As its property managers sign tenants to increasingly lucrative leases, Minto Apartment REIT is seeing its quarterly earnings rise in step.
The Ottawa-based real estate investment trust reported funds from operations of $10.8 million for the three months ended Sept. 30, an increase of 35.3 per cent over the same quarter a year ago. This is the first quarter the Minto REIT can demonstrate year-over-year growth, as the company went public in early July 2018.
In Q3, Minto REIT signed 442 new leases with tenants. This turnover allows the company to bring existing leases up to market value, resulting in a 16.9 per cent increase on average monthly rents.
Minto REIT said in a release that there are 6,326 units in its remaining portfolio that have similar gain-to-lease potential, which could yield an extra $15.3 million in annual revenue if realized down the line.