Minto Apartment Real Estate Investment Trust T.MI.UN

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 CIBC’s Dean Wilkinson lowered his target for Minto Apartment REIT (MI.UN-T) to $20 from $21, keeping an “outperformer” rating. Other changes include: BMO’s Michael Markidis to $18 from $18.50 with an “outperform” rating, Raymond James’ Brad Sturges to $19 from $18.75 with an “outperform” rating, Scotia’s Mario Saric to $17.75 from $18.75 with a “sector perform” rating, RBC’s Jimmy Shan to $20.50 from $21.50 with an “outperform” rating and Desjardins Securities’ Kyle Stanley $19 from $21 with a “buy” rating. The average is $19.55.

“MI could be a little more exposed given pressure points are at the high end of market and condo deliveries in Toronto,” said Mr. Shan. “However, with improvement in its Toronto occupancy and stable turnover spread, we are still calling for 3-4-per-cent SP NOI growth in 2025. Valuation discount looks excessive at 5.65-per-cent implied cap, 15 times AFFO. Moreover, we are fairly confident there are no private market trades for high-quality urban assets at its implied $290K/suite. Once the rotation out of CDN apartments (and REIT sector) is played out, we will not be surprised by an outsized re-rate upwards.”