Minto Apartment REIT Reports 2024 Third Quarter Financial Results and Announces Distribution Increase

— Strong revenue and cash flow per unit growth; Distributions increased 3.0% —

OTTAWA, ON, Nov. 12, 2024 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: MI.UN) today announced its financial results for the third quarter and nine months ended September 30, 2024 ("Q3 2024" and "YTD 2024", respectively). The Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("MD&A") for Q3 2024 and YTD 2024 are available on the REIT's website at www.mintoapartmentreit.com and at www.sedarplus.ca.¹

"Our high-quality, well-located portfolio continued to underpin strong operational performance in the third quarter. Average monthly rent increased 5.9% year-over-year for the Same Property Portfolio, average occupancy increased and NOI margins expanded to record levels," said Jonathan Li, President and Chief Executive Officer of the REIT. "We also had growth in Normalized FFO and AFFO per unit of 8.3% and 9.6%, respectively, due in part to accretive capital allocation strategies that resulted in a 10.8% reduction in interest costs compared to Q3 last year. Our efforts to further strengthen our financial flexibility are ongoing. We will upward finance a total of four properties in Ottawa and Toronto, generating aggregate net proceeds of approximately $91 million, which will be used to pay down the revolving credit facility upon completion of each transaction."

"Today's announcement of a 3.0% increase in the monthly distribution underscores our positive outlook for the year ahead. The REIT has now increased distributions in six consecutive years, having done so in every year following its inception in 2018."

_________________________

¹  This news release contains certain non-IFRS and other financial measures. Refer to "Non-IFRS and Other Financial Measures" in this news release for a complete list of these measures and their meaning.

Q3 2024 Highlights

• Same Property Portfolio ("SPP") revenue was $39.8 million, an increase of 6.1% compared to the third quarter ended September 30, 2023 ("Q3 2023") driven primarily by a 6.9% increase in unfurnished suite revenue, partially offset by lower commercial revenue due to the temporary Minto Yorkville retail vacancy;
• Total Portfolio revenue of $39.8 million was flat year over year as the sale of properties in Ottawa and Edmonton offset the increased SPP revenue;
• SPP average monthly rent was $1,969, an increase of 5.9% compared to Q3 2023;
• Average occupancy of unfurnished suites increased to 97.1%, compared to 96.9% in Q3 2023;
• SPP operating expenses increased 2.1% compared to Q3 2023 while Total Portfolio operating expenses decreased by 4.0% over the same period driven by property sales;
• The REIT executed 449 new leases, achieving an average rental rate that was 10.8% higher than the expiring rents. The gain-to-lease potential on sitting rents remains attractive at 14.8% as at September 30, 2024;
• SPP annualized turnover was 26%, slightly lower than Q3 2023;
• SPP Net Operating Income ("NOI") increased 8.2% compared to Q3 2023 and SPP NOI margin was a record 66.2%, an increase of 130 bps from Q3 2023;
• Normalized Funds from Operations ("Normalized FFO") were $0.2588 per unit, an increase of 8.3% from $0.2390 per unit in Q3 2023;
• Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.2345 per unit, an increase of 9.6% compared to $0.2139 per unit in Q3 2023;
• Normalized AFFO payout ratio was 53.8%, a reduction of 350 bps compared to Q3 2023;
• Interest costs declined by 10.8% compared to Q3 2023, reflecting reduced average variable-rate debt exposure and mortgages associated with sold properties;
• Net loss and comprehensive loss was $41.9 million, compared to net income and comprehensive income of $27.8 million in Q3 2023;
• Debt-to-adjusted earnings before interest, taxes, depreciation and amortization ("Debt-to-Adjusted EBITDA") ratio decreased to 10.79x from 11.79x at year-end 2023, and Debt-to-Gross Book Value ratio decreased by 80 bps to 42.0%;
• On September 23, 2024, the REIT published its 2023 Environmental, Social and Governance ("ESG") Report, which highlighted the REIT's continued progress in addressing issues that are important to its investors, employees and communities; and
• On September 25, 2024, the Toronto Stock Exchange accepted the REIT's notice to initiate a Normal Course Issuer Bid ("NCIB"). The NCIB is active until September 26, 2025 and enables the REIT to acquire up to 3,283,584 Units, representing 5% of its issued and outstanding units. The REIT's previous NCIB expired on September 19, 2024. The REIT did not purchase and cancel any Units during the quarter.

Strengthening the Balance Sheet Subsequent to Q3 2024

Subsequent to Q3 2024, the REIT committed to the upward financing of three properties located in Ottawa and is finalizing an upward financing for one property located in Toronto for combined net proceeds of approximately $91 million, which will be used to reduce the outstanding balance on its variable-rate revolving credit facility. The financings are expected to close in December 2024.

Financial Summary

($000's except per unit and per suite amounts)	Three months ended September 30,				Nine months ended September 30,
	2024	2023	Variance		2024	2023	Variance
Revenue from investment properties	$    39,818	$    39,835	— %		$  117,654	$  117,639	— %
Property operating costs	7,279	7,438	2.1 %		21,872	22,932	4.6 %
Property taxes	3,925	4,090	4.0 %		11,844	12,015	1.4 %
Utilities	2,238	2,479	9.7 %		8,223	9,556	13.9 %
NOI	$    26,376	$    25,828	2.1 %		$    75,715	$    73,136	3.5 %
NOI margin (%)	66.2 %	64.8 %	140 bps		64.4 %	62.2 %	220 bps
Normalized NOI	$    26,376	$    25,828	2.1 %		$    75,715	$    73,266	3.3 %
Normalized NOI margin (%)	66.2 %	64.8 %	140 bps		64.4 %	62.3 %	210 bps
Revenue - SPP	$    39,818	$    37,541	6.1 %		$  116,885	$  110,616	5.7 %
NOI - SPP	26,376	24,380	8.2 %		75,311	68,802	9.5 %
NOI margin (%) - SPP	66.2 %	64.9 %	130 bps		64.4 %	62.2 %	220 bps
Normalized NOI - SPP	$    26,376	$    24,380	8.2 %		$    75,311	$    68,932	9.3 %
Normalized NOI margin (%) - SPP	66.2 %	64.9 %	130 bps		64.4 %	62.3 %	210 bps
Interest costs	$      9,295	$    10,420	10.8 %		$    27,736	$    31,798	12.8 %
Net (loss) income and comprehensive (loss) income	(41,851)	27,815	nmf^2		(27,855)	(39,421)	29.3 %
Funds from Operations ("FFO")	17,203	15,692	9.6 %		$    48,891	$    39,246	24.6 %
FFO per unit	0.2620	0.2390	9.6 %		0.7445	0.5978	24.5 %
Adjusted Funds from Operations ("AFFO")	15,607	14,041	11.2 %		44,074	34,162	29.0 %
AFFO per unit	0.2377	0.2139	11.1 %		0.6712	0.5204	29.0 %
Distribution rate per unit	$    0.1262	$    0.1225	3.0 %		$    0.3787	$    0.3675	3.0 %
AFFO payout ratio	53.1 %	57.3 %	420 bps		56.4 %	70.6 %	1,420 bps
Normalized FFO	$    16,999	$    15,692	8.3 %		$    48,016	$    41,353	16.1 %
Normalized FFO per unit	0.2588	0.2390	8.3 %		0.7312	0.6299	16.1 %
Normalized AFFO	15,403	14,041	9.7 %		43,199	36,269	19.1 %
Normalized AFFO per unit	0.2345	0.2139	9.6 %		0.6579	0.5525	19.1 %
Normalized AFFO payout ratio	53.8 %	57.3 %	350 bps		57.6 %	66.5 %	890 bps
Average monthly rent	$      1,969	$      1,837	7.2 %		$      1,969	$      1,837	7.2 %
Average monthly rent - SPP	$      1,969	$      1,860	5.9 %		1,969	1,860	5.9 %
Closing occupancy	97.4 %	97.8 %	(40) bps		97.4 %	97.8 %	(40) bps
Closing occupancy - SPP	97.4 %	97.8 %	(40) bps		97.4 %	97.8 %	(40) bps
Average occupancy	97.1 %	96.9 %	20 bps		97.0 %	97.0 %	— bps
Average occupancy - SPP	97.1 %	96.9 %	20 bps		97.0 %	97.0 %	— bps

As at	September 30, 2024	December 31, 2023	Variance
Debt-to-Gross Book Value ratio	42.0 %	42.8 %	(80) bps
Debt-to-Adjusted EBITDA ratio	10.79x	11.79x	(1.00)x

_______________________________

²  No meaningful figure.

Summary of Q3 2024 Operating Results

Continued Solid Growth in SPP Revenue and NOI

The REIT generated SPP NOI growth of 8.2% in Q3 2024 compared to Q3 2023, while SPP NOI margin increased by 130 bps year-over-year to a quarterly record of 66.2%. The increase in SPP NOI reflected SPP revenue growth of 6.1%, partially offset by a 2.1% increase in related property operating expenses. SPP revenue growth in Q3 2024 was driven primarily by 6.9% growth in unfurnished suite revenue due to higher average monthly rent, partially offset by lower commercial revenue due to the temporary retail vacancy at Minto Yorkville.

Normalized FFO and AFFO per unit Driven by NOI Growth and Reduced Interest Costs

Normalized FFO per unit and Normalized AFFO per unit increased by 8.3% and 9.6% in Q3 2024, respectively, compared to Q3 2023. The increases reflected NOI growth and a 10.8% reduction in interest costs compared to Q3 2023. Debt-to-Gross Book Value ratio was 42.0% at September 30, 2024, a reduction of 80 bps from 42.8% as at December 31, 2023, and Debt-to-Adjusted EBITDA ratio decreased to 10.79x from 11.79x over the same period.

NAV per unit and IFRS Net Income and Comprehensive Income

The REIT's net asset value ("NAV") per unit as at September 30, 2024 was $22.38, compared to $22.27 as at June 30, 2024. The increase in NAV per unit during Q3 2024 reflected strong operational results, partially offset by a non-cash fair value loss on investment properties of $2.6 million. The fair value loss on investment properties was attributable to increases in capitalization rates for select residential properties in Ottawa and Toronto and an increase to the capital expenditure reserve, partially offset by growth in forecast NOI.

The REIT recorded a non-cash fair value loss on Class B LP Units of $54.3 million in Q3 2024, reflecting an increase in the Unit price during the quarter.

The REIT reported a net loss and comprehensive loss of $41.9 million in Q3 2024, compared to net income and comprehensive income of $27.8 million in Q3 2023. The variance was primarily attributable to the non-cash fair value loss of $54.3 million on Class B LP Units noted above, compared to a gain of $35.8 million in Q3 2023.

Gain-on-Lease, Gain-to-Lease Potential, Suite Repositioning and Commercial

The REIT generated organic growth through 449 new leases signed in Q3 2024, achieving an average gain-on-lease of 10.8%. Approximately 37% of new leases signed in Toronto in Q3 2024 were at Niagara West, which is a non-rent controlled property and therefore has a lower gap between expiring rents and market rents. Excluding Niagara West, realized gain-on-lease in Q3 2024 was 14.2% in Toronto and 11.3% across the portfolio.

The REIT estimates a gain-to-lease potential of 14.8% as at September 30, 2024, representing future annualized potential revenue of $20.5 million. SPP annualized turnover was 26.0% in Q3 2024, which was slightly lower compared to Q3 2023.

The REIT repositioned a total of 16 suites across its portfolio in Q3 2024, generating an average annual unlevered return on investment of 8.8%. Management has reduced its estimate of total suite repositionings in 2024, reflecting lower turnover propensity for these suites and the strategic assessment of each repositioning. Management currently expects to reposition a total of 40 to 60 suites in 2024, compared to 116 suites in 2023. A total of 36 suites were repositioned in YTD 2024.

At Minto Yorkville in Toronto, Management continues to pursue leasing and anticipates lease payments to begin in 2026.

Maintaining a Strong Financial Position

As of September 30, 2024, the REIT had Total Debt outstanding of $1.1 billion, with a weighted average effective interest rate on Term Debt of 3.53% and a weighted average term to maturity on Term Debt of 5.33 years. Debt-to-Gross Book Value ratio was 42.0% and Debt-to-Adjusted EBITDA ratio was 10.79x.

The REIT continues to maintain a strong financial position. Total liquidity was approximately $158.8 million as at September 30, 2024, with a liquidity ratio (Total liquidity/Total Debt) of 14.4%.

Increase to Monthly Distributions

The Board of Trustees approved a $0.015 per unit or 3.0% increase to the REIT's annual distribution, raising it from $0.5050 to $0.5200 per unit. The new monthly distribution will be $0.04333 per unit, up from the current level of $0.04208 per unit. The increase will be effective for the REIT's November 2024 cash distribution, to be paid on December 16, 2024.

Conference Call

Management will host a conference call for analysts and investors on Wednesday, November 13, 2024 at 10:00 am ET. To join the conference call without operator assistance, participants can register and enter their phone number at https://emportal.ink/47MkF29 to receive an instant automated call back. Alternatively, they can dial 416-945-7677 or 1-888-699-1199 to reach a live operator who will join them into the call.

In addition, the call will be webcast live at:

Minto Apartment REIT Q3 2024 Earnings Webcast

A replay of the call will be available until Wednesday, November 20, 2024. To access the replay, dial 289-819-1450 or 888-660-6345 (Passcode: 12585 #). A transcript of the call will be archived on the REIT's website.

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 income-producing 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: https://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. 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 results to differ materially from the results 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 on SEDAR+ (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.

Non-IFRS and Other Financial Measures

This news release contains certain non-IFRS and other financial measures which are measures commonly used by publicly traded entities in the real estate industry. Management believes that these metrics are useful for measuring different aspects of performance and assessing the underlying operating and financial performance on a consistent basis. However, these measures do not have a standardized meaning prescribed by IFRS Accounting Standards ("IFRS") and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should strictly be considered supplemental in nature and not a substitute for financial information prepared in accordance with IFRS. The REIT has adopted the guidance under NI 52-112 Non-GAAP and Other Financial Measures Disclosure for the purpose of this news release. These non-IFRS and other financial measures are defined below:

• "AFFO" is defined as FFO adjusted for items such as maintenance capital expenditures and straight-line rental revenue differences. AFFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating AFFO may differ from other issuers' methods and, accordingly, may not be comparable to AFFO reported by other issuers. The REIT also uses AFFO in assessing its capacity to make distributions.
• "AFFO per unit" is calculated as AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards AFFO per unit as a key measure of operating performance.
• "AFFO payout ratio" is the proportion of per unit distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership to AFFO per unit. The REIT uses AFFO payout ratio in assessing its capacity to make distributions.
• "annualized turnover" is calculated as the number of move-outs for the period divided by total number of unfurnished suites in the portfolio. This percentage is extrapolated to determine an annual rate.
• "average annual unlevered return" refers to the return on repositioning activities, and is calculated by dividing the average annual rental increase per suite after repositioning by the average repositioning cost per suite, excluding the impact of financing costs.
• "average monthly rent" represents the average monthly rent per suite for occupied unfurnished suites at the end of the period.
• "average occupancy" is defined as the ratio of occupied unfurnished suites to the weighted average of the total unfurnished suites in the portfolio for the period.
• "Debt-to-Adjusted EBITDA ratio" is calculated by dividing interest-bearing debt (net of cash) by Adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and used for evaluation of the REIT's financial health and liquidity. Adjusted EBITDA is calculated as the trailing twelve-month NOI adjusted for a full year of stabilized earnings including finance income, fees and other income and general and administrative expenses from recently completed acquisitions or dispositions, but excluding fair value adjustments. The REIT regards Debt-to-Adjusted EBITDA ratio as a measure of financial health and liquidity.
• "Debt-to-Gross Book Value ratio" is calculated by dividing total interest-bearing debt consisting of fixed and variable-rate mortgages, credit facilities, construction loans and Class C limited partnership units of Minto Apartment Limited Partnership by Gross Book Value and is used as the REIT's primary measure of its leverage.
• "FFO" is defined as IFRS consolidated net income adjusted for items such as unrealized changes in the fair value of investment properties, effects of puttable instruments classified as financial liabilities and changes in fair value of financial instruments and derivatives. FFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating FFO may differ from other issuers' methods and, accordingly, may not be comparable to FFO reported by other issuers.
• "FFO per unit" is calculated as FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards FFO per unit as a key measure of operating performance.
• "gain-on-lease" refers to the gap between rents achieved on new leases of unfurnished suites as compared to the expiring leases.
• "gain-to-lease potential" refers to the gap between Management's estimate of monthly market rent and average monthly in-place rent per occupied unfurnished suite.
• "Gross Book Value" is defined as the total assets of the REIT as at the applicable balance sheet date.
• "interest costs" are calculated as the sum of costs incurred on mortgages, credit facility, and Class C limited partnership units of Minto Apartment Limited Partnership and excludes debt retirement costs.
• "NAV" is calculated as the sum of the value of REIT Unitholders' equity and Class B limited partnership units of Minto Apartment Limited Partnership as at the balance sheet date.
• "NAV per unit" is calculated by dividing NAV by the number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding as at the applicable balance sheet date.
• "NOI" is defined as revenue from investment properties less property operating costs, property taxes and utilities (collectively referred to as "property operating expenses" or "operating expenses") prepared in accordance with IFRS. NOI should not be construed as an alternative to net income determined in accordance with IFRS. The REIT's method of calculating NOI may differ from other issuers' methods and, accordingly, may not be comparable to NOI reported by other issuers. It is a key input in determining the value of the REIT's properties.
• "NOI margin" is defined as NOI divided by revenue from investment properties.
• "Normalized AFFO" is calculated as AFFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Normalized AFFO per unit" is calculated as Normalized AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period.
• "Normalized AFFO payout ratio" is the proportion of the per unit distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership to normalized AFFO per unit.
• "Normalized FFO per unit" is calculated as Normalized FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period.
• "Normalized NOI" is calculated as NOI net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Normalized NOI margin" is defined as Normalized NOI divided by revenue from investment properties.
• "Normalized operating expenses" are calculated as operating expenses net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Term Debt" is calculated as the sum of the amortized cost of fixed rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C LP Units.
• "Total Debt" is calculated as the sum of the amortized cost of interest-bearing debt consisting of a variable-rate credit facility and fixed rate debt comprised of mortgages, a variable-rate mortgage fixed through an interest rate swap, Class C LP Units, and the construction loan.
• "Total liquidity" is calculated as the sum of the undrawn balance under the revolving credit facility and cash.
• "weighted average effective interest rate on Term Debt" is calculated as the weighted average of the effective interest rates on the outstanding balances of fixed rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership.
• "weighted average term to maturity on Term Debt" is calculated as the weighted average of the term to maturity on the outstanding fixed rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership.

Reconciliations of Non-IFRS Financial Measures and Ratios

FFO and AFFO

	Three months ended September 30,			Nine months ended September 30,
($000's except unit and per unit amounts)	2024	2023		2024	2023
Net (loss) income and comprehensive (loss) income	$               (41,851)	$                27,815		$          (27,855)	$          (39,421)
Distributions on Class B LP Units	377	3,155		6,880	9,464
Disposition costs on investment property	—	—		615	348
Fair value loss (gain) on:
Investment properties	2,582	21,216		49,547	80,419
Class B LP Units	54,343	(35,799)		18,286	(10,817)
Interest rate swap	766	(73)		1,041	(319)
Unit-based compensation	986	(622)		377	(428)
Funds from operations (FFO)	17,203	15,692		48,891	39,246
Maintenance capital expenditure reserve	(1,514)	(1,510)		(4,567)	(4,540)
Amortization of mark-to-market adjustments	(74)	(141)		(219)	(544)
Commercial straight-line rent adjustments	(8)	—		(31)	—
Adjusted funds from operations (AFFO)	15,607	14,041		44,074	34,162
Weighted average number of Units and Class B LP Units issued and outstanding	65,671,690	65,651,608		65,666,944	65,645,663
FFO per unit	$                0.2620	$                0.2390		$            0.7445	$            0.5978
AFFO per unit	$                0.2377	$                0.2139		$            0.6712	$            0.5204
Distribution rate per unit	$                0.1262	$                0.1225		$            0.3787	$            0.3675
AFFO payout ratio	53.1 %	57.3 %		56.4 %	70.6 %

Normalized FFO and AFFO

	Three months ended September 30,			Nine months ended September 30,
($000's except unit and per unit amounts)	2024	2023		2024	2023
FFO	$                17,203	$                15,692		$            48,891	$            39,246
AFFO	15,607	14,041		44,074	34,162
Normalizing items for NOI	—	—		—	130
Debt retirement costs	—	—		—	1,779
Property investigation cost write-offs	—	—		—	417
Insurance recoveries	(204)	—		(875)	(219)
	(204)	—		(875)	2,107
Normalized FFO	$                16,999	$                15,692		48,016	41,353
Normalized FFO per unit	$                0.2588	$                0.2390		0.7312	0.6299
Normalized AFFO	15,403	14,041		43,199	36,269
Normalized AFFO per unit	$                0.2345	$                0.2139		$            0.6579	$            0.5525
Normalized AFFO payout ratio	53.8 %	57.3 %		57.6 %	66.5 %

NOI and NOI Margin

Same Property Portfolio

($000's)	Three months ended September 30,			Nine months ended September 30,
	2024	2023		2024	2023
Revenue from investment properties	$             39,818	$             37,541		$          116,885	$          110,616
Operating expenses	13,442	13,161		41,574	41,814
NOI	$             26,376	$             24,380		$            75,311	$            68,802
NOI margin	66.2 %	64.9 %		64.4 %	62.2 %
Normalizing items for NOI
Severance costs	$                    —	$                    —		$                   —	$                 256
Property tax recovery	—	—		—	(126)
	—	—		—	130
Normalized NOI	$             26,376	$             24,380		$            75,311	$            68,932
Normalized NOI margin	66.2 %	64.9 %		64.4 %	62.3 %

Total Portfolio

($000's)	Three months ended September 30,			Nine months ended September 30,
	2024	2023		2024	2023
Revenue from investment properties	$             39,818	$             39,835		$           117,654	$           117,639
Operating expenses	13,442	14,007		41,939	44,503
NOI	$             26,376	$             25,828		$             75,715	$             73,136
NOI margin	66.2 %	64.8 %		64.4 %	62.2 %
Normalizing items for NOI
Severance costs	$                    —	$                    —		$                    —	$                  256
Property tax recovery	—	—		—	(126)
	—	—		—	130
Normalized NOI	$             26,376	$             25,828		$             75,715	$             73,266
Normalized NOI margin	66.2 %	64.8 %		64.4 %	62.3 %

NAV and NAV per unit

($000's except unit and per unit amounts)	As at
	September 30, 2024	June 30, 2024	December 31, 2023
Net assets (Unitholders' equity)	$                        1,034,668	$                        1,081,559	$                        1,077,381
Add: Class B LP Units	435,002	380,659	416,716
NAV	$                        1,469,670	$                        1,462,218	$                        1,494,097
Number of Units and Class B LP Units	65,671,690	65,671,690	65,653,641
NAV per unit	$                               22.38	$                               22.27	$                               22.76

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]