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 Nov 10, 2022 9:46am

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Post# 35088044

RBC 2

November 10, 2022

InterRent REIT
Q3 in line; Strong NOI growth matched by higher interest cost; Divvy +5%

TSX: IIP.UN | CAD 11.48 | Outperform | Price Target CAD 18.00

Sentiment: Neutral

Our View: InterRent REIT (“IIP”) reported Q3/22 FFO/unit of $0.14, +3.7% y/y, vs. RBC/consensus of $0.14/$0.14. NOI was better than expected with expense growth relatively in check, resulting in SPNOI growth of +12.4%. Higher interest expense from debt refinancing activity in the quarter partially offset the NOI growth. MTM spread is now estimated at 30%+ (27% in Q2/22). Divvy bumped by 5% to $0.36/unit.

Key points:

SP NOI growth: +12.4% (SP-Rev +9.5%; SP-Exp +4.3%)
SP-AMR: $1,443, +6% y/y
SP-Occupancy: 95.9%, +100bps y/y;
SP-Occupancy improved +30 bps q/q, with Ottawa recovering, MTL still lagging but improving post quarter.
SP-NOI margin: 66.4%, +170bps y/y
Mark-to-market rent spread estimated at 30%+ (vs. +27% Q2/22)
Leverage: D/GBV 37.4%, 300 bps y/y. IIP made meaningful progress in extending debt term to 4.8 years, and variable rate

exposure now at 6%.
IFRS BV/unit: $18.29 (+0.4%), despite cap rate higher at 3.97% (+14bps q/q).