Gold prices tick higher on fresh U.S. tariff threats, Fed rate cut hopes
On Thursday, Raymond (NSE:RYMD) James analyst Brad Surges downgraded Minto Apartment REIT (MI-U:CN) from Outperform to Market Perform, alongside a reduced price target to Cdn$15.00 from Cdn$15.75. The adjustment reflects a series of factors anticipated to impact the real estate investment trust’s performance through the end of 2025.
The downgrade was based on expectations for stable Single Property Net Operating Income (SP-NOI) and Adjusted Funds From Operations (AFFO) per unit results, despite a challenging operating landscape anticipated for the remainder of the year. Surges noted the potential for persistent operational headwinds due to Minto’s significant exposure to urban Multifamily Residential (MFR) markets in Canada, particularly in Toronto and Calgary. These markets are expected to face increased leasing competition from new purpose-built rental properties and condo supply deliveries.
The analyst also pointed to the possibility of heightened affordability challenges within the higher-end segment of Minto’s MFR portfolio. While acknowledging that Minto’s unit price is deeply discounted compared to the estimated Net Asset Value (NAV) per unit, Surges indicated that near-term positive catalysts for the stock seem to be more limited at this time.
Despite the downgrade, Raymond James recognized the value present in Minto’s current unit price when measured against the estimated NAV per unit. However, the firm’s analysts suggest that investors might find fewer opportunities for significant positive shifts in the stock’s performance in the near future. This perspective is shaped by the current market conditions and specific challenges faced by Minto Apartment REIT.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.