An attractive asset class
The Canadian multi-residential real estate sector has delivered superior returns relative to other forms of real estate. Multi-residential real estate is highly stable throughout the economic cycle and is expected to benefit from continued economic expansion and strong rental demand in Canada.
A high quality portfolio with scale
Comprised of 26 income-producing properties totaling 5,961 suites in Toronto, Ottawa, Montréal, Calgary and Edmonton, the buildings are located in desirable nodes or downtown areas with constrained supply/demand attributes and excellent walk scores. Our portfolio generates the highest in-place rents among the public peers.
Strategic avenues for growth
Positioned to generate organic growth through gains-to-lease in existing rents, value-adding renovations, and intensification initiatives. The REIT expects to generate external growth through its right of first opportunity on investment opportunities identified by The Minto Group, as well as third-party acquisitions.
Benefit of an industry-leading, vertically integrated platform with strong alignment of interests
Minto has a fully-integrated, institutional-caliber real estate operating platform with a complete range of real estate investment management services, providing the REIT with cost efficiency and scalability. Minto's interest is fully aligned with REIT unitholders as it holds a 56.8% interest in the REIT, while approximately 95 employees work for both entities. Minto intends to fully internalize asset management and property management functions into the REIT at no cost once the REIT achieves sufficient scale.
Experienced management team and Board
The executive officers of the REIT have more than 105 years of combined real estate industry experience and an average tenure of eight years at Minto. The majority independent Board of Trustees brings deep experience in corporate governance, capital markets, real estate, legal and audit matters.
Predictable distributions and growth
The REIT pays an annual cash distribution of 40 cents per unit, paid on a monthly basis, and based on an AFFO payout ratio of approximately 65%. Debt to gross book value at the closing of the IPO is approximately 46%, and the weighted average interest rate on the debt is 3.1%. The conservative AFFO payout ratio and leverage profile supports healthy, sustainable distributions and provides financial flexibility for the REIT to pursue both internal and external growth opportunities.