- Minto Apartment Real Estate Investment Trust (TSX:MI.UN) doesn’t expect its April revenue to be substantially affected by the ongoing COVID-19 pandemic
- The company leases apartments in cities throughout Canada and has already collected around 97 per cent of its expected rental revenue for this month
- Furthermore, occupancy rates also remain high, with 97.34 per cent of unfurnished suites currently leased, similar levels to the same period in 2019
- While Minto has created payment plans for those tenants who are currently unable to pay their rent in full, only one per cent of its tenants currently required the plan
- Minto Apartment Real Estate Investment Trust (MI.UN) is up 0.81 per cent, with share trading at C$18.75 and a market cap of $674.7 million.
Minto Apartment Real Estate Investment Trust (TSX:MI.UN) doesn’t expect its April revenue to be substantially affected by the ongoing COVID-19 pandemic.
The company owns a range of urban apartment buildings throughout Canada, located in cities like Toronto, Montreal, Ottawa and Calgary.
The COVID-19 pandemic’s mass impact on the job market has thrown the rental market in disarray, as high unemployment usually results in high rates of failed rent payments.
However, the company was quick to point out that rent had been collected from the vast majority of tenants in April. As of this week, Minto has collected 97 per cent of April’s expected rental revenue.
Occupancy rates also remain high, with 97.34 per cent of unfurnished suites currently leased, similar to the same period in 2019.
Furthermore, to help struggling tenants during a time of economic uncertainty, the company is forestalling rent increases, which were planned in the next three months, until further notice.
Minto has also created payment plans for those tenants who are currently unable to pay their rent in full. However, thus far, only one per cent of the company’s tenants have needed to use the deferred payment plan.
To mitigate infection risks to tenants in the apartment buildings, Minto has closed all its common areas, party rooms and fitness facilities.
In a further effort to maintain safety, leasings are currently by appointment only, to limit numbers and lower the risk of transmission.
Beyond April, the company did not state if the pandemic is likely to affect its business substantially. However, Minto will outline a further update on the effects of the pandemic in its first quarter report, due on May 6.
Minto Apartment Real Estate Investment Trust (MI.UN) is up 0.81 per cent, with share trading for C$18.75 at 12.07pm EST.
