OTTAWA,
ON, Jan. 22, 2025 /CNW/ - Minto Apartment Real
Estate Investment Trust (the "REIT") (TSX: MI.UN) today provided an
update on its capital allocation program, following the closing of
its previously announced sale of the Castleview property located in
Ottawa, Ontario for gross proceeds
of $69 million. Following the
repayment of the mortgage and associated transaction costs, the net
proceeds of $33.8 million will be
used, in part, to repay the remaining balance on the REIT's
variable-rate revolving credit facility.
In addition, the REIT has been active under its Normal Course
Issuer Bid ("NCIB") program as the unit price remains well below
net asset value. From mid-November to December 31, 2024, the REIT purchased close to
the maximum number of units it is permitted to purchase daily under
the NCIB, resulting in the purchase of approximately $4.7 million of units at a weighted average price
of $14.03 per unit. Furthermore, an
Automatic Securities Purchase Plan was established at the end of
December 2024, and the REIT has
committed an additional $10 million
towards continuing unit purchases under the NCIB during the first
quarter of 2025.
"We have been active with our capital recycling program,
generating gross proceeds of nearly $200
million from six non-core asset sales since early 2023. We
have redeployed the net proceeds from these asset sales to
accretive capital allocation strategies including paying down
variable-rate debt and repurchasing units under the NCIB, resulting
in enhancements to our cash flow per unit, strengthening our
balance sheet and increasing our financial flexibility," said
Jonathan Li, President and Chief
Executive Officer of the REIT. "In addition, we recently entered
the Metro Vancouver market with the acquisition of the Lonsdale
Square property, which was added to our portfolio on an accretive
basis, did not require the use of equity financing and resulted in
the receipt of $14 million from the
repayment of the convertible development loan associated with the
property."
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 Canada. The REIT owns
a portfolio of high-quality multi-residential rental properties
located primarily in urban centers in Canada's major markets of Toronto, Montreal, Ottawa, Calgary and Vancouver. For more information on Minto
Apartment REIT, please visit the REIT's website at
https://www.mintoapartmentreit.com.
Forward-Looking Information
This news release may contain forward-looking information within
the meaning of applicable securities legislation, which reflects
the REIT's current expectations regarding future events and in some
cases can be identified by such terms as "expected", "will" and
"may". Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond the REIT's control that could cause actual
results and events to differ materially from those that are
disclosed in or implied by such forward-looking information. Such
risks and uncertainties include, but are not limited to, the
factors discussed under "Risk Factors" in the REIT's Annual
Information Form dated March 6, 2024,
which is available on SEDAR+ (www.sedarplus.ca). The REIT does not
undertake any obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law. This
forward-looking information speaks only as of the date of this news
release.
Non-IFRS Financial Measure
This news release contains a financial measure that is not
defined under International Financial Reporting Standards ("IFRS")
and may not be comparable to similar measures presented by other
real estate investment trusts or enterprises. Cash flow per unit is
a measure of financial performance used by the REIT's management
and other real estate businesses. This measure is not defined by
IFRS and does not have a standardized meaning prescribed by IFRS.
See the REIT's Management Discussion & Analysis dated
November 12, 2024 for further
discussion of this and other non-IFRS financial measures.
SOURCE Minto Apartment Real Estate Investment Trust
