InterRent earns $111.11M in Q3, increases distribution
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.
• 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 (email@example.com).
Paul Amirault, Paul Bouzanis, Ronald A Leslie, Michael Darryl McGahan, Cheryl Pangborn, Victor Reginald Stone
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