TSX:IIP.UN - Post Discussion
Post by
retiredcf on May 10, 2024 7:40am
RBC
InterRent REIT Q1 slightly ahead
TSX: IIP.UN | CAD 11.92 | Outperform | Price Target CAD 16.50
Sentiment: Positive
First Look: InterRent REIT (“IIP”) reported FFO/unit of $0.144, +11% y/y, vs. RBC/consensus of $0.137/$0.142. The positive variance was due to lower G&A and interest and slightly higher NOI. Pace of key y/y operating metrics was strong and largely consistent with peers, including good margin expansion and turnover rent growth consistently in the 20% range. That said, based on the price action following its peers' results, fundamentals do not appear to be the main driver in the near term.
Key points:
• SP NOI growth: +11.7% (SP-Rev +7.8%; SP-Exp +1.2%)
• SP-AMR: $1,635, +3.2% q/q, +7.1% y/y; Growth consistent across its markets
• SP-Occupancy: 96.8%, -20bps q/q, +10 bps y/y
• SP-NOI margin: 65.2%, +230 bps y/y
• Rent growth on turnover: +20.3% vs. 17.2% in Q4/23, 20.7% in Q3/23, 23.8% in Q2/23.
• Mark-to-market rent spread estimated at 30%
• Leverage: D/GBV 37.5%, -60 bps q/q, -50 bps y/y
• Asset sale: 497 suites in Gatineau for $92M ($185K/suite) – noted to be above IFRS value.
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