Ottawa’s Minto REIT opens the TSX with first quarterly earnings

TMX Minto
Representatives from the Minto REIT open the market on Monday, Aug. 13. Photo provided by TMX Group.

Ottawa-based Minto Group’s newly created real estate investment trust raised a total of $230 million in its initial public offering, including an over-allotment option, the REIT said in its first financial statements issued as a public company.

The Minto REIT (TSX:MI.UN), which consists of 22 apartment buildings spun off from Minto Properties’ multi-residential portfolio, raised $200 million in its debut July 3 on the Toronto Stock Exchange with 13,794,000 trust units priced at $14.50 each.

On July 10, the REIT issued an additional 2,069,100 units also priced at $14.50 each as part of its over-allotment option, raising another $30 million. Minto Properties retains 56.8 per cent ownership of the REIT.

Funds raised from the offering will primarily finance the REIT’s property expansions. A prospectus filed before the offering claimed the new company will be “well-positioned” to capitalize on Canada’s growing rental housing market.

Representatives from the Minto REIT were on-hand Monday at the Toronto Stock Exchange to ring the opening bell before releasing its first quarterly financing results after markets closed.

According to financial documents issued that evening, the total value of the REIT’s properties is about $1.12 billion. Its 4,279 total suites commanded an average monthly rent of $1,366 in the three-month period ended June 30, a 2.9 per cent increase from last year’s average of $1,327. Occupancy on June 30 stood at 97.6 per cent, up from 96.1 per cent in 2017.

“Our portfolio performed in line with expectations during the second quarter,” Minto REIT chief executive officer Michael Waters said in a news release. “We continue to drive organic growth, as reflected in the improvement in both average monthly rent per suite and portfolio occupancy. The ongoing improvement reflects our success in renovating and re-leasing suites.”