One year after Minto Apartment REIT went public, the Ottawa-based company’s portfolio continues to deliver above initial expectations.
On Monday, the Minto REIT reported funds from operations of $9.8 million for the three months ended June 30, some 31.5 per cent higher than forecasts for the quarter set in the firm’s prospectus more than a year ago.
The REIT’s management said higher contributions from properties in Calgary, Toronto and Montreal as drove better-than-expected results, in addition to rent increases on lease turnovers and a higher occupancy across the portfolio.
The average rent for an unfurnished apartment in the Minto REIT portfolio sat at $1,439 per suite as of June 30, compared to $1,416 a year earlier. The REIT’s properties are 98.7 per cent occupied, up nearly two percentage points year-over-year.
Minto REIT went public on July 3, 2018, raising $230 million in its IPO. Chief executive Michael Waters said in a statement the firm’s first year on public markets was “extremely successful,” noting the REIT’s strategy of suite repositioning and acquiring properties in attractive markets were all going according to plan.
"With the 12-month IPO forecast period now over, we can look back with pride and say that we outperformed our expectations.”