Ottawa, Ontario (November 1, 2023) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) today reported financial results for the third quarter ended September 30, 2023.

Operational and Financial Highlights:

    • Average Monthly Rent (“AMR”) of $1,576 for the Total Portfolio and $1,566 for the same property portfolio, an increase of 7.8% and 7.3% year-over-year (“YoY”) respectively.
    • Same Property and Total Portfolio occupancy for September 2023 were 95.2%, a decrease of 40 basis points compared to the same period last year.
    • Same Property Net Operating Income (“NOI”) for Q3 was $39.5 million, an increase of $3.8 million or 10.5% YoY.
    • Total Portfolio NOI was $40.3 million, an increase of $4.0 million, or 11.0% YoY.
    • NOI margin for the Same Property Portfolio and Total Portfolio were 67.6%, reflecting increases of 140 bps YoY.
    • Funds from Operations (“FFO”) of $21.3 million, a 4.9% increase from Q3 2022. FFO per unit (diluted) of $0.146, an increase of 4.3% YoY.
    • Adjusted Funds from Operations (“AFFO”) of $18.9 million, an increase of 6.3% YoY, and AFFO per unit (diluted) of $0.129, an increase of 4.9% YoY.
    • Strong financial position with $268 million of available liquidity with Debt-to-Gross Book Value (“GBV”) of 38.6%.
    • Board of Trustees has approved a 5% increase to the distribution, from $0.3600 per unit to $0.3780 per unit, marking the 12th consecutive year that the REIT has grown its distribution by 5% or more.

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

    “We’re thrilled to announce our third consecutive quarter of double-digit NOI growth and rising FFO/unit growth, accompanied by strengthening NOI margin reaching its highest level since Q3 2019, all achieved amid the backdrop of rising interest rates and evolving economic conditions. I want to extend my appreciation to our team for their dedicated efforts in delivering these results. We maintain our strong focus on building resilience, optimizing controllable costs, proactively managing our debt and lastly, exercising discipline in our capital allocation strategy, which is of the utmost importance.”

Selected Consolidated Information 3 Months Ended 3 Months Ended Change
In $000’s, except per Unit amounts September 30, 2023 September 30, 2022  
and other non-financial data  
Total suites




Average rent per suite (September)  $                      1,576  $                      1,462


Occupancy rate (September)



-40 bps

Proportionate operating revenues  $                    59,596  $                    54,866


Proportionate net operating income (NOI)  $                    40,291  $                    36,309





+140 bps

Same Property average rent per suite (September)  $                      1,566  $                      1,460


Same Property occupancy rate (September)



-40 bps

Same Property proportionate operating revenues  $                    58,493  $                    54,064


Same Property proportionate NOI  $                    39,527  $                    35,769


Same Property NOI %



+140 bps

Net Income (Loss)  $                  (54,560)  $                    32,670


Funds from Operations (FFO)  $                    21,303  $                    20,309


FFO per weighted average unit – diluted  $                      0.146  $                      0.140


Adjusted Funds from Operations (AFFO)  $                    18,925  $                    17,806


AFFO per weighted average unit – diluted  $                      0.129  $                      0.123


Distributions per unit  $                    0.0900  $                    0.0855


Adjusted Cash Flow from Operations (ACFO)  $                    17,415  $                    23,756





+120 bps

Interest coverage (rolling 12 months)




Debt service coverage (rolling 12 months)





(1) Represents 12,060 (2022 – 11,965) suites fully owned by the REIT, 1,214 (2022 – 1,214) suites owned 50% by the REIT, and 605 (2022 – nil) suites owned 10% by the REIT.


Sustained double-digit NOI expansion, with NOI margin returning to pre-pandemic levels

As of September 30, 2023, InterRent had proportionate ownership in 12,728 suites, up 1.2% from 12,573 as of September 30, 2022. Including properties that the REIT owns in its joint ventures, InterRent owned or managed 13,879 suites at September 30, 2023.

AMR growth across the total portfolio gained further momentum to reach 7.8% as compared to September 2022, while same property AMR increased by an impressive 7.3% for the same period. September 2023 occupancy rate in the REIT’s same property and total portfolios decreased 40 bps over September 2022, and decreased 20 bps over June 2023 to 95.2%, in line with its historical performance and strategic approach. The increase in vacancy for September in some major markets was driven by pricing discovery. Fall leasing activity has been robust with vacancy returning to normal seasonal levels post quarter end.

The strong AMR growth and leasing demand have resulted in total portfolio revenue to increase 8.6% year over year. Within the same property portfolio, these same factors have grown operating revenues by 8.2% compared to Q3 2022. NOI margin for the overall portfolio and same property portfolio both accelerated by 140 basis points, reaching 67.6% during the quarter, the highest since Q3 2019.


Operating results translate into FFO/Unit growth

Net loss for the quarter was $54.6 million, compared to $32.7 million of Net Income in Q3 2022. This $87.2 million decrease was almost entirely driven by a $82.9 million difference in fair value adjustments of investment properties, compared to Q3 2022. These fair value adjustments reflect continued expansion of capitalization rates during the quarter. The REIT’s weighted average capitalization rate used across the portfolio at the end of Q3 2023 was 4.22%, an increase of 15 basis points from Q2 2023, driven by moderate cap rate expansion across all regions.

FFO increased 4.9% from last year to $21.3 million and on a per unit basis increased 4.3% to $0.146. AFFO during the quarter increased 6.3% to $18.9 million, and on a per unit basis increased 4.9% on a per unit basis to $0.129.

Solid financial position with focus on optimizing debt profile

Proportionate financing costs in Q3 2023 amounted to $14.8 million, or 24.8% of operating revenue, compared to $12.5 million, or 22.7% of operating revenue of the quarter in Q3 2022. This increase was driven by rising interest rates, as well as higher amount of outstanding mortgage debt. Quarter-over-quarter, financing costs are down $0.2 million from $15.0 million in Q2 2023.

Weighted average cost of mortgage debt increased marginally from June 2023 to 3.48%, and variable rate exposure ended the quarter at 5%, in line with the prior quarter and decreased from the same period last year at 6%. Including the Line of Credit, the REIT’s variable rate exposure as of Q3 was 5.7%, compared to 7.9% at Q3 2022.

Debt-to-GBV ratio increased 120 basis points year over year and 90 basis points quarter over quarter and ended the quarter at 38.6%. With Debt-to-GBV remaining at a healthy level and $268 million of available liquidity, the REIT remains in a solid financial position to execute on its growth strategies.

Strong momentum continues at the Slayte; onward with second office conversion project

The Slayte development in Ottawa, the REIT’s first office conversion project, has completed its interior construction, with all amenities on the rooftop, including the lounge area, now accessible to residents. Leasing activities have been robust despite ongoing construction in the vicinity of the building, exceeding 84% by the end of October.

The REIT is advancing its second office conversion project, 360 Laurier, situated in downtown Ottawa. The adaptive reuse initiative is presently undergoing site plan control. Upon completion, the project will deliver 139 residential units and 1,736 sq. ft. of retail space. Drawing on valuable experience from the Slayte, the REIT, along with its trusted partners, are well-positioned to drive significant progress with this new development project.

12 consecutive years of distribution increases of 5% or more

With the consistent strength in industry fundamentals and the sustained strong performance of the REIT’s portfolio, the Board of Trustees has approved a 5% increase in the monthly distribution. This is the 12th consecutive year that the REIT has grown its distribution by 5% or more. The increase is effective for the November 2023 distribution to be paid in December 2023, and increases the annualized distribution to $0.3780 per unit from $0.3600 per unit.

Announced the filing of base shelf prospectus

The REIT has filed a base shelf prospectus dated October 31, 2023 (the “Base Shelf Prospectus”) with the Ontario Securities Commission, relying on the “well-known seasoned issuer” exemption. This filing will allow the REIT, if it chooses, to make offerings of units or subscription receipts (collectively, the “Securities”) of the REIT, or any combination thereof, in all of the provinces and territories of Canada for a period of 25 months.  The REIT may also use the Base Shelf Prospectus in connection with an “at-the-market distribution” in accordance with applicable securities laws, which would permit the Securities to be sold on behalf of the REIT through the Toronto Stock Exchange as further described in the applicable prospectus supplement. To date, no agreement has been entered into with respect to such a distribution.

The REIT has filed the Base Shelf Prospectus to maintain financial flexibility but has no present intention to pursue a capital raise in the near future. There is no certainty any Securities will be sold under the Base Shelf Prospectus within the 25-month effective period.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction where the offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. If any securities are offered under the Prospectus, the terms of any such securities and the intended use of any net proceeds will be established at the time of any such offering and will be described in a prospectus supplement filed with the applicable Canadian securities regulatory authorities at the time of any such an offering.  A copy of the Base Shelf Prospectus can be found under the REIT’s profile on SEDAR+ at or may be obtained from the REIT at


Sustainability update: Record-breaking Golf Tournament; Building Certification

In September, the annual Mike McCann Charity Golf Tournament raised a record-breaking $1.67 million, increasing its cumulative contributions to $8.2 million. All proceeds directly support various charities within the REIT’s communities.

In addition, the REIT successfully certified six communities under the Canadian Rental Building Program in October. The REIT is committed to expanding its building certification program and anticipate further certifications in the months ahead.


Conference Call

Management will host a webcast and conference call to discuss these results and current business initiatives on Wednesday November 1, 2023 at 1:00 PM ET. The webcast will be accessible at: A replay will be available for 7 days after the webcast at the same link. The telephone numbers for the conference call are 1-888-886-7786 (toll free) and 416-764-8658 (international). No access code required.


 About InterRent

InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.

InterRent’s strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure, and offer opportunities for accretive acquisitions.

InterRent’s primary objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) maintain a conservative payout ratio and balance sheet.


*Non-GAAP Measures

InterRent prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS (GAAP). In this and other earnings releases, as a complement to results provided in accordance with GAAP, InterRent also discloses and discusses certain non-GAAP financial measures, including Proportionate Results, Gross Rental Revenue, NOI, Same Property results, Repositioned Property results, FFO, AFFO, ACFO and EBITDA. These non-GAAP measures are further defined and discussed in the MD&A dated November 1, 2023, which should be read in conjunction with this press release. Since Proportionate Results, Gross Rental Revenue, NOI, Same Property results, Repositioned Property results, FFO, AFFO, ACFO and EBITDA are not determined by GAAP, they may not be comparable to similar measures reported by other issuers. InterRent has presented such non-GAAP measures as Management believes these measures are relevant measures of the ability of InterRent to earn and distribute cash returns to Unitholders and to evaluate InterRent’s performance. These non-GAAP measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with GAAP as an indicator of InterRent’s performance.


Cautionary Statements

The comments and highlights herein should be read in conjunction with the most recently filed annual information form as well as our consolidated financial statements and management’s discussion and analysis for the same period. InterRent’s publicly filed information is located at

 This news release contains “forward-looking statements” within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent’s most recently publicly filed information located at InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.


The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.


For further information, please contact:

Renee Wei

Director of Investor Relations & Sustainability