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 Aug 07, 2024 8:15am

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Post# 36167162

TD

Have a $14.00 target. GLTA

Q2/24 RESULTS IN LINE; SPNOI GROWTH +9.7%

THE TD COWEN INSIGHT

InterRent delivered an in-line quarter that matched our estimate/consensus. Operating metrics were strong, with +6.8% AMR growth, leading to +9.7% SPNOI growth. Management's positive outlook on fundamentals across its markets remains unchanged. Post-Q2/24, IIP became active on its NCIB, using partial proceeds from $143.5mm of YTD dispositions to repurchase $5mm of units.

Impact: NEUTRAL

Q2/24 Results: FFO/unit of $0.157 was +17% y/y, and largely in line with our estimate and consensus. AFFO/unit of $0.133 was also in line versus our estimate (see Figure 1 on page 2).

Operational Highlights

Q2/24 SPNOI growth was +9.7%, moderating slightly vs +11.7% in Q1/24. SP AMR growth was +6.8% (to $1,658), while SP occupancy moved to 96.2% (-60bps q/q and +70bps y/y). SP expenses were +3.3% y/y, leading to +130bps y/y SP operating margin gain to 67.7%. Achieved 16.1% average gain-on-lease on 640 leases during Q2/24. Management estimated the mark-to-market on the portfolio at ~30% (unchanged).

Developments

Target completion dates were unchanged at the REIT's development projects with 360 Laurier being the only one “in the ground” and expected to be delivered in Q3/25.

Acquisitions/Dispositions

Completed the previously announced sale of non-core assets totalling 497 suites in Quebec for $92mm ($185k/suite) and above IFRS fair value.
Sold a non-core Ottawa asset for $5.5mm ($204k/suite) and above IFRS value. Total net proceeds from both dispositions were $95.3mm, which were used towards reducing leverage and repurchasing shares (405k units repurchased for $5mm post-Q2/24).

The REIT recorded a $34.6mm fair value loss in Q2/24 (cap rate +8bps q/q at 4.25%).

Conference call today at 10:00 AM (1-800-717-1738