The Company in a Nutshell
- Minto operates a portfolio of 20 high-quality, multi-residential rental properties. Minto’s activities focus on urban areas (Toronto, Ottawa, Montreal, Calgary, and Edmonton). The story is simple: embedded rent mark-to-market, steady suite upgrades, and selective recycling of capital into higher-return assets.
| Date Reviewed | 11/21/2025 |
| Company Name | Minto Apartment Real Estate Investment Trust |
| Symbol | MI.UN.TO |
| Sector | Real Estate |
| Industry | REIT - Residential |
| Beta | 1.29 |
| PRO Rating | 3 |
| Dividend Safety | 3 |
Business Model
Minto Apartment Real Estate Investment Trust (the REIT) is a Canada-based open-ended real estate investment trust. The REIT owns income-producing multi-residential properties located in urban markets in Canada. The REIT owns a portfolio of income-producing multi-residential rental properties located in Toronto, Montreal, Ottawa, Calgary, and Vancouver. Its portfolio includes 28 multi-residential rental properties comprising 7,598 suites strategically located across urban centers in Canada. Its properties include High Park Village, Leslie York Mills, Richgrove, Martin Grove, Minto Yorkville, Roehampton, Niagara West, Minto one80five, Parkwood Hills Garden Homes & Townhomes, Aventura, Huron, Seneca, Castleview2, Skyline Garden Homes, Maisonettes & Walkups, Rockhill, Haddon Hall, Le Hill-Park, The Quarters, The Laurier, Kaleidoscope, The International, The Carlisle, Castle Hill, Grenadier, Eleanor, among others.
| Current price | 13.11 |
| ROE | 5.75 % |
| ROIC | 0.00 % |
| Shareholder Yield | 1.80 % |
| 5-Yr Total Return | -23.50 % |
| 1-Yr Total Return | -0.40 % |
| Next Earnings Date | 03-03-26 |
Latest Quarter Information
What the CEO said:
We generated continued year-over-year SPP revenue growth in the third quarter, underpinned by the steady growth in unfurnished suite revenue of 2.4% and 10.3% growth in commercial revenue. We achieved this growth despite headwinds from increased supply in certain markets and slowing population growth. We were able to drive occupancy through targeted strategic initiatives and active management, resulting in a sequential increase in closing occupancy to 96.5%. Additionally, we were able to grow Normalized FFO and AFFO per unit, despite the reduction in capitalized interest and lower finance income from the repayment of two CDLs.
What we say:
2025-11-20, Minto REIT's Q3 revenues from invetment properties fell by 1.9%, however, same‑property revenue was up 1.6% YoY. The revenue decline in the total portfolio was largely due to the sale of the Castleview property in Ottawa. The SPP average monthly rent rose to $2,064, representing a 4.5% increase, and NOI came in at $25.563M, up 0.7% YoY. Occupancy was 96.5% at Q3-end. The REIT reported a net loss and comprehensive loss of $30.206M for 3Q'25, which compares to a loss of $41.851M in 3Q'24, and AFFO per unit was $0.2348 down 1.2%. Minto REIT also executed purchases of $3.6M of units under its NCIB.
Investment Thesis
While Minto is a relatively new REIT on the stock market (the IPO was in July 2018), it has proven that it can effectively navigate difficult economic environments. At the end of Q3 2022, the REIT had an occupancy rate of 97.3%, compared to 97.8% at the end of Q3 2023, signalling its stability and strength, but average occupancy came in lower at 96.5% in the latest quarter. The REIT offers high-quality apartments in dense urban areas. Minto’s target markets (major Canadian cities) all posted stronger population growth than the country in total over 2022-2023. The REIT counts on the demographic trend toward major cities, along with an increase in immigration to grow going forward. The REIT shouldn’t have problems with inflation as it can increase its rent prices since the demand for high-quality apartments remains strong. For Q3 2025, Minto's AFFO per unit declined YoY.
Playbook: Minto owns, develops, and operates 28 urban apartment properties and continues to recycle capital. Recent moves include selling Ottawa assets in 2024–2025 and acquiring Vancouver’s Lonsdale Square in January 2025. Development continues at Richgrove, funded with a low-cost fixed construction loan. Leverage and maturities are staggered, with a weighted average term of just over five years and term-debt cost in the mid-3% range on a proportionate basis.
Growth Vectors: The growth engine is the mark-to-market gap. Management estimates $11.6 million of annualized gain-to-lease potential, expected to be realized over seven to nine years via normal turnover. Suite repositioning and conversions away from furnished units add incremental NOI, while modest external growth and recycling keep the portfolio tilted to high-demand nodes. Same-property average rent rose 4.5% in Q3, with occupancy healthy in the mid-90s.
Economic Moat: Urban Canadian apartments benefit from chronic undersupply, immigration-driven demand, and high replacement costs. Minto’s scale in Ottawa/Toronto/Montreal, internal development capability, and the sponsor ecosystem enable steady upgrades and disciplined capital allocation, reflected in recurring NAV growth and controlled payout metrics.
Dividend Triangle
| 5-Yr Rev. Growth | 4.40 % |
| 5-Yr EPS Growth | -17.30 % |
| 5-Yr Div Growth | 2.70 % |
Potential Risks
Minto’s business model’s advantages could also become its weaknesses. The REIT focuses on highly dense areas. Over the past few years, this has been a sound strategy as the population has grown more rapidly in the cities in which Minto operates. As more people opt to work remotely, the need to live in a city may not be as important as it once was. Minto also uses short-term leases (1 year) as a hedge against inflation. This is great for inflation, but the REIT exposes its business model to more volatility. As the supply of new apartments increases, many investors fear apartment REITs will have to reduce their rent prices to attract and retain tenants. Keep in mind that Minto has a small cap ($500M), making the stock more vulnerable to lower trading volume and higher volatility. Finally, Minto’s apartments are heavily concentrated in Ontario (40% of the portfolio value is in Ottawa, and 33% in Toronto).
Business Vulnerabilities: Average occupancy eased to roughly 96% and average occupancy to ~95% in Q3 2025, a reminder that supply pockets and leasing friction matter. AFFO per unit was a touch lower year over year on a reported basis. Execution on developments must translate into stabilized NOI to prevent Debt/EBITDA from lingering above 11x.
Industry & Market Threats: Rent regulation in core provinces can cap in-place growth, requiring turnover to unlock gains. Interest-rate volatility feeds through at refi, though the term debt ladder is reasonably spread and largely fixed. Utilities and property taxes also chew at margins when inflation reaccelerates.
Competitive Landscape: Peers include CAPREIT, InterRent, Killam, and Boardwalk. Relative to peers, Minto’s current NAV discount looks deeper, with similar mid-90s occupancy and multi-year mark-to-market tailwinds.
| Debt/Equity | 0.80 |
| Financial Debt to EBITDA (TTM) | 10.10 |
| Current Ratio (Quarterly) | 0.00 |
| Credit Score | 35 |
Dividend Growth Perspective
Minto’s dividend history is relatively new since the company went public in 2018. The REIT has successfully increased its dividend annually since 2019. It seems to be in a very good position, exhibiting an attractive pipeline and a decent dividend growth policy. Each quarter, FFO/unit grows by mid-single-digits. In Q3 2025, the AFFO payout ratio was 55.4%. This leaves some room for future increases in the dividend.
| Dividend ($) | 0.535 |
| Dividend Yield Fwd | 4.10 % |
| Dividend Frequency | Monthly |
| Average 5-Yr Yield | 3.15 % |
| Payout Ratio (%) | 32.00 |
| Cash Payout Ratio (%) | 75.50 |
| DGR 1-Yr (TTM) | 1.40 |
| DGR 3-Yr (TTM) | 2.50 |
| DGR 5-Yr (TTM) | 2.70 |
| DGR Streak | |
| Chowder Score | 6.80 |
| Next DVD PMT | 12-15-25 |
Valuation
| Recent Annual Dividend Payment | $ 0.52 |
| Expected Dividend Growth Rate Years 1-10 | 3.00% |
| Expected Terminal Dividend Growth Rate | 5.00% |
| Discount Rate | 9.00% |
| Discount Rate (Horizontal) | |||
| Margin of Safety | 8.00% | 9.00% | 10.00% |
| 20% Premium | $ 18.45 | $ 13.93 | $ 11.21 |
| 10% Premium | $ 16.91 | $ 12.77 | $ 10.28 |
| Intrinsic Value | $ 15.37 | $ 11.61 | $ 9.34 |
| 10% Discount | $ 13.84 | $ 10.45 | $ 8.41 |
| 20% Discount | $ 12.30 | $ 9.29 | $ 7.48 |
Video Tutorial: How to Read the Stock Cards DDM Valuation
| Market Cap | 477.00 M |
| PE Ratio | 6.80 |
| Fwd PE | 25.20 |
| Price to Book Ratio | 0.45 |
| DDM Valuation | 11.61 |
| Average 5-Yr PE | 8.28 |
| Value Score | 58 |