Minto Apartment REIT Announces the Sale of Non-Core Asset in Ottawa for $69 million

Minto Apartment REIT Announces the Sale of Non-Core Asset in Ottawa for $69 million

— Sale price is at a premium to IFRS fair value, highlighting the significant net asset value discount implied by the unit price —

OTTAWA, ON, Nov. 15, 2024 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: MI.UN) announced today that it has entered into an agreement to sell its Castleview property located in Ottawa, Ontario to a private real estate investor (the "Transaction").  The sale price of $69 million is at a premium to the REIT's IFRS value for the asset. Upon closing, the proceeds of approximately $33.8 million, net of mortgages and commissions, will be used to repay a portion of the REIT's variable-rate revolving credit facility.  Castleview was built in 1973 and comprises 241 suites. The Transaction is anticipated to close in late January 2025.

"In total, upon closing of the transaction, we will have completed approximately $200 million of older non-core asset sales located in the Edmonton and Ottawa markets.  These sales have increased the overall quality of our portfolio, reduced our future major capital expenditure requirements, strengthened our balance sheet and increased our financial flexibility." said Jonathan Li, President and Chief Executive Officer of Minto Apartment REIT.

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 income-producing multi-residential properties located in Canada. The REIT owns a portfolio of high-quality multi-residential rental properties located primarily in urban centers in Canada's major markets of 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" and "anticipated".  In particular, this news release contains forward-looking information in relation to: the Transaction; timing for completion of the Transaction; and the use of the proceeds from the Transaction. Forward-looking information reflects management's current beliefs and is based on a number of assumptions that the REIT believes are reasonable 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 "Risks and Uncertainties" in the REIT's Management Discussion & Analysis dated November 12, 2024 which is available on SEDAR+ (www.sedarplus.ca), as well as the ability of the REIT to complete the Transaction.  Certain information in this press release may be considered as "financial outlook" within the meaning of applicable securities legislation.  The purpose of this financial outlook is to provide readers with disclosure regarding the REIT's reasonable expectations with respect to the Transaction.  Readers are cautioned that the financial outlook may not be appropriate for other purposes. 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.

SOURCE Minto Apartment Real Estate Investment Trust