05:16 PM EST, 01/22/2025 (MT Newswires) -- Minto Apartment Real Estate Investment Trust (MI-UN.TO), trading near 52-week lows, after trade Wednesday provided an update on its capital allocation program following the closing of its previously announced sale of the Castleview property located in Ottawa for $69 million.

Following the repayment of the mortgage and associated transaction costs, the net proceeds of $33.8 million will be used, in part, to repay the remaining balance on the REIT's variable-rate revolving credit facility, a statement said.

In addition, the REIT said it has been active under its Normal Course Issuer Bid program as the unit price remains well below net asset value. From mid-November to December 31 the REIT purchased close to the maximum number of units it is permitted to purchase daily under the NCIB, resulting in the purchase of approximately $4.7 million of units at a weighted average price of $14.03 per unit. Furthermore, an Automatic Securities Purchase Plan was established at the end of December 2024, and the REIT has committed an additional $10 million towards continuing unit purchases under the NCIB during the first quarter of 2025.

"We have been active with our capital recycling program, generating gross proceeds of nearly $200 million from six non-core asset sales since early 2023. We have redeployed the net proceeds from these asset sales to accretive capital allocation strategies including paying down variable-rate debt and repurchasing units under the NCIB, resulting in enhancements to our cash flow per unit, strengthening our balance sheet and increasing our financial flexibility," said chief executive Jonathan Li.

"In addition, we recently entered the Metro Vancouver market with the acquisition of the Lonsdale Square property, which was added to our portfolio on an accretive basis, did not require the use of equity financing and resulted in the receipt of $14 million from the repayment of the convertible development loan associated with the property."

Minto closed Wednesday down $0.10 at $12.85 on the Toronto Stock Exchange, near its 52-week low of $12.80.