In­terRent earns $111.11M in Q3, in­creases dis­tri­bu­tion

Stockwatch Daily - - FINANCE - Mr. Mike McGa­han re­ports

IN­TERRENT REAL Es­tate In­vest­ment Trust has re­leased its fi­nan­cial re­sults for the third quar­ter ended Sept. 30, 2017. With In­terRent’s port­fo­lio demon­strat­ing strong sus­tain­able re­sults and with the REIT ap­ply­ing its dis­ci­plined ap­proach to grow­ing the port­fo­lio, the board of

trustees has ap­proved an 11.1-per-cent in­crease to the dis­tri­bu­tion. The an­nu­al­ized dis­tri­bu­tion in­creases to 27 cents per unit, from 24.3 cents per unit. The in­crease will be ef­fec­tive for the Novem­ber dis­tri­bu­tion that is to be paid in De­cem­ber, 2017.

High­lights:

• The monthly dis­tri­bu­tion

in­creases from 2.025 cents

to 2.250 cents per unit.

• Gross rental rev­enue for the quar­ter in­creased by $2.9-mil­lion, or 11.5 per cent, over Q3 2016.

• Gross rental rev­enue for the quar­ter from the sta­bi­lized port­fo­lio in­creased by $900,000, or 4.6 per cent, over Q3 2016.

• Av­er­age monthly rent per suite for the en­tire port­fo­lio in­creased to $1,099 (Septem­ber, 2017) from $1,055 (Septem­ber, 2016), an in­crease of 4.2 per cent. The sta­bi­lized port­fo­lio in­creased to $1,110 ( Septem­ber, 2017) from $1,059 (Septem­ber, 2016), an in­crease of 4.8 per cent.

• Oc­cu­pancy for the over­all port­fo­lio was 97.3 per cent, an in­crease of 310 ba­sis points (Septem­ber, 2017, com­pared with Septem­ber, 2016). Oc­cu­pancy for the sta­bi­lized port­fo­lio was 97.6 per cent, an in­crease of 140 ba­sis points (Septem­ber, 2017, com­pared with Septem­ber, 2016).

• Net oper­at­ing in­come (NOI) for the quar­ter was $17.5-mil­lion, an in­crease of $2.8-mil­lion over Q3

2016. NOI mar­gin for the quar­ter was 63.0 per cent, up 210 ba­sis points over Q3 2016.

• Sta­bi­lized NOI for the quar­ter was $14.0-mil­lion, an in­crease of $1.4-mil­lion over Q3 2016. Sta­bi­lized NOI mar­gin for the quar­ter was 66.1 per cent, up 290 ba­sis points over Q3 2016.

• Fair value gain on in­vest­ment prop­er­ties in the quar­ter of $101.5-mil­lion was driven by prop­erty level oper­at­ing im­prove­ments as well as a re­duc­tion in the over­all weighted av­er­age cap­i­tal­iza­tion rate to 4.57 per cent from 4.85 per cent at Q2 2017. • Net in­come for the quar­ter was $111.1-mil­lion, an in­crease of $99.2-mil­lion com­pared with Q3 2016.

• Funds from op­er­a­tions (FFO) in­creased by $2.5-mil­lion, or 33.8 per cent, for the quar­ter. Fully di­luted FFO per unit in­creased from 10.2 cents per unit to 11.8 cents per unit.

• Ad­justed funds from op­er­a­tions (AFFO) in­creased by $2.3 mil­lion, or 34.9 per cent, for the quar­ter. Fully di­luted AFFO per unit in­creased from $0.091 per unit to $0.106 per unit.

• Debt to gross book value (GBV) at quar­ter-end was 48.5 per cent, a de­crease of 680 ba­sis points from De­cem­ber, 2016.

• The REIT pur­chased 323 suites in its key growth mar­kets of Mon­treal and Hamil­ton for a to­tal pur­chase price of $65-mil­lion.

(See IIP.UN Ta­ble 1 on page 50)

“Grow­ing de­mand in our key growth mar­kets has al­lowed us to con­tinue driv­ing rents and im­prove oc­cu­pancy lev­els, re­sult­ing in sig­nif­i­cant im­prove­ments to oper­at­ing per­for­mance and FFO/AFFO per unit. These im­prove­ments, com­bined with con­tin­ued strong de­mand for mul­ti­fam­ily as­sets, have re­sulted in fur­ther cap rate com­pres­sion in core mar­kets across On­tario and Que­bec,” said Mike McGa­han, chief ex­ec­u­tive of­fi­cer.

We seek Safe Har­bor.

Karen Bax­ter con­densed this news re­lease (karenb@stock­watch.com).

Paul Ami­rault, Paul Bouza­nis, Ronald A Les­lie, Michael Dar­ryl McGa­han, Ch­eryl Pang­born, Vic­tor Regi­nald Stone

(IIP) Shares: 83,765,075

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