News

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12
May

 

 EMAIL: info@interrentreit.com

News Release

InterRent REIT Results for the First Quarter of 2015

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ottawa, Ontario (May 12, 2015) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (InterRent or the “REIT”) today reported financial results for the first quarter ended March 31, 2015.

Highlights

 Average monthly rent per suite for the entire portfolio increased 3.3% from $938 (March 2014) to $969 (March 2015). The stabilized portfolio increased to $957 (March 2015) from $927 (March 2014), an increase of 3.2%.

 Gross rental revenue for the quarter increased by $2.5 million, or 15.5%, over Q1 2014 while operating revenue increased by $2.4 million, or 15.3% compared to Q1 2014.

 Gross rental revenue from stabilized were $13.5 million for the quarter, an increase of $0.4 million, or 3.4%, over Q1 2014 while operating revenue were also $13.5 million, an increase of $0.5 million, or 3.5% over Q1 2014.

 Economic vacancy decreased from 3.9% in December 2014 to 3.6% in March 2015, an improvement of 30 basis points.

 NOI for the quarter increased from $8.4 million for Q1 2014 to $9.8 million for Q1 2015, an increase of $1.4 million, or 16.3%. NOI margin also increased in the quarter over quarter comparison going from 53.1% to 53.5%.

 For the stabilized portfolio, NOI for the quarter increased from $7.1 million for Q1 2014 to $7.4 million for Q1 2015, an increase of $0.3 million, or 4.2%. Stabilized NOI margin increased by 30 basis points in the quarter-over-quarter comparison, going from 54.5% to 54.8%.

 The weighted average interest rate on mortgage debt at the end of the quarter was 2.98% with an average life to maturity of 3.8 years.

 Funds from operations (FFO) for the quarter increased by $0.6 million to $4.4 million (or $0.07 per unit) compared to $3.8 million (or $0.07 per unit) for Q1 2014.

 Adjusted funds from operations (AFFO) for the quarter increased by $0.5 million to $3.7 million (or $0.06 per unit) compared to $3.2 million (or 0.06 per unit) for Q1 2014.

 The REIT acquired a property in one of its operating regions that has been targeted for growth. The Montreal acquisition is a concrete high-rise consisting of 280 suites and closed on March 11, 2015 for $33.0 million.

 The REIT completed the build out of 5 additional suites within existing properties during the quarter.

2

 

 

Financial Highlights Selected Consolidated Information In $000’s, except per Unit amounts and other non-financial data

3 Months Ended

March 31, 2015

3 Months Ended

March 31, 2014

Total suites

6,985

6,103

Occupancy rate (March)

96.4%

96.4%

Average rent per suite (March)

$969

$938

Operating revenues

$18,261

$15,832

Net operating income (NOI)

$9,766

$8,400

NOI %

53.5%

53.1%

NOI per weighted average unit - basic

$0.15

$0.15

NOI per weighted average unit - diluted

$0.15

$0.15

Funds from operations (FFO)

$4,385

$3,820

FFO per weighted average unit - basic

$0.07

$0.07

FFO per weighted average unit - diluted

$0.07

$0.07

Adjusted funds from operations (AFFO)

$3,651

$3,185

AFFO per weighted average unit - basic

$0.06

$0.06

AFFO per weighted average unit - diluted

$0.06

$0.06

Cash distributions per unit

$0.0549

$0.0501

AFFO payout ratio

96%

90%

Stabilized average rent per suite

$957

$927

Stabilized NOI %

54.8%

54.5%

Interest coverage (rolling 12 months)

2.38x

2.62x

Debt service coverage (rolling 12 months)

1.37x

1.55x

Debt to GBV

47.3%

48.7%