National Bank National Bank’s Matt Kornack raised his target for Minto Apartment REIT to $17.50 from $16.25 with an “outperform” rating.
“Minto’s portfolio saw improving occupancy levels and pre-pandemic levels of rent increases on turnover combined with higher leasing velocity – this also required incremental capex as the REIT was active in pursuing suite renovations,” said Mr. Kornack. “End-of-quarter occupancy of approaching 96 per cent should bode well for a figure approaching the 97-98-per-cent range by the end of the busier summer leasing period. It was noted that a meaningful portion of the current vacancy was related to renovations, or had already been leased but tenants had yet to take possession. Management also went to lengths to explain a more cautious outlook on capital allocation in light of an attractive pipeline of opportunities but challenging equity markets. Further to this decision process, assets in Edmonton have been listed for sale while a broader review of the portfolio may yield other areas for select pruning.”