Minto Apartment REIT Provides Capital Allocation Update

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

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