Bullboard - Stock Discussion Forum 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;... see more

Add To Watchlist

TSX:IIP.UN - Post Discussion

InterRent Real Estate Investment Trust > More TD

View:

Post by retiredcf on Mar 08, 2022 11:08am

More TD

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