INTERRENT REIT REPORTS SECOND QUARTER 2025 RESULTS AND RELEASES 2024 SUSTAINABILITY REPORT

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OTTAWA, ON, Aug. 6, 2025 /CNW/ – InterRent Real Estate Investment Trust (TSX:IIP) (“InterRent” or the “REIT“) today reported financial results for the second quarter ended June 30, 2025.

Q2 2025 Highlights:

• Entered into an arrangement agreement (“Arrangement Agreement”) under which InterRent will be acquired in an all-cash transaction valued at approximately $4 billion including net debt. Unitholders to receive $13.55 per unit in cash, representing a 35% premium to the REIT’s unaffected unit price and a 29% premium to the 90-day volume-weighted average price (“VWAP”), subject to customary approvals. The Board unanimously recommends that unitholders vote in favour of the Transaction ahead of the proxy voting deadline of August 21, 2025.
• Achieved 4.0% year-over-year (“YoY”) growth in average monthly rent (“AMR”) to $1,732 for the same-property portfolio, and 4.6% to $1,736 for the total portfolio for June 2025.
• Same-property and total portfolio occupancy in June decreased by 90 basis points YoY to 95.3%, reflecting pressure in the rental market during the quarter. Post quarter-end, occupancy improved to 95.8% in August, the second highest August level in the past eight years, supported by strong leasing momentum and a 68% YoY increase in July same-property approved applications.
• Same-property proportionate Net Operating Income (“NOI”) of $41.1 million, an increase of $1.0 million, or 2.4% compared to the same period of 2024. Total portfolio proportionate NOI of $41.5 million, a YoY decrease of 0.6%, reflecting the effect of $65.5 million in completed gross dispositions over the past 12 months.
• Same-property proportionate NOI margin was 66.9%, a decrease of 80 basis points from Q2 2024, driven by a combination of higher YoY vacancy and an 8.3% increase in property operating costs, partially due to increased turnover and higher marketing spend. Total portfolio proportionate NOI margin decreased by 90 basis points YoY to 66.6%.
• Funds from Operations (“FFO”) of $16.8 million, or $0.120 per diluted unit, and Adjusted Funds from Operations (“AFFO”) of $13.6 million, or $0.096 per diluted unit, reflecting $6.5 million in one-time transaction costs related to the Arrangement Agreement.
• Adjusting for $6.5 million transaction-related costs, Normalized FFO (“NFFO”) per diluted unit increased by 5.7% to $0.166, with total NFFO of $23.3 million, up 1.0% YoY.
• Normalized AFFO (“NAFFO”) of $20.1 million, a decrease of 1.5% YoY with NAFFO per diluted unit of $0.143, reflecting a YoY increase of 3.6%. The NCIB supported the per unit metric of both NFFO and NAFFO.
• Continued to advance the capital recycling program with the disposition of three communities totalling 222 suites, for gross proceeds of $55.9 million, achieving a premium to their IFRS value.
• As at June 30, 2025, the REIT’s Debt-to-GBV was 41.7%, an increase of 80 basis points quarter-over-quarter (“QoQ”), reflecting fair value adjustments and the REIT’s active NCIB program.

Brad Cutsey, President & CEO of InterRent, commented on the results:

“I’m proud of how the team delivered solid results in a more competitive market. We remained focused on what we can control and continued to invest in our communities. These efforts helped drive leasing momentum in July and have positioned us well for the fall move-in period. The Arrangement Agreement announced in May reflects the value we’ve built together. The Board unanimously recommends that unitholders carefully review the Management Information Circular issued August 1, 2025, and vote FOR the Transaction ahead of the proxy voting deadline of August 21, 2025. As we move through the transaction process, we remain focused on supporting our residents and delivering consistent performance.”

Financial Highlights: 

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