Minto Apartment REIT Reports 2025 Fourth Quarter and Year-End Financial Results

Executive Summary

• The REIT reported a net loss of $228.6 M for Q4 2025 (vs. net income of $91.1 M in Q4 2024) and a net loss of $244.2 M for FY 2025 (vs. net income of $63.2 M in FY 2024), driven primarily by a non‑cash fair‑value loss on investment properties.
• Normalized FFO per unit fell 1.0% YoY to $0.9628, and Normalized AFFO per unit declined 1.6% YoY to $0.8611, reflecting lower earnings despite modest revenue growth.
• The REIT entered a statutory plan of arrangement with Crestpoint Real Estate (Pine) Ltd., whereby Crestpoint will acquire all units at $18.00 each; completion expected in H2 2026, after which the REIT will be delisted.

Key Details

• Revenue & NOI
• Same‑Property Portfolio (SPP) revenue: $38.7 M Q4 2025 (+1.7% YoY); $153.9 M FY 2025 (+1.9% YoY).
• SPP Net Operating Income: $24.6 M Q4 2025 (+2.8% YoY); $97.8 M FY 2025 (+1.2% YoY).

• NOI margin improved to 63.6% in Q4 2025 (up 60 bps) but fell to 63.5% for FY 2025 (down 50 bps).

• Operating Metrics

• Average monthly rent (SPP): $2,076 (↑3.9% YoY).
• Unfurnished suite occupancy: 94.9% Q4 2025 (↓1.4 pts YoY); 95.3% FY 2025 (↓1.5 pts YoY).
• New leases signed in Q4 2025: 390, with average rent 0.9% above expiring rents; gain‑to‑lease potential 6.0%.

• Annualized turnover rose to 25% in Q4 2025 (↑300 bps YoY).

• Distributions & Capital Actions

• Board approved a 2.9% increase to the annual distribution to $0.5350 per unit; monthly distribution now $0.04458 per unit.
• Special non‑cash distribution of $0.21 per unit declared (Dec 15 2025); 575,703 units issued at $13.3627 each (~$7.7 M) and immediately cancelled.

• Total Units purchased/cancelled under NCIB: 3,283,584 at weighted‑average $13.37/unit ($43.9 M total).

• Financing Activity

• Secured variable‑rate construction financing of $48.7 M for “The Towns at York Mills & Leslie” project; $9.6 M drawn as of Dec 31 2025.

• Completed sale of non‑core Ottawa asset for $69.0 M (Jan 2025); net proceeds $33.8 M used to repay revolving credit facility and fund NCIB purchases.

• Balance Sheet Highlights (Proportionate Share Basis)

• Total debt: $1.182 B (Debt‑to‑GBV 48.9% vs. 42.5% YoY).
• Weighted‑average effective interest rate on term debt: 3.65%; average term to maturity: 4.83 years.

• Total liquidity: $116.7 M; liquidity ratio (Liquidity/Debt) 9.9%.

• Plan of Arrangement

• Agreement dated Jan 5 2026 with Crestpoint, Minto Properties Inc., and Minto Apartment GP Inc.
• Crestpoint to acquire all REIT units at $18.00 per unit in cash (excluding units held by MPI and certain senior officers).
• Approved by unitholders at special meeting Mar 3 2026; subject to court, regulator, CMHC, and lender consents.
• Expected closing H2 2026; post‑closing the REIT will be delisted from TSX.

Notable Quotes

• “We generated solid operating performance in the fourth quarter… despite the impact of new rental supply across our markets…” – Jonathan Li, President & CEO.

Materiality Assessment: Material – Negative (significant net loss, fair‑value impairment, and a pending transaction that will result in delisting).