Section 1: Company Overview and Fundamental Insights

1.1 Company Overview:

Minto Apartment REIT (TSX: MI.UN) is an unincorporated, open-ended REIT that owns an income-producing portfolio of multi-family rental properties in Toronto, Montreal, Ottawa, Calgary, and Edmonton. In Canada, it owns, manages, and operates 30 multi-family rental properties, including three mixed-use residential and commercial structures. Its primary source of income is rental revenue.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~41.40% of the total shareholding. Connor, Clark & Lunn Investment Management Ltd. and British Columbia Investment Management Corp. hold a maximum stake in the company at ~­­­9.80% and ~9.67%, respectively.

1.4 Key Metrics:

The company is reporting resilient revenue and NOI, which is a key positive. Furthermore, in Q3 2022, it reported healthy Same Property Portfolio revenue and Occupancy, rising sequentially, again a significant plus. Along this it is reporting growing average monthly rent and higher number of move in, demonstrating its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as announcement regarding its dividend distribution and upsizing credit facility along new acquisitions.

2.2 Insights on Q3 2022 Financial Performance:

Section 3: Key Risks, Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Nov 14, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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