Q2 2024 Minto Apartment Real Estate Investment Trust Earnings Call

Speaker Change: . . .

Speaker Change: Hello, I'm Edward Fu, I'm Jonathan Li, I'm Jonathan Li

Speaker Change: Hello, I'm Edward Fu, I'm Jonathan Li

Speaker Change: END

Speaker Change: Hello, I'm Edward Fu, I'm Jonathan Li

Joelle: Good morning, my name is Joelle, and I will be a conference coordinator today. At this time, I would like to welcome everyone to the Minto Apartment REIT 2024 second quarter financial results conference. All lines have been placed on mute to prevent any background noise.

Joel: Good morning, my name is Joel, and I will be a conference coordinator today.

Speaker Change: [inaudible]

Joelle: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, just to prepare a start, then type the number one on your telephone keypad. If you would like to withdraw your question, please press star then the number. Before we begin, I want to remind listeners that certain statements about future events made on this conference call are forward-looking and negative. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ.

Joelle: Please refer to the cautionary statements on forward-looking information in the read and MD&A, dated August 13, 2024, for more information. During the call, management will also reference certain non-IFRS financial matters. Although the REIT DLC's measures provide useful, supplemental information about its financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please see the REIT's MD&A for additional information regarding non-IFRS financials, including reconciliations to the nearest IFRS.

Joelle: Good morning, my name is Joelle and I will be your conference coordinator today. At this time, I would like to welcome everyone to the Minto Apartment REIT 2024 Second Quarter Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad.

Unknown Executive: At this time, I would like to welcome everyone to the Minto Apartment REIT 2024 second quarter financial results conference call. All lines have been placed on you to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, then the number two.

Speaker Change: If you would like to withdraw your question, please press star then the number 2.

Unknown Executive: Before we begin, I want to remind listeners that certain statements about future events made on this conference call are forward-looking in nature. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. Please refer to the cautionary statements on forward-looking information in the REIT's news release and MD&A dated August 13, 2024 for more information.

Speaker Change: Before we begin, I want to remind listeners that certain statements about future events made on this conference call are forward-looking in nature. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially.

Speaker Change: Please refer to the Cautionary Statements on Forward-Looking Information in the REAPS News Release and MD&A dated August 13, 2024 for more information.

Unknown Executive: During the call, management will also reference certain non-IFRS financial measures. Although the REIT believes these measures provide useful, supplemental information about its financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please see the REIT's MD&A for additional information regarding non-IFRS financial measures, including reconciliations to the nearest IFRS measures.

Speaker Change: During the call, management will also reference certain non-IFRS financial measures. Although the REIT believes these measures provide useful, supplemental information about its financial performance, they are not recognized measures and do not have standardized meanings under IFRS.

Speaker Change: Please see the REIT's MD&A for additional information regarding non-IFRS financial measures, including reconcilations to the nearest IFRS measures.

Jonathan Lee: Thank you, Mr. Lee. You may begin your conference. Thank you, operator, and good morning. This is Jonathan Lee, CEO of Mintow Apartment REIT. Also on the call is Eddie Foo, our CFO, and Paul Barron, our SVP of Operations. In Q2 2024, we maintain the strong operating performance that characterized the start of the year. As illustrated and stable on slide three, we generated 6.3% growth in average monthly rent for the same property portfolio compared to Q2 last year and increased occupancy by 20 basis points. Same property revenue growth in the unfurnished sweet portfolio was strong at 6.8%.

Joelle: Thank you. Mr. Li, you may begin your conference. Thank you, Operator, and good morning.

Speaker Change: Thank you. Mr. Li, you may begin your conference.

Jonathan Li: This is Jonathan Li, CEO of Minto Apt REIT. Also on the call is Eddie Fu, our CFO, and Paul Baron, our SVP of Operations. In Q2 2024, we maintain the strong operating performance that characterized the start of the year. As illustrated in the table on slide 3, we generated 6.3% growth in average monthly rent for the same property portfolio compared to Q2 last year and increased occupancy by 20 basis points. Same property revenue growth in the unfurnished suite portfolio was strong at 6.8%.

Speaker Change: Thank you, Operator, and good morning. This is Jonathan Li, CEO of Minto Apt REIT. Also on the call is Eddie Fu, our CFO , and Paul Baron, our SVP of Operations.

Speaker Change: In Q2 2024, we maintained the strong operating performance that characterized the start of the year.

Speaker Change: Adilisray didn't disable on slide three. We generated 6.3% growth in average monthly rent for the same property portfolio compared to Q2 last year and increased occupancy by 20 basis points.

Speaker Change: Same property revenue growth in the unfurnished suite portfolio was strong at 6.8 percent. The total same property revenue growth of 4.8 percent was impacted by lower occupancy in our furnished suites and temporary vacancy in our retail space at Minto Yorkville.

Eddie Foo: The total same property revenue growth of 4.8% was impacted by lower occupancy in our furnished sweets and temporary vacancy in our retail space at Mintow Yorkville. Normalized SPNOI and normalized SPNOI margin increased by 7.5% and 160 basis points, respectively, reflecting continued strong revenue growth and flat operating expenses, resulting from disciplined cost containment and lower utility rates relative to the prior year. Normalized FFO per unit increased 15.4%, and our normalized AFFO per unit increased by 18.7%. Our strategy to translate NOI growth into cash flow per unit growth has been successful, and our strong cash flow growth performance is a result of disciplined capital allocation decisions and successful asset sales that contributed to reducing our interest expense compared to prior periods.

Speaker Change: Normalized SPNOI and normalized SPNOI margin increased by 7.5% and 160 basis points respectively, reflecting continued strong revenue growth and flat operating expenses resulting from disciplined cost containment and lower utility rates relative to the prior year.

Speaker Change: Normalized FFO per unit increased 15.4% and our normalized AFFO per unit increased by 18.7%.

Speaker Change: Our strategy to translate NOI growth into cash flow per unit growth has been successful and our strong cash flow growth performance is a result of disciplined capital allocation decisions and successful asset sales that contributed to reducing our interest expense compared to prior periods.

Eddie Foo: Our get to GBV was 41.8%, while a debt to adjusted EBITDA continued to sequentially improve, decreasing to 10.9 times as a result of our strong performance. We also continue to work towards the upward refinancing of 4 properties located in Ottawa that have total estimated net proceeds of between $70 and $80 million that will be used to reduce the outstanding balance on our revolver. Current interest rates have trended favorably.

Speaker Change: Our debt-to-GBV was 41.8% while a debt-to-adjusted EBITDA continued to sequentially improve, decreasing to 10.9 times as a result of our strong performance.

Speaker Change: We also continue to work towards the upward refinancing of four properties located in Ottawa that have total estimated net proceeds of between 70 and 80 million dollars that will be used to reduce the outstanding balance on our revolver. Current interest rates have trended favorably.

Jonathan Li: The total same property revenue growth of 4.8% was impacted by lower occupancy in our furnished suites and temporary vacancy in our retail space at Minto York. Normalized SP-NOI and normalized SP-NOI margin increased by 7.5% and 160 basis points, respectively, reflecting continued strong revenue growth and flat operating expenses resulting from disciplined cost containment and lower utility rates relative to the prior year. Normalized FFO per unit increased 15.4%, and our normalized AFFO per unit increased by 18.7%.

Eddie Foo: I'll now invite Eddie Food to discuss our second quarter financial and operating performance in greater detail. Eddie? We have a decline in furnace sweep and commercial revenue. Normalized same-property portfolio NOI increased 7.5% year over year to $24.9 million as revenue growth was offset by a small increase in same-property normalized operating expenses. Same-property normalized NOI margin increased by 160 basis points to 64%. Average occupancy remains steady at 96.9%. Our strong normalized FFO and AFFO growth has resulted in a normalized AFFO payout ratio of 57.2%, a reduction of 870 basis points from Q2 2023.

Jonathan Li: Our strategy to translate NOI growth into cash flow per unit growth has been successful and our strong cash flow growth performance is a result of disciplined capital allocation decisions and successful asset sales that contributed to reducing our interest expense compared to prior periods. Our debt-to-GBV was 41.8%, while a debt-to-adjusted EBITDA continued to sequentially improve, decreasing to 10.9 times as a result of our strong performance. We also continue to work towards the upward refinancing of four properties located in Ottawa that have total estimated net proceeds of between $70 and $80 million that will be used to reduce the outstanding balance on our revolvers. Current interest rates have trended to favour. [inaudible] I'll now invite Eddie Fu to discuss our second quarter financial and operating performance in greater detail. Eddie?

Speaker Change: I'll now invite Eddie Fu to discuss our second quarter financial and operating performance in greater detail.

Eddie Fu: Thank you, John. Turning to slide four, same property portfolio revenue was $38.9 million, an increase of 4.8% from Q2 last year. Primarily reflecting a 6.3% increase in average monthly rent to $1,939 at quarter end, partially offset by the decline in furnished suite and commercial revenue. Normalized Same Property Portfolio, NOI, increased 7.5% year-over-year to $24.9 million as revenue growth was offset by small increases. Insane Property Normalized Operating Expense, the same property normalized NOI margin increased by 160 basis points to 64%, while average occupancy remains steady at 96.9%.

Eddie Fu: Thank you, Jon. Turning to slide 4, same property portfolio revenue with $38.9 million, an increase of 4.8% from Q2 last year.

Eddie Fu: primarily reflecting a 6.3% increase in average monthly rent to $1,939 at quarter end, partially offset by the decline in furnished suite and commercial revenue.

Speaker Change: Normalized Same Property Portfolio, NOI, increased 7.5% year-over-year to $24.9 million as revenue growth was offset by small increase in same property normalized operating expenses.

Speaker Change: The same property normalized NOI margin increased by 160 basis points to 64%.

Speaker Change: Average occupancy remains steady at 96.9%.

Eddie Fu: Our strong normalized FFO and AFFO growth has resulted in a normalized AFFO payout ratio of 57.2%, a reduction of 870 basis points from Q2 2020. Turning to slide 5, this chart highlights the REIT's steady quarter-over-quarter growth in average monthly rent and strong realized quarterly gain on lease performance. Moving to slide 6, we signed 420 new leases in the second quarter, generating a gain on lease of 11%. We generated double-digit increases in both Ottawa and Calgary, while Montreal was up 9.1%.

Speaker Change: Our strong normalized FFO and AFFO growth has resulted in a normalized AFFO payout ratio of 57.2%, a reduction of 870 basis points from Q2 2023.

Eddie Foo: Turning to slide 5, this chart highlights the reached steady quarter-over-quarter growth in average monthly rent and strong realized quarterly gain on lease performance. Moving to slide 6, we signed 420 new leases in the second quarter, generating a gain on lease of 11%. We generated double-digit increases in both Ottawa and Calgary, while Montreal was up 9.1%. Toronto was up 9.2%, despite a larger proportion of new leases signed for suites with a shorter average length of stay, which resulted in a smaller gap to market rents. Moreover, approximately 50% of the new leases in Toronto were signed at Niagara West, a non-rent control property where expiring rents are close to the market.

Speaker Change: Turning to slide 5, this chart highlights the steady quarter-over-quarter growth in average monthly rent and strong realized quarterly gain on lease performance.

Speaker Change: Moving to slide 6, we signed 420 new leases in the second quarter, generating gain on lease of 11%.

Speaker Change: We generated double-digit increases in both Ottawa and Calgary, while Montreal was up 9.1%.

Eddie Fu: Toronto was up 9.2% despite a larger proportion of new leases signed for suites with a shorter average length of stay, which resulted in a smaller gap to market rent. Moreover, approximately 50% of the new leases in Toronto were signed at Niagara West, a non-rent control property where expiring rents are close to market. Excluding Niagara West, realized gain on lease in Toronto was 14.4% and was 12% across the portfolio.

Speaker Change: Toronto was up 9.2% despite a larger proportion of new leases signed for suites with a shorter average length of stay, which resulted in a smaller gap to market rents.

Speaker Change: Moreover, approximately 50% of the new leases in Toronto were signed at Niagara West, a non-rent controlled property where expiring rents are close to the market.

Eddie Foo: Excluding Niagara West, realized gain on lease in Toronto was 14.4%, and was 12% across the portfolio. As indicated in the lower table, the embedded gain to lease potential at the end of Q2 remained strong at 15.7%. Moving to slide 7, the same property portfolio annualized turnover was 20% in the second quarter, in line with seasonal norms. Movements outpace moveouts, resulting in improved closing occupancy. Annualized turnover was 34% in Calvary, a non-rent control market where the greater availability of affordable homes gives tenants more flexibility to consider other housing options. But strong demand still drove high closing occupancy of 98.6%.

Speaker Change: Excluding Niagara West, realized gain on lease in Toronto was 14.4% and was 12% across the portfolio.

Eddie Fu: As indicated in the lower table, the embedded gain to lease potential at the end of Q2 remains strong at 15.7. Moving to slide seven, the same property portfolio annualized turnover was 20% in the second quarter, in line with seasonal norm. Move-ins outpace move-outs, resulting in improved closing rates. The annualized turnover was 34% in Calgary, a non-rent control market where the greater availability of affordable homes gives tenants more flexibility to consider other housing options.

Speaker Change: As indicated in the lower table, the embedded gain-to-lease potential at the end of Q2 remains strong at 15.7%.

Speaker Change: Moving to slide 7, the same property portfolio annualized turnover was 20% in the second quarter in line with seasonal norms.

Speaker Change: Move-ins outpace move-outs, resulting in improved closing occupancy.

Speaker Change: Annualized turnover was 34% in Calgary, a non-rent controlled market where the greater availability of affordable homes gives tenants more flexibility to consider other housing options.

Eddie Fu: But strong demand, still a high closing occupancy of 98.6% Annualized turnover for Ottawa was 19% while closing occupancy increased under strong demand conditions. In Montreal, annual turnover was 18%, and closing occupancy increased to 96.8%, the highest occupancy level in recent years, supported by strong demand and absence.

Speaker Change: but strong demand still drove high closing occupancy of 98.6 percent.

Eddie Foo: Annualized turnover for Ottawa was 19%, while closing occupancy increased on the strong demand conditions. In Montreal, annualized turnover was 18%, and closing occupancy increased to 96.8%, the highest occupancy level in recent years, supported by strong demand in that market. In Toronto, annualized turnover was 16%, driven by moveouts in non-rent control. Toronto has experienced high vacancy for one-bedroom suites, resulting in lower closing occupancy of 95.1%.

Speaker Change: Annualized turnover for Ottawa was 19% while closing occupancy increased under strong demand conditions.

Speaker Change: In Montreal, annualized turnover was 18% and closing occupancy increased to 96.8%, the highest occupancy level in recent years supported by strong demand in that market.

Eddie Fu: In Toronto, annualized turnover was 16%, driven by move-outs in non-rent-controlled Toronto has experienced high vacancy for one-bedroom suites, resulting in lower closing occupancy of 95.1%. We are working to increase occupancy through a combination of targeted promotions, marketing campaigns, and a tailored renewal program. On slide 8, we provide an update on our commercial and furnished suites portfolio. For our commercial portfolio, we experienced a year-over-year revenue decrease of 27.4%, reflecting the retail vacancy at Minto York.

Speaker Change: In Toronto, annualized turnover was 16%, driven by move-outs in non-rent-controlled suites.

Speaker Change: Toronto has experienced high vacancy for one-bedroom suites resulting in lower closing occupancy of 95.1%.

Eddie Foo: We are working to increase occupancy in these suites through a combination of targeted promotions, marketing campaigns, and a tailored renewal program.

Speaker Change: We are working to increase occupancy in these suites through a combination of targeted promotions, marketing campaigns, and a tailored renewal program.

Eddie Foo: On slide 8, we provide an update on our commercial and furnished suites portfolios. For our commercial portfolio, we experience the year-over-year revenue decrease of 27.4%, reflecting the retail vacancy at Minto, Yorkville. There is continued interest in the ground floor space with a variety of tenants, and we anticipate executing a lease this year, with lease payments expected to commence in early 2026 following the period of fixering. While our furnished suites portfolio saw aggregate occupancy improve sequentially over Q1 2024, revenue declined by 12.8% compared to Q2 last year. This was the result of lower occupancy at Minto, Yorkville due to fewer transient stays, partially offset by higher occupancy at Minto 185, and a 5.1 increase in average monthly rent.

Speaker Change: On slide 8, we provide an update on our commercial and furnished suites portfolios.

Speaker Change: For our commercial portfolio, we experienced a year-over-year revenue decrease of 27.4% reflecting the retail vacancy at Minto Yorkville.

Eddie Fu: There is continued interest in the ground floor space with a variety of tenants, and we anticipate executing a lease this year, with lease payments expected to commence in early 2026, following a period of expansion. While our furniture portfolio saw aggregate occupancy improve sequentially over Q1 2024, revenue declined by 12.8% compared to Q2 last. This was the result of lower occupancy at Minto-Yorkville due to fewer transient states, partially offset by higher occupancy at Minto 185 and a 5.1 increase in average monthly rent. Since Q2 2023, we have converted six furnished suites to unfurnished, including five in Minto York.

Speaker Change: There is continued interest in the ground floor space with a variety of tenants, and we anticipate executing a lease this year, with lease payments expected to commence in early 2026 following a period of fixturing.

Speaker Change: While our Furniture Suite portfolio saw aggregate occupancy improve sequentially over Q1 2024, revenue declined by 12.8% compared to Q2 last year.

Speaker Change: This was the result of lower occupancy at Minto Yorkville due to fewer transient stays.

Speaker Change: partially offset by higher occupancy at rental 185 and a 5.1% increase in average monthly rent.

Eddie Foo: Since Q2 2023, we have converted six furnished suites to unfurnished, including five in Minto, Yorkville. We expect to complete additional suite conversions at Minto, Yorkville, in the second half of 2024 to optimize revenue and occupancy. Turning to slide 9, normalized operating expenses for the same property portfolio were up slightly from last year, as increases in salaries and wages were largely offset by lower repair than payments. Same property normalized property taxes increased 3.8% due to increases in sets' values in Calgary and Montreal, and rates in Toronto and Ottawa. Utility costs in the same property portfolio declined 7.5%, primarily due to decreases in natural gas and electricity rates.

Speaker Change: Since Q2 2023, we have converted six furnished suites to unfurnished, including five in Minto Yorkville.

Eddie Fu: We expect to complete additional suite conversions at Minto Yorkville in the second half of 2024 to optimize revenue and... Turning to slide 9, normal life operating expenses for the same property portfolio were up slightly from last year as increases in salaries and wages were largely offset by lower repair than. Stained property normalized property taxes increased 3.8% due to increases in assessed values in Calgary and Montreal and rates in Toronto and Australia. Utility costs in the same property portfolio declined 7.5%, primarily due to decreases in natural gas and electricity.

Speaker Change: We expect to complete additional suite conversions at Minto Yorkville in the second half of 2024 to optimize revenue and occupancy.

Speaker Change: Turning to slide 9, normalized operating expenses for the same property portfolio were up slightly from last year, as increases in salaries and wages were largely offset by lower repairs and maintenance.

Speaker Change: Same property normalized property taxes increased 3.8% due to increases in assessed values in Calgary and Montreal and rates in Toronto and Ottawa.

Speaker Change: Utility costs in the same property portfolio declined 7.5%, primarily due to decreases in natural gas and electricity rates.

Eddie Foo: Moving to suite repositioning on slide 10, we repositioned 13 suites in the second quarter, generating an ROI of 9.7%. Over the last four quarters, we repositioned 71 suites and generated an average ROI of 9.9%. We expect to reposition 35 to 70 suites this year.

Eddie Fu: Moving to suite repositioning on slide 10, we repositioned 13 suites in the second quarter, generating an ROI of $9.7 percent. Over the last four quarters, we've repositioned 71 suites and generated an average ROI of 9.9%. We expect to reposition 35-70 sweets this year. Turning to slide 11, we have provided our key depth to the market. Our maturity schedule remains valid. As of June 30, 2024, the weighted average term to maturity on our term debt was 5.57 years, with a weighted average effective interest rate of 3.43%.

Speaker Change: Moving to suite repositioning on slide 10, we repositioned 13 suites in the second quarter generating an ROI of 9.7%.

Speaker Change: Over the last four quarters, we've repositioned 71 suites and generated an average ROI of 9.9%.

Speaker Change: We expect to reposition 35 to 70 suites this year.

Eddie Foo: Turning to slide 11, we have provided our key debt statistics. Our maturity schedule remained balanced. As of June 30, 2024, the weighted average turned to maturity on our term debt was 5.57 years, with a weighted average effective interest rate of 3.43%. We have steadily reduced our exposure to expenses variable rate debt to 8% of total debt at the end of Q2. Upon completion of the anticipated refinancing mentioned earlier, our variable rate debt will be reduced to low single digits as a percentage of total debt. Total liquidity was approximately $164 million at June 30, 2024.

Speaker Change: Turning to slide 11, we have provided our key debt statistics.

Speaker Change: Our maturity schedule remains balanced.

Speaker Change: As of June 30, 2024, the weighted average turn to maturity on our term debt was 5.57 years, with a weighted average effective interest rate of 3.43%.

Eddie Fu: We have steadily reduced our exposure to expensive variable rate debt to 8% of total debt at the end of Q2. Upon completion of the anticipated refinancing mentioned earlier, our variable rate debt will be reduced to low single digits as a percentage of total. Total liquidity was approximately $164 million at June 30, 2020. I'll now turn it back over to- Thanks, Eddie.

Speaker Change: We have steadily reduced our exposure to expensive variable rate depth to 8% of total depth at the end of Q2.

Speaker Change: Upon completion of the anticipated refinancing mentioned earlier, our variable rate debt will be reduced to low single digits as a percentage of total debt.

Speaker Change: Total liquidity was approximately $164 million at June 30, 2024.

Jonathan Lee: I'll now turn it back over to you.

Speaker Change: I'll now turn it back over to Jon.

Jonathan Lee: Thanks, Eddie. Moving to slide 12, we continue to advance our attractive pipeline of growth projects. The on-balance sheet intensification that Rich Grove and Leslie York Mills continue to progress well, and stabilization of both projects is expected in 2026. In addition, construction continues to progress well at the CDL properties. Lawnsdale Square and North Vancouver is the most advanced and consists of 113 suites. It opened its doors to tenants on April 1, 2024, and residential leasing is already over 73% complete, which is a testament to the attractiveness of the asset and its desirable location. In addition, the ground floor commercial space is 100% leased, highlighted by an upscaled group hub and a pharmacy.

Jonathan Li: Moving to slide 12, we continue to advance our attractive pipeline of growth projects. The on-balance sheet intensification that Rich Grove and Leslie York Mills continue to progress well and stabilization of both projects is expected in 2020. In addition, construction continues to progress well at the CDL property. Lonsdale Square in North Vancouver is the most advanced and consists of 113, It opened its doors to tenants on April 1, 2024 and residential leasing is already over 73% which is a testament to the attractiveness of the asset and its desirable location. In addition, the ground floor commercial space is 100% Highlighted by an upscale brew pub and a pharmacy.

Jon: Thanks, Eddie. Moving to slide 12, we continue to advance our attractive pipeline of growth projects.

Jon: The on-balance sheet intensifications at Richgrove and Leslie York Mills continue to progress well and stabilization of both projects is expected in 2026.

Jon: In addition, construction continues to progress well at the CDL properties.

Jon: Lonsdale Square in North Vancouver is the most advanced and consists of 113 suites.

Speaker Change: It opened its doors to tenants on April 1st, 2024, and residential leasing is already over 73% complete.

Speaker Change: which is a testament to the attractiveness of the asset and its desirable location.

Speaker Change: In addition, the ground floor commercial space is 100% leased, highlighted by an upscale brew pub and a pharmacy.

Jonathan Lee: The purchase option expires on November 30th of this year. We will continue to evaluate the upcoming CDL purchase opportunities in the context of our cost of capital, impacts on future cash flow per unit, pro forma leverage, market sentiment, and other factors. You can find updated photos and details on the projects on slides 13 and 14.

Jonathan Li: The purchase auction expires on November 30th. We will continue to evaluate the upcoming CDL purchase opportunities in the context of our cost of capital, impact on future cash flow per unit, proforma leverage, market sentiment, and other factors. You can find updated photos and details on the project on slides 13 and 14. I'll conclude with our business outlook on slide 15. The fundamentals underlying rental housing demand in Canada are strong. Canada has robust population growth relative to all other G7 countries, but there is an insufficient supply of new housing, and building new supply remains challenging.

Speaker Change: The purchase option expires on November 30th of this year.

Speaker Change: We will continue to evaluate the upcoming CDL purchase opportunities in the context of our cost of capital, impact on future cash flow per unit, proforma leverage, market sentiment and other factors.

Speaker Change: You can find updated photos and details on the project on slides 13 and 14.

Jonathan Lee: I'll conclude with our business outlook on slide 15. The fundamentals underlying the rental housing demanded Canada are strong. Canada has robust population growth relative to all other G7 countries. There is insufficient supply of new housing, and building new supply remains challenging. We continue to focus on the strategy that is delivering our current solid performance, optimizing revenue and expenses, growing FFO and FFO per unit, exploring attractive refinancing opportunities, making disciplined capital allocation decisions, and critically assessing growth opportunities in our attractive pipeline. With our high quality portfolio and strength and balance sheet, we are well positioned for sustained success.

Speaker Change: I'll conclude with our business outlook on slide 15.

Speaker Change: The fundamentals underlying the rental housing demand in Canada are strong. Canada has robust population growth relative to all other G7 countries.

Speaker Change: There is insufficient supply of new housing, and building new supply remains challenging.

Joelle: We continue to focus on the strategy that is delivering our current solid performance: Optimizing Revenue and Expenses, Growing FFO and AFFO per Unit, Exploring Attractive Refinancing Opportunities, Making Disciplined Capital Allocation Decisions, and Critically Assessing Growth Opportunities in our attractive pipeline. With our high quality portfolio and strengthened balance sheet, we are well positioned for sustained growth. That concludes our prepared remarks. Operator, please open the line for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session.

Speaker Change: We continue to focus on the strategy that is delivering our current solid performance. Optimizing revenue and expenses, growing FFO and AFFO per unit, exploring attractive refinancing opportunities, making disciplined capital allocation decisions, and critically assessing growth opportunities in our attractive pipeline.

Speaker Change: With our high-quality portfolio and strengthened balance sheet, we are well-positioned for sustained success.

Jonathan Lee: That concludes our prepared remarks.

Speaker Change: Duff.

Unknown Executive: Operator, please open the line for questions. Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star, followed by the one on your touchstone phone. You will hear a three-tone prop acknowledging your requests, and your questions will be pulled in the order they are received. Should you wish to decline from the polling process, please press star, followed by the two. If you are using a speaker phone, please lift the hands up before pressing any keys. One moment, please, for your first question.

Speaker Change: That concludes our prepared remarks. Operator, please open the line for questions.

Speaker Change: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchtone phone. You will hear a three-tone prop acknowledging your request and your questions will be pulled in the order they are received.

Joelle: Should you have a question, please press star followed by the number on your touchstone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be pulled in the order they are received. Should you wish to decline from the polling process, please press star followed by the number. If you are using a speakerphone, please lift the handset before pressing any.

Speaker Change: Should you wish to decline from the polling process, please press star followed by the two. If you are using a speaker phone, please lift the hands up before pressing any keys.

Joelle: One moment, please, for your first question. The first question comes from Mark Rothschild with Canaccord. Your line is now open. Thanks. Thanks. Good morning, guys.

Mark Rothschild: Your first question comes from Mark Rothschild with Canaccord. Your line is now open. Thanks, thanks.

Speaker Change: One moment, please, for your first question. Your first question comes from Mark Rothschild with Canaccord. Your line is now open.

Mark Rothschild: Good morning, guys. If you are focusing on the Toronto market, it appears to you after several years that rent growth is maybe stopped or it's teaked. Can you talk a little bit about what you are seeing and what your expectations are for this market in particular as far as the rent growth you are able to achieve? Is this impacting at all the turnover that has been declining for some time?

Mark Rothschild: Thanks, thanks. Good morning, guys.

Paul Baron: Focusing on the Toronto market, it appears after several years that rent growth has maybe stopped or peaked. Can you talk a little bit about what you're seeing and what your expectations are for this market in particular, as far as the rent growth you're able to achieve? And is this impacting at all on the turnover that has been declining for some time? Hey Mark, it's Paul Baron speaking.

Mark Rothschild: Focusing on the Toronto market, it appears after several years that rent growth has maybe stopped or it's peaked.

Mark Rothschild: Can you talk a little bit about what you're seeing and what your expectations are for this market in particular as far as the rent growth you're able to achieve and is this impacting at all the turnover that has been declining for some time?

Paul Baron: The markets, Paul Beren speaking, are so consistent to what we have been communicating for the last few quarters. Market rents in Toronto, a period of plateaued. Most notably, we are seeing that in the one bedroom suite. There has been that large condo deliveries through 2024. Those newly completed condo projects are having an outsized impact on the rental market. Buildings registered since 2020 actually represented more than half of all rental transactions in Q2. That's a 65% year-over-year increase in that leasing activity. The continued downward pressure on rents as condo owners look to fill suites quickly to recover those increased mortgage payments that they're all on the Oak 4.

Mark Rothschild: Hey Mark, it's Paul Baron speaking. So consistent to what we've been communicating for the last few quarters, market rents in Toronto appear to have plateaued. Most notably, we're seeing that in the one bedroom suites.

Paul Baron: So consistent with what we've been communicating for the last few quarters, market rents in Toronto appear to have plateaued. Most notably, we're seeing that in the one bedroom suite. There have been large condo deliveries through 2024. Those newly completed condo projects are having an outsized impact on the rental market. Buildings registered since 2020 actually represented more than half of all rental transactions in Q2.

Mark Rothschild: There's been that large condo deliveries through 2024. Those newly completed condo projects are having an outsized impact on the rental market.

Mark Rothschild: Buildings registered since 2020 actually represented more than half of all rental transactions in Q2. That's a 65% year-over-year increase in that leasing activity.

Paul Baron: That's a 65% year-over-year increase in that leasing activity, and the continued downward pressure on rents as condo owners look to fill suites quickly to recover those increased mortgage payments that they're all on the hook for. I would say, with that said, we still see a significant gain the least potential in that market at 16.9%, so we do anticipate some decent growth going forward. Okay, great. Thanks. Maybe just one more from me.

Mark Rothschild: The continued downward pressure on rents as condo owners look to fill suites quickly to recover those increased mortgage payments that they're all on the hook for.

Paul Baron: I would say if that said, we still see a significant gain the least potential in that market at 16.9%. So we do anticipate some decent growth going forward.

Speaker Change: I would say that said, we still see a significant gain to lease potential in that market at 16.9%, so we do anticipate some decent growth going forward.

Mark Rothschild: Okay, great. Thanks.

Jonathan Li: You know, the unit price doesn't seem to be showing any traction as far as getting back closer to an ABA, at least in the near term. And clearly, you're not looking to issue equity to fund an acquisition. To what extent has your strategy shifted or your thoughts as far as external growth is concerned, whether it's regards to acquiring properties or from the development loans, would you allow leverage to maybe rise somewhat, not necessarily with variable rate debt, but to take advantage of the opportunity to acquire a quality asset if it was accretive, or is maintaining or improving the balance sheet further paramount, and you just won't grow externally? Hey Mark, it's John

John Lee: Maybe just one more from me. You know, the unit price doesn't seem to be showing any traction as far as getting back closer to NAV, at least in the near term, and clearly you're not looking to issue equity to fund acquisitions. To what extent has your strategy shifted or your thoughts as far as external growth, whether it's regards to acquiring properties or from the development loans, would you allow leverage to maybe rise somewhat, not necessarily with variable rate debt, but to take advantage of the opportunity to acquire a quality asset if it was accretive, or is maintaining or improving the balance sheet further paramount, and you just won't grow externally.

Speaker Change: Okay, great, thanks. Maybe just one more from me. You know, the unit price, you know, doesn't seem to be showing any traction as far as getting back closer to NAV at least in the near term, and clearly you're not looking to issue equity to fund acquisitions.

Speaker Change: To what extent has your strategy shifted or your thoughts as far as external growth, whether it's regards to acquiring properties or from the development loans?

Speaker Change: Would you allow leverage to maybe rise somewhat, not necessarily with variable rate death, but to take advantage of the opportunity to acquire a quality asset if it was

John Lee: Hey, May Mark, it's John here. You know, I think you've touched on a couple of things, and maybe I'll address each of them, or at least provide some thoughts on each of them. You know, our share price, like many REITs, has been frustrating. I don't think there's a management team out there that thinks that their share price is where it should be, but a couple of interesting facts that I think are encouraging. I think transaction activity behind the scenes in the private investment market seems to be picking up. I think that's going to be positive for us in a few ways.

Speaker Change: Hey Mark, it's John here. You know I think you've touched on a couple of things and maybe I'll address each of them or at least provide some thoughts on each of them.

Jonathan Li: You know, I think you've touched on a couple of things, and maybe I'll address each of them or at least provide some thoughts on each of them. You know, our share price, like many REITs, has been frustrating. I don't think there's a management team out there that thinks that their share price is where it should be.

Speaker Change: You know, our share price, like many REITs, has been frustrating. I don't think there's a management team out there that thinks that their share price is where it should be. But a couple of, you know, interesting facts that I think are encouraging.

Jonathan Li: But a couple of interesting facts that I think are encouraging. I think transaction activity behind the scenes in the private investment market seems to be picking up. I think that's going to be positive for us in a few ways. I think one, it'll show that institutional money is coming back into the sector in a meaningful way, which is positive. I think, too, we're just getting more inbound offers for some of our assets at more attractive prices. I think three, based on what we know.

Speaker Change: I think transaction activity behind the scenes in the private investment market seems to be picking up.

Speaker Change: I think that's going to be positive for us in a few ways. I think one, it'll show that institutional money is coming back into the sector in a meaningful way, I think which is positive.

John Lee: I think one, it'll show that institutional money is coming back into the sector in a meaningful way, I think, which is positive. I think two; we're just getting more in bounds for some of our assets at more attractive pricing. I think three, based on what we know, the purchase prices of those transactions will highlight the discount that we trade at is not warranted. Like if we see a large sample size of individual transactions where institutional parties are buying assets for cap rate well below our implied trading cap rate and closer to our public cap rate, it'll highlight that it doesn't make sense for our share price to be trading at a 25% discount to NAV.

Speaker Change: I think two, we're just getting more in bounds for some of our assets at more attractive pricing.

Speaker Change: I think three, based on what we know.

Jonathan Li: The Purchase Prices of those transactions will highlight the discount that we trade at is not warranted. Right, like if we see a large sample size of individual transactions where institutional parties, our buying assets for cap-rate well below their implied trading cap-rate and closer to our book cap-rate. It'll highlight that it doesn't make sense for our share price to be trading at a 25% discount right now. And, you know, you kind of add some of the capital markets factors that play which we're hearing that many generalist investors are becoming much more interested in the space.

Speaker Change: The purchase price is...

Speaker Change: Of those transactions, we'll highlight the discount that we trade at is not warranted.

Speaker Change: Like if we see a large sample size of individual transactions where institutional parties.

Speaker Change: Our buying assets for cap rate well below our implied trading cap rate and closer to our book cap rate. It will highlight that it doesn't make sense for our share price to be trading at a 25% discount to NAV.

John Lee: And you know, you kind of add some of the capital markets factors that play, which, you know, we're hearing that many generalist investors are becoming like mortgages in the space. We're hearing retail investors are much more interested as, you know, GIC alternatives are becoming less and less attractive as interest rates come down. And you kind of add all that together, and we're, look, we're hoping that it'll really put some wind in the back of our sales because we have such a high quality portfolio. And if we see a plethora of transactions that support valuations that are significantly higher than we're trading, I think that's it that's good.

Speaker Change: And, you know, you kind of add some of the capital markets factors at play, which...

Speaker Change: You know, we're hearing, you know,

Speaker Change: We're hearing that many generalist investors are becoming much more interested in the space. We're hearing retail investors are much more interested as, you know, GIC alternatives are becoming less and less attractive as interest rates come down. And you kind of add all that together and we're, look, we're hopeful.

Jonathan Li: We're hearing retail investors are much more interested as, you know, GIC alternatives are becoming less and less attractive as interest rates come down. And you kind of add all that together, and we're, look, we're hopeful that it'll really put the wind in the back of our sails because we have such a high-quality portfolio and if we see a plethora of transactions that support valuations that are significantly higher than where we're trading.

Speaker Change: that it'll really put the wind in the back of our sails.

Speaker Change: because we have such a high-quality portfolio and if we see a plethora of transactions that support valuations that are significantly higher than where we're trading, I think that's good for us.

Jonathan Li: I think that's I think that's good, I think as it relates to your second question around, You know, I'll just break it down to sort of capital allocation decisions and leverage. Look, I think I think we've been pretty successful in reducing our variable rate debt exposure, I think. It's been accretive.

John Lee: for us.

John Lee: I think, as it relates to your second question around, you know, I'll just break it down to sort of capital out occasion decisions and leverage. Look, I think we've been pretty successful in reducing our variable rate debt exposure. I think it's been a creative. We have a number of refides that, once complete, net proceeds will be used to continue to reduce our variable rate debt. So that will be, I think, positive, and it will be quite low. So long as there's variable rate debt, you know, I think that's probably the highest on our priority list to pay down as it's the most creative.

Speaker Change: I think as it relates to your second question around

Speaker Change: You know, I'll just break it down to sort of capital allocation decisions and leverage.

Jonathan Li: We have a number of refis that, once complete, net proceeds will be used to continue to reduce our variable rate debt. So that'll be, I think, positive, and it'll be quite low. So as long as there's variable rate debt, you know, I think that's probably the highest on our priority list to pay down, as it's the most accretive. And should we be in a position where we have excess capital, you know, that's when it becomes more interesting. We'll consider potential acquisitions, I think.

Speaker Change: Look, I think we've been pretty successful in reducing our variable rate debt exposure. I think it's been accretive. We have a number of refis that once complete, net proceeds will be used to continue to reduce our variable rate debt, so that'll be, I think, positive, and it'll be quite low.

Speaker Change: So as long as there's variable rate debt, you know, I think that's probably the highest on our priority list to pay down, as it's the most accretive.

John Lee: And should we be in a position where we have access to capital, you know, that's when it becomes more interesting and we'll consider share buybacks and we'll consider, you know, potential acquisition. I think, you know, we're pretty comfortable with leverage kind of below that 45 percent debt to, debt to growth book value range. I think we're pretty significantly below that. And we're cognizant of our casually going forward. So, you know, long way we're saying, kind of, I think things are fluid. I think many options are on the table in terms of growth. I think external growth is probably less likely, so sorry, external third party growth is less likely than potentially buying one of the CDL opportunities.

Speaker Change: And should we be in a position where we have excess capital, you know, that's that's when it becomes more interesting and we'll consider share buybacks and we'll consider, you know, potential acquisitions, I think.

Jonathan Li: You know, we're pretty comfortable with leverage kind of below that. 45% debt to... I think we're pretty significantly below that, and we're cognizant of our cash flow going forward. Long way of saying, I think things are fluid.

Speaker Change: You know we're pretty comfortable with leverage kind of below that

Speaker Change: 45% debt to gross book value range. I think we're pretty significantly below that and we're cognizant of our cash flow going forward.

Speaker Change: You know, long way of saying, kind of, I think things are fluid. I think many options are on the table in terms of growth. I think external growth is probably less likely, so sorry, external third party growth is less likely than potentially buying one of the CDL opportunities.

Jonathan Li: I think many options are on the table in terms of growth. I think external growth is probably less likely. So, sorry, external third-party growth is now less likely than potentially buying one of the CDL opportunities. But, you know, I think we've demonstrated that we've been quite disciplined, and I think we're going to maintain that discipline.

John Lee: But, you know, I think we've demonstrated that we've been quite disciplined, and I think we're going to maintain that discipline. We have some time to figure it out, and, you know, all options remain on the table. And I think, you know, we've been pretty successful at raising equity internally by asset sales, and it makes sense to do more; you know, we consider it.

Speaker Change: But, you know, I think we've demonstrated that we've been quite disciplined, and I think we're going to maintain that discipline.

Jonathan Li: And we have some, we have some time to figure it out. And, you know, all options remain on the table. And I think we've been pretty successful at raising equity internally through asset sales, and that makes us do more. I apologize for touching on five things at once, but I'll turn it back. Thanks so much.

Speaker Change: And we have some time to figure it out and, you know, all options remain on the table. And I think, you know, we've been pretty successful at raising equity internally by asset sales. And if it makes sense to do more, you know, we'd consider it.

Mark Rothschild: I appreciate that.

Mark Rothschild: I apologize for touching on five things at once, but I'll turn it back. Thanks so much. Yeah, maybe it'll reduce the number of questions one forward. So, okay.

Speaker Change: I appreciate that. I apologize for touching on five things at once, but I'll turn it back. Thanks so much.

Speaker Change: Okay, maybe it'll reduce the number of questions going forward.

Mike Marquidi: Your next question comes from Mark. I'm sorry, from Mike Marquidi with BMO Capital Markets.

Jonathan Li: Yeah, maybe he'll reduce the number of questions he asks going forward, so it can be- Your next question comes from Mark, I'm sorry, from Mike Markidis with BMO Capital Markets. Your line is now open. Thank you, operator. Yeah, I just put it that way. I don't think there's anything left after that explanation, John, that was the hurt. But maybe I'll try.

Speaker Change: Your next question comes from Mark, I'm sorry, from Mike Markidis with BMO Capital Markets. Your line is now open.

Mike Marquidi: Your line is now open. Thank you, operator. Yeah, I just put said, I don't think there's anything left after that explanation. John, that was so hard. But maybe I'll try.

Mike Marquidis: Thanks, operator. Yeah, I was just about to say, I don't think there's anything left after that explanation, John. That was hurtful. But maybe I'll try.

John Lee: I mean, I guess with private market activity perking up here, how likely should we think about potential dispositions of assets that you own within the next 62 months? I mean, I think, as I said earlier, further asset sales will likely be tied to other transactions if we consider them, right? I think in and of himself, we got ahead of, I think the asset sales game, and we were quite successful in executing them, and they're kind of in the rearview mirror. So, there's no real catalyst for us to just sell assets for the sake of selling more assets.

Jonathan Li: I mean, I guess with private market activity perking up here, how likely should we think about, potential dispositions of assets that you own within the next six to 12 months. I mean, I think as I said earlier, Further asset sales will likely be tied to other transactions if we I think, in and of himself, we got ahead of, I think… [inaudible] the asset sale game and we were quite successful in executing them and they're kind of in the rear view mirror.

Mike Marquidis: I mean, I guess with private market activity perking up here, how likely should we think about

Mike Marquidis: potential dispositions of assets that you own within the next

Speaker Change: 6012 months

Speaker Change: I mean, I think, as I said earlier,

Speaker Change: Further asset sales will likely be tied to...

Speaker Change: and other transactions if we consider them.

Speaker Change: Right. I think, in and of himself, we got ahead of, I think,

Speaker Change: the asset sale game, and we were quite successful in executing them, and they're kind of in the rear-view mirror. So there's no real catalyst for us to just sell assets for the sake of selling more assets. I think our variable rate debt is in a good spot, or it will be after some refinancings.

Jonathan Li: So there's no real catalyst for us to just sell assets for the sake of selling more assets. I think our variable rate debt is in a good spot, or it will be after some refinancing. And, you know, I think we would consider other asset sales if we got pricing that made sense. And, you know, if it made sense for us to apply some of those proceeds to a potential acquisition to keep our leverage in a good spot, I think we would consider it.

John Lee: I think our variable rate debt is in a good spot, or it will be after some refinancing. And, you know, I think we would consider other asset sales if we got pricing that made sense. And, you know, it made sense for us to apply some of those proceeds to a potential acquisition to keep our leverage in a good spot. I think we would consider it. So, all options on the table; you know, nothing decided yet, but we are, you know, trying to extend option value. We're trying to expand option value in terms of the number of structures that we can apply to potential growth.

Speaker Change: and I think we would consider other applet sales if we got pricing that makes sense.

Speaker Change: You know if it made sense for us to

Speaker Change: apply some of those proceeds to a potential acquisition to keep our leverage in a good spot, I think we would consider it.

Unknown Executive: Good morning, my name is Joel, and I will be a conference coordinator today. At this time I would like to welcome everyone to the Minto Apartment REIT 2024 Second Quarter Financial Results Conference call. All lines have been placed on you to prevent any background noise.

Jonathan Li: So all options on the table, you know, nothing decided yet, but we are, you know, trying to extend option value. We're trying to expand option value in terms of the the number of structures that we can. Why is it potential growth?

Speaker Change: So, all options on the table, you know, nothing decided yet, but we are, you know, trying to extend option value, we're trying to expand option value in terms of the, the number of structures that we can, um,

Unknown Executive: After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star then the number two.

Jonathan Li: But again, you know, we're... Maintaining discipline that we're going to stay disciplined and you know, we'll do what's in the best interest of shareholders in the long term. Okay, that's our last one for me. And it's a modeling question. And it's far afield.

John Lee: But, again, you know, we're, we're, we're maintaining discipline that we're going to state as a plinnd and we'll do what's in the best interest in shareholders in the long term in our judgment.

Speaker Change: apply to potential growth, but again, you know, we're, we're

Speaker Change: maintaining discipline and we're going to stay disciplined and you know we'll do what's in the best interest of shareholders in the long term in our judgment.

Jonathan Li: So if you don't have the answer, totally understand; we can follow up. But I guess I just can't believe we're looking at 2026 already. But that's where we're taking our numbers to, and you've got two developments that will look to stabilize. So do you guys have a sense of what all else equal with the potential drag might be in 2026? As those, This is Asset C&A. Stop capitalizing and have an initial down period from an NOI perspective as you lease up. I mean, I don't think we're going to get into that yet, Mike.

Mike Marquidi: Okay, that's sure.

Unknown Executive: Before we begin, I want to remind listeners that certain statements about future events made on this conference call are forward looking in nature. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. Please refer to the cautionary statements on forward looking information in the REIT's news release and MDNA dated August 13, 2024 for more information.

Mike Marquidi: Last one for me and it's a modeling question and it's far field so if you don't have the answer totally understand we can follow up, but I guess I can't believe we're looking at 2026 already but that's where we're taking our numbers to and you've got two developments that will look to stabilize. So do you guys have a sense of all else equal with the potential drag might be in 2026 as those, as I said, senior you start stop the capitalized stop capitalizing and have an initial down period from an NY perspective as you lease up.

Speaker Change: Okay, that's fair. Last one for me and it's a modeling question and it's far afield so if you don't have the answer totally understand we can follow up but

Speaker Change: I guess just I can't believe we're looking at 2026 already, but that's where we're taking our numbers to and you've got two developments that will look to stabilize. So do you guys have a sense of all else equal with the

Speaker Change: potential drag might be in 2026 as those

Unknown Executive: During the call, management will also reference certain non-IFRS financial measures. Although the REIT believes these measures provide useful, supplemental information about its financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please see the REIT's MDNA for additional information regarding non-IFRS financial measures, including reconciliations to the nearest IFRS measures.

AssetCNN: This is AssetCNN, stop capitalizing and have an initial down period from an NOI perspective as you lease up.

Mike Marquidi: I mean, I don't think we're going to get into that yet, Mike. We're happy to take it offline. We're really focused on just, you know, the development of these from now until completion in 2026, and you know, I'm not sure they'll be done until the end of 2026, so this might even be a 2027 question. So maybe we'll get back to you on that one. All right, well I told you I had to stretch because everything also been answered, so thanks for that.

AssetCNN: I mean, I don't think we're going to get into that yet, Mike.

Jonathan Li: We're happy to take it offline. We're really focused on, You know, the development of these from now until completion in 2020. You know, I'm not sure they'll be done until the end of 2026. So this might even be a 2027 question.

Speaker Change: We're happy to take it offline. We're really focused on just...

Mike Marquidis: You know the development of these from now until completion in 2026 and you know I'm not sure they'll be done until the end of 2026 so this might even be a 2027 question

Jonathan Li: Thank you, Mr. Lee, you may begin your conference. Thank you, operator, and good morning. This is Jonathan Lee, CEO of Mintow apartment REIT. Also on the call is Eddie Foo, our CFO, and Paul Barron, our SVP of operations. In Q2 2024, we maintain the strong operating performance that characterized the start of the year. As illustrated and stable on slide three, we generated 6.3% growth in average monthly rent for the same property portfolio compared to Q2 last year and increased occupancy by 20 basis points.

Jonathan Li: So maybe we'll get back. All right. Well, I told you I had to stretch because everything else had been answered.

Mike Marquidis: Um...

Mike Marquidis: I don't know if I can get out of here or not.

Speaker Change: All right, well, I told you I had to stretch because everything else had been answered. So thanks for that.

Jonathan Keltcher: All right, take care, Mike. Your next question comes from Jonathan Keltcher with KD Cowan. Your line is now. Thanks. Good morning. Just I guess turning back to operations here, turning the operations here. On the on the Toronto vacancy is that is that spread out fairly evenly across the portfolio or is it mostly at one or two properties. Mostly at one or two properties, I should say, breaking that down a little bit further, Jonathan, it's also focused on those one bedrooms we that are feeling that additional pressure pressure from the condo competition, as we've mentioned before.

Jonathan Li: So thanks for that. All right, take care of my. Your next question comes from Jonathan Kelcher with TD Cowan. Your line is now open. Thanks. Good morning.

Speaker Change: All right. Take care, Mike.

Speaker Change: Your next question comes from Jonathan Kelcher with TD Cowan. Your line is now.

Jonathan Li: Thanks. Good morning.

Paul Baron: Just, I guess turning back to to operations here, turning to operations here. On the Toronto vacancy, is that is that spread out fairly evenly across the portfolio? Or is it mostly at one or two properties?

Speaker Change: I guess, turning back to operations here, turning to operations here,

Jonathan Li: On the Toronto vacancy, is that spread out fairly evenly across the portfolio or is it mostly at one or two properties?

Jonathan Li: Same property revenue growth in the unfurnished sweet portfolio was strong at 6.8%. The total same property revenue growth of 4.8% was impacted by lower occupancy in our furnished sweets and temporary vacancy in our retail space at Mintow Yorkville. Normalized SPNOI and normalized SPNOI margin increased by 7.5% and 160 basis points respectively, reflecting continued strong revenue growth and flat operating expenses, resulting from disciplined cost containment and lower utility rates relative to the prior year.

Paul Baron: Mostly at one or two properties. I should say, breaking that down a little bit further, Jonathan, it's also focused on those one bedroom suite that are feeling that additional pressure from the condo competition, as we've mentioned before. [inaudible] And that condo competition would mostly be right downtown, correct? At former City of Toronto borders, so primarily downtown. Okay, and can you maybe give some examples?

Speaker Change: Mostly at one or two properties. I should say, breaking that down a little bit further, Jonathan, it's also focused on those one-bedroom suites that are feeling that additional pressure from the condo competition, as we've mentioned before.

Jonathan Keltcher: And that condo competition would mostly be right downtown, correct. I have former city of Toronto borders, so primarily downtown.

Speaker Change: And that condo competition would mostly be right downtown, correct? Yeah, former City of Toronto border, so primarily downtown.

Paul Baron: Okay, and can you maybe give some examples of you talked about tactical promotions and tailored rituals, some of the stuff that you're doing. Yeah, for sure, so promotion activity really getting creative by property. I think one great example with the High Park where we have an excess amount of parking, so including parking for six months as part of the promotional package, very little cost there as we have so much parking on site. As it relates to renewal activity, we have done some targeted renewal promotions at 39 Niagara, really focusing on those residents that are at market or slightly above market.

Paul Baron: You talked about tactical promotions and tailored renewals, some of the stuff that you're doing. Yeah, for sure. So promotion activity, really getting creative by property. I think one great example would be Hyde Park, where we have an excess amount of parking, so including parking for six months as part of the promotional package, very little cost there as we have so much parking on site.

Speaker Change: Okay, and can you maybe give some examples, you talked about tactical promotions and tailored renewals, some of the stuff that you're doing.

Jonathan Li: Normalized FFO per unit increased 15.4% and our normalized AFFO per unit increased by 18.7%. Our strategy to translate NOI growth into cash flow per unit growth has been successful and our strong cash flow growth performance is a result of disciplined capital allocation decisions and successful asset sales that contributed to reducing our interest expense compared to prior periods. Our get to GBV was 41.8% while a debt to adjusted EBITDA continued to sequentially improve decreasing to 10.9 times as a result of our strong performance.

Speaker Change: Yeah, for sure. So promotion activity, really getting creative by property. I think one great example would be Hyde Park, where we have an excess amount of parking, so including parking for six months.

Speaker Change: As part of the promotional package, very little cost there as we have so much parking on site.

Paul Baron: As it relates to renewal activity, we have done some targeted renewal promotions at 39 Niagara, really focusing on those residents that are at market or slightly above market. Once again, it's really just the leasing team reaching out, describing the market dynamics, the value proposition of our building, and, if required, a few hundred dollars to get them to resign.

Speaker Change: As it relates to renewal activity, we have done some targeted renewal promotions at 39 Niagara, really focusing on those residents that are at market or slightly above market.

Paul Baron: Once again, it's really just the leasing team reaching out, describing the market dynamics, the value proposition of our building, and if required, a few hundred dollars to get them to resign. It's actually been quite effective at that property, so feeling good about some of the unique programs we have going on for the remainder of the year. Are you still getting renewal uplift set at 39 Niagara. It depends on the sweet type; it's about flat.

Jonathan Li: We also continue to work towards the upward refinancing of 4 properties located in Ottawa that have total estimated net proceeds of between $70 and $80 million that will be used to reduce the outstanding balance on our revolver. Current interest rates have trended favorably.

Speaker Change: Once again, it's really just the leasing team reaching out, describing the market dynamics, the value proposition of our building, and if required, a few hundred dollars to get them to re-sign.

Paul Baron: It's actually been quite effective at that property, so I'm feeling good about some of the unique programs we have going on for the remainder of the year. Are you still getting renewal uplifts at 39 Niagara? It depends on the suite type, but it's about flat.

Speaker Change: It's actually been quite effective at that property, so feeling good about some of the unique programs we have going on for the remainder of the year.

Edward Fu: I'll now invite Eddie Food to discuss our second quarter financial and operating performance in greater detail. Eddie? We have a decline in furnace sweep and commercial revenue. Normalized same-property portfolio NOI increased 7.5% year over year to $24.9 million as revenue growth was offset by small increase in same-property normalized operating expenses. Same-property normalized NOI margin increased by 160 basis points to 64%. Average occupancy remains steady at 96.9%. Our strong normalized FFO and AFFO growth has resulted in a normalized AFFO payout ratio of 57.2%, a reduction of 870 basis points from Q2 2023.

Speaker Change: Are you still getting renewal uplifts at 39 Niagara? It depends on the suite type. It's about flat.

Paul Baron: Okay. And then, and then just secondly, on the suite repositioning, you pull back your target for this year, is that 100% due to just lower turnover and not being able to get out in the suites? Or is there some, Um, are you making some decisions that the best or the best cash flow sort of use would be just to release the suite quickly? Yeah, so it's actually a combination of both.

Paul Baron: Okay, and then, and then just secondly on the sweet repositioning, you pull back your target for this year. Is that a hundred percent due to just lower turnover, not being able to get out the sweets, or is there some? Are you making some decisions that the best or the best cash flow. Sorry, use would be just to release the suite quickly. Yeah, so it's actually a combination of both. So we have a declining balance at those repositioning projects that have been ongoing for a number of years, where we're making really the active decisions is around the Montreal portfolio, specifically Rock Hill.

Speaker Change: Okay. And then, and then just secondly, on the suite repositioning, you pulled back your target for this year. Is that is that 100% due to to just lower turnover and not being able to get out in the suites? Or is there some?

Speaker Change: Are you making some decisions that the best, or the best...

Speaker Change: best cash flow

Speaker Change: sort of use would be just to release the suite quickly.

Paul Baron: So we have a declining balance on those repositioning projects that have been ongoing for a number of years. Where we're making really active decisions is around the Montreal portfolio, specifically Rock Hill. And actually, you saw this come through in the gain on lease numbers this quarter. And really, we have the opportunity to take the suites back to market where there's a tremendous amount of demand for that property with simply a paint and clean.

Speaker Change: Yeah, so it's actually a combination of both. So we have a declining balance at those repositioning projects that have been ongoing for a number of years.

Speaker Change: Where we're making really the active decisions is around the Montreal portfolio, specifically Rock Hill.

Paul Baron: And actually you saw this come through on the gain on lease numbers this quarter. And really, we have the opportunity to take the suite back to market. Where there's a tremendous amount of demand for that property with simply a painting queen, so managing cash flow there quite effectively.

Speaker Change: And actually, you saw this come through on the gain on lease numbers this quarter. And really, we have the opportunity to take the suites back to market where there's a tremendous amount of demand for that property with simply a paint and clean. So managing cash flow there quite effectively.

Paul Baron: So managing cash flow there quite effectively. Okay, so would you expect that to sort of trend down as we go forward into 25 and 26? It's a tricky one to say at this point. It's really one sweep to get back, and we know that length of stay on turnover is going down, but it really is a bit of a crapshoot, depending on what you get back.

Paul Baron: Okay, so would we expect that to sort of trend down as we go forward into 25 and 26? Yeah, but if it's a tricky one to say at this point, it's really sweet to get back, and we know that length of sweet length of stay, pardon me, on turnover is going down, but it's really a bit of a crapshoot. Depending on which you get back. Okay, thanks.

Unknown Executive: Turning to slide 5, this chart highlights the reached steady quarter over quarter growth in average monthly rent and strong realized quarterly gain on lease performance. Moving to slide 6, we signed 420 new leases in the second quarter generating gain on lease of 11%. We generated double digit increases in both Ottawa and Calvary while Montreal was up 9.1%. Toronto was up 9.2%, despite a larger proportion of new leases signed for suites with a shorter average length of state, which resulted in a smaller gap to market rents.

Speaker Change: Okay, so would you expect that to sort of trend down as we go forward into 2025 and 2026?

Speaker Change: It's a tricky one to say at this point. It's really one suite to get back, and we know that length of stay on turnover is going down, but it really is a bit of a crapshoot.

Paul Baron: Okay, thanks. I'll turn it back. Thank you. Your next question comes from Kyle Stanley with Desjardins. Your line is now open. Thanks. Morning, guys. Just a quick kind of modeling one for me.

Speaker Change: depending on what you get back.

Paul Baron: I'll turn it back. Thank you.

Speaker Change: Okay, thanks. I'll turn it back. Thank you.

Kyle Stanley: Your next question comes from Kyle family, with there's nothing. Your line is now open. Thanks, morning guys. Just a quick kind of modeling one for me. For your 2025 debt maturities, you know, is there any lumpiness there or fairly spread out across the year? And then, I mean, I think we have a good idea of where refinancing rates are today, but just confirming you're kind of seeing five and 10 year money in the mid to high 3% range that.

Speaker Change: Your next question comes from Kyle Stanley with DeJardins. Your line is now open.

Kyle Stanley: Thanks. Good morning, guys. Just a quick kind of modeling one for me.

Kyle Stanley: For your 2025 debt maturities, you know, is there any lumpiness there or fairly spread out across the year? And then I mean, I think I think we have a good idea of where refinancing rates are today But just confirming you're kind of seeing five and ten year money in the mid to high three percent range, right?

Unknown Executive: Moreover, approximately 50% of the new leases in Toronto were signed at Niagara West, a non-rent control property where expiring rents are close to the market. Excluding Niagara West, realized gain on lease in Toronto was 14.4% and was 12% across the portfolio. As indicated in the lower table, the embedded gain to lease potential at the end of Q2 remained strong at 15.7%.

Eddie Foo: Morning, Kyle. That's Eddie here. Regarding the first question on maturities, the 2025 would be staggered throughout the year. When it comes to rates right now, you'll start to mention rates are trending favorably, so it works positively for us. Five year pricing today for CMHC mortgages would be around 3.7, and a 10 year would be just over 4%. So let's come down considerably over the last six months. Right. Okay, thank you for that.

Eddie Fu: For your 2025 debt maturities, you know, is there any lumpiness there or fairly spread out across the year? And then, I think I think we have a good idea of where refinancing rates are today. But just confirming you're kind of seeing five and 10 year money in the mid to high 3% range. Morning, Kyle. It's Eddie here.

Speaker Change: Regarding the first question on maturities, the 2025 would be staggered throughout the year.

Eddie Fu: Regarding the first question on maturities, the 2025 would be staggered throughout the year. When it comes to rates right now, you know, I was trying to mention rates are trending favorably, so it works positively for us. Five-year pricing today for CMHC mortgages would be around 3.7, and a 10-year review would be just over four, which has come down considerably. Right, okay, thank you for that. And then, Paul, just going back to something you said in Jonathan's question, just on the targeted incentives or promotions you're offering, you said a few hundred dollars. That's in total and not monthly, correct? Correct. Correct. One timer.

Kyle Stanley: When it comes to rates right now, you know, as Strada mentioned, rates are trending favorably, so it works positively for us. Five-year pricing today for CMHC mortgages would be around 3.7, and a 10-year would be just over 4 percent.

Unknown Executive: Moving to slide 7, the same property portfolio annualized turnover was 20% in the second quarter in line with seasonal norms. Movements outpace moveouts resulting in improved closing occupancy. Annualized turnover was 34% in Calvary, a non-rent control market where the greater availability of affordable homes gives tenants more flexibility to consider other housing options. But strong demand still drove high closing occupancy of 98.6%. Annualized turnover for Ottawa was 19% while closing occupancy increased on the strong demand conditions.

Kyle Stanley: So it's come down considerably over the last six months.

Eddie Foo: And then Paul, just going back to something you said to Jonathan's question, just on the targeted incentives or promotions you're offering, you said a few hundred dollars. That's in total and not monthly, correct. Correct, correct.

Speaker Change: Right. Okay. Thank you for that. And then, Paul, just going back to something you said to Jonathan's question, just on the targeted incentives or promotions you're offering, you said a few hundred dollars. That's in total and not monthly, correct? Correct. Correct. One timer.

Eddie Foo: One timer.

Eddie Foo: Okay, perfect.

Kyle Stanley: Thank you very much. I'll turn it back.

Speaker Change: Okay, perfect. Thank you very much. I'll turn it back.

Kyle Stanley: That's all.

Mario Ferrick: Your next question comes from Mario Ferrick with Goshi Bank. Your line is now open. Hey, good morning. Just coming back to the promotion activity or the tactical incentives. Can you comment on the percent of the portfolios that was offering those tactical incentives this quarter and how that compares to Q1? Are you seeing it accelerate, decelerate, kind of remain stable? So I would say overall, it's probably decelerated slightly. The market that we're currently focused on is Toronto. Montreal, it was really select sweet, but that's largely burned off, Mario. So it's really Toronto that we're focused on.

Paul Baron: Okay, perfect. Thank you very much. I'll turn it back. Your next question comes from Mario Saric with Scotiabank. Your line is now open. Hi, good morning.

Speaker Change: let's go

Speaker Change: Your next question comes from Mario Sarek with Scotiabank. Your line is now open.

Unknown Executive: In Montreal, annualized turnover was 18% and closing occupancy increased to 96.8%, the highest occupancy level in recent years supported by strong demand in that market. In Toronto, annualized turnover was 16% driven by moveouts in non-rent control. Toronto has experienced high vacancy for one-bedroom suites, resulting in lower closing occupancy of 95.1%.

Paul Baron: Just coming back to promotion activity or the tactical incentives, can you comment on the percent of the portfolios that were offering those tactical incentives this quarter and how that compares to Q1? Are you seeing it accelerate, decelerate, or kind of remain stable? So I would say, overall, it's probably decelerated slightly. The market that we're currently focused on is Toronto. Montreal, it was really select suites, but that's largely burned off, Mario.

Mario Sarek: Hi, good morning. Just coming back to the promotion activity or the tactical incentives, can you can you comment on the percent of the portfolios that was offering those tactical incentives this quarter and how that compares to Q1?

Speaker Change: Are you seeing it accelerate, decelerate, kind of remain stable?

Speaker Change: So I would say, overall, it's probably decelerated slightly. The market that we're currently focused on is Toronto.

Unknown Executive: We are working to increase occupancy in these suites through a combination of targeted promotions, marketing campaigns, and a tailored renewal program.

Mario Sarek: Montreal it was really select suites but that's largely burned off Mario so it's really Toronto that we're focused on and as we've mentioned those one-bedroom suites that have just been a little little sticky to lease out so overall slight deceleration.

Paul Baron: So it's really Toronto that we're focused on. And as we've mentioned, those one bedroom suites that have just been a little little sticky to lease out. So overall, a slight deceleration.

Mario Ferrick: And as we've mentioned, those one bedroom sweet that have just been a little, little sticky to lease out. So overall, it's like deceleration. And as we look forward to the remainder of the summer, July and August have come back to its typical leasing season from a demand standpoint.

Unknown Executive: On slide 8, we provide an update on our commercial and furnished suites portfolios. For our commercial portfolio, we experience the year-over-year revenue decrease of 27.4% reflecting the retail vacancy at Minto, Yorkville. There is continued interest in the ground floor space with a variety of tenants, and we anticipate executing a lease this year, with lease payments expected to commence in early 2026 following the period of fixering.

Paul Baron: And as we look forward to the remainder of the summer, July and August have come back to a typical leasing season from a demand standpoint. So we can, Paul, just on the back of that, are you able to share where the Toronto closing occupancy that was 95.1%, are you able to share kind of roughly where it is today? Check a file, and I'll...

Mario Sarek: And as we look forward to the remainder of the summer, July and August have come back to a typical leasing season from a demand standpoint, so looking positive.

Mario Ferrick: So Paul, just on the back of that, are you able to share where the Toronto closing occupancy that was 95.1%? Are you able to share kind of roughly where it is today? Let me just check a file; you know, I'm pretty sure it's like right in line. It's pretty close to where it ended in June.

Speaker Change: So Paul, just on the back of that, are we able to share where the Toronto closing occupancy that was 95.1%, are you able to share kind of roughly where it is today?

Unknown Executive: While our furnished suites portfolio saw aggregate occupancy improve sequentially over Q1 2024, revenue declined by 12.8% compared to Q2 last year. This was the result of lower occupancy at Minto, Yorkville due to fewer transient stays, partially offset by higher occupancy at Minto 185, and a 5.1 increase in average monthly rent. Since Q2 2023, we have converted six furnished suites to unfurnished, including five in Minto, Yorkville. We expect to complete additional suite conversions at Minto, Yorkville in the second half of 2024 to optimize revenue and occupancy.

Speaker Change: Let me just...

Speaker Change: Check a file.

Paul Baron: I'm pretty sure it's like right in line, it's pretty close to where... Okay, and then I don't know if you provide this disclosure elsewhere, but in terms of the portfolio breakdown between the one-bedroom, two-bedroom, and other, yeah, can you give us a sense of what that looks like? Sure. So I would say right now, maybe just focusing on our vacancy by sweet type, we would have 65% of our vacancy in Toronto, for example, would be in our one bedroom.

Speaker Change: at all.

Speaker Change: I'm pretty sure it's like right in line, it's pretty close to where it ended in June .

Mario Ferrick: Okay, and then I don't know if you provide this disclosure elsewhere, but in terms of the portfolio breakdown between one bedroom and two bedroom and other, can you have a sense of what that looks like? Sure, so I would say right now, maybe just focusing on our vacancy by sweet type. We would have of our vacancy Toronto; for example, 65% of that would be in our one bedroom suite. Okay, but in terms of the broader portfolio, do you have a sense on what the composition of the portfolio is between three types?

Speaker Change: Correct.

Speaker Change: Okay, and then I don't know if you provide this disclosure elsewhere, but in terms of the portfolio breakdown between the one-bedroom, two-bedroom and other, can you give us a sense of what that looks like?

Speaker Change: Sure, so I would say right now, maybe just focusing on our vacancy by suite type, we would have, of our vacancy in Toronto for example, 65% of that would be in our one-bedroom suites.

Unknown Executive: Turning to slide 9, normalized operating expenses for the same property portfolio were up slightly from last year, as increases in salaries and wages were largely offset by lower repair than payments. Same property normalized property taxes increased 3.8% due to increases in sets' values in Calgary and Montreal, and rates in Toronto and Ottawa. Utility costs in the same property portfolio declined 7.5%, primarily due to decreases in natural gas and electricity rates.

Paul Baron: Okay, but in terms of the broader portfolio, Yeah, do you have a sense of what the composition of the portfolio is between the three types? You know what? I don't have that handy, Mario, but we can get in.

Speaker Change: Okay, but in terms of the broader portfolio?

Speaker Change: Do you have a sense on what the composition of the portfolio is between the three types?

Mario Ferrick: You know what, I don't have that handy, Mario, but yeah, I mean, we can follow up on that.

Paul Baron: Yeah, I mean, we can follow up on that. Okay, perfect. And then lastly, I noted in the call of presentation, or yellow looks flying call presentation, kind of a reference to continued balance, the improvements in 24 were removed. We've talked about your target that the GBV on the call. Is that removal simply a function of the expected financing on the auto assets this year, or is there something else to do? No, I mean, there's nothing much to it.

Speaker Change: You know what, I don't have that handy, Mario.

Mario Ferrick: Okay, perfect, and then lastly, I noted in the call presentation or the outlook slide, the call presentation, kind of a reference to continued balance; the improvements in 24 was removed. We've talked about under a target that the GBV on the call, is that removal simply a function of expected of financing on the auto assets this year or is there something else to that? No, I mean, there's nothing much to it. I mean, we're going to continue to, you know, we do have these up-financing to the front about the full focus on. But it wasn't meant to indicate anything else, really.

Speaker Change: What's up? Good to get in here.

Speaker Change: Yeah, maybe we can follow up on that. Okay, perfect. And then lastly, noted in the call presentation or the outlook slide of the call presentation, kind of a reference to continued balance sheet improvements in 24 was removed. We've talked about

Speaker Change: and your target, that's the GBV on the call. Is that removal simply a function of expected financing on the Ottawa assets this year, or is there something else to that?

Unknown Executive: Moving to suite repositioning on slide 10, we repositioned 13 suites in the second quarter, generating an ROI of 9.7%. Over the last four quarters, we repositioned 71 suites and generated an average ROI of 9.9%. We expect to reposition 35 to 70 suites this year.

Jonathan Li: I mean, we're going to continue to, You know, we do have these up in front of us, which we'll focus on, but it wasn't meant to indicate anything else. I forgot we removed it, to be honest with you. There was nothing purposeful about it.

Speaker Change: No, I mean, yeah, there's nothing much to it. I mean, we're going to continue to...

Speaker Change: We do have these up-and-ante at the front of us, which we'll focus on, but it wasn't meant to indicate anything else, really.

Unknown Executive: Turning to slide 11, we have provided our key debt statistics. Our maturity schedule remained balanced. As of June 30, 2024, the weighted average turned to maturity on our term debt was 5.57 years, with a weighted average effective interest rate of 3.43%. We have steadily reduced our exposure to expenses variable rate debt to 8% of total debt at the end of Q2.

Mario Ferrick: Okay, no answer. I forgot we removed it, to be honest with that. I didn't even realize we removed it, so there was nothing purposeful about that.

Speaker Change: I forgot we removed it, to be honest with you. I didn't even realize.

Speaker Change: and other people who did so. There was nothing purposeful about that.

Jonathan Li: Given Eddie's comment on where five-year debt and 10-year debt are today, are transactions in Vancouver for new construct generally, Rita Micae, our cap rates, so the above or below, we're high-endton concert. Yeah, I mean, I think you and I have spoken much about that spread there, you know, depending on if you use five or 10 years, I think there does seem to be positive leverage. Don't, don't take that as a teaser that we're going to do the deal necessarily. We are, we still have time. I think time is our best friend.

Mario Ferrick: Maybe a given Eddie's comment on where five-year debt and ten-year debt is today, are transactions in Vancouver for new construct? Are they generally upgraded or cap rates at the above or below? We're financing concerted in. Yeah, I mean, I think UNI has spoken much about that spread. So, depending on if you use five or ten-year, I think there does seem to be positive leverage. Don't take that as a teaser that we're going to do the deal, necessarily. We still have time. I think time is our friend. But I think we've said, you know, new construction cap rates according to CBRE in Vancouver are in the 4% to 4.5% range.

David: Any comments on where 5-year debt and 10-year debt is today? Are transactions in Vancouver for new construct, are they generally...

David: Accredited, like our cap rates above or below where financing costs are today.

Unknown Executive: Upon completion of the anticipated refinancing mentioned earlier, our variable rate debt will be reduced to low single digits as a percentage of total debt. Total liquidity was approximately $164 million at June 30, 2024.

Speaker Change: Yeah, I mean, I think you and I have spoken much about kind of that, that spread there, you know, depending on if you use 5 or 10 year, I think there does seem to be positive leverage. Don't, don't take that as a teaser that we're going to do the deal necessarily.

Jonathan Li: I'll now turn it back over to you. Thanks, Eddie. Moving to slide 12, we continue to advance our attractive pipeline of growth projects. The on-balance sheet intensification that Rich Grove and Leslie York Mills continue to progress well and stabilization of both projects is expected in 2026. In addition, construction continues to progress well at the CDL properties. Lawnsdale Square and North Vancouver is the most advanced and consists of 113 suites. It opened its doors to tenants on April 1, 2024, and residential leasing is already over 73% complete, which is a testament to the attractiveness of the asset and its desirable location. In addition, the ground floor commercial space is 100% leased, highlighted by an upscaled group hub and a pharmacy.

Speaker Change: We are, we still have time, make time as our friend, and

Jonathan Li: And, you know, but I think I think we've said, cap rates, new construction cap rates, according to CBRE, in Vancouver are in the 4% to 4.5% range, and there have been numerous comps recently in Vancouver Metro for sub 4% or around 4%. And as Eddie said, the financing rates on the five-year are below that, and the financing rates for the ten-year are kind of right in that. So, the map gone better, I guess, if that's your question on both the long end and the short end of the curve, but, you know, we're going to stay disciplined and evaluate all the input. We have time, as the purchase often doesn't expire until the end of the day.

Speaker Change: But I think we've said cap rates, new construction cap rates according to CBRE.

Speaker Change: in Vancouver are in the 4% to 4.5% range.

Mario Ferrick: And there have been numerous comps recently in Vancouver Metro for sub 4% or around 4%. And Eddie said the financing rates on the five-year are below that. And the financing rates for the ten-year are going to write in. and that range. So, so the map gone better, I guess, if that's your question, on both the long end and the short end of the curve. But, you know, we're going to stay just a blend and evaluate all the inputs, and we have time as the purchase often doesn't expire until the end of November.

Speaker Change: And there have been numerous comps recently in Vancouver Metro for sub 4% or around 4%. And as Eddie said, the financing rates on the 5-year are below that and the financing rates for the 10-year are kind of right in that range.

Speaker Change: So the map's gone better, I guess if that's your question, on both the long end and the short end of the curve, but you know we're going to stay disciplined and evaluate all the inputs and we have time as the purchase option doesn't expire until the end of November.

Jonathan Li: The purchase option expires on November 30th of this year. We will continue to evaluate the upcoming CDL purchase opportunities in the context of our cost of capital, impacts on future cash flow per unit, pro formal leverage, market sentiment, and other factors. You can find updated photos and details on the projects on slide 13 and 14.

Mario Ferrick: Okay, great.

Jonathan Li: Okay, great. Thanks, guys....

Matt Kornack: Thanks, guys. Thanks, Mario.

Speaker Change: Okay, great. Thanks guys.

Matt Kornack: Your next question comes from Matt Kornack with National Bank. Your line is now open. Hey guys, just with regards to the delivery of condos and the cadence of that, we've heard, I guess, on some of the purpose boat rental stuff around 39 Niagara. I think Rio can't now 75% at least on that project. Can you give us a sense of the kind of length, and obviously there's a vacuum in condo deliveries behind this delivery; nobody's starting construction. So, how should we think of kind of the market normalizing over a period of time and getting back to the stable occupancy levels?

Jonathan Li: Your next question comes from Matt Kornack with National Bank. Your line is now open. Hey guys, just with regards to the delivery of condos and the cadence of that, we've heard, I guess, on some of the purpose-built rental stuff around 39 Niagara, I think Rio Can is now at 75%, at least on that project. Can you give us a sense as to kind of the length?

Speaker Change: Thanks very much.

Speaker Change: Your next question comes from Matt Cornack with National Bank. Your line is now open.

Matt Cornack: Hey guys, just with regards to the delivery of condos and the cadence of that, we've heard I guess on some of the Purpose Built Rentals stuff around 39 Niagara, I think Rio Can's now at 75% leased on that project. Can you give us a sense as to kind of...

Jonathan Li: I'll conclude with our business outlook on slide 15. The fundamentals underlying the rental housing demanded Canada are strong. Canada has robust population growth relative to all other G7 countries.

Jonathan Li: There is insufficient supply of new housing and building new supply remains challenging. We continue to focus on the strategy that is delivering our current solid performance, optimizing revenue and expenses, growing FFO and FFO per unit, exploring attractive refinancing opportunities, making disciplined capital allocation decisions, and critically assessing growth opportunities in our attractive pipeline. With our high quality portfolio and strength and balance sheet, we are well positioned for sustained success.

Paul Baron: And obviously, there's a vacuum in condo deliveries behind this delivery. Nobody's starting construction. So how should we think of the market normalizing over a period of time and getting back to stable occupancy levels? So I completely agree with what you described, Matt. So the latest four quarter total for completions is about 28000 suites as of Q2. We know that in the back half of 2024, that number is coming down slightly. So it's coming down to about 10000, a 38 percent decline from the first half of this year, which was 16000. I completely agree with your comment about the lack of presales.

Speaker Change: the length, and obviously there's a vacuum in condo deliveries behind this delivery. Nobody's starting construction. So how should we think of kind of the market normalizing over a period of time and getting back to a stable occupancy level?

Paul Baron: So, I completely agree with what you described, Matt. So, latest four quarter total for completions is about 28,000 suites as of Q2. We know that in the back half of 2024, that number is coming down slightly. So, it's coming down to about 10,000, a 38% decline from the first half of this year, which was 60,000. Completely agree with your comments around the lack of presales.

Speaker Change: So I completely agree with what you described, Matt. So latest four quarter total for completions is about 28,000 suites as of Q2. We know that in the back half of 2024, that number is coming down slightly.

Jonathan Li: That concludes our prepared remarks.

Unknown Executive: Operator, please open the line for questions. Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star, followed by the one on your touchstone phone. You will hear three-tone prop acknowledging your requests and your questions will be pulled in the order they are received. Should you wish to decline from the polling process, please press star, followed by the two. If you are using a speaker phone, please lift the hands up before pressing any keys. One moment, please for your first question.

Speaker Change: So it's coming down to about $10,000, 38% decline from the first half of this year, which was $16,000.

Paul Baron: I mean, it's everywhere now and just an article every week, I think, talking about projects getting shelves. So that will certainly create a void of deliveries in the three to five year period from what we're seeing specifically around Niagara. We've got the same facts as you on the well being at about 25 percent availability. They anticipate stabilizing that property by the end of the year. I think the other side, just on the purpose built rental new construction side, the former city of Toronto is seeing fewer proposed projects.

Paul Baron: I mean, it's everywhere now and just put an article weekly, I think, talking about projects getting shelves, so that will certainly create a way to updeliveries in the three to five year period from what we're seeing. Specifically around Niagara, we've got the same facts as you on the well-being out of about 25% availability. They anticipate stabilizing that property by the end of the year. I think the other, just on the purpose-built rental new construction side, the former city of Toronto is seeing less proposed projects. So, it's moving outside of the core, which I think will certainly help the 39 Niagara property longer term.

Speaker Change: Completely agree with your comment around the lack of pre-sales. I mean, it's everywhere now and just an article weekly, I think, talking about projects getting shelves. So that will certainly create a void of deliveries in the three to five year period from what we're seeing.

Speaker Change: Specifically around Niagara, we've got the same facts as you on the well, being at about 25% availability, they anticipate stabilizing that property by the end of the year.

Mark Rothschild: Your first question comes from Mark Rothschild with Canacord. Your line is now open. Thanks, thanks.

Mark Rothschild: Good morning, guys. If you are focusing on the Toronto market, it appears to you after several years that rent growth is maybe stopped or it's teaked. Can you talk a little bit about what you are seeing and what your expectations are for this market in particular as far as the rent growth you are able to achieve? Is this impacting at all the turnover that has been declining for some time?

Speaker Change: I think the other, just on the purpose-built rental new construction side, the former City of Toronto is seeing less proposed projects, so it's moving outside of the core, which I think will certainly help the 39 Niagara property longer term.

Paul Baron: So it's moving outside of the core, which I think will certainly help the 39 Niagara property longer term. Overall, I think as that condo market, you know, kind of stabilizes to some degree with those new deliveries starting to slow, we know that absorption is still in the core, and new purpose-built rental properties become stabilized. We're certainly optimistic about the future of the core and demand in that market. We know that we are still in a housing crisis broadly and Toronto is a very appealing market that's attractive for residents and newcomers to Canada, but the new supply will be with us for a little while longer. That makes sense. And then, I guess, turning to...

Paul Baron: So, overall, I think as that condo market kind of stabilizes to some degree with those new deliveries starting to slow. We know that absorption is still in the core, and new purpose-built rentals become stabilized. We're certainly optimistic on the future of the core and demand in that market. We know that we are still in a housing crisis, probably, and Toronto is a very appealing market that's attractive for residents and newcomers to Canada. But the new supply will be with us for a little while longer. It makes sense.

Speaker Change: So, overall, I think as that condo market, you know, kind of stabilizes to some degree with those new deliveries starting to slow, we know that absorption is still in the core and new purpose-built rentals become stabilized. We're certainly optimistic on the future of the core and demand in that market. We know that we are still in a housing crisis broadly, and Toronto is a very appealing market that's attractive for residents and newcomers to Canada.

Paul Baron: The markets, Paul Beren speaking, are so consistent to what we have been communicating for the last few quarters.

Paul Baron: Market rents in Toronto, a period of plateaued. Most notably we are seeing that in the one bedroom suite. There has been that large condo deliveries through 2024. Those newly completed condo projects are having an outsized impact on the rental market. Buildings registered since 2020 actually represented more than half of all rental transactions in Q2. That's a 65% year-over-year increase in that leasing activity. The continued downward pressure on rents as condo owners look to fill suites quickly to recover those increased mortgage payments that they're all on the Oak 4. I would say if that said, we still see a significant gain the least potential in that market at 16.9%. So we do anticipate some decent growth going forward. Okay, great.

Mark Rothschild: Thanks.

Speaker Change: But the new supply will be with us for a little while longer.

Matt Kornack: And then I guess turning to renewal spreads, because obviously you guys provide the new leasing spreads on turnover. Can you give us a sense how those have trended? Because presumably, outside of Ontario, but you have got some non-run controlled properties in Ontario. But elsewhere, it seems like you're getting better new leasing, sorry, renewal leasing spreads. But any color you can provide there would be helpful. Sure, Matt. So, it's fairly consistent with the story that John's described around the mid-threes on renewals. We have, in Ontario, a very active AGI program where investors in our properties, and we obviously increase rents where possible through the AGI program.

Speaker Change: That makes sense. And then, I guess, turning to...

Paul Baron: Renewal Leasing Spreads. Sure, Matt. So it's fairly consistent with the story that John described around the mid-threes on renewals. We have in Ontario a very active AGI program where investors are in our properties, and we obviously increase rents where possible through the AGI program. So overall, rent controlled, and non-rent controlled, that puts us in the mid threes on average. And I know it's shrunken, but we never get the modeling right on your furnished suite portfolio. And so there are two things.

Speaker Change: Renewal spreads because obviously you guys provide the new leasing spreads on turnover. Can you give us a sense how those have trended? Because presumably

Speaker Change: outside of Ontario, but you have got some non-rent controlled properties in Ontario, but elsewhere it seems like you're getting better kind of new leasing, sorry, renewal leasing spreads, but any color you can provide there would be helpful.

John: Sure Matt, so it's fairly consistent with the story that John's described around the mid threes on renewals. We have in Ontario a very active HEI program for investors in our properties.

Mark Rothschild: Maybe just one more from me. You know, the unit price doesn't seem to be showing any traction as far as getting back closer to NAV, at least in the near term, and clearly you're not looking to issue equity to fund acquisitions.

Speaker Change: We obviously increase rents where possible through the AGI program. So overall, rent-controlled, non-rent-controlled, that puts us in the mid-30s on average.

Paul Baron: So, overall, rent controlled, non-run controlled, that puts us in the mid-threes on average.

Jonathan Li: To what extent has your strategy shifted or your thoughts as far as external growth, whether it's regards to acquiring properties or from the development loans, would you allow leverage to maybe rise somewhat, not necessarily with variable rate debt, but to take advantage of the opportunity to acquire a quality asset if it was accretive, or is maintaining or improving the balance sheet further paramounts, and you just won't grow externally.

Paul Baron: Okay, and I know it's shrunken, but we never get the modeling right on your Furnish Suite portfolio. And the two things, A, can you give us a sense as to whether the summer has seen kind of normal seasonal take up on those Furnish Suites, particularly in Yorkville? And then what does it look like, as you convert one of the Yorkville Furnish Suites to a Furnish Suite from kind of apples to apples, taking into account the vacancy versus the rent differential going forward? Yeah, so I guess a couple of points on the Furnish Suite business. So demand at Yorkville has not snapped back in the second half as we had anticipated.

Speaker Change: And I know it's shrunken, but we never get the modeling right on your Furnished Suite portfolio. And so, two things. A, can you give us a sense as to whether the summer has...

Paul Baron: Q. Can you give us a sense as to whether the summer has seen kind of normal seasonal take-up on those furnished suites, particularly in Yorkville? And then what does it look like as you convert one of the Yorkville furnished suites to an unfurnished suite from kind of apples to apples, taking into account the vacancy versus the rent differential going forward? Yeah, so I guess a couple of points on the furnished suite business.

Speaker Change: And then what does it look like as you convert one of the Yorkville furnished suites?

Speaker Change: to an unfurnished suite from kind of apples to apples, taking into account the vacancy versus the rent differential going forward.

Jonathan Li: Hey, May Mark, it's John here. You know, I think you've touched on a couple of things, and maybe I'll address each of them, or at least provide some thoughts on each of them. You know, our share price, like many REITs, has been frustrating. I don't think there's a management team out there that thinks that their share price is where it should be, but a couple of interesting facts that I think are encouraging.

Paul Baron: So demand at Yorkville has not snapped back in the second half, as we had anticipated. We're also seeing a bit of a slowdown in the transient business year over year. I think both of those demand drivers do have some relationship with interest rates. In years past, we've seen folks renovating homes and staying with us at Minto Yorkville for three to six months. We're not seeing that as much anymore.

Speaker Change: Yeah, so I guess a couple of points on the furnished suite business. So demand at Yorkville has not snapped back in the second half as we had anticipated. We're also seeing a bit of a slowdown in the transient business year over year.

Paul Baron: We're also seeing a bit of a slowdown in the transient business year over year. I think both of those demand drivers do have some relationship with interest rates. In years past, we've seen folks renovating homes and staying with us at Minto, Yorkville, for three to six months. We're not seeing that as much anymore. Film business, I think it's slowed down in Toronto, and we know that other cities across Canada are getting very competitive chasing that business. So, to your point, Matt, I think being more conservative on the Furnish Suite business going forward, we are, as Eddie described in the opening remarks, looking at converting some Furnish Suites to unfurnished.

Speaker Change: I think both of those demand drivers do have some relationship with interest rates.

Jonathan Li: I think transaction activity behind the scenes in the private investment market seems to be picking up. I think that's going to be positive for us in a few ways. I think one, it'll show that institutional money is coming back into the sector in a meaningful way, I think which is positive. I think two, we're just getting more in bounds for some of our assets at more attractive pricing. I think three, based on what we know, the purchase prices of those transactions will highlight the discount that we trade at is not warranted.

Speaker Change: In years past, we've seen folks renovating homes and staying with us at Minto Yorkville for three to six months. We're not seeing that as much anymore.

Paul Baron: Film business, I think it's slowed down in Toronto, and we know that other cities across Canada are getting very competitive, chasing that business. So to your point, Matt, I think being more conservative in the furnished suite business going forward would be, as Eddie described in the opening remarks, looking at converting some furnished suites to unfurnished.

Speaker Change: Film business, I think it's slowed down in Toronto, and we know that other cities across Canada are getting very competitive chasing that business.

Speaker Change: So to your point, Matt, I think being more conservative on the furnished suite business going forward.

Eddie Fu: We are, as Eddie described in the opening remarks, looking at converting some furnished suites to unfurnished.

Paul Baron: The furnished units are not sub-metered, so we have to go in and put a sub-meter in, but it's like clockwork now for the team. So we're working through those conversions now to really optimize demand for the remaining furnished suites at Yorkville for the remainder of this year and into early next. Okay, so if I just simply appreciate that color, that's very helpful.

Paul Baron: It's a pretty straightforward process; just the furnished are not submeters. So we have to go in and put a sub meter in, but it's like clockwork now for the team. So we're working through those conversions now to really optimize demand for the remaining furnished suites at Yorkville for the remainder of this year and in the early next. Okay, so if I just simply appreciate that color, that's very helpful. Like I guess we should assume that occupancy kind of stays around where it is, rate hasn't been the issue; rates been moving up relatively nicely, but is that a fair assumption on the occupancy side?

Eddie Fu: It's a pretty straightforward process, just the furnished are not sub-metered, so we have to go in and put a sub-meter in, but it's like clockwork now for the team.

Jonathan Li: Like if we see a large sample size of individual transactions where institutional parties are buying assets for cap rate well below our implied trading cap rate and closer to our public cap rate, it'll highlight that it doesn't make sense for our share price to be trading at a 25% discount to nav. And you know, you kind of add some of the capital markets factors that play, which, you know, we're hearing, you know, we're hearing that many generalist investors are becoming like mortgages in the space.

Speaker Change: So, we're working through those conversions now to really optimize demand for the remaining furnished suites at Yorkville for the remainder of this year and into early next.

Speaker Change: Okay, so if I just simply, I appreciate that color, that's very helpful, like I guess we should assume that occupancy kind of stays around where it is, rate hasn't been the issue, rates been moving up relatively nicely, but is that a fair assumption on the occupancy side?

Paul Baron: Like, I guess we should assume that occupancy kind of stays around where it is right hasn't been the issue rates have been moving up relatively nicely. But is that a fair assumption on the occupancy side? Yeah. I'm glad I could be here.

Jonathan Li: We're hearing retail investors are much more interested as, you know, GIC alternatives are becoming less and less attractive as interest rates come down. And you kind of add all that together and we're, look, we're hoping that it'll really put some wind in the back of our sales because we have such a high quality portfolio. And if we see a flethora of transactions that support valuations that are significantly higher than we're trading, I think that's it that's good, for us.

Matt Kornack: Yeah. Okay, perfect, thanks.

Speaker Change: Yeah.

Paul Baron: Okay, perfect. Thanks, guys. I really appreciate it.

Speaker Change: Thank you. Bye. Bye.

Matt Kornack: I really appreciate it. Thank you.

Speaker Change: Okay, perfect. Thanks guys. Really appreciate it. Thank you.

Jimmy Shan: Your next question comes from Jimmy Shan with RBC Capital Markets. Your line is now open. Thanks.

Paul Baron: Thank you. Your next question comes from Jimmy Shan with RBC Capital Markets.

Speaker Change: Your next question comes from Jimmy Shen with RBC Capital Markets. Your line is now open.

Paul Baron: Thanks. So just to follow up on the Toronto condo deliveries. Do you think we've hit the peak delivery? Do you have visibility on what the deliveries are? Hey Jimmy.

Jimmy Shan: So just to follow up on the Toronto condo deliveries, do you think we've hit the peak delivery in Q2 and give a visibility on what the deliveries are in 2025? Hey, Jimmy, so we do. We have visibility on future years, so there's a lot of shovels in the cloud right now. We track perennation pretty closely on deliveries. They're anticipating in 2025 about 50,000 units coming online in Toronto proper. That number starts to wane in 2026, going down to 11,000 units. And then 2027, 2028, I think it's more of a jump-ball depending on presales and whether projects continue to some extent, but we will see the supply continue for a few quarters yet.

Jimmy Shen: Thanks. So just a follow-up on the Toronto condo deliveries. Do you think we've hit the peak delivery in Q2?

Jonathan Li: I think as it relates to your second question around, you know, I'll just break it down to sort of capital out occasion decisions and leverage. Look, I think we've been pretty successful in reducing our variable rate debt exposure. I think it's been a creative. We have a number of refides that once complete net proceeds will be used to continue to reduce our variable rate debt. So that will be, I think, positive and it will be quite low.

Jimmy Shen: in Q2, and do you have visibility on what the deliveries are in 2025?

Paul Baron: So we do, we have visibility into future years. So there's there's a lot of shovels in the ground right now. We track Urbanation pretty closely on deliveries. They're anticipating, in 2025, about 15,000 units coming online in Toronto proper. That number starts to wane in 2026, going down to 11,000 units. And then 2027-2028, I think is more of a wild card, depending on pre-sales and whether projects continue to some extent. But we will see supply continue for a few quarters yet.

Speaker Change: Hey Jimmy, so we do, we have visibility on future years, so there's there's a lot of shovels in the ground right now. We track urbanization pretty closely on deliveries. They're anticipating in 2025 about 15,000 units coming online in Toronto proper.

Jonathan Li: So as long as there's variable rate debt, you know, I think that's probably the highest on our priority list to pay down as it's the most creative. And should we be in a position where we have access capital, you know, that's when it becomes more interesting and we'll consider share buybacks and we'll consider, you know, potential acquisition. I think, you know, we're pretty comfortable with leverage kind of below that 45 percent debt to, debt to growth book value range.

Speaker Change: That number starts to wane in 2026, going down to 11,000 units.

Speaker Change: And then 2027-2028 I think is more of a jump ball depending on pre-sales and whether projects continue to some extent, but we will see the supply continue for a few quarters yet.

Jimmy Shan: Okay, so it comes down quite dramatically into 25, then, because this year is going to end around 26. So it's a pretty big drop off. Sorry, Jimmy, I was just focused on Toronto. The 26,000 number actually references the Greater Toronto and Hamilton area.

Paul Baron: Okay, so it comes down quite dramatically in 2025 then because this year is going to end around 2026, so it's a pretty big drop. Sorry, Jimmy, I was just focused on Toronto. The 26,000 number actually references the Greater Toronto and Hamilton area. What would be the comparable number for Toronto? 16,000 when the number of owners who are trying to minimize their negative cash flows are you seeing? and then drop their rents significantly or...

Speaker Change: Okay, so it comes down quite dramatically in 2025 then because this year is going to end around

Speaker Change: 26

Jonathan Li: I think we're pretty significantly below that. And we're cognizant of our casually going forward. So, you know, long way we're saying kind of, I think things are fluid. I think many options are on the table in terms of growth. I think external growth is probably less likely, so sorry, external third party growth is less likely than potentially buying one of the CDL opportunities. But, you know, I think we've demonstrated that we've been quite disciplined and I think we're going to maintain that discipline and we have some time to figure it out and, you know, all options remain on the table. And I think, you know, we've been pretty successful at raising equity internally by asset sales and it makes sense to do more, you know, we consider it.

Speaker Change: That's a pretty big drop-off. Sorry, Jimmy, I was just focused on Toronto. The 26,000 number actually references the Greater Toronto and Hamilton area.

Mark Rothschild: I appreciate that. I apologize for touching on five things at once, but I'll turn it back.

Unknown Executive: Thanks so much. Yeah, maybe it'll reduce the number of questions one forward.

Jimmy Shan: Okay, go over the number for Toronto then. 16,000. Okay.

Speaker Change: Okay.

Unknown Executive: So, okay.

Jimmy Shen: What would be the comparable number for Toronto then?

Speaker Change: 16,000

Speaker Change: Okay.

Jimmy Shan: The condo owners who are trying to minimize their negative cash flows, are you seeing them drop their rent significantly? Or is this just a case right now that we're seeing just a lot more rental listings? Yeah, not significantly. I mean, just thinking to some of the condo competition around our 39 Niagara property, they look to the purpose-built rentals as a comp and really contributor for where they set their pricing. So not significantly, but probably that five discount of about 5% from what we've seen in some of the condo competition that we face directly.

Speaker Change: Thank you.

Speaker Change: The kind of owners who are trying to minimize their negative cash flows, are you seeing them drop their rent significantly or is this just a case right now that we're seeing just a lot more rental listings?

Paul Baron: Right now, we've seen just a lot more of- Yeah, not significantly. I mean, just thinking about some of the condo competition around our 39 Niagara property, they look to the purpose-built rentals as a comp and really contributor to where they set their pricing. So, not significantly, but probably that 5, this count of about 5% from what we've seen in some of the condo competition that we face directly. Sorry, just last one for me, just on the transaction activity, can you provide some color on some of the transactions that are in the works that you may have alluded to? Oh, are we looking at large portfolio deals, or did we go off? I mean, you know, I would say I can't provide a specific color. I mean, we have it, but, um...

Speaker Change: Yeah, not significantly. I mean, just thinking to some of the condo competition around our 39 Niagara property, they look to the purpose-built rentals as a comp and really

Speaker Change: contributor for where they set their pricing. So not significantly but probably that that five discount of about five percent from what we've seen in some of the condo competition that we face directly.

Mike Marquidi: Your next question comes from Mark. I'm sorry, from Mike Marquidi with BMO Capital Markets. Your line is now open. Thank you, operator. Yeah, I just put said, I don't think there's anything left after that explanation. John, that was so heard. But maybe I'll try.

Jimmy Shan: Okay, perfect.

Jimmy Shan: Sorry, just last one for me, just on the transaction activity. Can you provide some color on some of the transactions that are in the works that you may have alluded to? Are we looking at large portfolio deals or went off, and maybe any color there be helpful? I mean, you know, I would say I can't provide specific color. I mean, we have it, but there are a number of both single properties as well as smaller portfolios on the market across the country. Obviously, we're focused more on the urban areas and kind of what's happening there.

Speaker Change: Okay.

Speaker Change #100: Perfect. Sorry, just last one for me, just on the transaction activity. Can you provide some color on some of the transactions that are in the works that you may have alluded to? Are we looking at large portfolio deals or one-off and

Jonathan Li: I mean, I guess with private market activity perking up here, how likely should we think about potential dispositions of assets that you own within the next 62 months? I mean, I think, as I said earlier, further asset sales will likely be tied to other transactions if we consider them, right? I think in and of himself, we got ahead of, I think the asset sales game and we were quite successful in executing them and they're kind of in the rearview mirror.

Speaker Change: and we will see you next time.

Speaker Change #101: Any color there would be helpful.

Speaker Change #102: I mean, I, you know, I would say I can't provide specific color. I mean, we have it, but.

Paul Baron: There are a number of single properties as well as smaller portfolios on the market across the country. Obviously, we're focused more on the urban areas and kind of what's happening there. But you know, you're seeing it in some of our peers buying new construction assets. There are a number of both new construction and kind of your traditional 50-year-old building, potentially with density as well, for sale.

Speaker Change #102: There are a number of both single property as well as smaller portfolios.

Speaker Change #102: on the market across the country. Obviously, we're focused more on the urban areas and kind of what's happening there.

John Lee: But, you know, you're seeing it in some of our peers buying new construction assets. There are a number of both new construction and kind of your traditional 50-year-old building potentially with density as well for sale. But as we were seeing the financing market firm up, we're seeing that fire pool expand a little bit. You know, you're seeing more activity from folks who Canadian pension funds that have been underweight multi-res. But on the sidelines, you're seeing them come back. We're seeing a little bit more international interest in investing money and parking it in a safe jurisdiction like Canada.

Speaker Change #101: But you know, you're seeing it in some of our peers buying

Speaker Change #102: New Construction Assets. There are a number of both new construction and kind of your traditional 50-year-old building.

Jonathan Li: So, there's no real catalyst for us to just sell assets for the sake of selling more assets. I think our variable rate debt is in a good spot or it will be after some refinancing. And, you know, I think we would consider other asset sales if we got pricing that made sense. And, you know, it made sense for us to apply some of those proceeds to a potential acquisition to keep our leverage in a good spot.

Speaker Change #102: potentially with density as well for sale. But as we were seeing the financing market firm up, we're seeing that firepool expand a little bit, you know, you're seeing more activity from

Paul Baron: But as we see the financing market firm up, we're seeing that fire pool expand a little bit. You know, you're seeing more activity from folks who have Canadian pension funds that have been underweight, multi-res. But on the sidelines, you're seeing them come back.

Speaker Change #105: Folks who, Canadian pension funds that have been underweight, multi-res.

Speaker Change #105: But on the sidelines, you're seeing them come back.

Paul Baron: We're seeing a little bit more international interest in investing money and parking it in a safe jurisdiction like Canada. As I said, we're seeing the REIT become a bit more active. So, I'd say green shoots; it's all looking more positive, and I think the encouraging thing, as I said earlier, is the cap rates and the values that are being... batted around are quite supportive of private market valuation. Ladies and gentlemen, as a reminder, should you have a question, please press star followed by one. Your next question comes from Brad Sturgis with Raymond James. Your line is now open. Hey, good morning.

Speaker Change #105: We're seeing a little bit more international interest in investing money and parking it in a safe jurisdiction like Canada. As I said, we're seeing the reefs become a bit more active.

Jonathan Li: I think we would consider it. So, all options on the table, you know, nothing decided yet, but we are, you know, trying to extend option value. We're trying to expand option value in terms of the number of structures that we can apply to potential growth. But, again, you know, we're, we're, We're maintaining discipline that we're going to state as a plinnd and we'll do what's in the best interest in shareholders in the long term in our judgment.

John Lee: As I said, we're seeing the reach become a bit more active. And so, you know, I'd say green shoots; it's all looking more positive. And I think the encouraging thing, as I said earlier, is the cap rates and the values that are being added around are quite supportive of private market valuations.

Speaker Change #105: And so...

Speaker Change #105: You know, I'd say green shoots, it's all looking more positive, and I think the encouraging thing, as I said earlier, is the cap rates and the values that are being batted around are quite supportive of private market valuations.

Unknown Executive: Okay, that's sure.

Unknown Executive: Last one for me and it's a modeling question and it's far field so if you don't have the answer totally understand we can follow up, but I guess just I can't believe we're looking at 2026 already but that's where we're taking our numbers to and you've got two developments that will look to stabilize so do you guys have a sense of all else equal with the potential drag might be in 2026 as those as I said senior you start stop the capitalized stop capitalizing and have an initial down period from an NY perspective as you lease up. I mean I don't think we're going to get into that yet Mike we're happy to take it offline we're really focused on just you know the development of these from now until completion in 2026 and you know I'm not sure they'll be done until the end of 2026 so this might even be a 2027 question so maybe we'll get back to you on that one.

Speaker Change #107: You

Brad Sturgis: Ladies and gentlemen, as a reminder, should you have a question, please first ask followed by the one. Your next question comes from Brad Sturgis with Raymond James. Your line is now open. Hey, good morning. Just following on to Jimmy's question there on the transaction market. In your opening comments, you also did a little too that you're starting to see some more inbound and solicited interest in some of your assets that just wanted to know or wanted to see you could expand on for where the demand is either by an asset type or market at this point in terms of the inbound interest.

Speaker Change #105: i

Speaker Change #107: Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the 1.

Speaker Change #107: Your next question comes from Brad Sturgis with Raymond James. Your line is now open.

Jonathan Li: Just falling on to Jimmy's question there on the transaction market. In your opening comments, you also mentioned too that you're starting to see some more inbound unsolicited interest in some of your assets. I just wanted to know or wondered if he could expand on where the demand is either by asset type or market at this point in terms of the inbound interest. Yeah, look, as you know, we don't have a ton of assets, less than 30. And they're all very attractive, too.

Speaker Change #109: Hey, good morning.

Speaker Change #110: Just following on to Jimmy's question there on the transaction market, in your opening comments you also did allude to that you're starting to see some more inbound, unsolicited transactions.

Speaker Change #110: Interested in some of your assets. I just wanted to know or wondered if you could expand on Sort of where the demand is either by an asset type or market at this point in terms of the inbound interest

Jonathan Li: And so I think if a buyer could get any one of these, I think they would. And so there's interest across the portfolio. But like I said, there's always interest in high-quality assets.

John Lee: As you know, we don't have a ton of assets, less than 30, and they're all very attractive, and so I think if a buyer could get any one of these, I think they would. So, you know, we're properly capitalized, and I think you'll, you know, all options are on the table for us.

Speaker Change #114: Look, as you know, we don't have a ton of assets, less than 30.

Speaker Change #113: And they're all very attractive. And so I think if a buyer could get any one of these, I think they would. And so there's interest across the portfolio. But like I said, there's always interest in for for for high quality assets and

Unknown Executive: All right well I told you I had to stretch because everything also been answered so thanks for that. All right take care Mike.

Jonathan Keltcher: Your next question comes from Jonathan Keltcher with KD Cowan your line is now. Thanks good morning. Just I guess turning back to to operations here, turning the operations here. On the on the Toronto vacancy is that is that spread out fairly evenly across the portfolio or is it mostly at one or two properties. Mostly at one or two properties I should say breaking that down a little bit further Jonathan it's it's also focused on those one bedrooms we that are feeling that additional pressure pressure from the condo competition as we've mentioned before. And that condo competition would mostly be right downtown correct. I have former city of Toronto borders so primarily downtown.

Speaker Change #113: It doesn't mean we're going to execute on all of them, but definitely assessing options to make sure that if we do decide to grow, you know, we're properly capitalized.

Jonathan Li: And that doesn't mean we're going to execute on all of them, but definitely assessing options to make sure that if we do decide to grow, you know, we're properly capitalized, and I think you'll... All often they're on the table. Okay, my other question is, just looking at your CDLs outstanding today, you've got one in Victoria as well, which is, you know, got a lot more lead time than the Vancouver options at this point.

Speaker Change #113: and I think you'll, you know, all often they're on the table for us.

John Lee: Okay, my other question is just looking at your CDL's outstanding today, you've got one in Victoria as well, which has, you know, got a lot more lead time than Vancouver options at this point, but I'm just curious, in terms of your strategic thinking, where would Victoria rank in terms of expansive or market, potentially on the radar for the REIT at this point? Yeah, well, I mean, look, we think we think Victoria is a very attractive market. We wouldn't have lend money to the private company if we didn't think that was a case. And so, you know, I think, you know, our incremental dollar in terms of a potential acquisition will likely go to, or just expansion, even on balance sheet, it's kind of GTA and West Coast.

Speaker Change #115: My other question is, just looking at your CDLs outstanding today, you've got one in Victoria as well, which has got a lot more lead time than Vancouver.

Jonathan Li: But I'm just curious, in terms of your strategic thinking, where would Victoria rank in terms of expansion or a market potentially on the radar for the REIT at this point? Yeah, well, I mean, look, we think we think Victoria is a very attractive market. We wouldn't have lent money to the private company if we didn't think that were the case.

Speaker Change #116: I'm just curious, in terms of your strategic thinking, where would Victoria rank in terms of

Speaker Change #116: Expansion in a market potentially on the radar for the REIT at this point.

Speaker Change #117: Yeah, I mean, look, we think we think Victoria is a very attractive market. We wouldn't have lent money to the private company if we didn't think that were the case. And so

Paul Baron: Okay and can you maybe give some examples of you talked about tactical promotions and tailored rituals some of the stuff that you're doing. Yeah for sure so promotion activity really getting creative by property. I think one great example with the high park where we have an excess amount of parking so including parking for six months as part of the promotional package very little cost there as we have so much parking on site.

Jonathan Li: So, you know, I think it's, you know, our incremental dollar in terms of a potential acquisition that will likely go... or just expansion, even on the balance sheet. It's kind of the GTA and the West Coast, and I think West Coast is... encompasses both Vancouver and Victoria. We're not going to say never to other jurisdictions, but I think those are the two that are, you know, higher on the radar or more.

Speaker Change #116: You know, I think, you know, our incremental dollar in terms of a potential acquisition will likely go to...

Speaker Change #116: Or just expansion, even on balance sheet. It's kind of GTA and West Coast. And I think West Coast is...

Brad Sturgis: And I think West Coast encompasses both Vancouver and Victoria. You know, we're not going to say never to other jurisdictions, but I think those would be the two that are, you know, higher on the radar or more in the closer to the bull's eye on the radar. That's you. Okay, thanks.

Speaker Change #116: encompasses both Vancouver and Victoria. You know, we're not going to say never to other jurisdictions, but I think those would be the two that are, you know, higher on the radar or more on the...

Paul Baron: As it relates to renewal activity we have done some targeted renewal promotions at 39 Niagara really focusing on those residents that are at market or slightly above market. Once again it's really just the leasing team reaching out describing the market dynamics the value proposition of our building and if required a few hundred dollars to get them to resign. It's actually been quite effective at that property so feeling good about some of the unique programs we have going on for the remainder of the year. Are you are you still getting renewal uplift set at 39 Niagara. It depends on the sweet type it's about flat.

Jonathan Li: Closer to the bullseye on the race. Got you. Okay. Thanks. I'll turn it back.

Speaker Change #116: Closer to the bullseye on the radar.

John Lee: We'll turn it back. Thanks, Brad.

Speaker Change #116: Gotcha. Okay, thanks. I'll turn it back.

Jonathan Lee: There are no further questions at this time. I will now turn the call over to Jonathan for closing remarks. Thank you, and thanks, everyone, for your time. We hope you enjoy the rest of the summer, and we'll speak to you all soon. Take care.

Jonathan Li: There are no further questions at this time. I will now turn the call over to Jonathan for closing remarks. Thank you and thanks everyone for your time. We hope you enjoy the rest of the summer and we'll speak to you all soon. Take care. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.

Speaker Change #119: Thanks, bro.

Speaker Change #116: There are no further questions at this time. I will now turn the call over to Jonathan for closing remarks.

Speaker Change #120: Thank you and thanks everyone for your time. We hope you enjoy the rest of the summer and we'll speak to you all soon. Take care.

Unknown Executive: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating in that. You please disconnect your lines. Thank you.

Speaker Change #121: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

Paul Baron: Okay and then and then just secondly on the sweet repositioning you pull back your target for this year is that is that a hundred percent due to to just lower turnover not being able to get out the sweets or is there some. Are you making some decisions that the best or the best cash flow. Sorry, use would be just to release the suite quickly. Yeah, so it's actually a combination of both.

Paul Baron: So we have a declining balance at those repositioning projects that have been ongoing for a number of years, where we're making really the active decisions is around the Montreal portfolio, specifically Rock Hill. And actually you saw this come through on the gain on lease numbers, this quarter. And really we have the opportunity to take the suite back to market. Where there's a tremendous amount of demand for that property with simply a painting queen, so managing cash flow there quite effectively.

Paul Baron: Okay, so would we expect that to sort of trend down as we go forward into 25 and 26? Yeah, but if it's a tricky one to say at this point, it's really sweet to get back and we know that length of sweet length of stay pardon me on turnover is going down, but it's really a bit of a crapshoot. Depending on which you get back. Okay, thanks.

Unknown Executive: I'll turn it back.

Unknown Executive: Thank you.

Kyle Stanley: Your next question comes from Kyle family with there's nothing.

Edward Fu: Your line is now open. Thanks, morning guys. Just a quick kind of modeling one for me. For your 2025 debt maturities, you know, is there any lumpiness there or fairly spread out across the year? And then, I mean, I think we have a good idea of where refinancing rates are today, but just confirming you're kind of seeing five and 10 year money in the mid to high 3% range that.

Edward Fu: Morning, Kyle. That's Eddie here. Regarding the first question on maturities, the 2025 would be staggered throughout the year. When it comes to rates right now, you'll start to mention rates are trending favorably, so it works positively for us. Five year pricing today for CMHC mortgages would be around 3.7 and a 10 year would be just over 4%. So let's come down considerably over the last six months. Right. Okay, thank you for that.

Kyle Stanley: And then Paul, just going back to something you said to Jonathan's question, just on the targeted incentives or promotions you're offering, you said a few hundred dollars. That's in total and not monthly correct. Correct, correct. One timer. Okay, perfect. Thank you very much. I'll turn it back.

Unknown Executive: That's all.

Mario Saric: Your next question comes from Mario Ferrick with Goshi Bank. Your line is now open. Hey, good morning. Just coming back to the promotion activity or the tactical incentives. Can you can you comment on the percent of the portfolios that was offering those tactical incentives this quarter and how that compares to Q1? Are you seeing it accelerate, decelerate, kind of remain stable? So I would say overall, it's probably decelerated slightly. The market that we're currently focused on is Toronto.

Mario Saric: Montreal, it was really select sweet, but that's largely burned off, Mario. So it's really Toronto that we're focused on. And as we've mentioned, those one bedroom sweet that have just been a little little sticky to lease out. So overall, it's like deceleration. And as we look forward to the remainder of the summer, July and August have come back to its typical leasing season from a demand standpoint.

Mario Saric: So Paul, just on the back of that, are you able to share where the Toronto closing occupancy that was 95.1% are you able to share kind of roughly where it is today? Let me just check a file, you know, I'm pretty sure it's like right in line, it's pretty close to where it ended in June. Okay, and then I don't know if you provide this disclosure elsewhere, but in terms of the portfolio breakdown between one bedroom and two bedroom and other, can you have a sense of what that looks like?

Mario Saric: Sure, so I would say right now, maybe just focusing on our vacancy by sweet type. We would have of our vacancy Toronto, for example, 65% of that would be in our one bedroom suite. Okay, but in terms of the broader portfolio, do you have a sense on what the composition of the portfolio is between three types?

Mario Saric: You know what, I don't have that handy Mario, but yeah, I mean, we can follow up on that. Okay, perfect, and then lastly, I noted in the call presentation or the outlook slide, the call presentation, kind of a reference to continued balance, the improvements in 24 was removed. We've talked about under a target that the GBV on the call, is that removal simply a function of expected of financing on the auto assets this year or is there something else to that?

Mario Saric: No, I mean, there's nothing much to it. I mean, we're going to continue to, you know, we do have these up-financing to the front about the full focus on. But it wasn't meant to indicate anything else really.

Mario Saric: Okay, no answer. I forgot we removed it to be honest with that. I didn't even realize we removed it, so there was nothing purposeful about that. Maybe a given Eddie's comment on where five-year debt and ten-year debt is today, are transactions in Vancouver for new construct? Are they generally upgraded or cap rates at the above or below? We're financing concerted in. Yeah, I mean, I think UNI has spoken much about that spread.

Mario Saric: So depending on if you use five or ten-year, I think there does seem to be positive leverage. Don't take that as a teaser that we're going to do the deal necessarily. We still have time. I think time is our friend. But I think we've said, you know, new construction cap rates according to CBRE in Vancouver are in the 4% to 4.5% range. And there have been numerous comps recently in Vancouver Metro for sub 4% or around 4%.

Mario Saric: And Eddie said the financing rates on the five-year are below that. And the financing rates for the ten-year are going to write in, and that range. So, so the map gone better, I guess, if that's your question, on both the long end and the short end of the curve. But, you know, we're going to stay just a blend and evaluate all the inputs and we have time as the purchase often doesn't expire until the end of November. Okay, great.

Mario Saric: Thanks guys.

Unknown Executive: Thanks, Mario.

Matt Kornack: Your next question comes from Matt Kornack with National Bank. Your line is now open. Hey guys, just with regards to the delivery of condos and the cadence of that, we've heard I guess on some of the purpose boat rental stuff around 39 Niagara, I think Rio can't now 75% at least on that project. Can you give us a sense of the kind of length and obviously there's a vacuum in condo deliveries behind this delivery, nobody's starting construction.

Matt Kornack: So, how should we think of kind of the market normalizing over a period of time and getting back to the stable occupancy levels? So, I completely agree with what you described Matt. So, latest four quarter total for completions is about 28,000 suites as of Q2. We know that in the back half of 2024, that number is coming down slightly. So, it's coming down to about 10,000, 38% decline from the first half of this year, which was 60,000.

Matt Kornack: Completely agree with your comments around the lack of presales. I mean, it's everywhere now and just put an article weekly, I think, talking about projects getting shelves, so that will certainly create a way to updeliveries in the three to five year period from what we're seeing. Specifically around Niagara, we've got the same facts as you on the well being out of about 25% availability. They anticipate stabilizing that property by the end of the year.

Matt Kornack: I think the other, just on the purpose built rental new construction side, the former city of Toronto is seeing less proposed projects. So, it's moving outside of the core, which I think will certainly help the 39 Niagara property longer term. So, overall, I think as that condo market kind of stabilizes to some degree with those new deliveries starting to slow. We know that absorption is still in the core and new purpose built rentals become stabilized.

Matt Kornack: We're certainly optimistic on the future of the core and demand in that market. We know that we are still in a housing crisis, probably, and Toronto is a very appealing market that's attractive for residents and newcomers to Canada. But the new supply will be with us for a little while longer.

Matt Kornack: It makes sense.

Matt Kornack: And then I guess turning to renewal spreads, because obviously you guys provide the new leasing spreads on turnover. Can you give us a sense how those have trended because presumably outside of Ontario, but you have got some non-run controlled properties in Ontario, but elsewhere, it seems like you're getting better new leasing, sorry, renewal leasing spreads, but any color you can provide there would be helpful. Sure, Matt. So, it's fairly consistent with the story that John's described around the mid-threes on renewals.

Matt Kornack: We have, in Ontario, a very active AGI program where investors in our properties, and we obviously increase rents where possible through the AGI program. So, overall, rent controlled, non-run controlled, that puts us in in the mid-threes on average.

Matt Kornack: Okay, and I know it's shrunken, but we never get the modeling right on your Furnish Suite portfolio. And the two things, A, can you give us a sense as to whether the summer has seen kind of normal seasonal take up on those Furnish Suites, particularly in Yorkville? And then what does it look like, as you convert one of the Yorkville Furnish Suites to an Furnish Suite from kind of apples to apples, taking into account the vacancy versus the rent differential going forward?

Matt Kornack: Yeah, so I guess a couple of points on the Furnish Suite business. So demand at Yorkville has not snapped back in the second half as we had anticipated. We're also seeing a bit of a slowdown in the transient business year over year. I think both of those demand drivers do have some relationship with interest rates. In years past, we've seen folks renovating homes and staying with us at Minto, Yorkville for three to six months.

Matt Kornack: We're not seeing that as much anymore. Film business, I think it's slowed down in Toronto and we know that other cities across Canada are getting very competitive chasing that business. So to your point, Matt, I think being more conservative on the Furnish Suite business going forward, we are, as Eddie described in the opening remarks, looking at converting some Furnish Suites to Unfurnished. It's a pretty straightforward process, just the Furnished are not submeters.

Matt Kornack: So we have to go in and put a sub meter in, but it's like clockwork now for the team. So we're working through those conversions now to really optimize demand for the remaining Furnished Suites at Yorkville for the remainder of this year and in the early next.

Matt Kornack: Okay, so if I just simply appreciate that color, that's very helpful. Like I guess we should assume that occupancy kind of stays around where it is, rate hasn't been the issue rates been moving up relatively nicely, but is that a fair assumption on the occupancy side? Yeah.

Unknown Executive: Okay, perfect, thanks.

Unknown Executive: I really appreciate it.

Jimmy Shan: Thank you. Your next question comes from Jimmy Shan with RBC Capital Market. Your line is now open. Thanks. So just to follow up on the Toronto Condo deliveries, do you think we've hit the peak delivery in Q2 and give a visibility on what the deliveries are in 2025? Hey, Jimmy, so we do. We have visibility on future years, so there's a lot of shovels in the cloud right now. We track perennation pretty closely on deliveries.

Jimmy Shan: They're anticipating in 2025 about 50,000 units coming online in Toronto proper. That number starts to wane in 2026 going down to 11,000 units. And then 2027, 2028, I think it's more of a more of a jump-ball depending on presales and whether projects continue to some extent, but we will see the supply continue for a few quarters yet. Okay, so it comes down quite dramatically into 25 then, because this year is going to end around 26.

Jimmy Shan: So it's a pretty big drop off. Sorry, Jimmy, I was just focused on Toronto. The 26,000 number actually references the greater Toronto and Hamilton area. Okay, go over the number for Toronto then. 16,000. Okay. The condo owners who are trying to minimize their negative cash flows, are you seeing them drop their rent significantly? Or is this just a case right now that we're seeing just a lot more rental listings? Yeah, not significantly.

Jimmy Shan: I mean, just thinking to some of the condo competition around our 39 Niagara property, they look to the purpose built rentals as a comp and really contributor for where they set their pricing. So not significantly, but probably that five discount of about 5% from what we've seen in some of the condo competition that we face directly. Okay, perfect.

Jimmy Shan: Sorry, just last one for me, just on the transaction activity. Can you provide some color on some of the transactions that are in the works that you may have alluded to? Are we looking at large portfolio deals or went off and maybe any color there be helpful?

Jonathan Li: I mean, you know, I would say I can't provide specific color. I mean, we have it, but there are a number of both single property as well as smaller portfolios on the market across the country. Obviously, we're focused more on the urban areas and kind of what's happening there. But, you know, you're seeing it in some of our peers buying new construction assets. There are a number of both new construction and kind of your traditional 50 year old building potentially with density as well for sale.

Jonathan Li: But as we were seeing the financing market firm up, we're seeing that fire pool expand a little bit. You know, you're seeing more activity from folks who Canadian pension funds that have been underweight multi-res. But on the sidelines, you're seeing them come back. We're seeing a little bit more international interest in investing money and parking it in a safe jurisdiction like Canada. As I said, we're seeing the reach become a bit more active.

Jonathan Li: And so, you know, I'd say green shoots, it's all looking more positive. And I think the encouraging thing, as I said earlier, is the cap rates and the values that are being added around are quite supportive of private market valuations.

Unknown Executive: Ladies and gentlemen, as a reminder, should you have a question, please first are followed by the one.

Brad Sturgis: Your next question comes from Brad Sturgis with Raymond James. Your line is now open. Hey, good morning. Just following on to Jimmy's question there on the transaction market. In your opening comments, you also did a little too that you're starting to see some more inbound and solicited interest in some of your assets that just wanted to know or wanted to see you could expand on for where the demand is either by an asset type or market at this point in terms of the inbound interest. As you know, we don't have a ton of assets, less than 30 and they're all very attractive and so I think if a buyer could get any one of these, I think they would.

Brad Sturgis: So, you know, we're properly capitalized and I think you'll, you know, all options are on the table for us. Okay, my other question is just looking at your CDL's outstanding today, you've got one in Victoria as well, which has, you know, got a lot more lead time than Vancouver options at this point, but I'm just curious, in terms of your strategic thinking, where would Victoria rank in terms of expansive or market, potentially on the radar for the REIT at this point?

Brad Sturgis: Yeah, well, I mean, look, we think we think Victoria is a very attractive market. We wouldn't have lend money to the private company if we didn't think that was a case. And so, you know, I think, you know, our incremental dollar in terms of a potential acquisition will likely go to, or just expansion, even on balance sheet, it's kind of GTA and West Coast. And I think West Coast is encompasses both Vancouver and Victoria.

Brad Sturgis: You know, we're not going to say never to other jurisdictions, but I think those would be the two that are, you know, higher on the radar or more in the closer to the bulls eye on the radar. That's you. Okay, thanks.

Brad Sturgis: We'll turn it back. Thanks, Brad.

Jonathan Li: There are no further questions that this time I will now turn the call over to Jonathan for closing remarks. Thank you, and thanks, everyone, for your time. We hope you enjoy the rest of the summer, and we'll speak to you all soon.

Unknown Executive: Take care.

Unknown Executive: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating in that. You please disconnect your lines. Thank you.