— Solid year-over-year growth in Normalized FFO and AFFO per unit —

OTTAWA, ON , May 11, 2026 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: MI.UN) today announced its financial results for the first quarter ended March 31, 2026 ("Q1 2026"). The Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("MD&A") for Q1 2026 are available on the REIT's website at www.mintoapartmentreit.com and at www.sedarplus.ca . 1

"We generated growth in Same Property Portfolio revenue and NOI, driven by steady 2.0% growth in unfurnished suite revenue, an 89.6% increase in commercial revenue, and 2.2% growth in our furnished suite portfolio, supported by disciplined expense management." said Jonathan Li, President and Chief Executive Officer of the REIT. "We translated solid NOI performance into growth in normalized FFO and AFFO per unit, despite a challenging operating environment that continues to be impacted by new rental supply and a temporary pause in population growth, reflecting the success of our prudent capital allocation and strategic leasing and retention initiatives."

"Additionally, we achieved substantial completion of our newly constructed properties, 610 Martin Grove and Phase 1 of The Towns at York Mills & Leslie, delivering much‑needed rental housing, expanding our portfolio, and positioning us well for long-term growth."

Q1 2026 Highlights

• Same Property Portfolio ("SPP") 2  revenue was $39.4 million, an increase of 3.1% compared to the first quarter ended March 31, 2025 ("Q1 2025");
  
  
• Revenue of $39.4 million increased by 3.7% compared to Q1 2025;
• SPP average monthly rent was $2,100, an increase of 3.2% compared to Q1 2025;
• Average occupancy of unfurnished suites was 93.7%, compared to 95.4% in Q1 2025 and SPP average occupancy was 94.7%, compared to 95.4% in Q1 2025;
• The REIT executed 414 new leases, achieving an average rental rate that was consistent with the expiring rents. The gain-to-lease potential on sitting rents was 5.3% as at March 31, 2026;
• SPP annualized turnover was 19%, representing an increase of 300 basis points ("bps") compared to Q1 2025;
• SPP Net Operating Income ("NOI") was $24.6 million, an increase of 4.3% compared to Q1 2025 and SPP NOI margin was 62.4%, an increase of 70 bps compared to Q1 2025;
• Normalized Funds from Operations ("Normalized FFO") were $0.2371 per unit, an increase of 7.4% compared to $0.2207 per unit in Q1 2025;
• Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.2106 per unit, an increase of 7.5% compared to $0.1959 per unit in Q1 2025;
• Net loss and comprehensive loss was $101.6 million, compared to net income and comprehensive income of $15.7 million in Q1 2025; and,
• The REIT achieved substantial completion for two newly constructed properties: 610 Martin Grove and Phase 1 of The Towns at York Mills & Leslie. Both properties were included in the REIT's operational results of the Total Portfolio in Q1 2026.

Subsequent Event

On May 5, 2026, the REIT completed the sale of the Roehampton property in Toronto for a sale price of $90.8 million representing a premium to its IFRS fair value. The net proceeds of approximately $67.0 million were used to repay the REIT's variable-rate revolving credit facility and for general trust purposes.

The Arrangement

• On January 5, 2026, the REIT entered into an arrangement agreement with Crestpoint Real Estate (Pine) Limited Partnership ("Crestpoint"), Minto Properties Inc. ("MPI"), and Minto Apartment GP Inc., in respect of a statutory plan of arrangement (the "Arrangement"). Under the terms of the Arrangement, among other things, Crestpoint will acquire all of the trust units of the REIT (each, a "Unit"), other than Units held directly or indirectly by MPI and certain senior officers of MPI and the REIT, for consideration of $18.00 per Unit in an all-cash transaction.
• The Arrangement was approved by the holders (the "Unitholders") of Units and special voting units of the REIT at a special meeting of Unitholders held on March 3, 2026.
• On March 6, 2026, the Ontario Superior Court of Justice (Commercial List) issued a final order approving the Arrangement.
• On March 20, 2026, clearance for the Arrangement was received under the Competition Act (Canada).
• The completion of the Arrangement remains subject to the waiver or satisfaction of conditions customary for transactions of this nature, including, among others: the consent of Canada Mortgage and Housing Corporation and certain lenders to the REIT. Completion is expected to occur in the second half of 2026, after which the Units will be delisted from the Toronto Stock Exchange and the REIT will cease to be a reporting issuer.

Financial Summary3

Summary of Q1 2026 Operating Results

SPP Revenue and Net Operating Income

The REIT generated SPP revenue growth of 3.1% in Q1 2026 compared to Q1 2025, reflecting a 2.0% increase in unfurnished suite revenue, primarily attributable to a 3.2% increase in SPP average monthly rent. In addition, commercial revenue increased by 89.6% due to the commencement of three new leases since Q1 2025, while revenue from furnished suites grew by 2.2%. This growth was partially offset by lower average occupancy of unfurnished suites and increased use of promotions compared to Q1 2025. Management has actively driven leasing activity to absorb vacancy and, in doing so, has offered targeted promotions consistent with current market practices.

SPP NOI was $24.6 million in Q1 2026, an increase of 4.3% compared to Q1 2025, as growth in SPP revenue outpaced growth in SPP operating expenses of 1.1%. Property operating costs increased by 5.4% compared to Q1 2025, reflecting higher salaries and wages, repairs and maintenance expenses, and marketing costs. These increases were partially offset by a 6.6% decline in utility costs, primarily driven by lower natural gas expense following the cancellation of the federal carbon tax in April 2025, and lower water expense due to reduced consumption and the installation of water efficient systems, while property taxes were flat year-over-year. SPP NOI margin was 62.4% in Q1 2026, an increase of 70 bps compared to 61.7% in Q1 2025.

Normalized FFO and AFFO per Unit

Normalized FFO and AFFO per unit increased by 7.4% and 7.5%, respectively, in Q1 2026 compared to Q1 2025. The growth reflects higher SPP NOI, the accretive effect of Unit buybacks completed in the second and third quarters of 2025, and lower normalized general and administrative expenses driven by reduced audit and advisory fees, partially offset by dilution from newly constructed properties in lease-up, as interest is no longer capitalized, and a higher balance on the revolving variable-rate credit facility.

NAV per unit and IFRS Net Income and Comprehensive Income

The REIT's net asset value ("NAV") per unit as at March 31, 2026 was $18.56, a decrease of 0.4% compared to $18.64 as at December 31, 2025. The decrease was primarily attributable to a non-cash fair value loss on investment properties of $6.2 million in Q1 2026, driven by a reduction in forecast NOI and an increase in the capital expenditure reserve for the portfolio.

The REIT reported a net loss and comprehensive loss of $101.6 million in Q1 2026, compared to net income and comprehensive income of $15.7 million in Q1 2025. The variance was primarily attributable to the non-cash fair value losses on Class B LP Units and investment properties of $101.5 million and $6.2 million, respectively, in Q1 2026. In Q1 2025, the REIT recorded a non-cash fair value gain of $8.9 million on investment properties, and a loss of $4.9 million on Class B LP Units. The non-cash fair value loss on Class B LP Units in Q1 2026 reflects a significant increase in the Unit price during the quarter following the announcement of the Arrangement.

Gain-on-Lease, Gain-to-Lease Potential, Suite Turnover and Suite Repositioning

The REIT signed 414 new leases in Q1 2026. Average monthly rent for the new leases was consistent with the expiring leases. The flat gain-on-lease reflects downward pressure on market rents and lower turnover for suites with tenants whose sitting rents are well below current market rates.

The REIT estimates a gain-to-lease potential of 5.3% as at March 31, 2026, representing future annualized potential revenue of approximately $7.6 million.

SPP annualized turnover increased to 19% in Q1 2026, compared to 16% in Q1 2025, reflecting increased supply across the REIT's markets. SPP closing occupancy was 95.3% in Q1 2026, which was similar to 95.4% in the fourth quarter of 2025, reflecting the REIT's success in driving leasing through its strategic leasing and retention program.

The REIT repositioned a total of 17 suites across its portfolio in Q1 2026, generating an average annual unlevered return on investment of 8.4%. Over the last four quarters, the REIT has repositioned 61 suites and generated an average annual unlevered return on investment of 9.1%.

Balance Sheet

As at March 31, 2026, the REIT had, on a Proportionate Share Basis, Total Debt outstanding of $1.2 billion, with a weighted average effective interest rate on Term Debt of 3.66% and a weighted average term to maturity on Term Debt of 4.59 years. The REIT's Proportionate Debt-to-Gross Book Value ratio was 49.3%, compared to 48.9% as at December 31, 2025, and its Proportionate Debt-to-Adjusted EBITDA ratio was 11.23x, compared to 11.88x as at December 31, 2025.

The REIT continues to maintain a strong financial position. Total liquidity on a Proportionate Share Basis was approximately $107.9 million as at March 31, 2026, with a liquidity ratio (Total liquidity/Total Debt) of 9.0% on the same basis.

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 urban markets in Canada. The REIT owns a portfolio of high-quality income-producing multi-residential rental properties located in primarily urban centres in Canada's major markets of Toronto, Montreal, Ottawa, Calgary, and Vancouver. For more information on Minto Apartment REIT, please visit the REIT's website at: www.mintoapartmentreit.com .

Forward-Looking Statements

This news release may contain forward-looking statements (within the meaning of applicable Canadian securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "predict", "expect", "goal", "seek", "strategy", "future", "intend", "plan", "will", "may", "could", "should", "estimate", "potential", "might", "likely", "occur", "achieve", "continue", or the negative thereof, and other similar expressions. These statements are not historical facts but instead represent Management's expectations, estimates, forecasts and projections regarding future events and circumstances, including the impact of current economic conditions which include trade disputes, interest rate uncertainty, and inflation, among other factors, on the REIT's business, operations and financial results. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risks and Uncertainties" in the REIT's management's discussion and analysis dated May 11, 2026, which is available on SEDAR+ ( www.sedarplus.ca ). There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-IFRS and Other Financial Measures

This news release contains certain non-IFRS and other financial measures which are measures commonly used by publicly traded entities in the real estate industry. Management believes that these metrics are useful for measuring different aspects of performance and assessing the underlying operating and financial performance on a consistent basis. However, these measures do not have a standardized meaning prescribed by IFRS Accounting Standards ("IFRS") and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should strictly be considered supplemental in nature and not a substitute for financial information prepared in accordance with IFRS. The REIT has adopted the guidance under NI 52-112 Non-GAAP and Other Financial Measures Disclosure for the purpose of this news release. These non-IFRS and other financial measures are defined below:

• "AFFO" is defined as FFO adjusted for items such as maintenance capital expenditures, straight-line rental revenue differences, and direct leasing costs. AFFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating AFFO is substantially in accordance with REALPAC's recommendations under the revised publication titled ''REALPAC Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) for IFRS'' published in January 2022, except that it adjusts for certain non-cash items (such as adjustments for the amortization of mark-to-market adjustments related to debt), but may differ from other issuers' methods and, accordingly, may not be comparable to AFFO reported by other issuers. The REIT regards AFFO as a key measure of operating performance. The REIT also uses AFFO in assessing its capacity to make distributions.
• "AFFO per unit" is calculated as AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards AFFO per unit as a key measure of operating performance.
• "AFFO payout ratio" is the proportion of per unit distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership, excluding special non-cash distributions, to AFFO per unit. The REIT uses AFFO payout ratio in assessing its capacity to make distributions.
• "annualized turnover" is calculated as the number of move-outs for the period divided by total number of unfurnished suites in the portfolio. This percentage is extrapolated to determine an annual rate.
• "average annual unlevered return" refers to the return on repositioning activities, and is calculated by dividing the average annual rental increase per suite after repositioning by the average repositioning cost per suite, excluding the impact of financing costs.
• "average monthly rent" represents the average monthly rent per suite for occupied unfurnished suites at the end of the period on a Proportionate Share Basis.
• "average occupancy" is defined as the ratio of occupied unfurnished suites to the weighted average of the total unfurnished suites in the portfolio for the period on a Proportionate Share Basis.
• "closing occupancy" is defined as the ratio of occupied unfurnished suites to the total unfurnished suites in the portfolio at the end of the period on a Proportionate Share Basis.
• "Debt-to-Adjusted EBITDA ratio" is calculated by dividing interest-bearing debt (net of cash) by Adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is used for evaluation of the REIT's financial health and liquidity. Adjusted EBITDA is calculated as the trailing twelve-month NOI adjusted for a full year of stabilized earnings including finance income, fees and other income and general and administrative expenses from recently completed acquisitions or dispositions, or newly constructed properties in lease-up, but excluding fair value adjustments. The REIT regards Debt-to-Adjusted EBITDA ratio as a measure of financial health and liquidity.
• "Debt-to-Gross Book Value ratio" is calculated by dividing total interest-bearing debt consisting of fixed and variable-rate mortgages, credit facility, construction loans and Class C limited partnership units of Minto Apartment Limited Partnership by Gross Book Value and is used as the REIT's primary measure of its leverage.
• "FFO" is defined as IFRS consolidated net income adjusted for items such as unrealized changes in the fair value of investment properties, effects of puttable instruments classified as financial liabilities, and changes in fair value of financial instruments and derivatives. FFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating FFO is substantially in accordance with REALPAC's recommendations under the revised publication titled ''REALPAC Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) for IFRS'' published in January 2022, but may differ from other issuers' methods and, accordingly, may not be comparable to FFO reported by other issuers. The REIT regards FFO as a key measure of operating performance.
• "FFO per unit" is calculated as FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards FFO per unit as a key measure of operating performance.
• "gain-on-lease" refers to the gap between rents achieved on new leases of unfurnished suites as compared to expiring leases.
• "gain-to-lease potential" refers to the gap between Management's estimate of monthly market rent and average monthly in-place rent per occupied unfurnished suite.
• "Gross Book Value" is calculated as the total assets of the REIT as at the applicable balance sheet date.
• "NAV" is calculated as the sum of the value of REIT Unitholders' equity and Class B limited partnership units of Minto Apartment Limited Partnership as at the applicable balance sheet date.
• "NAV per unit" is calculated by dividing NAV by the number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding as at the applicable balance sheet date.
• "NOI" is defined as revenue from investment properties less property operating costs, property taxes and utilities (collectively referred to as "property operating expenses" or "operating expenses") prepared in accordance with IFRS. NOI should not be construed as an alternative to net income determined in accordance with IFRS. The REIT's method of calculating NOI may differ from other issuers' methods and, accordingly, may not be comparable to NOI reported by other issuers. The REIT regards NOI as an important measure of the income generated from income-producing properties and is used by Management in evaluating the performance of the REIT's properties. It is also a key input in determining the value of the REIT's properties.
• "NOI margin" is defined as NOI divided by revenue from investment properties.
• "Normalized AFFO" is calculated as AFFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Normalized AFFO per unit" is calculated as Normalized AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period.
• "Normalized AFFO payout ratio" is the proportion of the per unit distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership, excluding special non-cash distributions, to Normalized AFFO per unit.
• "Normalized FFO" is calculated as FFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results.
• "Normalized FFO per unit" is calculated as Normalized FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period.
• "Proportionate Share Basis" represents financial information adjusted to reflect the REIT's effective ownership share of joint venture results on a proportionately consolidated basis. This adjustment addresses the accounting difference arising from the use of the equity method for joint ventures under IFRS.
• "Term Debt" is calculated as the sum of the amortized cost of fixed-rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C LP Units.
• "Total Debt" is calculated as the sum of the amortized cost of interest-bearing debt consisting of a variable-rate credit facility and fixed-rate debt comprised of mortgages, a variable-rate mortgage fixed through an interest rate swap, Class C LP Units, and fixed and variable-rate construction loans.
• "Total liquidity" is calculated as the sum of the undrawn balance under the revolving credit facility and cash.
• "weighted average effective interest rate on Term Debt" is calculated as the weighted average of the effective interest rates on the outstanding balances of fixed-rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership on a Proportionate Share Basis.
• "weighted average term to maturity on Term Debt" is calculated as the weighted average of the term to maturity on the outstanding fixed-rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership on a Proportionate Share Basis.

Reconciliations of Non-IFRS Financial Measures and Ratios

FFO and AFFO

Normalized FFO and AFFO

NOI and NOI Margin

Proportionate Debt-to-Gross Book Value Ratio

Proportionate Debt-to-Adjusted EBITDA Ratio

NAV and NAV per unit

SOURCE Minto Apartment Real Estate Investment Trust