InterRent Real Estate Investment Trust T.IIP.UN

Alternate Symbol(s): IIPZF

InterRent Real Estate Investment Trust is a real estate investment trust. It is engaged in acquisition, ownership, management and repositioning of strategically located, income-producing, multi-residential properties. Its primary objectives are to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; to provide Unitholders with sustainable and growing cash distributions, payable monthly, and to maintain a conservative payout ratio and balance sheet. The Company's portfolio of properties is located across various locations, such as Ajax, Brossard, Gatineau, Hamilton, Mississauga, Montreal, Oakville, Ottawa, St. Catharines, Stratford, Toronto, Trenton, and Vancouver. Its properties include 10 - 14 REID DRIVE, 100 MAIN STREET, 1015 ORCHARD, 1170 FENNELL AVENUE, 1276 DORCHESTER AVENUE, and 15 DON STREET. It also owns a 605-suite apartment community at 2 & 4 Hanover Road in Brampton, Ontario.

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InterRent Real Estate Investment Trust

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Post by retiredcfon Mar 08, 2022 11:08am

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Post# 34495288

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Have a $21.00 target. GLTA

InterRent REIT

(IIP.UN-T) C$15.63

Q4 First Look: Occupancy Back In Line with Long-term Run Rate

Event

Q4/21 results. Conference call today at 10:00 AM (1-888-440-6928).

Impact: NEUTRAL

Q4/21 FFO/unit of $0.137 was +22% versus Q4/20, in line with consensus at $0.14 and slightly ahead of our $0.129 estimate. The beat versus our estimate was attributable to 4% higher NOI (Exhibit). AFFO/unit of $0.121 was also ahead of our $0.113 estimate.

Q4 results displayed another strong quarter for occupancy gains, with total portfolio occupancy reaching 95.6% (+120bps q/q and +430bps y/y) in December, and now in line with management's longer term target of +/-96%. SP occupancy also improved +130bps q/q to 96.2% with reductions in vacancy seen in each of the REIT's regions. AMR of $1,381 was +5% y/y. SPNOI margins increased 100bps y/y to 64.7%, largely on the back of higher same property revenue. This was slightly offset by higher property operating costs that represented 16.4% of revenue in Q4/21 versus 16.1% in Q4/20. This translated to 9.5% y/y SPNOI growth.

Operational Highlights

Q4 SPNOI was +9.5% (2021: +3.1%). SP revenues were +7.8%, driven by a 440bps increase in same-property occupancy to 96.2% (Ottawa/Gatineau: +540ps; GTHA: +220bps; Montreal: +880bps) and a 4.4% increase in AMR to $1,380. Property operating costs and utilities increased 9.5% and 4.5,% respectively, while property taxes declined by ~1%.

Acquisitions

Post-Q4 acquired two properties (aggregating 57 suites at 100% share) in Vancouver via its JV with Crestpoint for $25.6mm ($12.8mm at the REIT's interest).

Balance Sheet

Q4 IFRS FV gain of $84.6mm, or $0.59/unit, largely on a 7bps q/q cap rate decline to 3.86% (-30bps y/y). IFRS BV +4% q/q and +16% y/y to $17.35.
Liquidity of $83.6mm edged lower from $127.8.0mm in Q3/21. D/GBV was +230bps q/q to 36.7%.
Post Q4 the REIT has closed or locked in rates for ~$283.4mm of CMHC insured mortgages (previous balance owing of $104.7mm) resulting in up-financing of $170.6mm