Minto Apartment REIT Reports 2023 Fourth Quarter and Year-End Financial Results

— Normalized FFO and AFFO per unit growth of 21.2% and 25.9% in the fourth quarter, respectively —

OTTAWA, ON, March 6, 2024 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: MI.UN) today announced its financial results for the fourth quarter and year ended December 31, 2023 ("Q4 2023" and "FY 2023", respectively). The Audited Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for Q4 2023 and FY 2023 are available on the REIT's website at www.mintoapartmentreit.com and at www.sedarplus.ca.¹

"Minto Apartment REIT ended the year with an exceptionally strong fourth quarter. Continued strong operating performance combined with prudent capital allocation decisions led to a 21.2% increase in Normalized FFO per unit and a 25.9% increase in Normalized AFFO per unit compared to Q4 last year." said Jonathan Li, President and Chief Executive Officer of the REIT. "For the full year, the REIT delivered 10.1% Same Property Portfolio Normalized NOI growth, driven by strong market fundamentals in Canada's major cities and strong operating performance from our high quality, urban portfolio. Importantly, we successfully converted NOI growth into cash flow per unit growth by delivering Normalized FFO per unit growth of 4.9% and Normalized AFFO per unit growth of 6.0%, despite carrying a high amount of expensive variable-rate debt earlier in the year."

"The successful execution of our capital recycling program has strengthened our balance sheet and further reduced our variable-rate debt exposure into early 2024. Including assets which closed subsequent to year end, we sold five non-core assets at prices in line with their IFRS fair values for $128 million and we used the net proceeds to repay variable-rate debt. Importantly, in February 2024, we sold two assets comprising 311 suites to Ottawa Community Housing Corporation who will maintain affordability in these suites going forward, helping to improve some of the affordability challenges faced by our country."

"2023 was an important year for the REIT. Looking back, we made many disciplined capital allocation decisions throughout the year, including waiving on an acquisition, deferring a major intensification project, waiving on opportunities presented to the REIT, securing upward refinancings and successfully executing on our capital recycling program. At times, these decisions were difficult - but they were necessary - as they have best-positioned the REIT to become a growth story once again."

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1  This news release contains certain non-IFRS and other financial measures. Refer to "Non-IFRS and Other Financial Measures" in this news release for a complete list of these measures and their meaning.

Q4 2023 Highlights

• Average monthly rent was $1,877, an increase of 8.4% compared to the fourth quarter ended December 31, 2022 ("Q4 2022");
• Average occupancy of unfurnished suites was consistent at 97.2%, compared to 97.1% in Q4 2022;
• The REIT executed 335 new leases, achieving an average rental rate that was 16.1% higher than the expiring rents. The gain-to-lease potential on sitting rents remains attractive at 17.1% as at December 31, 2023;
• Annualized turnover for the Same Property Portfolio² ("SPP") was 20.3%, in line with historical norms;
• SPP revenue was $36.9 million, an increase of 6.3% compared to Q4 2022;
• SPP Normalized Net Operating Income ("Normalized NOI") increased 9.0% compared to Q4 2022 and SPP Normalized NOI margin was 63.0%, an increase of 150 bps from Q4 2022;
• Revenue was $40.3 million, an increase of 6.3% compared to Q4 2022
• Net Operating Income ("NOI") increased 13.4% compared to Q4 2022; NOI margin was 64.6%, an increase of 410 bps from Q4 2022;
• Normalized Funds from Operations ("Normalized FFO") were $0.2318 per unit, an increase of 21.2% from $0.1913 per unit in Q4 2022.
• Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.2083 per unit, an increase of 25.9% compared to $0.1654 per unit in Q4 2022;
• Net loss and comprehensive loss was $77.2 million; and,
• On October 31, 2023, the REIT published its 2022 Environmental, Social and Governance ("ESG") Report, which shares the REIT's progress in implementing ESG initiatives and setting targets to further its objectives and goals across all its operations and with all its stakeholders.

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2  SPP consists of 27 multi-residential properties both wholly and jointly owned by the REIT for comparable periods in 2023 and 2022 and represents 91% of the REIT's total portfolio suite count.

FY 2023 Highlights

• SPP revenue was $144.3 million, an increase of 8.0% compared to the year ended December 31, 2022 ("FY 2022")
• SPP Normalized NOI increased 10.1% compared to FY 2022 and SPP Normalized NOI margin was 62.8%, an increase of 120 bps compared to the same period;
• Revenue was $157.9 million, an increase of 9.8% from FY 2022
• NOI increased 13.0% from FY 2022 and NOI margin was 62.8%, an increase of 170 bps compared to the same period;
• Normalized FFO was $0.8617 per unit, an increase of 4.9% compared to $0.8215 per unit in FY 2022;
• Normalized AFFO was $0.7608 per unit, an increase of 6.0% compared $0.7176 per unit in FY 2022;
• Net loss and comprehensive loss was $116.7 million;
• The REIT refinanced a total of eight mortgages for net proceeds of $97.9 million which were used to pay down a portion of the REIT's credit facility;
• The REIT sold three non-core properties in Edmonton in line with their IFRS fair values, completing an exit from that market; and
• The Board of Trustees approved a 3.1% increase to the annual distribution in November 2023, bringing it to $0.5050 per unit.

Subsequent to Year End

On February 15, 2024, the REIT completed the sale of the Tanglewood and a selection of suites at the Parkwood Hills community in Ottawa, Ontario to Ottawa Community Housing Corporation for a sale price of $86.0 million, which was in line with their IFRS fair values. Net proceeds of $68.0 million were used to pay down a portion of the REIT's variable-rate revolving credit facility.

Financial Summary

($000's except per unit and per suite amounts)	Three months ended December 31,				Year ended December 31,
	2023	2022	Variance		2023	2022	Variance
Revenue from investment properties	$    40,286	$    37,916	6.3 %		$  157,925	$  143,790	9.8 %
Property operating costs	6,636	7,414	10.5 %		29,568	28,387	(4.2) %
Property taxes	4,172	3,872	(7.7) %		16,187	15,116	(7.1) %
Utilities	3,446	3,683	6.4 %		13,002	12,491	(4.1) %
NOI	$    26,032	$    22,947	13.4 %		$    99,168	$    87,796	13.0 %
NOI margin (%)	64.6 %	60.5 %	410 bps		62.8 %	61.1 %	170 bps
Normalized NOI	$    25,236	$    22,947	10.0 %		$    98,502	$    87,796	12.2 %
Normalized NOI margin (%)	62.6 %	60.5 %	210 bps		62.4 %	61.1 %	130 bps
Revenue - SPP	$    36,899	$    34,711	6.3 %		$  144,285	$  133,629	8.0 %
NOI - SPP	23,948	21,330	12.3 %		91,170	82,256	10.8 %
NOI margin (%) - SPP	64.9 %	61.5 %	340 bps		63.2 %	61.6 %	160 bps
Normalized NOI - SPP	$    23,252	$    21,330	9.0 %		$    90,604	$    82,256	10.1 %
Normalized NOI margin - SPP	63.0 %	61.5 %	150 bps		62.8 %	61.6 %	120 bps
Interest costs	$    10,409	$    10,062	(3.4) %		$    42,207	$    32,648	(29.3) %
Net (loss) income and comprehensive (loss) income	(77,238)	(32,432)	(138.2) %		(116,659)	225,400
FFO	16,012	12,864	24.5 %		$    55,258	$    54,177	2.0 %
FFO per unit	0.2439	0.1960	24.4 %		$    0.8417	$    0.8353	0.8 %
AFFO	14,472	11,160	29.7 %		$    48,634	$    47,443	2.5 %
AFFO per unit	0.2204	0.1700	29.6 %		$    0.7408	$    0.7315	1.3 %
Distribution per unit	$    0.1250	$    0.1212	3.1 %		$    0.4925	$    0.4775	3.1 %
AFFO payout ratio	56.7 %	71.3 %	1,460 bps		66.5 %	65.4 %	(110) bps
Normalized FFO	$    15,216	$    12,560	21.1 %		$    56,569	$    53,279	6.2 %
Normalized FFO per unit	0.2318	0.1913	21.2 %		0.8617	0.8215	4.9 %
Normalized AFFO	13,676	10,856	26.0 %		49,945	46,545	7.3 %
Normalized AFFO per unit	0.2083	0.1654	25.9 %		0.7608	0.7176	6.0 %
Normalized AFFO payout ratio	60.0 %	73.3 %	1,330 bps		64.7 %	66.7 %	200 bps
Average monthly rent	$      1,877	$      1,732	8.4 %		$      1,877	$      1,732	8.4 %
Average monthly rent - SPP	$      1,859	$      1,740	6.8 %		$      1,859	$      1,740	6.8 %
Closing occupancy	97.3 %	97.6 %	(30) bps		97.3 %	97.6 %	(30) bps
Closing occupancy - SPP	97.3 %	97.5 %	(20) bps		97.3 %	97.5 %	(20) bps
Average occupancy	97.2 %	97.1 %	10 bps		97.1 %	95.6 %	150 bps
Average occupancy - SPP	97.3 %	97.2 %	10 bps		97.2 %	95.6 %	160 bps

Summary of Q4 2023 and FY 2023 Operating Results

Achieved Same Property NOI Growth of 9.0% in Q4 2023 and 10.1% in FY 2023

The REIT achieved strong SPP Normalized NOI growth of 9.0% in Q4 2023 compared to Q4 2022. This was primarily driven by an increase in SPP average monthly rent of 6.8% and slightly higher average occupancy. In addition, SPP Normalized operating expenses increased by 2.0% in Q4 2023. Property operating expenses benefited from a mild start to winter and also lower natural gas costs, offset by higher property taxes. SPP Normalized NOI margin increased by 150 bps to 63.0%, reflecting revenue growth, particularly from unfurnished suites, which outpaced growth in Normalized operating expenses.

For FY 2023, the REIT achieved strong SPP Normalized NOI growth of 10.1%, driven by increased average monthly rent and a 160 bps increase in average occupancy to 97.2%, compared to 95.6% for FY 2022. Revenue growth outpaced an increase in Normalized operating expenses, driven by higher property taxes and, partially offset by decreased natural gas costs from lower rates. This growth resulted in SPP Normalized NOI margin of 62.8%, an increase of 120 bps compared to 61.6% for FY 2022. 

Converted NOI into Normalized FFO and AFFO per Unit Growth

In Q4 2023, Normalized FFO per unit growth and Normalized AFFO per unit growth were 21.2% and 25.9% over Q4 2022, respectively. For FY 2023, Normalized FFO per unit growth and Normalized AFFO per unit growth were 4.9% and 6.0%, respectively. The increases reflect Normalized NOI growth, the impact of implementing accretive capital allocation decisions, including reducing exposure to variable-rate debt through the second half of the year, and accretive asset sales.

IFRS Net Loss and Comprehensive Loss

The REIT's net asset value ("NAV") per unit as at December 31, 2023 was $22.76, a decline from $23.01 as at September 30, 2023, primarily resulting from a fair value loss on investment properties of $21.2 million in Q4 2023. This was reflected through higher capitalization rates within certain geographies of the residential portfolio and an increase to the capital expenditure reserve, partially offset by growth in forecast NOI for the overall portfolio.

The fair value loss on Class B LP Units of $65.7 million in Q4 2023 reflected the increase in the REIT's Unit price during the quarter as it climbed from $13.63 per Unit at the start of the quarter and closed at 16.18 per Unit .

The REIT reported a net loss and comprehensive loss of $77.2 million in Q4 2023, compared to $32.4 million in Q4 2022. The variance was primarily attributable to larger non-cash, fair value losses on investment properties and Class B LP Units in Q4 2023 compared to Q4 2022.

Gain-on-Lease, Turnover and Gain-to-Lease Potential

The REIT realized on organic growth with 335 new leases signed in Q4 2023, achieving an average gain-on-lease of 16.1%. The REIT realized significant double-digit gain-on-lease in all markets during Q4 2023, supported by strong Canadian urban rental market conditions. Further organic growth is embedded in the unfurnished suite portfolio, and the REIT estimates a gain-to-lease potential of 17.1% as at December 31, 2023, representing future annualized potential revenue of $23.8 million. The REIT's ability to realize these embedded leasing gains is dependent on natural turnover. SPP annualized turnover was 20.3% in Q4 2023. The REIT expects turnover will slow in 2024 due to the gap between sitting rents and market rents. The REIT expects that it will be able to realize a significant portion of the gain-to-lease potential over a period of four to six years.

The REIT repositioned a total of 18 suites across its portfolio in Q4 2023, generating an average annual unlevered return on investment of 11.8%. The REIT strategically assesses each repositioning and currently expects to reposition a total of 50 to 90 suites in 2024, down from 116 suites in 2023.

Disciplined Capital Allocation Has Strengthened the Balance Sheet

During FY 2023 and the first quarter of 2024 ("Q1 2024"), Management has been focused on disciplined capital allocation in order to strengthen the REIT's balance sheet to provide flexibility with respect to its refinancing, operating and investment strategies. These measures have included:

• Reducing variable-rate debt with the proceeds from the sale of five non-core properties for a combined price of $128.2 million which was in line with their IFRS fair values, raising net proceeds of $77.9 million;
• Refinancing a total of eight maturing mortgages with an outstanding balance of $290.8 million with new CMHC-insured financing of $402.6 million, resulting in net proceeds of $97.9 million which were used to repay variable-rate debt;
• Waiving the REIT's purchase option on the Fifth + Bank property. On January 31, 2024, the REIT received repayment of the $30 million convertible development loan ("CDL") from Minto Properties Inc. ("MPI") that was associated with the property, which was used to repay variable-rate debt;
• Waiving the REIT's right of first opportunity for four purpose-built rental developments and one existing multi-residential opportunity presented by MPI, preserving capital; and
• Deferring the construction start of the intensification project at High Park Village in Toronto, preserving approximately $75 million of future equity requirements related to the REIT's portion of the project.

Management continues to explore upward refinancing for three properties with the potential to generate proceeds of $55.0 million and $65.0 million. Management will consider the impact that each potential refinancing has on funds from operations ("FFO") per unit by considering interest rates on maturing mortgages relative to the potential refinanced interest rates, pro forma balance outstanding and the REIT's debt maturity schedule.

As of December 31, 2023, the REIT had Total Debt outstanding of $1.16 billion, with a weighted average effective interest rate on Term Debt of 3.39% and a weighted average term to maturity on Term Debt of 5.84 years.

The Debt-to-Gross Book Value ("GBV") ratio as at December 31, 2023 was 42.8%.

The REIT continues to maintain a strong financial position. Total liquidity was approximately $97.5 million as at December 31, 2023, with a liquidity ratio (Total liquidity/Total Debt) of 8.4%.

Capital Recycling Update

The REIT continues to view capital recycling as an attractive source of potential capital. However, given the anticipated low outstanding balance on its revolving credit facility by the end of Q1 2024 (resulting from the $30 million CDL repayment, asset sale proceeds and potential refinancings noted above), the REIT will be opportunistic regarding any other potential asset sales but will consider them under the appropriate circumstances.

Conference Call

Management will host a conference call for analysts and investors on Thursday, March 7, 2024 at 10:00 am ET. To join the conference call without operator assistance, participants can register and enter their phone number at https://emportal.ink/3TTPMUp to receive an instant automated call back. Alternatively, they can dial 416-764-8688 or 1-888-390-0546 to reach a live operator who will join them into the call.

In addition, the call will be webcast live at:

Minto Apartment REIT Q4 2023 Earnings Webcast

A replay of the call will be available until Thursday, March 14, 2023. To access the replay, dial 416-764-8677 or 888-390-0541 (Passcode: 648597 #). A transcript of the call will be archived on the REIT's website.

About Minto Apartment Real Estate Investment Trust

Minto Apartment Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario to own, develop, and operate income-producing multi-residential properties located in urban markets in Canada. The REIT owns a portfolio of high-quality income-producing multi-residential rental properties located in Toronto, Montreal, Ottawa and Calgary. For more information on Minto Apartment REIT, please visit the REIT's website at: www.mintoapartmentreit.com.

Forward-Looking Information

This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will", "expects", "potential" and "anticipated". Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the REIT's Annual Information Form dated March 6, 2024, which is available on SEDAR+ (www.sedarplus.ca). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

Non-IFRS and Other Financial Measures

This news release contains certain non-IFRS and other financial measures which are measures commonly used by publicly traded entities in the real estate industry. Management believes that these metrics are useful for measuring different aspects of performance and assessing the underlying operating and financial performance on a consistent basis. However, these measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should strictly be considered supplemental in nature and not a substitute for financial information prepared in accordance with IFRS. The REIT has adopted the guidance under NI 52-112 Non-GAAP and Other Financial Measures Disclosure for the purpose of this news release. These non-IFRS and other financial measures are defined below:

• "AFFO" is defined as FFO adjusted for items such as maintenance capital expenditures and straight-line rental revenue differences. AFFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating AFFO may differ from other issuers' methods and, accordingly, may not be comparable to AFFO reported by other issuers. The REIT also uses AFFO in assessing its capacity to make distributions.
• "AFFO per unit" is calculated as AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards AFFO per unit as a key measure of operating performance.
• "AFFO payout ratio" is the proportion of the total distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership to AFFO. The REIT uses AFFO payout ratio in assessing its capacity to make distributions.
• "annualized turnover" is calculated as the number of move-outs for the period divided by total number of unfurnished suites in the portfolio. This percentage is extrapolated to determine an annual rate.
• "average annual unlevered return" refers to the return on repositioning activities, and is calculated by dividing the average annual rental increase per suite after repositioning by the average repositioning cost per suite, excluding the impact of financing costs.
• "average monthly rent" represents the average monthly rent per suite for occupied unfurnished suites at the end of the period.
• "average occupancy" is defined as the ratio of occupied unfurnished suites to the total unfurnished suites in the portfolio for the period.
• "Debt-to-GBV ratio" is calculated by dividing total interest-bearing debt consisting of fixed and variable rate mortgages, credit facilities, construction loans and Class C limited partnership units of Minto Apartment Limited Partnership by Gross Book Value and is used as the REIT's primary measure of its leverage.
• "FFO" is defined as IFRS consolidated net income adjusted for items such as unrealized changes in the fair value of investment properties, effects of puttable instruments classified as financial liabilities and changes in fair value of financial instruments and derivatives. FFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating FFO may differ from other issuers' methods and, accordingly, may not be comparable to FFO reported by other issuers.
• "FFO per unit" is calculated as FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards FFO per unit as a key measure of operating performance.
• "gain-on-lease" refers to the gap between rents achieved on new leases of unfurnished suites as compared to the expiring leases.
• "gain-to-lease potential" refers to the gap between Management's estimate of monthly market rent and average monthly in-place rent per occupied unfurnished suite.
• "Gross Book Value" is defined as the total assets of the REIT as at the balance sheet date.
• "interest costs" are calculated as the sum of costs incurred on mortgages, credit facility, and Class C limited partnership units of Minto Apartment Limited Partnership and excludes debt retirement costs.
• "NAV" is calculated as the sum of the value of REIT Unitholders' equity and Class B limited partnership units of Minto Apartment Limited Partnership as at the balance sheet date.
• "NAV per unit" is calculated by dividing NAV by the number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding as at the balance sheet date.
• "NOI" is defined as revenue from investment properties less property operating costs, property taxes and utilities (collectively referred to as "property operating expenses" or "operating expenses") prepared in accordance with IFRS. NOI should not be construed as an alternative to net income determined in accordance with IFRS. The REIT's method of calculating NOI may differ from other issuers' methods and, accordingly, may not be comparable to NOI reported by other issuers. It is a key input in determining the value of the REIT's properties.
• "NOI margin" is defined as NOI divided by revenue from investment properties.
• "Normalized AFFO" is calculated as AFFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Normalized AFFO per unit" is calculated as Normalized AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period.
• "Normalized AFFO payout ratio" is the proportion of the total distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership to Normalized AFFO.
• "Normalized FFO" is calculated as FFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Normalized FFO per unit" is calculated as Normalized FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period.
• "Normalized NOI" is calculated as NOI net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Normalized NOI margin" is defined as Normalized NOI divided by revenue from investment properties.
• "Normalized operating expenses is calculated as operating expenses net of non-recurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Term Debt" is calculated as the sum of value of fixed rate mortgages, a variable rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership.
• "Total Debt" is calculated as the sum of value of interest-bearing debt consisting of mortgages, credit facilities, construction loans and Class C limited partnership units of Minto Apartment Limited Partnership.
• "Total liquidity" is calculated as the sum of the undrawn balance under the revolving credit facility and cash.
• "weighted average term to maturity on Term Debt" is calculated as the weighted average of the term to maturity on the outstanding fixed rate mortgages, a variable rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership.
• "weighted average effective interest rate on Term Debt" is calculated as the weighted average of the effective interest rates on the outstanding balances of fixed rate mortgages, a variable rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership.

Reconciliations of Non-IFRS Financial Measures and Ratios

FFO and AFFO

($000's except unit and per unit amounts)	Three months ended December 31,			Year ended December 31,
	2023	2022		2023	2022
Net (loss) income and comprehensive (loss) income	$               (77,238)	$               (32,432)		$            (116,659)	$              225,400
Distributions on Class B LP Units	3,219	3,122		12,683	11,942
Issuance costs on Class B LP Units	—	—		—	175
Disposition costs on investment property	1,054	—		1,402	—
Fair value loss (gain) on:
Investment properties	21,208	12,209		101,627	18,828
Class B LP Units	65,675	29,617		54,858	(197,531)
Interest rate swap	1,070	(6)		751	(2,391)
Unit-based compensation	1,024	354		596	(2,246)
Funds from operations (FFO)	16,012	12,864		55,258	54,177
Maintenance capital expenditure reserve	(1,496)	(1,525)		(6,036)	(5,991)
Amortization of mark-to-market adjustments	(44)	(179)		(588)	(743)
Adjusted funds from operations (AFFO)	14,472	11,160		48,634	47,443
Distributions on Class B LP Units	3,219	3,122		12,683	11,942
Distributions on Units	4,986	4,838		19,645	19,100
	$                  8,205	$                  7,960		$                32,328	$                31,042
AFFO payout ratio	56.7 %	71.3 %		66.5 %	65.4 %
Weighted average number of Units and Class B    LP Units issued and outstanding	65,653,641	65,642,641		65,647,644	64,858,981
FFO per unit	$                0.2439	$                0.1960		$                0.8417	$                0.8353
AFFO per unit	$                0.2204	$                0.1700		$                0.7408	$                0.7315

Normalized FFO and AFFO

($000's except unit and per unit amounts)	Three months ended December 31,			Year ended December 31,
	2023	2022		2023	2022
FFO	$                16,012	$                12,864		$                55,258	$                54,177
AFFO	14,472	11,160		48,634	47,443
Normalizing items for NOI	(796)	—		(666)	—
Debt retirement costs	—	—		1,779	—
Property investigation cost write-offs	—	—		417	—
Insurance recoveries	—	(304)		(219)	(898)
	(796)	(304)		1,311	(898)
Normalized FFO	$                15,216	$                12,560		$                56,569	$                53,279
Normalized FFO per unit	$                0.2318	$                0.1913		$                0.8617	$                0.8215
Normalized AFFO	13,676	10,856		49,945	46,545
Normalized AFFO per unit	$                0.2083	$                0.1654		$                0.7608	$                0.7176
Normalized AFFO payout ratio	60.0 %	73.3 %		64.7 %	66.7 %

NOI and NOI Margin

Same Property Portfolio

($000's)	Three months ended December 31,			Year ended December 31,
	2023	2022		2023	2022
Revenue	36,899	34,711		144,285	133,629
Property operating expenses	12,951	13,381		53,115	51,373
NOI	23,948	21,330		91,170	82,256
NOI margin	64.9 %	61.5 %		63.2 %	61.6 %
Normalizing items for NOI
Severance	—	—		256	—
Property tax recovery	—	—		(126)	—
Accrual estimates for repair and maintenance costs	(696)	—		(696)	—
	(696)	—		(566)	—
Normalized NOI	23,252	21,330		90,604	82,256
Normalized NOI margin	63.0 %	61.5 %		62.8 %	61.6 %

Total Portfolio

($000's)	Three months ended December 31,			Year ended December 31,
	2023	2022		2023	2022
Revenue	40,286	37,916		157,925	143,790
Property operating costs	14,254	14,969		58,757	55,994
NOI	26,032	22,947		99,168	87,796
NOI margin	64.6 %	60.5 %		62.8 %	61.1 %
Normalizing items for NOI
Severance	—	—		256	—
Property tax recovery	—	—		(126)	—
Accrual estimates for repair and maintenance costs	(796)	—		(796)	—
	(796)	—		(666)	—
Normalized NOI	25,236	22,947		98,502	87,796
Normalized NOI margin	62.6 %	60.5 %		62.4 %	61.1 %

NAV and NAV per unit

($000's except unit and per unit amounts)	As at
	December 31, 2023	December 31, 2022	December 31, 2021
Net assets (Unitholders' equity)	$                        1,077,381	$                        1,213,537	$                        1,010,001
Add: Class B LP Units	416,716	361,858	498,415
NAV	$                        1,494,097	$                        1,575,395	$                        1,508,416
Number of Units and Class B LP Units	65,653,641	65,642,641	62,838,912
NAV per unit	$                               22.76	$                               24.00	$                               24.00

SOURCE Minto Apartment Real Estate Investment Trust

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