Minto Apartment Real Estate Investment Trust (MI.UN) AI Stock Analysis

• Market Cap: C$641.45M
• Dividend Yield: 3.87%
• Average Volume (3M): 92.21K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.98
• Revenue Growth: -1.21%
• EPS Growth: N/A
• Country: CA
• Employees: 252
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): -0.48
• Shares Outstanding: 36,633,076
• 10 Day Avg. Volume: 70,998
• 30 Day Avg. Volume: 92,211
• PEG Ratio: -0.04
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 3.39
• P/FCF Ratio: 5.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$17.75
• Price Target Upside: 1.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$19.00 ▲(8.51% Upside)

The score is driven primarily by solid financial performance with improving profitability, tempered by weaker cash flow conversion and declining free cash flow growth. Valuation is supportive with a low P/E and a moderate yield, while technicals show strong trend strength but very overbought conditions. Earnings call takeaways were broadly positive (distribution growth and buybacks) but noted operating headwinds (occupancy, furnished suites, and expenses).

Positive Factors

High Profitability

Sustained net margins above 40% and very high EBITDA margins reflect strong pricing power and tight cost control in the multi‑residential business. These durable profitability metrics support distributions, reinvestment and resilience through economic cycles given stable rental cash flows.

Underlying Rent Momentum

Positive same-property revenue and rent growth demonstrate structural demand in urban rental markets and effective asset management. Consistent rent escalation across unfurnished suites underpins long‑term NOI growth and tenant retention, supporting steady cash flow over the medium term.

Consistent Shareholder Returns

Seven consecutive distribution increases and active NCIB purchases signal management confidence and disciplined capital allocation. Persistent payouts combined with buybacks reduce unit dilution, align incentives, and indicate predictable free cash generation over time.

Negative Factors

Weak Cash Conversion

A ~15% drop in free cash flow and operating cash flow below net income indicate deteriorating cash conversion. This persistent gap limits internal funding for maintenance and value‑add projects, raises reliance on external financing, and constrains the REIT's flexibility to sustain distributions or growth.

Leverage Reliance

A debt-to-equity ratio near 0.85 reflects material leverage for a residential REIT. Structural reliance on debt increases sensitivity to higher interest rates and refinancing risk, which can compress AFFO coverage and limit capacity for acquisitions or development during adverse cash flow periods.

Operating Headwinds

Persistent lower occupancy, a 14.5% decline in furnished suite revenue and rising property operating and marketing costs exert structural pressure on NOI and margins. If these trends continue, they erode FFO growth and reduce the margin of safety for distributions and capital plans over the medium term.

Minto Apartment Real Estate Investment Trust Business Overview & Revenue Model

Company Description

Minto 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 Money

Minto 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 Financial Statement Overview

Summary

Minto Apartment REIT shows strong operational efficiency and cash flow management, with a stable balance sheet. However, challenges in revenue growth and fluctuating profitability margins, along with increasing leverage, require careful monitoring.

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	155.75M	157.09M	157.93M	143.79M	123.55M	124.93M
Gross Profit	98.93M	100.57M	99.17M	87.80M	76.25M	78.62M
EBITDA	158.44M	90.93M	-82.39M	86.65M	112.42M	121.94M
Net Income	75.46M	63.24M	-116.66M	388.88M	54.24M	96.17M
Balance Sheet
Total Assets	2.63B	2.65B	2.70B	2.73B	2.44B	2.20B
Cash, Cash Equivalents and Short-Term Investments	8.12M	5.88M	3.74M	5.32M	2.85M	2.61M
Total Debt	1.17B	910.98M	930.05M	903.48M	681.67M	630.03M
Total Liabilities	1.58B	1.53B	1.62B	1.52B	1.43B	1.35B
Stockholders Equity	1.05B	1.12B	1.08B	1.21B	1.01B	850.22M
Cash Flow
Free Cash Flow	79.79M	95.87M	44.88M	33.30M	72.12M	69.86M
Operating Cash Flow	87.33M	95.87M	92.97M	82.50M	72.12M	69.86M
Investing Cash Flow	15.38M	16.28M	-86.93M	-125.69M	-153.11M	-51.24M
Financing Cash Flow	-100.73M	-110.01M	-7.62M	45.66M	81.24M	-17.94M

Minto Apartment Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MI.UN, the sentiment is Positive. The current price of 17.51 is above the 20-day moving average (MA) of 14.17, above the 50-day MA of 13.71, and above the 200-day MA of 13.54, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 90.41 is Negative, neither overbought nor oversold. The STOCH value of 99.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MI.UN.

Minto Apartment Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEI.UN	74 Outperform	C$3.65B	10.92	6.23%	2.46%	6.52%	-54.45%
KMP.UN	71 Outperform	C$2.11B	3.88	18.10%	4.42%	6.19%	79.98%
MI.UN	70 Outperform	C$641.45M	8.62	7.26%	3.87%	-1.21%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NXR.UN	62 Neutral	$795.58M	9.85	7.32%	8.07%	0.41%	78.32%
CAR.UN	54 Neutral	C$6.04B	101.13	0.65%	4.20%	-6.51%	-81.28%
IIP.UN	47 Neutral	C$1.86B	-18.63	-4.40%	3.01%	1.55%	-401.05%