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Investor Day Presentation
September 25, 2019
Cautionary Statement
2Minto Apartment REIT | Investor Day Presentation | PG
Non‐Reliance
This presentation and our answers to questions do not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate aninvestment in securities of Minto Apartment Real Estate Investment Trust (the “REIT”). No representation or warranty, express or implied, is given and, so far as ispermitted by law no responsibility or liability is accepted by any person, with respect to the accuracy or completeness of this presentation or its contents or our answersto questions.
Forward‐Looking Statements
This presentation and our answers to questions contain statements that constitute forward‐looking statements (within the meaning of applicable Canadian securitieslaws) relating to the business of the REIT. These statements are not historical facts, but instead represent the REIT’s expectations, beliefs, assumptions, estimates,forecasts and projections as of the date hereof. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict.Although such forward‐looking statements are based upon assumptions that management believes are reasonable as of the date hereof, there can be no assurance thatthose forward‐looking statements will prove to be accurate and actual outcomes and results may differ materially from those expressed or implied in theseforward‐looking statements. The REIT’s expectations, beliefs, assumptions, estimates, forecasts and projections, include, but are not limited to, the REIT’s future growthpotential, results of operations, future prospects and opportunities, demographic and industry trends, no change in legislation or regulatory environment, future levelsof indebtedness, current tax laws, the continuing availability of capital and current economic conditions. These risks and uncertainties are more fully described in theREIT’s regulatory filings, including the REIT’s Annual Information Form (“AIF”) and its most recent Management’s Discussion and Analysis of the results of operations andfinancial condition (MD&A”), all of which can be obtained on SEDAR at www.sedar.com. Investors should not place undue reliance on any such forward‐lookingstatements. Certain statements contained in this presentation may be considered “financial outlook” for purposes of Canadian securities laws and as such, the financialoutlook may not be appropriate for purposes other than this presentation. Subject to applicable law, the REIT does not undertake any obligation to update or revise anyforward‐looking statements. For further details on forward‐looking statements, see the sections entitled “Forward‐Looking Statements” in the most recent MD&A.
Non‐IFRS Financial Measures
The REIT prepares and releases consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”). As a complement to resultsprovided in accordance with IFRS, the REIT may also disclose and discuss in answers to questions certain non‐IFRS financial measures including funds from operations("FFO"), adjusted funds from operations ("AFFO"), net operating income ("NOI") and debt‐to‐gross book value (“Debt/GBV”), which are measures commonly used bypublicly traded entities in the real estate industry. Management believes that these metrics are useful for measuring different aspects of performance and assessing theunderlying operating performance on a consistent basis. However, these measures do not have a standardized meaning prescribed by IFRS and are not necessarilycomparable to similar measures presented by other publicly traded entities. These measures should strictly be considered supplemental in nature and not a substitutefor financial information prepared in accordance with IFRS and should not be construed as an alternative to net income or cash flows provided by or used in operatingactivities determined in accordance with IFRS. Further definitions and discussion of these non‐IFRS measures and a reconciliation of FFO and AFFO to comparable IFRSmeasures are provided in the most recent MD&A in the sections entitled “Non‐IFRS Measures” and “Reconciliation of Non‐IFRS Measures”.
Minto Apartment REIT | Investor Day Presentation | PG 3
Investment Highlights
1 2 3
6
Attractive Asset Class with
Compelling Supply/Demand Characteristics
High Quality Portfolio with Significant Scale
Strategic Avenues for Growth
Conservative Financial Metrics
Support Growth and Distributions
4
Benefits of an Industry‐Leading
Vertically‐Integrated Platform with Strong Alignment of Interests
5
Experienced Management
Team and a Strong Independent
Board of Trustees
Asset Quality
4Minto Apartment REIT | Investor Day Presentation | PG
The Carlisle
High Park Village
Minto Yorkville 150 Roehampton
RockhillMinto one80five
Institutional Quality Portfolio
Intensification and Development
5Minto Apartment REIT | Investor Day Presentation | PG
High Park Village Concept Plan1
Fifth + Bank Redevelopment
1. Concept plan from initial rezoning application submitted to the City of Toronto.
Suites
Development approvals beingpursued for:
Richgrove 225LYM 192
Rezoning being pursued for:
High Park Village ~ 500
Purchase option: Fifth + Bank 160
Total 1,077
Benefits from the Strategic Alliance with The Minto Group
Repositioning
6Minto Apartment REIT | Investor Day Presentation | PG
Remaining Number of Suites
Property to Reposition1
Rockhill 2 934
High Park Village 2 400
Leslie York Mills 399
Carlisle 183
Castle Hill 160
Edmonton properties 110
Minto Yorkville 58
Total 2,244
Effectively deploying capital on improvements to suites, amenities and common areas
Repositioned suite at The Carlisle
Repositioned suite at Castle Hill
1. As at June 30, 2019 except for High Park Village, which is as at the date of acquisition, August 1, 2019.2. Suite count for Rockhill and High Park Village are shown on 100% basis. Minto Apartment REIT has a 50% ownership interest in Rockhill and a 40% ownership interest in High
Park Village.
Repositioning drives AFFO and NAV growth
Reputation for Defensive Sector is Well Earned
7Minto Apartment REIT | Investor Day Presentation | PG
Ontario guidelines have permitted rent increases every year since 1975
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Ontario Guideline IncreaseRecessions
Source: Government of Ontario, Morningstar
Multi‐residential real estate has been resilient in all market conditions
Canada – Population Growth
8Minto Apartment REIT | Investor Day Presentation | PG
Source: Statistics Canada Table 17‐10‐0135‐01.
Increased immigration targets have helped boost population growth
Population growth drives rental demand
Where is Canada’s population growth occurring?
9
The REIT’s six target markets grew at a faster rate than the country as a whole, accounting for 59% of all population growth in 2018
Minto Apartment REIT | Investor Day Presentation | PG
2018Population YoYGrowth1 % change
Canada 529,913 1.4%
Toronto 125,298 2.0%Montreal 66,116 1.6%Vancouver 39,400 1.5%Edmonton 29,762 2.1%Calgary 26,692 1.8%Ottawa 26,550 2.5%Sub‐total 313,818
Source: Statistics Canada Table 17‐10‐0135‐01.
Primary markets attract new Canadians
Toronto CMA – Market Dynamics
10
Population Growth is Accelerating
Minto Apartment REIT | Investor Day Presentation | PG
72,820 79,886
91,524
125,298
35,009 34,613 37,132 37,750
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Annual Average (2011‐2015) 2016 2017 2018
Annual population growth Annual completions (all dwelling types)
No Meaningful Growth in Rate of Supply
Source: Statistics Canada, CMHC
2.08x 2.31x 2.46x 3.32x
Ratio of Population Growth to Housing Completions is Increasing
Supply of new housing not keeping pace with population growth
Ottawa CMA – Market Dynamics
11Minto Apartment REIT | Investor Day Presentation | PG
10,667
17,672
24,192
26,550
6,025 5,148 5,394
6,845
0
5,000
10,000
15,000
20,000
25,000
30,000
Annual Average (2011‐2015) 2016 2017 2018
Annual population growth Annual completions (all dwelling types)
Population Growth is Accelerating
No Meaningful Growth in
Rate of Supply
Source: Statistics Canada, CMHC
1.77x 3.43x 4.48x 3.89x
Ratio of Population Growth to Housing Completions is Increasing
Supply of new housing not keeping pace with population growth
Montreal CMA – Market Dynamics
12Minto Apartment REIT | Investor Day Presentation | PG
31,206 30,626
48,994
66,116
18,796 19,570 20,558 21,650
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Annual Average (2011‐2015) 2016 2017 2018
Annual population growth Annual completions (all dwelling types)
Population Growth is Accelerating
No Meaningful Growth in
Rate of Supply
Source: Statistics Canada, CMHC
1.66x 1.56x 2.38x 3.05x
Ratio of Population Growth to Housing Completions is Increasing
Supply of new housing not keeping pace with population growth
Alberta – Market Dynamics
13
Calgary
Minto Apartment REIT | Investor Day Presentation | PG
34,616
24,682 21,076
26,692
11,527 13,239 11,014 9,732
05,000
10,00015,00020,00025,00030,00035,00040,000
Annual Average(2011‐2015)
2016 2017 2018
Annual population growth
Annual completions (all dwelling types)
30,918
25,768 26,869 29,762
12,287 15,123
10,753 10,091
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Annual Average(2011‐2015)
2016 2017 2018
Annual population growth
Annual completions (all dwelling types)
Edmonton
Source: Statistics Canada, CMHC
3.00x 1.86x 1.91x 2.74x 2.51x 1.70x 2.48x 2.95x
Alberta market moving back to balance
Active Revenue Management
Performance
Forecast
Mix / Total Revenue
Pricing
Furnished Suites
Other
CustomerAcquisition
Operating Expense
Turnover
Mix
Seasonality
Propensity to Turn
MarginRevenueApproach Mitigating Risk
Minto Apartment REIT | Investor Day Presentation | PG 14
Active Revenue Management
Strategies for Revenue Management
Case Study – Minto one80five – Q2 2019 vs IPO
Minto Apartment REIT | Investor Day Presentation | PG 15
417 Suites / 100 Furnished
Located in Central Business District
Award Winning Amenities
24 Hour Concierge
Government / Professional Demographic
+8%Rent Penetration(June 30, 2019 vs June 30, 2018)
+19%Total Revenue(Q2 YTD YoY)
+13%Market Rent(June 30, 2019 vs June 30, 2018)
+16%Achieved Rent per Sqft(Signed Leases Q2 YTD YoY; $2.80 2019 vs $2.42 2018)
Superior revenue management strategies produce strong financial results
Leading the market in rental growth
Consistent Market Outperformance
Minto Apartment REIT | Investor Day Presentation | PG 16
1
2
2
1. This represents the percentage increase between achieved rents and expiring rents on new leases completed by Minto Apartment REIT during the period. 2. Rental penetration is defined as the ratio between achieved rents to the CMHC average. This statistic is for Minto Apartment REIT’s entire portfolio. Competitors’
penetration is based on rents achieved by competing buildings in each sub market.
Disciplined Acquisition and Investment Strategy
The REIT has acquired 2,432 suites since its IPO
Minto Apartment REIT | Investor Day Presentation | PG 17
KaleidoscopeCalgary70 Suites
Purchase Price ‐ $20.4 million
The QuartersCalgary
199 SuitesPurchase Price ‐ $63.8 million
Fifth + Bank Ottawa
Potential of ~ 160 SuitesInvestment loan of up to $30 million
RockhillMontreal
1,004 SuitesTotal Purchase Price ‐ $268 million REIT’s share $134 million (50%)
Leslie York MillsToronto
409 SuitesPurchase Price ‐ $75 million
for a 50% interest
High Park Village Toronto
750 SuitesPurchase Price ‐ $131.2 million
for a 40% interest
Growth – Improved Geographic Diversification1
Minto Apartment REIT | Investor Day Presentation | PG 18
The REIT has properties in 5 of Canada’s 6 primary markets
1. Geographic distribution based on the fair value of properties in each geography as a percentage of the fair value of the portfolio. 2. Fair values for all properties as at June 30, 2019 except for High Park Village which was purchased on August 1, 2019.
At IPO After Acquisitions2
Growth – Target Property Attributes
19
Excellent Walk and Transit Scores
UrbanLocations
Stabilized properties with rents that have a gap to market
Future intensification opportunities
Future repositioningopportunities
Select Development Opportunities
Maintain focus on key property attributes
Minto Apartment REIT | Investor Day Presentation | PG
Leslie York Mills – Location and Amenities
20
Central Toronto location surrounded by parks and retail amenities
Minto Apartment REIT | Investor Day Presentation | PG
Leslie York Mills
Shoppers Drug Mart
LCBO
Longos
TDBMO
Second Cup
RBC
CIBC
Kirkwood Park
Mossgrove Park
Retail Amenities
Leslie York Mills – Opportunity to Intensify
21
Potential to realize on intensification opportunity
Minto Apartment REIT | Investor Day Presentation | PG
Rockhill – Location and Amenities
22
Well located close to employment drivers, schools, transit and parks
Minto Apartment REIT | Investor Day Presentation | PG
University of Montréal
Metro
St. Mary’s Hospital
Pharmaprix
BMO
Scotiabank
SAQ
St. Joseph’s Oratory
High School
Mount Royal Park
Jean‐Brilliant Park
Metro StationCôte‐des‐Neiges
Rockhill – One of Montreal’s Largest Rental Communities
23
A unique opportunity in the Montreal market with significant value‐add potential
Minto Apartment REIT | Investor Day Presentation | PG
Minto Apartment REIT | Investor Day Presentation | PG 25
Summary
1 2 3
6
Attractive Asset Class with
Compelling Supply/Demand Characteristics
High Quality Portfolio with Significant Scale
Strategic Avenues for Growth
Conservative Financial Metrics
Support Growth and Distributions
4
Benefits of an Industry‐Leading
Vertically‐Integrated Platform with Strong Alignment of Interests
5
Experienced Management
Team and a Strong Independent
Board of Trustees
Studio1 Bedroom Junior1 Bedroom + Den1 Bedroom Deluxe2 BedroomTotal/Wtd. Average
Suite Type
40207
97197
209750
SuiteCount
5%28%13%26%28%
100%
% ofInventory
411470697723891
680
Suite SizeSF
$1,585$1,876
$2,073$2,116
$2,462$2,112
Average AskingMonthly Rent
$3.86$3.99$2.97$2.93$2.76$3.23
Asking RentPer SF
Property StatisticsYear BuiltBuilding CountHeight (Storeys)Parking - IndoorParking - OutdoorStructure TypeAmenities
1965312, 17, 2386642Concrete High-RiseFitness CentreCommunal GardensSecure Bicycle StorageParty Room
High Park Village111 Pacific Avenue | 66 Oakmount Road | 255 Glenlake Avenue
High Park Village is a rental community located just north of Toronto’s historic High Park and steps from two stations along the Bloor-Danforth subway line, which provides residents quick and convenient access to the downtown core. The community is comprised of three high-rise towers that have received significant capital improvements over the past five years, including: upgraded balconies, windows, common corridors, lobbies and in-suite upgrades.
Property Description
Rental rates are as at September 12, 2019. Page 2
Studio1 Bedroom1 Bedroom + Den2 Bedroom2 Bedroom + DenTotal/Wtd. Average
Suite Type
161342923148
SuiteCount
1%41%23%20%16%
100%
% ofInventory
393524618751
886645
Suite SizeSF
$1,589$1,845$1,903$2,472$2,977$2,155
Average AskingMonthly Rent
$4.04$3.52$3.08$3.29$3.36$3.35
Asking RentPer SF
Property StatisticsYear BuiltBuilding CountHeight (Storeys)Parking - IndoorStructure TypeAmenities
2007116134Concrete High-RiseFitness CentreCommunal GardensSecure Bicycle StorageParty RoomSun Deck with BBQ
Roehampton150 Roehampton Avenue
Roehampton is located in the heart of Midtown near the intersection of Yonge Street and Eglinton Avenue — one of Toronto’s most dynamic and rapidly evolving neighbourhoods. The area offers residents a true live-work-play lifestyle with numerous office buildings, shops, restaurants, cafés and parks all within walking distance. The building is also highly accessible by public transit with the Yonge-University subway line, and the future Eglinton Rapid Transit line only steps away. Furthermore, the building holds LEED® Gold certification with a variety of green features and systems.
Property Description
Suite counts include furnished suites, however, the rents are shown on an unfurnished basis.Rental rates are as at September 12, 2019. Page 3
Page 4
1 Bedroom1 Bedroom + Den1 Bedroom PH level2 Bedroom2 Bedroom PH level3 Bedroom PH levelTotal/Wtd. Average
Suite Type
6840
150166
181
SuiteCount
38%22%
1%28%9%3%
100%
% ofInventory
663794
1,800908
1,8042,155
916
Suite SizeSF
$2,801$3,140
$10,589$4,065$11,197
$12,737$4,340
Average AskingMonthly Rent
$4.22$3.95$5.88$4.48$6.21$5.91$4.47
Asking RentPer SF
Property StatisticsYear BuiltBuilding CountHeight (Storeys)Parking - IndoorStructure TypeCommercial AreaAmenities
2004117128 (4 electric vehicle chargers)Concrete High-Rise11,910 SF24/7 ConciergeIn-suite LaundryValet ParkingFitness CentreTheatre + Party Rooms
Minto Yorkville61 Yorkville Avenue
Minto Yorkville is a luxury mixed-use high-rise residential apartment and commercial building near the intersection of Bay Street and Yorkville Avenue in Yorkville, Toronto’s most upscale retail and residential neighbourhood. The property is steps from the Bay Street subway station, the Yorkville shopping district and in close proximity to the Royal Ontario Museum, the University of Toronto and the downtown core. The city's best restaurants, boutiques and entertainment can also be found here.
Property Description
Suite counts include furnished suites, however, the rents are shown on an unfurnished basis.Rental rates are as at September 12, 2019.