MINTO APARTMENT REIT ANNOUNCES CASH DISTRIBUTION FOR THE MONTH OF DECEMBER 2024 AND SPECIAL NON-CASH DISTRIBUTION

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

OTTAWA, ON, Dec. 16, 2024 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: MI.UN) today announced a cash distribution of $0.04333 per REIT unit for the month of December 2024, representing $0.52 per REIT unit on an annualized basis. Payment will be made on January 15, 2025 to unitholders of record at the close of business on December 31, 2024.

Special Distribution

The REIT also announced today that its trustees have also declared a special non-cash distribution of $0.76 per REIT unit, payable on December 31, 2024 to unitholders of record at the close of business on December 31, 2024 (the "Special Distribution"). The Special Distribution represents a portion of the capital gains realized by the REIT for the 2024 fiscal year. Accordingly, the Special Distribution will be in the form of a capital gain for Canadian income tax purposes.

The Special Distribution is principally being made to distribute to unitholders a portion of the capital gains realized by the REIT upon the closing of its previously announced sale of the Tanglewood and Chesterton/Bowhill properties located in Ottawa, Ontario, to Ottawa Community Housing Corporation, on February 15, 2024 for gross proceeds of $86 million. 

Canadian resident unitholders will generally be required to include their proportionate share of the REIT's income and net taxable capital gain for the 2024 tax year as allocated and designated by the REIT in computing their respective income for the 2024 tax year.

The Special Distribution will be paid at the close of business on December 31, 2024 solely by the issuance of additional REIT units that will have a fair market value equal to the dollar amount of the Special Distribution and which will be based on the weighted average trading price of a REIT unit on the TSX during the period of 10 consecutive trading days ending on December 30, 2024. Immediately after the payment of the Special Distribution, the issued and outstanding REIT units will be consolidated such that the aggregate number of issued and outstanding REIT units will be the same as immediately before the Special Distribution. The amount of the Special Distribution will increase the adjusted cost base of unitholders' consolidated REIT units. Unitholders not resident in Canada for Canadian federal income tax purposes may be subject to applicable withholding taxes in connection with the payment of the Special Distribution.

The REIT cautions that the foregoing comments are not intended to be, and should not be construed as, legal or tax advice to any unitholder. The REIT recommends that unitholders consult their own tax advisors regarding the income tax consequences to them of this Special Distribution and related REIT unit consolidation.

About Minto Apartment Real Estate Investment Trust

Minto Apartment Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario to own income-producing multi-residential properties located in urban markets in Canada. The REIT owns a portfolio of high-quality multi-residential rental properties located in Toronto, Montreal, Ottawa and Calgary. For more information on Minto Apartment REIT, please visit the REIT's website at: www.mintoapartmentreit.com.

Forward-Looking Statements

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the intended monthly cash distribution by the REIT and the Special Distribution. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual events to differ materially from those discussed in the forward-looking statements, including, but not limited to, the factors discussed and referenced under the heading "Risks and Uncertainties" in the REIT's Q3 2024 management's discussion and analysis dated November 12, 2024, which is available at www.sedarplus.ca. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Minto Apartment Real Estate Investment Trust

For further information, please contact: Edward Fu, Chief Financial Officer, Minto Apartment Real Estate Investment Trust, Tel: [phone]