, below the 50-day MA of 13.61, and below the 200-day MA of 13.37, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MI.UN.
Minto Apartment Real Estate Investment Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$2.07B | 3.69 | 19.03% | 4.21% | 5.82% | 83.08% | |
70 Outperform | C$486.85M | 7.04 | 5.89% | 3.91% | -0.69% | ― | |
68 Neutral | C$898.29M | 7.40 | 6.37% | 4.42% | 3.83% | 63.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | C$1.87B | -10.78 | -7.49% | 2.97% | 1.56% | -9446.15% | |
49 Neutral | C$631.07M | -9.21 | -10.24% | 4.82% | -1.10% | 61.83% | |
45 Neutral | C$244.02M | -1.09 | -43.99% | 289.71% | -20.65% | -629.60% |
* Real Estate Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.