— Normalized FFO and AFFO per unit growth of 27.3% and 32.8%, respectively — OTTAWA, ON, May 7, 2024 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX:MI) today announced its financial results for the first quarter ended March 31, 2024 ("Q1 2024"). The Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("MD&A") for Q1 2024 are available on the REIT's website at www.mintoapartmentreit.com and at www.sedarplus.ca.1 "It was a great start to 2024. In the first quarter, we generated outstanding year-over-year growth in net operating income and cash flow per unit. Normalized Same Property Portfolio NOI increased by 12.3% and Normalized FFO and AFFO per unit increased by 27.3% and 32.8%, respectively," said Jonathan Li, President and Chief Executive Officer of the REIT. "Our strategy of growing cash flow per unit has been successful. We have increased our FFO per unit growth for five consecutive quarters reflecting continued strong rental market conditions, outstanding operating performance from our high-quality urban portfolio, execution of accretive asset sales and disciplined capital allocation decisions. Collectively, these strategies have materially reduced leverage, increased our cash flow per unit and strengthened our balance sheet. In Q1 2024, our interest costs were 11% lower than the prior year, our variable-rate debt as a percentage of Total Debt decreased to 6% by quarter end and our Debt-to-Adjusted EBITDA and Debt-to-Gross Book Value ratios improved significantly." __________________________ 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. Q1 2024 Highlights Same Property Portfolio ("SPP") revenue was $38.2 million, an increase of 6.1% and total revenue was $38.9 million, an increase of 1.4% compared to the first quarter ended March 31, 2023 ("Q1 2023"); Average monthly rent was $1,911, an increase of 8.0% compared to Q1 2023; Average occupancy of unfurnished suites was 96.9%, compared to 97.2% in Q1 2023; The REIT executed 369 new leases, achieving an average rental rate that was 12.5% higher than the expiring rents. The gain-to-lease potential on sitting rents remains attractive at 15.9% as at March 31, 2024; SPP annualized turnover was 15.9%, in line with seasonal norms; SPP Normalized Net Operating Income ("Normalized NOI") increased 12.3% compared to Q1 2023 and SPP Normalized NOI margin was 63.0%, an increase of 350 bps from Q1 2023; Normalized Funds from Operations ("Normalized FFO") were $0.2272 per unit, an increase of 27.3% from $0.1785 per unit in Q1 2023; Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.2026 per unit, an increase of 32.8% compared to $0.1526 per unit in Q1 2023; Normalized AFFO payout ratio declined by 1,800 bps to 62.3%; Net loss and comprehensive loss was $18.8 million, compared to $24.2 million in Q1 2023; On January 31, 2024, the REIT received repayment of the $30.0 million convertible development loan ("CDL") on the Fifth + Bank property from Minto Properties Inc. ("MPI"). The proceeds were used to pay down a portion of the variable-rate revolving credit facility; On February 15, 2024, the REIT completed the sale of the Tanglewood property and a selection of suites at the Parkwood Hills property in Ottawa, Ontario to Ottawa Community Housing Corporation for a combined 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 variable-rate revolving credit facility; and, Debt-to-adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") ratio decreased by 0.85x to 10.94x and Debt-to-Gross Book Value ratio decreased by 140 basis points to 41.4%. Financial Summary Three months ended March 31, ($000's except per unit and per suite amounts) 2024 2023 Variance Revenue from investment properties $               38,943 $               38,403 1.4 % Property operating costs 6,987 7,443 6.1 % Property taxes 4,008 4,008 — % Utilities 3,504 4,216 16.9 % NOI $               24,444 $               22,736 7.5 % NOI margin (%) 62.8 % 59.2 % 360 bps Normalized NOI $               24,444 $               22,822 7.1 % Normalized NOI margin (%) 62.8 % 59.4 % 340 bps Revenue - SPP $               38,174 $               35,964 6.1 % NOI - SPP 24,040 21,312 12.8 % NOI margin (%) - SPP 63.0 % 59.3 % 370 bps Normalized NOI - SPP $               24,040 $               21,398 12.3 % Normalized NOI margin (%) - SPP 63.0 % 59.5 % 350 bps Interest costs $                 9,495 $               10,668 11.0 % Net loss and comprehensive loss (18,794) (24,227) 22.4 % Funds from Operations ("FFO") $               15,039 $               11,629 29.3 % FFO per unit 0.2290 0.1772 29.2 % Adjusted Funds from Operations ("AFFO") 13,427 9,933 35.2 % AFFO per unit 0.2045 0.1513 35.2 % Distribution per unit $               0.1262 $               0.1225 3.0 % AFFO payout ratio 61.7 % 81.0 % 1,930 bps Normalized FFO $               14,917 $               11,715 27.3 % Normalized FFO per unit 0.2272 0.1785 27.3 % Normalized AFFO 13,305 10,019 32.8 % Normalized AFFO per unit 0.2026 0.1526 32.8 % Normalized AFFO payout ratio 62.3 % 80.3 % 1,800 bps Average monthly rent $                 1,911 $                 1,769 8.0 % Average monthly rent - SPP 1,911 1,793 6.6 % Closing occupancy 97.1 % 97.6 % (50) bps Closing occupancy - SPP 97.1 % 97.5 % (40) bps Average occupancy 96.9 % 97.2 % (30) bps Average occupancy - SPP 96.9 % 97.1 % (20) bps As at March 31, 2024 December 31, 2023 Variance Debt-to-Gross Book Value ratio 41.4 % 42.8 % (140) bps