Ottawa, Ontario (August 9, 2021) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) today reported financial results for the second quarter ended June 30, 2021.   

InterRent REIT reports positive same property NOI growth for Q2 2021 and continues to grow average monthly rent per suite across all regions

  • Same property NOI was $25.4 million for the quarter, an increase of 2.6% compared to Q2 2020
  • Same property NOI margin in Q2 2021 was 64.7%, an improvement of 70bps relative to Q2 2020
  • Same property average monthly rent per suite at $1,339 as of June 2021; growth of 3.7% over June 2020 ($1,291)
  • Same property occupancy of 92.2% as of June 2021; a 10bps improvement from March 2021 and down 80bps compared to June 2020
  • FFO increases to $17.8 million ($0.124 per Unit – diluted) in Q2 2021; growth of 16.5% overall and 6.0% on a per Unit basis compared to Q2 2020
  • Strong YTD acquisition performance; closed on 358 suites in Ontario and a 50% interest in 45 suites in Vancouver in Q2 2021 and acquired a 50% interest in a 94-suite property in Mississauga in July 2021

Higher suite count and growth in average rent lead to strong increase in funds from operations (FFO)

As of June 30, 2021, InterRent has 100% ownership in 11,850 suites, up 15.9% from 10,226 as of June 30, 2020. Operating revenues stood at $45.0 million in Q2 2021, growing at 15.3% from $39.0 million in Q2 2020 as external growth and improvements in average rent per suite (+3.7%) helped offset pandemic-related occupancy pressure in select properties.

At 91.5% in June 2021, the occupancy rate in InterRent’s portfolio has improved 20bps relative to March 2021 (91.3%), below the 93% print in June 2020 when COVID-related pressures first became evident in the portfolio. Encouragingly, occupancy in several properties situated in urban cores, which had suffered an outflow of young professionals and students starting in the spring of 2020, is seeing positive leasing momentum as those renters come back to city centres. As such, the REIT is reporting an increase in same property NOI of 2.6% for Q2 2021 relative to Q2 2020, driven by lower COVID-related costs and a 3.7% increase in same property average rent per suite over the same period. With a high proportion of fixed operating costs, these improvements translated into a same property NOI margin of 64.7% in Q2 2021, an improvement of 70bps compared to Q2 2020. Management continues to view remaining occupancy pressure as temporary in nature and is optimistic for improvements in the back half of 2021, and to a greater degree in 2022, as Canada’s vaccination roll-out reaches critical mass, borders reopen to fully vaccinated travellers, schools reopen for in-person learning, and offices welcome back employees.

Net income for the quarter was $61.1 million, an increase of $38.4 million compared to Q2 2020. This difference was due primarily to the $59.5 million fair value gain on investment properties and an increase in operating revenue to $45.0 million for the quarter from $39.0 million in Q2 2020, representing an increase of $6.0 million. These gains were offset by the non-cash fair value losses on unit-based liabilities and Class B unit liability of $16.0 million that occurred as a result of Unit price appreciation of 14.0% in the quarter.

The REIT posted a strong FFO result in the quarter. At $17.8 million ($0.124 per Unit – diluted), FFO increased by 16.5% compared to Q2 2020 ($15.3 million or $0.117 per Unit – diluted), resulting in 6.0% growth on a per Unit basis. AFFO likewise grew from $13.8 million ($0.105 per Unit – diluted) in Q2 2020 to $15.7 million ($0.110 per Unit – diluted) in Q2 2021, representing 14.0% and 4.8% growth on an absolute and per Unit basis, respectively.

Acquisitions of 1,225 owned or managed suites year to date fuel repositioning opportunity
From January to July 2021, InterRent has acquired a total of 1,225 owned or managed rental suites at a total purchase price of $478.3 million([1]). In the second quarter, the REIT closed on previously announced transactions in St. Catharines, Oakville, Mississauga and Vancouver, while also executing a bolt-on acquisition of 5 suites plus parking in Ottawa.

Subsequent to the quarter end, the REIT, together with Crestpoint Real Estate Investments Ltd., increased its footprint in Mississauga by 94 suites for a combined purchase price of $30.1 million (of which InterRent’s interest is 50%). This latest addition is just down the road from the REIT’s recently acquired property at 920 Inverhouse Drive and benefits from close proximity to a GO station and other daily needs amenities.

Date Property City Region Ownership Interest Suites Price ($m)
Jan 21, 2021 388 Vine St. St. Catharines Other Ontario 100% 114 22.0
Jan 28, 2021 Various Vancouver GVA 50% 614 292.5
Apr 13, 2021 2054 Comox St/8735 Selkirk St Vancouver GVA 50% 45 18.9
Apr 29, 2021 165 Ontario St St. Catharines Other Ontario 100% 158 31.4
May 13, 2021 150 Allan St Oakville GTHA 100% 55 26.4
May 13, 2021 265 Reynolds St Oakville GTHA 100% 45 20.3
Jun 1, 2021 920 Inverhouse Dr Mississauga GTHA 100% 95 32.7
Jun 9, 2021 774-778 Gladstone Ave & 174 Bell St N Ottawa NCR 100% 5 4.0
Jul 26, 2021 2150 Roche Ct Mississauga GTHA 50% 94 30.1
Total YTD Acquisitions 1,225 478.3(1)

([1]) At 100% share; $307.5 million based on InterRent’s ownership interest.

The YTD acquisition activity provides opportunities to create operating synergies within the REIT’s portfolio with a focus on growing exposure in Greater Toronto & Hamilton Area, National Capital Region, Greater Montréal Area, and Greater Vancouver Area. As of June 30, 2021, approximately 84% of the REIT’s suites are located in these core markets. These acquisitions will feed into InterRent’s repositioning program, which typically spans 3 to 4 years following acquisition, offering future value creation potential. At June 30, 2021, InterRent’s overall debt level was at 34.4% of Gross Book Value, leaving significant headroom to pursue accretive external growth opportunities that may arise.

Commenting on the figures for the second quarter of 2021 published today, Mike McGahan, CEO of InterRent, said: “We are seeing a lot of the things we’ve been discussing over the last few quarters starting to play out in our portfolio. There is a lot of positivity out there, and we have seen increased leasing traffic going into the third quarter as young professionals and domestic students come back to the city to enjoy social engagement. We do believe our strategy to hold our rents will prove to be beneficial for our stakeholders and we are encouraged by the tailwinds we see for the back half of this year and into early 2022. We are excited for the future!”

Financial Highlights

Selected Consolidated Information
In $000’s, except per Unit amounts
and other non-financial data
3 Months Ended June 30, 2021 3 Months Ended June 30, 2020 Change
Total suites 11,850 10,226   +15.9%
Average rent per suite (June) $1,339 $1,291 +3.7%
Occupancy rate (June) 91.5% 93.0% -150bps
Operating revenues $44,966 $39,004 +15.3%
Net operating income (NOI) $28,765 $24,839 +15.8%
NOI % 64.0% 63.7% +30bps
Same Property average rent per suite (June) $1,339 $1,291 +3.7%
Same Property occupancy rate (June) 92.2% 93.0% -80bps
Same Property NOI $25,448 $24,796 +2.6%
Same Property NOI % 64.7% 64.0% +70bps
Net Income $61,066 $22,714 +168.8%
Funds from Operations (FFO) $17,766 $15,250 +16.5%
FFO per weighted average unit – diluted $0.124 $0.117 +6.0%
Adjusted Funds from Operations (AFFO) $15,672 $13,752 +14.0%
AFFO per weighted average unit – diluted $0.110 $0.105 +4.8%
Distributions per unit $0.0814 $0.0775 +5.0%
Adjusted Cash Flow from Operations (ACFO) $17,738 $18.157 -2.3%
Debt to GBV 34.4% 28.0% +640bps
Interest coverage (rolling 12 months) 3.53x 3.28x +0.25x
Debt service coverage (rolling 12 months) 1.90x 1.93x -0.03x

Conference Call

Management will host a webcast and conference call to discuss these results and current business initiatives on Monday, August 9, 2021 at 10:00 AM EDT. 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 1-888-440-6928 (toll free) and 646-960-0328 (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 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 August 9, 2021, which should be read in conjunction with this press release. Since 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:

Sandy Rose, CFA

Director – Investor Relations & Sustainability

(514) 704-2459