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Minto Apartment REIT reported a slight 1.9% year-on-year decline in its third-quarter revenue from investment properties, primarily due to the sale of its Castleview asset in Ottawa. Despite this, the company�s normalised funds from operations (FFO) per unit increased by 0.6%, supported by improved cost management and occupancy strategies. The REIT announced a 2.9% increase in its annual distribution, marking the seventh consecutive yearly hike. It also outlined plans to reposition between 50 and 70 suites and continue converting furnished suites to unfurnished ones during 2025.
Minto Apartment REIT recorded a 1.9% decrease in third-quarter revenue from investment properties compared to the previous year, largely attributed to the divestment of Castleview in Ottawa. However, the company managed to report a 0.6% rise in normalised funds from operations per unit, even with a reduction in finance income. Advertisement
The REIT stated that its annual distribution would rise by 2.9%, effective from November 2025, reflecting its seventh consecutive yearly increase. During 2025, the company intends to reposition between 50 and 70 suites and persist with its ongoing conversion of furnished suites into unfurnished units to align with shifting tenant preferences.
Revenue from unfurnished suites grew by 2.4%, contributing to same-property portfolio (SPP) revenue expansion. Strategic occupancy initiatives also boosted the closing occupancy rate to 96.5%, despite increased tenant turnover. The company credited its performance to disciplined cost management, controlled capital deployment, and efficient operational strategies that helped improve normalised and adjusted FFO per unit.
In its quarterly report, the REIT adjusted its key financial metric for adjusted FFO per share to CAD 0.235 from the previously reported CAD 0.26. The total adjusted FFO stood at CAD 14.66 million, while FFO was recorded at CAD 16.26 million. Revenue from investment properties for the quarter amounted to CAD 39.05 million.
Minto Apartment REIT's third-quarter performance underscored its ability to sustain profitability and shareholder returns despite a marginal decline in revenue. The strategic focus on repositioning suites, enhancing occupancy rates, and converting furnished units is expected to strengthen long-term operational efficiency. The company's consistent distribution growth highlights financial resilience and confidence in future cash flows. By maintaining prudent expense control and adapting its asset mix, Minto Apartment REIT continues to reinforce its position in the Canadian residential rental market.
Source - Reuters
5th Jun, 2025
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