Minto Apartment REIT
(MI.UN-T) C$15.58
Jonathan Li to Succeed Michael Waters as CEO Event
Earlier this morning, Minto announced that Jonathan Li will succeed Michael Waters as CEO, effective April 3, 2023. Following the appointment, Mr. Li will assume the role of President and CEO of the REIT.
Impact: NEUTRAL
Our Take: Mr. Li joined the REIT last April as President and Chief Operating Officer, responsible for overseeing all aspects of the REIT's portfolio and operations, including asset management, development, property operations, and investor relations. Prior to joining Minto, Mr. Li spent over two decades in real estate investment banking. We do not view Mr. Li's appointment as a surprise and believe it represents a major step towards the REIT's long-term internalization process, with the CEO and CFO functions having now been fully internalized. Mr. Li will join Eddie Fu, current CFO, as the two full-time C-suite executives of the REIT.
Mr. Waters has served as the company's CEO since the REIT's IPO in 2018, and had played an important role in growing the company's high-quality, urban multi-family focused portfolio. Under his leadership, the REIT's assets increased to $2.7bln from $1.1bln in 2018. Following the succession, Mr. Waters will focus on his role as CEO of the Minto Group, and will remain a Trustee of Minto Apartment REIT.
Valuation. We continue to believe that Minto's portfolio is well-positioned to benefit from what we view as strong market fundamentals, particularly given its urban focus. Minto currently trades at 19.2x 2023E AFFO/unit, while on a P/NAV basis, it trades at a 37% discount to our $24.80 NAV/share estimate, which compares to its historical average of a 14% discount.