Minto REIT's rental revenues continue to rise in Q3 despite pandemic

Minto Meadowlands property
The Frontenac at 1192 Meadowlands Dr. E. is one of the Ottawa properties in Minto REIT's portfolio. (Google Street View image)

Ottawa-based Minto Apartment REIT’s portfolio “continues to generate solid performance” despite the pandemic as rent collection rates were consistent with pre-COVID levels in the third quarter, the company said this week.

Minto reported its funds from operations – a key cash-flow metric for REITs – for the three-month period ending Sept. 30 increased 22 per cent year-over-year to $13.2 million.

Meanwhile, average monthly rents rose 9.1 per cent to $1,613 over that period. The company said 97 per cent of its available unfurnished suites were occupied at the end of September, down from 98.6 per cent a year earlier.

“The REIT's portfolio continues to generate solid performance despite the uncertainty created by COVID-19,” CEO and president Michael Waters said in a statement. “Given our strong liquidity and superior property portfolio, I am confident that we will emerge from the pandemic in an excellent competitive position.”

The REIT said it has remained “highly resilient” despite the economic fallout from the COVID-19 crisis, noting rental collections “have been consistent with pre-pandemic cycles and occupancy has remained strong.”

Minto said it will continue to work with tenants on a case-by-case basis “to address any payment difficulties arising from the pandemic.”

Minto REIT owns 29 multi-residential properties in Ottawa, Toronto, Montreal, Calgary and Edmonton with more than 7,200 apartment units.