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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$19.00
▲(9.07% 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 (MI.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$638.15M
Dividend Yield3.87%
Average Volume (3M)92.21K
Price to Earnings (P/E)8.5
Beta (1Y)0.92
Revenue Growth-1.21%
EPS GrowthN/A
CountryCA
Employees252
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.48
Shares Outstanding36,633,076
10 Day Avg. Volume70,998
30 Day Avg. Volume92,211
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.48
Price to Sales (P/S)3.39
P/FCF Ratio5.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$17.75Price Target Upside1.89% Upside
Rating ConsensusHold
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)
| % Change Since: |
Next Earnings Date:Mar 04, 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
Strong and improving profitability (net margin improving to over 40% in TTM 2025; very high EBITDA margin), and a manageable but debt-reliant balance sheet (debt-to-equity ~0.85) with improving ROE. The main drag is cash generation: free cash flow growth declined (~-15% TTM 2025) and operating cash flow conversion (OCF/net income < 1) is a concern.Income Statement
The income statement shows a stable gross profit margin around 63-64% over the years, indicating consistent profitability. The net profit margin has improved significantly from a negative position in 2023 to over 40% in TTM 2025, reflecting strong cost management and revenue growth. However, revenue growth has been modest at 0.5% in TTM 2025, and there was a slight decline in 2024. The EBIT and EBITDA margins are strong, particularly the EBITDA margin at nearly 98% in TTM 2025, suggesting efficient operations.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio around 0.85, which is manageable but indicates reliance on debt financing. The return on equity has improved to 5.87% in TTM 2025 from negative in 2023, showing better profitability and shareholder returns. The equity ratio is stable, suggesting a balanced capital structure. However, the increasing debt levels could pose a risk if not managed carefully.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 15% in TTM 2025, which is a concern. The operating cash flow to net income ratio is below 1, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 1.0, suggesting effective cash management. The company needs to focus on improving cash flow generation to support future growth.65
Positive
| 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
Positive
17.42
Price Trends
14.97
Positive
14.22
Positive
13.85
Positive
Market Momentum
0.73
Positive
80.55
Negative
13.30
Positive
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 17.42 is below the 20-day moving average (MA) of 17.45, above the 50-day MA of 14.97, and above the 200-day MA of 13.85, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 80.55 is Negative, neither overbought nor oversold. The STOCH value of 13.30 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$3.65B | 10.96 | 6.23% | 2.46% | 6.52% | -54.45% | |
71 Outperform | C$2.13B | 3.93 | 18.10% | 4.42% | 6.19% | 79.98% | |
70 Outperform | C$638.15M | 8.53 | 7.26% | 3.87% | -1.21% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$763.56M | 9.43 | 7.32% | 8.07% | 0.41% | 78.32% | |
54 Neutral | C$5.99B | 99.33 | 0.65% | 4.20% | -6.51% | -81.28% | |
47 Neutral | C$1.86B | -18.68 | -4.40% | 3.01% | 1.55% | -401.05% |
* Real Estate Sector Average
TSE:MI.UN
Minto Apartment Real Estate Investment Trust
17.42
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37.05%
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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.