Bullboard - Stock Discussion Forum InterRent Real Estate Investment Trust IIPZF

Primary Symbol: T.IIP.UN

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 > TD

View:

Post by retiredcf on May 09, 2024 10:15am

TD

Have a $14.00 target. GLTA

Q1/24 FIRST LOOK: RESULTS IN LINE; SPNOIG OF +11.7%

THE TD COWEN INSIGHT

InterRent delivered an in-line quarter with steady y/y occupancy, strong AMR growth and lower utility costs leading to +11.7% SPNOI growth. Asset recycling continues with IIP entering agreement to sell an Ottawa portfolio for $97mm post quarter.

Impact: NEUTRAL
Q1/24 Results: Q1/24 FFO/unit of $0.14 was +11% y/y, and largely in line with our estimate and consensus. AFFO/unit of $0.12 was also in line versus our estimate.

Operational Highlights

Q1 SPNOI growth was +11.7%, up from 10.5% in Q4/23. SP revenues were +7.8% y/y
on strong SP AMR growth of +7.1% (to $1,635) and a +10bps y/y uptick in SP occupancy
to 96.8% (-20bps q/q). GMA (+240bps y/y to 97.7%) and GTHA (+30bps to 96.7%) saw improvements while the other regions were lower y/y. SP AMR growth was strong in most regions and led by GVA (+8.2%), Other Ontario (+8.1%) and GTHA (+7.3%). SP expenses were +1.2% y/y (helped by an 11% decline in utility costs) leading to +230bps y/y SP operating margin gains to 65.2%. Achieved 20.3% average gain-on-lease on 461 leases during Q1. Management estimated the mark-to-market on the portfolio at ~30%.

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.

Balance Sheet

The REIT announced that it is committed to sell non-core properties (497 suites) in Ottawa for $92mm or $185,000 per suite, above IFRS fair value. Net proceeds of $66.5mm are expected to be directed towards investment and operating priorities. Closing is expected in Q2/24.
D/GBV was -60bps q/q to 37.5% while liquidity was ~$231mm (versus ~$252 at Q4/23). Variable rate exposure was minimal at sub-1%. The REIT recorded an $8.4mm fair value gain in Q1 (cap rate -4bps q/q at 4.17%).

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