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Minto Apartment REIT reported a slight revenue and profit dip in the second quarter of 2025, but steady rent hikes and solid analyst backing are bolstering confidence.

What does this mean?

Minto Apartment REIT's Q2 2025 numbers showed a 1.1% drop in revenue to C$38.48 million and a net loss of C$1.1 million. That red ink mostly reflected non-operational fair value adjustments, rather than weaknesses in day-to-day business. On the operational side, normalized funds from operations per unit dipped 2.5% and adjusted funds from operations fell 3.2%. Still, the REIT managed a 5.2% jump in average monthly rent for the same properties compared to last year - a sign that strategies like flexible pricing and early renewals are paying off even as tenant turnover and vacancies rise. Plus, newly signed commercial leases set to deliver over C$1 million annually hint that management's repositioning efforts are on track for the rest of 2025.

Analysts remain upbeat on Minto Apartment REIT, with 70% rating it a 'strong buy' or 'buy'. The median target price of C$16.00 suggests nearly 15% upside from its last close, and at 15 times expected earnings, shares are a bit more affordable than earlier this year. Higher rents and continued property upgrades suggest potential long-term stability, especially for investors seeking steady income and inflation protection.

The bigger picture: Canadian REITs adapt to new market realities.

Residential REITs across Canada are flexing to meet changing demand, with the consensus viewpoint remaining positive. Minto's strategy to reposition dozens of suites and secure creative leases mirrors a broader shift: landlords are handling higher turnover with targeted remodeling and innovative leasing terms. These moves, paired with consistent rent growth, are giving the sector a firmer footing, even as vacancies tick higher.