InterRent REIT Results for the Second Quarter of 2015

InterRent REIT Results for the Second Quarter of 2015

InterRent REIT Results for the Second Quarter of 2015

News Release

InterRent REIT Results for the Second Quarter of 2015

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ottawa, Ontario(July 29, 2015) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) today reported financial results for the second quarter ended June 30, 2015. Highlights
  • The stabilized portfolio increased to $978 (June 2015) from $942 (June 2014), an increase of 3.8%. Average monthly rent per suite for the entire portfolio increased 3.3% from $947 (June 2014) to $978 (June 2015).
  • Gross rental revenue for the quarter increased by $4.7 million, or 29.6%, over Q2 2014 while operating revenue increased by $4.9 million, or 31.5% compared to Q2 2014.
  • Gross rental revenue from the stabilized portfolio was $15.0 million for the quarter, an increase of 3.8%, over Q2 2014 while operating revenues were also $15.0 million, an increase of 6.0% over Q2 2014.
  • Economic vacancy for June was 4.9%, a decrease from the 5.8% recorded in June of 2014. On a stabilized portfolio basis June’s vacancy was 4.5%, a decrease from the 6.0% recorded in June of 2014.
  • NOI for the quarter increased from $9.2 million for Q2 2014 to $12.3 million for Q2 2015, an increase of $3.1 million, or 33.2%. NOI margin also increased in the quarter over quarter comparison going from 58.6% to 59.3%.
  • For the stabilized portfolio, NOI for the quarter increased from $8.3 million for Q2 2014 to $9.1 million for Q22015, an increase of $0.8 million, or 9.2%. Stabilized NOI margin increased by 180 basis points in the quarter-over-quarter comparison, going from 58.8% to 60.6%.
  • The weighted average interest rate on mortgage debt at the end of the quarter was 2.90% with an average life to maturity of 3.5 years.
  • Funds from operations (FFO) for the quarter increased by 16.7% on a per unit basis, going from $4.5 million (or $0.078 per unit) for Q2 2014 to $6.4 million (or $0.091 per unit) for Q2 2015.
  • Adjusted funds from operations (AFFO) for the quarter increased by 17.9% on a per unit basis, going from $3.9 million (or $0.067 per unit) for Q2 2014 to $5.6 million (or $0.079 per unit) for Q2 2015.
  • The REIT acquired two properties in Ottawa, both repositioning opportunities, for a combined total of 679 suites.
Financial Highlights
Selected Consolidated Information In $000’s, except per Unit amounts and other non-financial data

3 Months Ended

June 30, 2015

3 Months Ended

June 30, 2014

Change
Total suites

7,663

6,128

+25.0%
Occupancy rate (June)

95.1%

94.2%

+1.0%
Average rent per suite (June)

$978

$947

+3.3%
Operating revenues

$20,648

$15,704

+31.5%
Net operating income (NOI)

$12,254

$9,201

+33.2%
NOI %

59.3%

58.6%

+1.2%
Stabilized average rent per suite

$978

$942

+3.8%
Stabilized NOI

$9,117

$8,352

+9.2%
Stabilized NOI %

60.6%

58.8%

+3.1%
Funds from operations (FFO)

$6,399

$4,496

+42.3%
FFO per weighted average unit - basic

$0.091

$0.078

+16.7%
FFO per weighted average unit - diluted

$0.090

$0.078

+15.4%
Adjusted funds from operations (AFFO)

$5,589

$3,861

+44.8%
AFFO per weighted average unit - basic

$0.079

$0.067

+17.9%
AFFO per weighted average unit - diluted

$0.079

$0.067

+17.9%
Cash distributions per unit

$0.055

$0.050

+10.0%
AFFO payout ratio

69%

75%

-8.0%
Debt to GBV

51.5%

49.2%

+4.7%
Interest coverage (rolling 12 months)

2.46x

2.50x

-1.6%
Debt service coverage (rolling 12 months)

1.41x

1.46x

-3.4%