Minto REIT Privatization Nears Finish Line with Key Backing

OTTAWA, ON – February 24, 2026 – Minto Apartment Real Estate Investment Trust (TSX: MI.UN) is moving decisively toward privatization after receiving a crucial endorsement for its proposed C$2.3 billion sale to a partnership including Crestpoint Real Estate Investments and Minto Group. Leading independent proxy advisory firm Institutional Shareholder Services Inc. (ISS) has recommended that unitholders vote in favour of the all-cash transaction, which offers $18.00 per unit.

The recommendation adds significant momentum to the deal ahead of a special meeting of unitholders scheduled for March 3, 2026. The board of trustees, along with a special committee of independent trustees, has already unanimously recommended the arrangement, positioning the REIT to exit the public market and embark on a new chapter under private ownership.

An Attractive Premium in a Volatile Market

The core of the proposal is the $18.00 per-unit cash consideration, a figure that represents a significant windfall for public investors. The offer translates to a 32% premium over the unit's closing price on January 2, 2026, and a 35% premium over the 20-day volume-weighted average trading price leading up to the announcement.

In its influential report, ISS highlighted the financial merits of the deal for investors. "In this circumstance, unitholders are presented with an attractive cash offer that represents a meaningful premium to the unaffected price," the firm noted. ISS concluded that "the offer appears to provide a reasonable outcome compared to likely alternatives, and the consideration represents a level not seen since May 2022."

This immediate cash certainty arrives as the REIT navigates a complex multi-residential landscape. While Minto has demonstrated resilience, posting year-over-year revenue growth and its seventh consecutive annual distribution increase in 2025, it has also faced headwinds. Recent financial reports acknowledged challenges from higher suite turnover in markets like Toronto and Calgary, where an influx of new supply has intensified competition. The REIT’s average occupancy, while strong at 96.5% in its third quarter of 2025, has felt the pressure of this new inventory.

Although the $18.00 offer is compelling against recent trading history, it sits below the REIT’s reported Net Asset Value (NAV) of $23.10 per unit as of June 30, 2025. However, the cash offer eliminates the risks associated with market volatility and rising interest rates, which were projected to modestly increase the REIT's borrowing costs in 2026. For many unitholders, the premium provides a clean and profitable exit, crystallizing value that the public markets have not recognized for nearly four years.

The Strategic Play for a Private Future

The transaction is more than just a financial exit for public unitholders; it represents a strategic realignment for the portfolio's long-term future. The acquirers, Crestpoint Real Estate Investments and the Minto Group, plan to form a new programmatic joint venture, signaling a deep commitment to growing the portfolio of high-quality urban residential properties.

Crestpoint, an affiliate of Connor, Clark & Lunn Financial Group with over $11 billion in real estate assets, is seizing an opportunity to establish a dominant platform in the Canadian multi-family sector. Taking the REIT private allows for a long-term investment horizon, free from the pressures of quarterly reporting and public market sentiment. This structure enables the new ownership to pursue development opportunities and operational enhancements that may be more challenging to execute as a publicly traded entity, especially in a climate of economic uncertainty.

For Minto Group, a storied real estate developer founded in 1955, the deal is a strategic evolution. The group, which already holds a substantial 42.7% voting interest in the REIT, will roll its stake into the new private entity. It will also continue to serve as the property and development manager, ensuring operational continuity while benefiting from a more streamlined ownership structure. This move allows Minto Group to consolidate its influence and partner with a well-capitalized institutional player like Crestpoint to unlock the portfolio's latent value over the long run.

This privatization is indicative of a broader trend in the real estate sector, where well-funded private investors are acquiring public REITs whose unit prices have lagged behind their underlying asset values. With rising interest rates and market fluctuations, the stability and flexibility of private capital have become increasingly attractive for managing and growing large-scale real estate portfolios.

Governance and the Path to Approval

The path toward the March 3rd vote has been paved by a thorough governance process. In addition to the board's recommendation, a special committee composed entirely of independent trustees was formed to evaluate the proposal. After consulting with independent financial and legal advisors, the committee concluded that the transaction is fair to unitholders and in the best interests of the REIT.

The favourable recommendation from ISS is a critical milestone. Institutional investors, who hold significant positions in public REITs, often rely heavily on the guidance of proxy advisory firms when casting their votes. The ISS endorsement, combined with the unanimous support from the independent committee, sends a powerful signal to the market.

Approval of the arrangement resolution appears highly probable. Minto Group has already entered into an irrevocable voting agreement to support the deal, meaning its 42.7% stake provides a substantial head start toward securing the required two-thirds majority vote.

Unitholders have until 3:00 p.m. Eastern Time on February 27, 2026, to submit their proxies. The REIT has directed investors to its management information circular for comprehensive details on the arrangement and has engaged Laurel Hill Advisory Group to assist with any questions. Assuming the unitholder vote is successful, the transaction is expected to close in the second half of 2026, pending customary court and regulatory approvals. With all key stakeholders aligned, the deal is set to transform one of Canada’s premier urban residential portfolios from a public trust into a private real estate powerhouse.