Minto’s apartment portfolio beat expectations during its first three months of operations as a public REIT, according to the Ottawa-based company’s third-quarter earnings released Tuesday.
Minto Apartment REIT’s (TSX:MI.UN) funds from operations were $8 million for the three months ended Sept. 30 (minus one day as the REIT had its IPO on July 2). That’s 11.7 per cent higher than the company’s forecasted results.
Total revenue for the third quarter was $21.1 million, beating forecasts by about 3.4 per cent.
New leasing activity helped the REIT bolster its results, as the company is able to bring outdated rental rates to current market levels when a new tenant moves in. The REIT signed 363 new leases in the quarter, bringing average monthly rent up 7.3 per cent to $1,497 per suite.
Occupancy rate for the REIT’s portfolio was 99 per cent as of Sept. 30, compared with a forecasted occupancy of 96.7 per cent.
The REIT also repositioned some of its properties to better serve market demand and said it expects to begin renovation work on its Carlisle and Castle Hill properties in Ottawa next year.
Shares of the Minto REIT were up 57 cents, an increase of more than three per cent, in trading on the TSX Tuesday. The stock price stood around $18.14 in the early afternoon.