Minto Apartment REIT Reports 2025 Fourth Quarter and Year-End Financial Results

OTTAWA, ON, March 4, 2026 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: MI.UN) today announced its financial results for the fourth quarter and year ended December 31, 2025 ("Q4 2025" and "FY 2025", respectively). The Audited Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for Q4 2025 and FY 2025 are available on the REIT's website at www.mintoapartmentreit.com and at www.sedarplus.ca.¹

"We generated solid operating performance in the fourth quarter, underpinned by steady growth in unfurnished suite revenue of 1.9% and 23.6% growth in commercial revenue," said Jonathan Li, President and Chief Executive Officer of the REIT. "Our average monthly rent has continued to increase despite the impact of new rental supply across our markets and slower population growth, reflecting the effectiveness of our active management and strategic leasing initiatives. Overall, we were able to grow our Normalized FFO and AFFO per unit by prudent capital allocation and disciplined operating expense management which more than offset the loss of interest income from the repayment of two CDLs. Additionally, we are pleased with the advances in our organic growth strategy, as our two Toronto development projects, 610 Martin Grove and The Towns at York Mills & Leslie, recently welcomed their first tenants."

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This news release contains certain non-IFRS and other financial measures, including select information presented on a Proportionate Share Basis to include contributions from an equity-accounted joint venture. Refer to "Business Overview" in the REIT's MD&A for details on the inclusion of proportionate results and "Non-IFRS and Other Financial Measures" in this news release for a complete list of these measures and their meaning.

Q4 2025 Highlights

• Same Property Portfolio ("SPP")² revenue was $38.7 million, an increase of 1.7% compared to the fourth quarter ended December 31, 2024 ("Q4 2024");
• Revenue of $38.9 million decreased by 1.3% compared to Q4 2024 due to the sale of Castleview in Ottawa, partially offset by higher SPP revenue;
• SPP average monthly rent was $2,076, an increase of 3.9% compared to Q4 2024;
• Average occupancy of unfurnished suites was 94.9%, compared to 96.3% in Q4 2024;
• The REIT executed 390 new leases, achieving an average rental rate that was 0.9% higher than the expiring rents. The gain-to-lease potential on sitting rents was 6.0% as at December 31, 2025;
• SPP annualized turnover was 25%, representing a 300 basis point increase compared to Q4 2024;
• SPP Net Operating Income ("NOI") was $24.6 million, an increase of 2.8% compared to Q4 2024 and SPP NOI margin was 63.6%, an increase of 60 basis points ("bps") compared to Q4 2024;
• Normalized Funds from Operations ("Normalized FFO") were $0.2432 per unit, an increase of 0.8% compared to $0.2413 per unit in Q4 2024;
• Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.2174 per unit, an increase of 0.2% compared to $0.2170 per unit in Q4 2024;
• Net loss and comprehensive loss was $228.6 million, compared to net income and comprehensive income of $91.1 million in Q4 2024;
• The REIT welcomed the first tenants at 610 Martin Grove, a new Toronto development with 225 suites, including 100 affordable housing suites;
• The REIT secured variable-rate construction financing of $48.7 million for The Towns at York Mills & Leslie project, of which approximately $9.6 million was drawn as at December 31, 2025. First occupancy for Phase 1 suites at this Toronto property occurred in early March 2026;
• On November 4, 2025, the REIT announced that its Board of Trustees approved a 2.9% increase to the REIT's annual distribution, raising it from $0.5200 to $0.5350 per Unit. The monthly distribution increased to $0.04458 per Unit from $0.04333 per Unit; and
• On December 15, 2025, the REIT declared a special non-cash distribution of $0.21 per Unit ("Special Distribution"). On December 31, 2025, in connection with the Special Distribution, the REIT issued 575,703 Units at a price of $13.3627 per Unit, for a total value of approximately $7.7 million. The Special Distribution was made to distribute a portion of the capital gains realized by the REIT from the sale of an investment property completed during FY 2025. Immediately following the issuance, the Units were consolidated such that each Unitholder held the same number of Units as each Unitholder held prior to the Special Distribution.

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^2	The Same Property Portfolio represents 27 properties wholly and co-owned by the REIT for equivalent periods in 2025 and 2024.

FY 2025 Highlights

• SPP revenue was $153.9 million, a 1.9% increase compared to the year ended December 31, 2024 ("FY 2024");
• Revenue was $154.5 million, a decrease of 1.7% compared to FY 2024;
• SPP NOI increased by 1.2% compared to FY 2024 and SPP NOI margin was 63.5%, a decrease of 50 bps compared to FY 2024;
• Normalized FFO per unit of $0.9628 decreased by 1.0% compared to $0.9725 per unit for FY 2024, and Normalized AFFO per unit of $0.8611 decreased by 1.6% compared to $0.8749 per unit for FY 2024; and
• Net loss and comprehensive loss was $244.2 million, compared to net income and comprehensive income of $63.2 million in FY 2024.
• Entered the Metro Vancouver market in January 2025 through a 50% managing ownership interest in Lonsdale Square, a newly constructed 113-suite mixed-use property, for a purchase price of $53.0 million;
• Completed the sale of a non-core Ottawa asset for $69.0 million in January 2025, resulting in net proceeds of $33.8 million that were used to fully repay the outstanding balance on the revolving credit facility at that time and purchase Units under the NCIB program;
• Purchased the maximum number of Units available under the REIT's previously authorized NCIB. Since the inception of the previous NCIB, a total of 3,283,584 Units were purchased and cancelled at a weighted average purchase price of $13.37 per Unit, totalling $43.9 million; and,
• In September 2025, the REIT published its 2024 Sustainability Report, which shares the REIT's progress in implementing sustainability initiatives and setting targets to further its objectives and goals across all its operations and with all its stakeholders.

The Arrangement

• On January 5, 2026, the REIT entered into an arrangement agreement with Crestpoint Real Estate (Pine) Limited Partnership ("Crestpoint"), Minto Properties Inc. ("MPI"), and Minto Apartment GP Inc., in respect of a statutory plan of arrangement (the "Arrangement"). Under the terms of the Arrangement, among other things, Crestpoint will acquire all of the trust units of the REIT (each, a "Unit"), other than Units held directly or indirectly by MPI and certain senior officers of MPI and the REIT, for consideration of $18.00 per Unit in an all cash transaction.
• The Arrangement was approved by the holders (the "Unitholders") of Units and special voting units of the REIT at a special meeting of Unitholders held on March 3, 2026.
• The completion of the Arrangement remains subject to the waiver or satisfaction of conditions customary for transactions of this nature, including, among others: court and regulatory approvals, and the consent of Canada Mortgage and Housing Corporation and certain lenders to the REIT. Completion is expected to occur in the second half of 2026, after which the Units will be delisted from the Toronto Stock Exchange and the REIT will cease to be a reporting issuer.

Financial Summary

($000's except per unit and per suite amounts)	Three months ended December 31,				Year ended December 31,
	2025	2024	Variance		2025	2024	Variance
Financial
Revenue from investment properties	$    38,915	$    39,434	(1.3) %		$  154,457	$  157,088	(1.7) %
Property operating costs	7,520	7,700	2.3 %		30,038	29,572	(1.6) %
Property taxes	3,836	3,916	2.0 %		15,236	15,760	3.3 %
Utilities	2,903	2,962	2.0 %		11,222	11,185	(0.3) %
NOI	$    24,656	$    24,856	(0.8) %		$    97,961	$  100,571	(2.6) %
NOI margin (%)	63.4 %	63.0 %	40 bps		63.4 %	64.0 %	(60) bps
Revenue - SPP	$    38,691	$    38,057	1.7 %		$  153,920	$  151,014	1.9 %
NOI - SPP	24,622	23,962	2.8 %		97,759	96,641	1.2 %
NOI margin (%) - SPP	63.6 %	63.0 %	60 bps		63.5 %	64.0 %	(50) bps
Net (loss) income and comprehensive (loss) income	(228,597)	91,093	nmf³		(244,226)	63,238	nmf³
Funds from Operations ("FFO")	11,090	15,828	(29.9) %		$    56,798	$    64,719	(12.2) %
FFO per unit	0.1778	0.2413	(26.3) %		0.8982	0.9859	(8.9) %
Adjusted Funds from Operations ("AFFO")	9,312	14,233	(34.6) %		50,008	58,307	(14.2) %
AFFO per unit	0.1493	0.2170	(31.2) %		0.7909	0.8882	(11.0) %
Distribution rate per unit	$    0.1325	$    0.1287	3.0 %		$    0.5225	$    0.5073	3.0 %
AFFO payout ratio	88.7 %	59.3 %	(2,940) bps		66.1 %	57.1 %	(900) bps
Normalized FFO	$    15,170	$    15,828	(4.2) %		$    60,878	$    63,844	(4.6) %
Normalized FFO per unit	0.2432	0.2413	0.8 %		0.9628	0.9725	(1.0) %
Normalized AFFO	13,565	14,233	(4.7) %		54,448	57,432	(5.2) %
Normalized AFFO per unit	$    0.2174	$    0.2170	0.2 %		$    0.8611	$    0.8749	(1.6) %
Normalized AFFO payout ratio	60.9 %	59.3 %	(160) bps		60.7 %	58.0 %	(270) bps
Operating - Proportionate Share Basis
Average monthly rent	$      2,086	$      1,990	4.8 %		$      2,086	$      1,990	4.8 %
Average monthly rent - SPP	$      2,076	$      1,998	3.9 %		$      2,076	$      1,998	3.9 %
Closing occupancy	95.4 %	95.8 %	(40) bps		95.4 %	95.8 %	(40) bps
Closing occupancy - SPP	95.5 %	95.8 %	(30) bps		95.5 %	95.8 %	(30) bps
Average occupancy	94.9 %	96.3 %	(140) bps		95.3 %	96.8 %	(150) bps
Average occupancy - SPP	95.1 %	96.3 %	(120) bps		95.4 %	96.8 %	(140) bps

As at	December 31, 2025	December 31, 2024	Variance
Leverage - Proportionate Share Basis
Proportionate Debt-to-Gross Book Value ratio	48.9 %	42.5 %	640 bps
Proportionate Debt-to-Adjusted EBITDA ratio	11.88x	11.04x	0.84x

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^3	No meaningful figure

Summary of Q4 2025 Operating Results

SPP Revenue and Net Operating Income

The REIT generated SPP revenue growth of 1.7% in Q4 2025 compared to Q4 2024, reflecting a 1.9% increase in unfurnished suite revenue, primarily due to a 3.9% increase in SPP average monthly rent, as well as a 23.6% increase in commercial revenue that reflected the commencement of two new leases during FY 2025. This growth was partially offset by lower average occupancy for unfurnished suites and the use of promotions resulting from elevated rental supply across the REIT's markets. Management has actively driven leasing activity to absorb vacancy and, in doing so, has offered targeted promotions consistent with current market practices. SPP revenue growth was also partially offset by lower revenue from furnished suites. The REIT has continued to wind down its furnished suite portfolio, converting 23 furnished suites to unfurnished since Q4 2024. The pace of conversions at each property is subject to local market leasing conditions in order to optimize yields and FFO and AFFO per unit.

SPP NOI was $24.6 million in Q4 2025, an increase of 2.8% compared to Q4 2024, as SPP revenue outgrew SPP operating expenses. Property operating costs were flat year-over-year, as lower repair and maintenance expenses were largely offset by higher marketing costs to drive leasing activity. Property taxes were also effectively flat compared to Q4 2024, as lower assessed values and rates in Calgary were offset by increased rates in Montreal, Toronto, and Ottawa. Utilities costs increased 1.0% compared to Q4 2024, driven by a 1.4% increase in electricity expense due to higher consumption from a colder start to winter and higher average rates, and a 2.8% increase in water expense resulting from an increase in average rates. Natural gas costs were flat compared to Q4 2024, as the cancellation of the carbon tax was largely offset by an increase in consumption. SPP NOI margin was 63.6% in Q4 2025, an increase of 60 bps compared to 63.0% in Q4 2024.

Normalized FFO and AFFO per Unit

Normalized FFO and AFFO per unit increased by 0.8% and 0.2%, respectively, in Q4 2025 compared to Q4 2024. The growth reflects the accretive effect of Unit buybacks, higher SPP NOI, and increased management fee income, partially offset by lower interest income following the repayment of two convertible development loans and increased interest costs resulting from additional financings completed in Q4 2024 and Q1 2025.

NAV per unit and IFRS Net Income and Comprehensive Income

The REIT's net asset value ("NAV") per unit as at December 31, 2025 was $18.64, a 17.0% decrease compared to $22.45 as at September 30, 2025. The decrease was primarily attributable to a non-cash fair value loss on investment properties of $240.1 million in Q4 2025, driven by capitalization rate expansion, a reduction in forecast NOI, an increase in the capital expenditure reserve for the portfolio, resulting from, in part, the investment property value implied within the Arrangement.

The REIT reported a net loss and comprehensive loss of $228.6 million in Q4 2025, compared to net income and comprehensive income of $91.1 million in Q4 2024. The variance was primarily attributable to the non-cash fair value loss on investment properties of $240.1 million in Q4 2025, as noted above, which was larger than the comparable loss of $11.7 million recorded in Q4 2024 and a smaller non-cash fair value gain on Class B LP Units in Q4 2025 compared to Q4 2024. The gain was $3.9 million in Q4 2025, compared to $91.4 million in Q4 2024.

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

The REIT generated organic growth through 390 new leases signed in Q4 2025, achieving an average gain-on-lease of 0.9%. The realized gain-on-lease contracted from the third quarter of FY 2025 ("Q3 2025") as market rents declined, particularly in Vancouver and Calgary, and turnover remained lower for suites with tenants whose sitting rents are well below current market rates.

The REIT estimates a gain-to-lease potential of 6.0% as at December 31, 2025, representing future annualized potential revenue of approximately $8.4 million.

SPP annualized turnover increased to 25% in Q4 2025, compared to 22% in Q4 2024, reflecting increased supply across the REIT's markets, particularly Toronto, Calgary and Vancouver. SPP closing occupancy was 95.5% in Q4 2025, a sequential decline of 100 bps compared to Q3 2025, reflecting the elevated turnover rate, coupled with the start of the seasonally slower winter leasing season.

The REIT repositioned a total of 10 suites across its portfolio in Q4 2025, generating an average annual unlevered return on investment of 9.2%. A total of 56 suites were repositioned in FY 2025, compared to 48 in 2024.

Balance Sheet

As at December 31, 2025, the REIT had, on a Proportionate Share Basis, Total Debt outstanding of $1.2 billion, with a weighted average effective interest rate on Term Debt of 3.65% and a weighted average term to maturity on Term Debt of 4.83 years. The REIT's Proportionate Debt-to-Gross Book Value ratio was 48.9%, compared to 42.5% as at December 31, 2024, and its Proportionate Debt-to-Adjusted EBITDA ratio was 11.88x, compared to 11.04x as at December 31, 2024.

The REIT continues to maintain a strong financial position. Total liquidity on a Proportionate Share Basis was approximately $116.7 million as at December 31, 2025, with a liquidity ratio (Total liquidity/Total Debt) of 9.9% on a Proportionate Share Basis.

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 primarily urban centres 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: www.mintoapartmentreit.com.

Forward-Looking Statements

This news release may contain forward-looking statements (within the meaning of applicable Canadian securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "predict", "expect", "goal", "seek", "strategy", "future", "intend", "plan", "will", "may", "could", "should", "estimate", "potential", "might", "likely", "occur", "achieve", "continue", or the negative thereof, and other similar expressions. These statements are not historical facts but instead represent Management's expectations, estimates, forecasts and projections regarding future events and circumstances, including the impact of current economic conditions which include trade disputes, interest rate uncertainty, and inflation, among other factors, on the REIT's business, operations and financial results. 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 under the heading "Risks and Uncertainties" in the REIT's management's discussion and analysis dated March 4, 2026, 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, straight-line rental revenue differences, and direct leasing costs. 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 is substantially in accordance with REALPAC's recommendations under the revised publication titled ''REALPAC Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) for IFRS'' published in January 2022, except that it adjusts for certain non-cash items (such as adjustments for the amortization of mark-to-market adjustments related to debt), but may differ from other issuers' methods and, accordingly, may not be comparable to AFFO reported by other issuers. The REIT regards AFFO as a key measure of operating performance. 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, excluding special non-cash distributions, 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 on a Proportionate Share Basis.
• "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 on a Proportionate Share Basis.
• "closing occupancy" is defined as the ratio of occupied unfurnished suites to the total unfurnished suites in the portfolio at the end of the period on a Proportionate Share Basis.
• "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 is 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 facility, 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 is substantially in accordance with REALPAC's recommendations under the revised publication titled ''REALPAC Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) for IFRS'' published in January 2022, but may differ from other issuers' methods and, accordingly, may not be comparable to FFO reported by other issuers. The REIT regards FFO as a key measure of operating performance.
• "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 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 calculated as the total assets of the REIT as at the applicable balance sheet date.
• "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 applicable 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. The REIT regards NOI as an important measure of the income generated from income-producing properties and is used by Management in evaluating the performance of the REIT's properties. It is also 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, excluding special non-cash distributions, to Normalized AFFO per unit.
• "Normalized FFO" is calculated as FFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "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.
• "Proportionate Share Basis" represents financial information adjusted to reflect the REIT's effective ownership share of joint venture results on a proportionately consolidated basis. This adjustment addresses the accounting difference arising from the use of the equity method for joint ventures under IFRS.
• "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 fixed and variable-rate construction loans.
• "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 on a Proportionate Share Basis.
• "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 on a Proportionate Share Basis.

Reconciliations of Non-IFRS Financial Measures and Ratios

FFO and AFFO

	Three months ended December 31,			Year ended December 31,
($000's except unit and per unit amounts)	2025	2024		2025	2024
Net (loss) income and comprehensive (loss) income	$         (228,597)	$             91,093		$         (244,226)	$             63,238
Distributions on Class B LP Units	3,412	6,190		13,456	13,070
Disposition costs on investment property	--	--		604	615
Fair value loss (gain) on:
Investment properties	240,084	11,732		276,514	61,279
Class B LP Units	(3,863)	(91,430)		7,469	(73,144)
Interest rate swap	111	205		591	1,246
Unit-based compensation	(30)	(1,962)		(173)	(1,585)
Adjustment for equity-accounted entity	(27)	--		2,563	--
Funds from operations (FFO)	11,090	15,828		56,798	64,719
Maintenance capital expenditure reserve	(1,507)	(1,514)		(6,039)	(6,081)
Amortization of mark-to-market adjustments	(61)	(74)		(289)	(293)
Commercial straight-line rent adjustments	(37)	(7)		(102)	(38)
Direct leasing costs	(173)	--		(360)	--
Adjusted funds from operations (AFFO)	$               9,312	$             14,233		$             50,008	$             58,307
Weighted average number of Units and Class B LP Units issued and outstanding	62,388,106	65,586,166		63,232,705	65,646,639
FFO per unit	$             0.1778	$             0.2413		$             0.8982	$             0.9859
AFFO per unit	$             0.1493	$             0.2170		$             0.7909	$             0.8882
Distribution rate per unit	$             0.1325	$             0.1287		$             0.5225	$             0.5073
AFFO payout ratio	88.7 %	59.3 %		66.1 %	57.1 %

Normalized FFO and AFFO

	Three months ended December 31,			Year ended December 31,
($000's except unit and per unit amounts)	2025	2024		2025	2024
FFO	$             11,090	$             15,828		$             56,798	$             64,719
AFFO	9,312	14,233		50,008	58,307
Normalizing items - FFO
Transaction costs in connection with the Arrangement	4,080	--		4,080	--
Insurance recoveries	--	--		--	(875)
	4,080	--		4,080	(875)
Normalized FFO	$             15,170	$             15,828		60,878	63,844
Normalized FFO per unit	$             0.2432	$             0.2413		$             0.9628	$             0.9725
Normalizing items - AFFO
Direct leasing costs	173	--		360	--
Total normalizing items	4,253	--		4,440	(875)
Normalized AFFO	$             13,565	$             14,233		54,448	57,432
Normalized AFFO per unit	$             0.2174	$             0.2170		$             0.8611	$             0.8749
Distribution rate per unit	$             0.1325	$             0.1287		$             0.5225	$             0.5073
Normalized AFFO Payout Ratio	60.9 %	59.3 %		60.7 %	58.0 %

NOI and NOI Margin

Same Property Portfolio

($000's)	Three months ended December 31,			Year ended December 31,
	2025	2024		2025	2024
Revenue from investment properties	$             38,691	$             38,057		$          153,920	$          151,014
Operating expenses	14,069	14,095		56,161	54,373
NOI	$             24,622	$             23,962		$            97,759	$            96,641
NOI margin	63.6 %	63.0 %		63.5 %	64.0 %

Total Portfolio

($000's)	Three months ended December 31,			Year ended December 31,
	2025	2024		2025	2024
Revenue from investment properties	$             38,915	$             39,434		$           154,457	$           157,088
Operating expenses	14,259	14,578		56,496	56,517
NOI	$             24,656	$             24,856		$             97,961	$           100,571
NOI margin	63.4 %	63.0 %		63.4 %	64.0 %

Proportionate Debt-to-Gross Book Value Ratio

	As at
($000's)	December 31, 2025	December 31, 2024
Class C LP Units	$                        174,864	$                        214,290
Mortgages	841,617	846,079
Construction loans	76,200	40,403
Credit facility	37,000	24,500
Mortgage held by joint venture	52,578	--
Total Debt - Proportionate Share Basis	1,182,259	1,125,272
Total assets	2,417,306	2,645,415
Adjustment to include the REIT's share of total assets in joint venture	320	--
Total assets - Proportionate Share Basis	$                     2,417,626	$                     2,645,415
Proportionate Debt-to-Gross Book Value ratio	48.9 %	42.5 %
Total liquidity - Proportionate Share Basis	$                        116,678	$                        187,700
Total liquidity as a percentage of Total Debt - Proportionate Share Basis	9.9 %	16.7 %

Proportionate Debt-to-Adjusted EBITDA Ratio

	As at
($000's)	December 31, 2025	December 31, 2024
Trailing 12-month:
NOI	$                      97,961	$                           100,571
General and administrative expenses	(13,992)	(10,061)
Finance income	6,667	7,873
Fees and other income	3,066	3,452
	93,702	101,835
Transaction costs in connection with the Arrangement	4,080	--
Impact on NOI of stabilized earnings from dispositions and acquisitions	1,240	(404)
Adjusted EBITDA	99,022	101,431
Total Debt - Proportionate Share Basis	1,182,259	1,125,272
Cash - Proportionate Share Basis	5,700	5,878
Total Debt, net of cash - Proportionate Share Basis	$                 1,176,559	$                        1,119,394
Proportionate Debt-to-Adjusted EBITDA ratio	11.88x	11.04x

NAV and NAV per unit

($000's except unit and per unit amounts)	As at
	December 31, 2025	September 30, 2025	December 31, 2024
Net assets (Unitholders' equity)	$                           812,013	$                        1,045,492	$                        1,115,747
Add: Class B LP Units	351,041	354,904	343,572
NAV	$                        1,163,054	$                        1,400,396	$                        1,459,319
Number of Units and Class B LP Units	62,388,106	62,388,106	65,333,848
NAV per unit	$                               18.64	$                               22.45	$                               22.34

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]