Minto Apartment REIT Reports 2024 Second Quarter Financial Results

— Double-digit growth in Normalized FFO and AFFO per unit —

OTTAWA, ON, Aug. 13, 2024 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: MI.UN) today announced its financial results for the second quarter and six months ended June 30, 2024 ("Q2 2024" and "YTD 2024", respectively). The Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("MD&A") for Q2 2024 and YTD 2024 are available on the REIT's website at www.mintoapartmentreit.com and at www.sedarplus.ca.¹

"We generated continued growth in our key financial metrics in the second quarter, reflecting growth in average rents, steady occupancy, disciplined expense management and accretive capital allocation strategies. Normalized Same Property Portfolio NOI increased 7.5% compared to Q2 last year, while Normalized FFO and AFFO per unit rose by 15.4% and 18.7%, respectively, reflecting our continued efforts to translate NOI growth into cash flow per unit growth", said Jonathan Li, President and Chief Executive Officer of the REIT. "Canadian urban rental market fundamentals remain strong, and we continue to generate solid gain-on-lease from the embedded rent in our portfolio. We continue to pursue the upward refinancing of four Ottawa properties anticipated to have total incremental net proceeds of between $70 and $80 million that will be used to reduce the revolving credit facility. Through prudent and disciplined capital management, we have built substantial financial flexibility, positioning the REIT well going forward."

Q2 2024 Highlights

• Same Property Portfolio ("SPP") revenue was $38.9 million, an increase of 4.8%, compared to the second quarter ended June 30, 2023 ("Q2 2023") driven by a 6.8% increase to unfurnished revenue, partially offset by a 12.8% decrease in furnished suite revenue from lower occupancy and a 27.4% decrease in commercial revenue from the Minto Yorkville retail vacancy.
• Total Portfolio revenue was $38.9 million, a decrease of 1.3% driven by lost revenue from the sale of properties in Ottawa and Edmonton.
• Average monthly rent was $1,939, an increase of 7.7% compared to Q2 2023;
• Average occupancy of unfurnished suites was 96.9%, similar to 97.0% in Q2 2023;
• SPP normalized operating expenses were flat compared to Q2 2023;
• The REIT executed 420 new leases, achieving an average rental rate that was 11.0% higher than the expiring rents. The gain-to-lease potential on sitting rents remains attractive at 15.7% as at June 30, 2024;
• SPP annualized turnover was 20.0%, in line with seasonal norms;
• SPP Normalized Net Operating Income ("Normalized NOI") increased 7.5% compared to Q2 2023 and SPP Normalized NOI margin was 64.0%, an increase of 160 bps from Q2 2023;
• Normalized Funds from Operations ("Normalized FFO") were $0.2452 per unit, an increase of 15.4% from $0.2125 per unit in Q2 2023;
• Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.2207 per unit, an increase of 18.7% compared to $0.1860 per unit in Q2 2023;
• Normalized AFFO payout ratio was 57.2%, a reduction of 870 bps compared to Q2 2023;
• Interest costs declined by 16.5% compared to Q2 2023, reflecting reduced variable-rate debt exposure;
• Net income and comprehensive income was $32.8 million, compared to a net loss and comprehensive loss of $43.0 million in Q2 2023;
• Debt-to-adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") ratio decreased to 10.87x from 11.79x at year-end 2023, and Debt-to-Gross Book Value ratio decreased by 100 bps to 41.8%;
• On May 7, 2024, the REIT and Minto Properties Inc. ("MPI") amended the terms of The Hyland convertible development loan ("CDL"). The REIT's purchase option was extended to February 28, 2025 and the maturity of the CDL was extended to April 30, 2025. In addition, the 6% annual interest rate on the CDL was adjusted to be equal to the all-in interest rate the REIT pays on its revolving credit facility, subject to a maximum interest rate of 7.25% per annum and a minimum interest rate of 5.25% per annum; and
• Management continues to pursue upward refinancing of four Ottawa properties anticipated to have total incremental net proceeds of between $70 million and $80 million. Once funded, the incremental net proceeds will be used to reduce the revolving credit facility, which will reduce variable rate debt as a percentage of Total Debt to low single digits.

Financial Summary

($000's except per unit and per suite amounts)	Three months ended June 30,				Six months ended June 30,
	2024	2023	Variance		2024	2023	Variance
Revenue from investment properties	$    38,893	$    39,401	(1.3) %		$    77,836	$    77,804	— %
Property operating costs	7,606	8,051	5.5 %		14,593	15,494	5.8 %
Property taxes	3,911	3,917	0.2 %		7,919	7,925	0.1 %
Utilities	2,481	2,861	13.3 %		5,985	7,077	15.4 %
NOI	$    24,895	$    24,572	1.3 %		$    49,339	$    47,308	4.3 %
NOI margin (%)	64.0 %	62.4 %	160 bps		63.4 %	60.8 %	260 bps
Normalized NOI	$    24,895	$    24,616	1.1 %		$    49,339	$    47,438	4.0 %
Normalized NOI margin (%)	64.0 %	62.5 %	150 bps		63.4 %	61.0 %	240 bps
Revenue - SPP	$    38,893	$    37,111	4.8 %		$    77,067	$    73,075	5.5 %
NOI - SPP	24,895	23,110	7.7 %		48,935	44,422	10.2 %
NOI margin (%) - SPP	64.0 %	62.3 %	170 bps		63.5 %	60.8 %	270 bps
Normalized NOI - SPP	$    24,895	$    23,154	7.5 %		$    48,935	$    44,552	9.8 %
Normalized NOI margin (%) - SPP	64.0 %	62.4 %	160 bps		63.5 %	61.0 %	250 bps
Interest costs	$      8,946	$    10,710	16.5 %		$    18,441	$    21,378	13.7 %
Net income (loss) and comprehensive income (loss)	32,790	(43,009)	nmf2		13,996	(67,236)	nmf2
Funds from Operations ("FFO")	16,649	11,925	39.6 %		$    31,688	$    23,554	34.5 %
FFO per unit	0.2535	0.1817	39.5 %		0.4826	0.3588	34.5 %
Adjusted Funds from Operations ("AFFO")	15,040	10,188	47.6 %		28,467	20,121	41.5 %
AFFO per unit	0.2290	0.1552	47.6 %		0.4335	0.3065	41.4 %
Distribution per unit	$    0.1262	$    0.1225	3.0 %		$    0.2525	$    0.2450	3.1 %
AFFO payout ratio	55.1 %	78.9 %	2,380 bps		58.2 %	79.9 %	2,170 bps
Normalized FFO	$    16,100	$    13,946	15.4 %		$    31,017	$    25,661	20.9 %
Normalized FFO per unit	0.2452	0.2125	15.4 %		0.4724	0.3909	20.8 %
Normalized AFFO	14,491	12,209	18.7 %		27,796	22,228	25.0 %
Normalized AFFO per unit	0.2207	0.1860	18.7 %		0.4233	0.3386	25.0 %
Normalized AFFO payout ratio	57.2 %	65.9 %	870 bps		59.7 %	72.3 %	1,260 bps
Average monthly rent	$      1,939	$      1,801	7.7 %		$      1,939	$      1,801	7.7 %
Average monthly rent - SPP	$      1,939	$      1,824	6.3 %		1,939	1,824	6.3 %
Closing occupancy	97.5 %	97.2 %	30 bps		97.5 %	97.2 %	30 bps
Closing occupancy - SPP	97.5 %	97.3 %	20 bps		97.5 %	97.3 %	20 bps
Average occupancy	96.9 %	97.0 %	(10) bps		96.9 %	97.1 %	(20) bps
Average occupancy - SPP	96.9 %	96.9 %	— bps		96.9 %	97.0 %	(10) bps
As at		June 30, 2024		December 31, 2023			Variance
Debt-to-Gross Book Value ratio		41.8 %			42.8 %		(100) bps
Debt-to-Adjusted EBITDA ratio		10.87x			11.79x		(0.92)x

 

_______________________________________________________
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.
2	No meaningful figure.

Summary of Q2 2024 Operating Results

Continued Solid Growth in Normalized NOI, Supported by Revenue Growth and Disciplined Expense Management

The REIT achieved SPP Normalized NOI growth of 7.5% in Q2 2024 compared to Q2 2023. This was a result of SPP revenue growth of 4.8%, driven by unfurnished suite revenue which increased by 6.8% due to growth in average monthly rent. This was partially offset by a 12.8% decrease in furnished suite revenue from lower occupancy and a 27.4% decrease in commercial revenue due to the retail vacancy at Minto Yorkville. SPP normalized operating expenses were flat over the same period, leading to SPP Normalized NOI margin of 64.0%, an increase of 160 bps compared to Q2 2023.

Significant Growth in Normalized FFO and AFFO per unit Driven by NOI Growth and Reduced Interest Costs

In Q2 2024, Normalized FFO per unit and Normalized AFFO per unit increased by 15.4% and 18.7%, respectively, compared to Q2 2023. The increases reflected Normalized NOI growth and the impact of previous debt reduction initiatives that resulted in a 16.5% decrease in interest costs compared to Q2 2023. Debt-to-Gross Book Value ratio decreased by 100 bps from December 31, 2023 to 41.8% and Debt-to-Adjusted EBITDA ratio decreased to 10.87x from 11.79x over the same period.

NAV per unit and IFRS Net Income and Comprehensive Income

The REIT's net asset value ("NAV") per unit as at June 30, 2024 was $22.27, effectively flat from $22.26 as at March 31, 2024. This was driven by strong operational results offset by a non-cash fair value loss on investment properties of $8.4 million in Q2 2024, which was attributable to increases in capitalization rates of 12.5 bps for Toronto residential properties and an increase to the capital expenditure reserve, partially offset by growth in forecast NOI.

The REIT recorded a non-cash fair value gain on Class B LP Units of $27.6 million in Q2 2024, reflecting a decrease in the Unit price during the quarter.

The REIT reported net income and comprehensive income of $32.8 million in Q2 2024, compared to a net loss and comprehensive loss of $43.0 million in Q2 2023. The positive variance was primarily attributable to the non-cash fair value gain of $27.6 million on Class B LP Units noted above, which compared to a loss of $6.7 million in Q2 2023, and the smaller non-cash fair value loss on investment properties of $8.4 million in Q2 2024, compared to $45.7 million in Q2 2023.

Gain-on-Lease, Gain-to-Lease Potential, Suite Repositioning and Commercial

The REIT generated organic growth through 420 new leases signed in Q2 2024, achieving an average gain-on-lease of 11.0%. Gain-on-lease remains strong across the portfolio, despite some moderation in Toronto where approximately 50% of new leases signed in Q2 2024 were at Niagara West, a non-rent controlled property where there was a lower gap to market rents. Excluding Niagara West, realized gain-on-lease in Toronto was 14.4% and 12.0% across the portfolio.

The REIT estimates a gain-to-lease potential of 15.7% as at June 30, 2024, representing future annualized potential revenue of $21.5 million. The REIT's ability to realize these embedded leasing gains is dependent on natural turnover. SPP annualized turnover was 20.0% in Q2 2024, which was in line with seasonal norms. The REIT expects turnover to slow in 2024 relative to seasonal norms 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 five to seven years.

The REIT repositioned a total of 13 suites across its portfolio in Q2 2024, generating an average annual unlevered return on investment of 9.7%. Management has reduced its estimate of total suite repositionings in 2024, reflecting lower turnover propensity for these suites and the strategic assessment of each repositioning. Management currently expects to reposition a total of 35 to 70 suites in 2024, compared to 116 suites in 2023.

Management anticipates a lease for the retail unit at Minto Yorkville will be executed in 2024, with lease payments expected to occur in early 2026 to account for the fixturing period for a new tenant.

Maintaining a Strong Balance Sheet

Management remains focused on disciplined capital allocation in order to strengthen the REIT's balance sheet and provide flexibility with respect to its refinancing, operating and investment strategies.

As of June 30, 2024, the REIT had Total Debt outstanding of $1.09 billion, with a weighted average effective interest rate on Term Debt of 3.43% and a weighted average term to maturity on Term Debt of 5.57 years. Debt-to-Gross Book Value ratio was 41.8%, Debt-to-Adjusted EBITDA ratio was 10.87x and variable-rate debt was limited to 8% of Total Debt.

The REIT continues to maintain a strong financial position. Total liquidity was approximately $164.0 million as at June 30, 2024, with a liquidity ratio (Total liquidity/Total Debt) of 15.1%.

Conference Call

Management will host a conference call for analysts and investors on Wednesday, August 14, 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/3XIAeVC 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 Q2 2024 Earnings Webcast

A replay of the call will be available until Wednesday, August 21, 2024. To access the replay, dial 416-764-8677 or 888-390-0541 (Passcode: 275263 #). 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 IFRS Accounting 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-Adjusted EBITDA ratio" is calculated by dividing interest-bearing debt (net of cash) by Adjusted EBITDA. Adjusted EBITDA is a non-IFRS Financial Measure and used for evaluation of the REIT's financial health and liquidity. Adjusted EBITDA is calculated as the trailing twelve-month NOI adjusted for a full year of stabilized earnings including finance income, fees and other income and general and administrative expenses from recently completed acquisitions or dispositions, but excluding fair value adjustments. The REIT regards Debt-to-Adjusted EBITDA ratio as a measure of financial health and liquidity.
• "Debt-to-Gross Book Value 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" are calculated as operating expenses net of nonrecurring 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 the amortized cost of fixed rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C LP Units.
• "Total Debt" is calculated as the sum of the amortized cost of interest-bearing debt consisting of a variable rate credit facility and fixed rate debt comprised of mortgages, a variable rate mortgage fixed through an interest rate swap, Class C LP Units, and the construction loan.
• "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

	Three months ended June 30,			Six months ended June 30,
($000's except unit and per unit amounts)	2024	2023		2024	2023
Net income (loss) and comprehensive income (loss)	$           32,790	$          (43,009)		$        13,996	$      (67,236)
Distributions on Class B LP Units	3,252	3,154		6,503	6,309
Disposition costs on investment property	—	—		615	348
Fair value loss (gain) on:
Investment properties	8,360	45,700		46,965	59,203
Class B LP Units	(27,558)	6,696		(36,057)	24,982
Interest rate swap	333	(656)		275	(246)
Unit-based compensation	(528)	40		(609)	194
Funds from operations (FFO)	16,649	11,925		31,688	23,554
Maintenance capital expenditure reserve	(1,514)	(1,510)		(3,053)	(3,030)
Amortization of mark-to-market adjustments	(72)	(227)		(145)	(403)
Commercial straight-line rent adjustments	(23)	—		(23)	—
Adjusted funds from operations (AFFO)	15,040	10,188		28,467	20,121
Distributions on Class B LP Units	3,252	3,154		6,503	6,309
Distributions on Units	5,040	4,886		10,078	9,772
	$             8,292	$             8,040		$        16,581	$        16,081
AFFO payout ratio	55.1 %	78.9 %		58.2 %	79.9 %
Weighted average number of Units and Class B LP Units    issued and outstanding	65,669,554	65,642,641		65,664,545	65,642,641
FFO per unit	$           0.2535	$           0.1817		$        0.4826	$        0.3588
AFFO per unit	$           0.2290	$           0.1552		$        0.4335	$        0.3065

Normalized FFO and AFFO

	Three months ended June 30,			Six months ended June 30,
($000's except unit and per unit amounts)	2024	2023		2024	2023
FFO	$           16,649	$           11,925		$        31,688	$        23,554
AFFO	15,040	10,188		28,467	20,121
Normalizing items for NOI	—	44		—	130
Debt retirement costs	—	1,779		—	1,779
Property investigation cost write-offs	—	417		—	417
Insurance recoveries	(549)	(219)		(671)	(219)
	(549)	2,021		(671)	2,107
Normalized FFO	$           16,100	$           13,946		31,017	25,661
Normalized FFO per unit	$           0.2452	$           0.2125		0.4724	0.3909
Normalized AFFO	14,491	12,209		27,796	22,228
Normalized AFFO per unit	$           0.2207	$           0.1860		$        0.4233	$        0.3386
Normalized AFFO payout ratio	57.2 %	65.9 %		59.7 %	72.3 %

NOI and NOI Margin

Same Property Portfolio

($000's)	Three months ended June 30,			Six months ended June 30,
	2024	2023		2024	2023
Revenue from investment properties	$        38,893	$        37,111		$        77,067	$        73,075
Operating expenses	13,998	14,001		28,132	28,653
NOI	$        24,895	$        23,110		$        48,935	$        44,422
NOI margin	64.0 %	62.3 %		63.5 %	60.8 %
Normalizing items for NOI
Severance costs	$               —	$             170		$               —	$             256
Property tax recovery	—	(126)		—	(126)
	—	44		—	130
Normalized NOI	$        24,895	$        23,154		$        48,935	$        44,552
Normalized NOI margin	64.0 %	62.4 %		63.5 %	61.0 %

Total Portfolio

($000's)	Three months ended June 30,			Six months ended June 30,
	2024	2023		2024	2023
Revenue from investment properties	$        38,893	$        39,401		$        77,836	$        77,804
Operating expenses	13,998	14,829		28,497	30,496
NOI	$        24,895	$        24,572		$        49,339	$        47,308
NOI margin	64.0 %	62.4 %		63.4 %	60.8 %
Normalizing items for NOI
Severance costs	$               —	$             170		$               —	$             256
Property tax recovery	—	(126)		—	(126)
	—	44		—	130
Normalized NOI	$        24,895	$        24,616		$        49,339	$        47,438
Normalized NOI margin	64.0 %	62.5 %		63.4 %	61.0 %

NAV and NAV per unit

($000's except unit and per unit amounts)	As at
	June 30, 2024	March 31, 2024	December 31, 2023
Net assets (Unitholders' equity)	$                        1,081,559	$                        1,053,656	$                        1,077,381
Add: Class B LP Units	380,659	408,217	416,716
NAV	$                        1,462,218	$                        1,461,873	$                        1,494,097
Number of Units and Class B LP Units	65,671,690	65,660,891	65,653,641
NAV per unit	$                               22.27	$                               22.26	$                               22.76

SOURCE Minto Apartment Real Estate Investment Trust

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