OTTAWA, ON, Nov. 10, 2025 /CNW/ - InterRent Real Estate Investment Trust (TSX:IIP) ("InterRent" or the "REIT") today reported financial results for the third quarter ended September 30, 2025.
Q3 2025 Highlights:
Received Investment Canada Act approval and clearance under the Competition Act (Canada), and a final order from the Ontario Superior Court of Justice (Commercial List) approving the previously announced arrangement agreement (the "Arrangement Agreement") pursuant to which InterRent will be acquired in an all-cash transaction valued at approximately $4 billion including the assumption of net debt.
Achieved 3.3% year-over-year ("YoY") growth in average monthly rent ("AMR") to $1,742 for the total portfolio, and 2.6% for the same-property portfolio.
Executed 1,463 new leases in the same-property portfolio during Q3, an increase of 21.2% in leasing volume compared to the same period last year.
Grew same-property and total portfolio occupancy rate by 30 and 40 basis points YoY, respectively, and by 150 basis points quarter over quarter ("QoQ") to 96.8%, reflecting strong leasing execution in a more competitive rental market.
Same-property proportionate Net Operating Income ("NOI") of $41.1 million, an increase of $0.8 million, or 1.9% compared to the same period of 2024. Total portfolio proportionate NOI of $42.4 million, an increase of $0.7 million, or 1.6%. Total proportionate NOI per suite increased 2.6% year-over-year.
Same-property proportionate NOI margin was 67.5%, down 70 basis points from Q3 2024, primarily due to a 9.0% YoY increase in property operating costs driven by increased marketing and leasing activity. Total portfolio proportionate NOI margin also decreased by 70 basis points to 67.5%.
Funds from Operations ("FFO") of $14.1 million, or $0.101 per diluted unit, and Adjusted Funds from Operations ("AFFO") of $10.8 million, or $0.077 per diluted unit, reflecting $8.5 million in one-time transaction costs related to the Arrangement Agreement incurred during the quarter.
Adjusting for $8.5 million transaction-related costs, Normalized FFO ("NFFO") decreased by 3.5% to $22.6 million, with NFFO per diluted unit up 1.9% YoY to $0.162, supported by the NCIB.
Normalized AFFO ("NAFFO") of $19.2 million, a decrease of 8.0% YoY with NAFFO per diluted unit of $0.138, a YoY decrease of 2.8%. The decrease in NAFFO was driven by a 21.9% increase in per suite maintenance capex, with two large life-cycle projects accounting for 78.0% of the increase.
As at September 30, 2025, the REIT's Debt-to-GBV increased by 30 basis points QoQ to 42.0%.
Completed the acquisition of a single-suite property adjacent to an existing REIT asset in Ottawa for a purchase price of $0.6 million, providing expanded future development potential at the site.
Achieved at three-point YoY increase in GRESB score to 84 and maintaining a 3-Star rating, extending the strong progress achieved in the REIT's 2024 assessment.
Brad Cutsey, President & CEO of InterRent, commented on the results:
"We delivered solid results through the critical 2025 fall move-in period, as our markets continue to show resilience in a more competitive environment. I'm proud of how our team remained focused on our residents and on delivering consistent performance across the portfolio. We've also achieved key milestones toward our proposed transaction and will continue to let the dedication of our team and our strong culture of service guide us through this next phase."
Financial Highlights:
Selected Consolidated InformationIn $000's, except per Unit amounts and other non-financial data
3 Months Ended
September 30, 2025
3 Months Ended
September 30, 2024
Change
Total suites
11,915(1)
12,031(1)
-1.0 %
Average rent per suite (September)
$ 1,742
$ 1,687
+3.3 %
Occupancy rate (September)
96.8 %
96.4 %
+40 bps
Proportionate operating revenues
$ 62,765
$ 61,213
+2.5 %
Proportionate net operating income (NOI)
$ 42,390
$ 41,730
+1.6 %
NOI %
67.5 %
68.2 %
-70 bps
Same Property average rent per suite (September)
