Q2 2024 Minto Apartment Real Estate Investment Trust Earnings Call Transcript
Key Points
- Minto Apartment REIT (MIAPF) achieved a 6.3% growth in average monthly rents for the same property portfolio compared to Q2 last year.
- Normalized FFO per unit increased by 15.4%, and normalized AFFO per unit increased by 18.7%, indicating strong cash flow growth.
- Debt to GBV was reduced to 41.8%, and debt to adjusted EBITDA improved to 10.9 times, reflecting strong financial performance.
- The REIT successfully signed 420 new leases in Q2, generating an 11% gain on lease, with double-digit increases in Ottawa and Calgary.
- Utility costs in the same-property portfolio declined by 7.5%, primarily due to decreases in natural gas and electricity rates, contributing to cost savings.
- Revenue from the furnished suite portfolio declined by 12.8% compared to Q2 last year, primarily due to lower occupancy at Minto Yorkville.
- Commercial portfolio revenue decreased by 27.4% year-over-year, reflecting retail vacancy at Minto Yorkville.
- Toronto experienced high vacancy for one-bedroom suites, resulting in lower closing occupancy of 95.1%, necessitating targeted promotions and marketing campaigns.
- Normalized operating expenses for the same property portfolio increased slightly due to higher salaries and wages.
- The REIT's unit price remains below NAV, limiting the ability to issue equity to fund acquisitions and impacting external growth strategies.
Good morning. My name is Shu, and I will be your conference coordinator today. At this time, I would like to welcome everyone to the Minto Apartment REIT 2024 second-quarter financial results conference call. (Operator Instructions)
Before we begin, I want to remind listeners that certain statements about future events made on this conference call are forward-looking in nature. Any such information is subject to risks, uncertainties and assumptions that could cause actual results to differ materially. Please refer to the cautionary statements on forward-looking information in the REIT's news release and MD&A dated August 13, 2024, for more information.
During the call, management will also reference certain non-IFRS financial measures. Although the REIT believes these measures provide useful supplemental information about its financial performance, they're not recognized measures and do not have standardized meanings under IFRS. Please see the REIT's MD&A for additional information regarding non-IFRS financial measures, including reconciliations to the nearest IFRS measures.
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