INTERRENT REIT DELIVERS STRONG Q3 RESULTS AND OPERATIONAL EFFICIENCY
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OTTAWA, ON, Nov. 4, 2024 /CNW/ - InterRent Real Estate Investment Trust (TSX:IIP) ("InterRent" or the "REIT") today reported financial results for the third quarter ended September 30, 2024.
Q3 2024 Highlights:
Same property and total portfolio occupancy rates of 96.4% in September 2024, a year-over-year ("YoY") increase of 120 basis points and a sequential increase of 20 basis points from Q2 2024.
Achieved Average Monthly Rent ("AMR") of $1,687 for the total portfolio and $1,686 for the same property portfolio in September, representing YoY growth of 7.0% and 5.6% respectively.
Executed 1,279 new leases during Q3, representing 9.7% of the REIT's total portfolio, with an average gain-on-lease of 11.4% compared to expiring rents. Suite turnover excluding disposed properties was 23.8% for the trailing 12 months.
Same property proportionate Net Operating Income ("NOI") of $41.5 million, an increase of $3.3 million, or 8.7% YoY, with same property NOI margin improving by 40 basis points YoY to reach 68.2%.
Funds from Operations ("FFO") reached $23.4 million, an increase of 9.7% YoY. FFO per unit (diluted) of $0.159, an increase of 8.9% from the same period last year.
Adjusted Funds from Operations ("AFFO") of $20.9 million, reflecting an improvement of 10.3%. AFFO per unit (diluted) of $0.142, up 9.2% YoY.
Maintained strong financial position with a debt-to-GBV ratio of 38.5% and variable rate exposure below 1% as of end of Q3.
Subsequent to the quarter, closed the acquisition of a newly-constructed community in downtown Montréal with 248 residential suites in a 50% joint venture for a total price of $107 million.
Board of Trustees has approved a 5% increase to the distribution, from $0.3780 per unit to $0.3969 per unit, marking the 13th consecutive year that the REIT has grown its distribution by 5% or more.
Achieved a 21% improvement in score and ranked first among Canadian public multi-family REITs in the 2024 GRESB Real Estate Assessment.
Brad Cutsey, President & CEO of InterRent, commented on the results:
"We're pleased with our strong Q3 results following a busy summer leasing season. Although growth in market rent has moderated from last year's peak, we have seen good leasing activity and increased occupancy across all regions. Our focus remains on enhancing operating efficiency and further growing our industry-leading margins. We're particularly excited about our recent acquisition in a highly central location in downtown Montréal, strategically positioned near a major hospital and a prominent French university. This addition, secured at a discount to replacement cost, bolsters our already strong and well-located Montréal portfolio. We're confident that this acquisition, once stabilized, will further supplement our solid organic growth as we continue to leverage our operational strengths and position InterRent for long-term growth."
Financial Highlights:
Selected Consolidated InformationIn $000's, except per Unit amounts and other non-financial data
3 Months Ended
September 30, 2024
3 Months Ended
September 30, 2023
Change
Total suites
12,031(1)
12,728(1)
-5.5 %
Average rent per suite (September)
$ 1,687
$ 1,576
+7.0 %
Occupancy rate (September)
96.4 %
95.2 %
+120 bps
Proportionate operating revenues
$ 61,213
$ 59,596
+2.7 %
Proportionate net operating income (NOI)
$ 41,730
$ 40,291
+3.6 %
NOI %
68.2 %
67.6 %
+60 bps
Same Property average rent per suite (September)
$ 1,686
