TSX:IIP.UN - Post Discussion
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retiredcf on Aug 07, 2024 8:15am
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
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Completed the previously announced sale of non-core assets totalling 497 suites in Quebec for $92mm ($185k/suite) and above IFRS fair value.
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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
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