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InterRent REIT Un (TSE:IIP.UN)
TSX:IIP.UN
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InterRent REIT Un
(TSX:IIP.UN)
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Rating:47Neutral
Price Target:
C$13.00
▼(-1.52% Downside)
InterRent REIT Un's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability challenges. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. The lack of earnings call data and corporate events further limits positive influences on the score.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand and effective market positioning, supporting long-term business expansion and resilience.
Cash Flow Management
Improved cash generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage obligations efficiently.
Portfolio Diversification
Diversification reduces exposure to regional economic fluctuations, providing stability and consistent revenue streams across different markets.
Negative Factors
Profitability Challenges
Persistent profitability issues can hinder reinvestment and growth, requiring strategic changes to improve operational efficiency and margin sustainability.
Negative Return on Equity
Negative ROE indicates poor capital utilization, which can affect investor confidence and limit the ability to attract new capital for growth.
Operational Inefficiencies
Operational inefficiencies can erode profitability and competitiveness, necessitating process improvements to enhance long-term business performance.
InterRent REIT Un (IIP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.85B
Dividend Yield3.01%
Average Volume (3M)477.63K
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth1.55%
EPS Growth-401.05%
CountryCA
Employees482
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.03
Shares Outstanding139,842,480
10 Day Avg. Volume300,923
30 Day Avg. Volume477,635
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.63
Price to Sales (P/S)6.08
P/FCF Ratio22.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.55Price Target Upside2.65% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
InterRent REIT Un Business Overview & Revenue Model
Company DescriptionInterRent 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) to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) to maintain a conservative payout ratio and balance sheet.
How the Company Makes MoneyInterRent REIT generates revenue primarily through rental income derived from its residential properties. The company leases apartment units to tenants, and the rental income forms the core of its revenue model. Additionally, InterRent may earn income from ancillary services such as parking fees, laundry facilities, and leasing of commercial spaces within its properties. The company benefits from a strong demand for rental housing in Canadian markets, as well as from its strategic focus on value-add renovations which can lead to increased rental rates. InterRent's revenue is further supported by its portfolio diversification across various provinces, helping to mitigate risks associated with regional economic fluctuations.
InterRent REIT Un Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Positive
The earnings call indicated a generally positive outlook, driven by strong occupancy rates, revenue growth, and successful execution of disposition and buyback strategies. However, increased operating costs due to weather and challenges in specific markets like Vancouver presented some concerns.Q1-2025 Updates
Positive Updates
Strong Occupancy and Revenue Growth
Occupancy held steady at 96.8% for the total portfolio, improving by 10 basis points to 96.9% for the same property portfolio. Year-over-year AMR growth was 6.2% for the total portfolio and 5% for the same properties in March.
Successful Disposition Strategy and Unit Buybacks
The REIT generated $39 million in net proceeds through three dispositions, with a total reduction in unit count of 4.4% through buybacks at a discount to IFRS NAV.
Healthy Financial Metrics and Liquidity
FFO for the quarter was $21.8 million, a 3.3% year-over-year improvement, with a per unit increase of 4.2%. The interest coverage ratio increased to 2.6 times, with total debt-to-gross book value at 40.9% and $236 million in available liquidity.
Positive Leasing and Rental Upside
Executed 475 new leases, a 3% increase in leasing volume compared to last year. Outgoing rents grew at a compound annual rate of nearly 12%, and new resident rents grew at a rate of 5% over two years.
Negative Updates
Increased Operating Costs Due to Weather
Utility and snow removal expenses increased due to a colder winter, with heating degree days up 18% year-over-year. Operating costs were higher, impacting NOI margins.
Dip in Same Property NOI Margin
Same property NOI margin dipped by 110 basis points from last year, though it remained at a healthy 64.1%.
Challenges in Vancouver Market
Vancouver market experienced some supply-side challenges, impacting rental growth. Vancouver represents less than 5% of NOI.
Company Guidance
During the InterRent REIT Q1 2025 earnings call, management provided several key metrics reflecting the company's performance and strategy. Occupancy held steady at 96.8% for the total portfolio and improved by 10 basis points to 96.9% for the same property portfolio. The average monthly rent (AMR) grew by 6.2% year-over-year for the total portfolio and 5% for the same properties as of March. Revenue growth from the total portfolio increased by 1.7% year-over-year, while same property revenue growth was 4.7%. Same property net operating income (NOI) margin decreased by 110 basis points to 64.1%, but still showed a healthy same property NOI growth of 3.1%. The company reported funds from operations (FFO) of $21.8 million, a 3.3% year-over-year improvement, and an FFO per unit increase of 4.2% to $0.15. InterRent also executed a significant disposition strategy, generating $39 million in net proceeds and repurchasing 4.4% of outstanding units, all while maintaining a debt-to-gross book value of 40.9% and an interest coverage ratio of 2.6 times. Additionally, the company is benefiting from the removal of the consumer carbon tax, which is expected to save approximately $1 million for the remainder of 2025.InterRent REIT Un Financial Statement Overview
Summary
InterRent REIT shows a mixed financial performance with revenue growth but declining profitability and increasing leverage. The company's cash flow management is effective, but operational challenges and financial risks need to be addressed to improve overall financial health.Income Statement
The income statement shows a mixed performance. While revenue has grown steadily, the company has faced declining profitability with negative net and EBIT margins in the TTM period. This indicates potential operational challenges and cost management issues.45
Neutral
Balance Sheet
The balance sheet reflects moderate leverage with a debt-to-equity ratio that has increased over time, indicating rising financial risk. However, the equity ratio remains stable, suggesting a solid asset base. Return on equity has turned negative, highlighting profitability concerns.60
Neutral
Cash Flow
Cash flow analysis reveals a positive free cash flow growth in the TTM period, but the operating cash flow to net income ratio is low, indicating potential cash generation issues. The free cash flow to net income ratio remains strong, suggesting efficient cash management despite profitability challenges.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 249.35M | 246.25M | 237.13M | 216.40M | 185.15M | 159.96M |
| Gross Profit | 183.07M | 181.79M | 173.63M | 157.39M | 132.44M | 114.00M |
| EBITDA | -45.04M | -96.41M | 153.60M | 144.11M | 88.14M | 103.31M |
| Net Income | -105.36M | -155.65M | 92.24M | 103.96M | 369.69M | 150.65M |
Balance Sheet | ||||||
| Total Assets | 4.16B | 4.20B | 4.44B | 4.32B | 4.12B | 3.21B |
| Cash, Cash Equivalents and Short-Term Investments | 3.17M | 4.52M | 2.55M | 4.27M | 2.06M | 51.64M |
| Total Debt | 1.73B | 1.69B | 1.69B | 1.66B | 1.51B | 999.60M |
| Total Liabilities | 1.89B | 1.80B | 1.86B | 1.82B | 1.70B | 1.15B |
| Stockholders Equity | 2.27B | 2.39B | 2.57B | 2.50B | 2.42B | 2.07B |
Cash Flow | ||||||
| Free Cash Flow | 94.11M | 67.48M | 89.62M | 91.18M | 96.02M | 61.94M |
| Operating Cash Flow | 94.11M | 67.48M | 89.62M | 91.18M | 96.02M | 61.94M |
| Investing Cash Flow | -65.80M | 14.45M | -111.86M | -197.55M | -605.72M | -290.71M |
| Financing Cash Flow | -47.75M | -79.96M | 20.52M | 108.57M | 460.12M | 279.65M |
InterRent REIT Un Technical Analysis
Neutral
13.20
Price Trends
13.28
Negative
13.25
Negative
12.53
Positive
Market Momentum
-0.02
Negative
43.12
Neutral
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IIP.UN, the sentiment is Neutral. The current price of 13.2 is below the 20-day moving average (MA) of 13.21, below the 50-day MA of 13.28, and above the 200-day MA of 12.53, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IIP.UN.
InterRent REIT Un Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$3.34B | 9.97 | 6.23% | 2.45% | 6.52% | -54.45% | |
71 Outperform | C$1.98B | 3.65 | 18.10% | 4.36% | 6.19% | 79.98% | |
69 Neutral | C$481.36M | 6.43 | 7.26% | 3.97% | -1.21% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | C$5.75B | 93.84 | 0.65% | 4.13% | -6.51% | -81.28% | |
52 Neutral | C$2.70B | -6.66 | -8.74% | 6.92% | -0.83% | -56.21% | |
47 Neutral | C$1.85B | -18.50 | -4.40% | 3.01% | 1.55% | -401.05% |
* Real Estate Sector Average
TSE:IIP.UN
InterRent REIT Un
13.20
3.48
35.80%
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InterRent REIT Un Corporate Events
DividendsBusiness Operations and Strategy
InterRent REIT Declares November 2025 Distribution
Positive
Nov 18, 2025
InterRent REIT announced its November 2025 distribution of $0.033075 per Trust unit, translating to an annualized distribution of $0.3969 per unit. This announcement reflects the company’s ongoing commitment to providing sustainable and growing cash distributions to its unitholders, aligning with its strategic objectives of portfolio expansion and financial stability.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
InterRent REIT Reports Strong Q3 2025 Results Amid $4 Billion Acquisition
Positive
Nov 11, 2025
InterRent REIT announced its third-quarter 2025 financial results, highlighting a significant acquisition agreement valued at approximately $4 billion, including net debt. The company reported a 3.3% year-over-year increase in average monthly rent and improved occupancy rates, reflecting strong leasing performance in a competitive market. Despite facing increased property operating costs, InterRent achieved a net income turnaround and maintained solid operational metrics. The REIT also completed a strategic property acquisition in Ottawa, enhancing future development potential. The announcement underscores InterRent’s resilience and strategic focus amid a competitive rental market, with implications for stakeholders regarding its growth and market positioning.
Business Operations and StrategyFinancial Disclosures
InterRent REIT Schedules Q3 2025 Financial Results Release
Neutral
Oct 28, 2025
InterRent REIT has announced the release of its third quarter 2025 financial results, scheduled for November 10, 2025, after market close. The company will not host a conference call for this release, but financial documents will be accessible on their investor relations website. This announcement reflects InterRent’s ongoing commitment to transparency and strategic growth in the real estate market, focusing on stable and sustainable expansion.
DividendsBusiness Operations and Strategy
InterRent REIT Declares October 2025 Distribution
Positive
Oct 16, 2025
InterRent REIT announced a distribution of $0.033075 per Trust unit for October 2025, equating to $0.3969 annually, to be paid on November 17, 2025. This announcement reflects InterRent’s ongoing commitment to providing sustainable and growing cash distributions, reinforcing its strategic focus on expanding its multi-residential property portfolio in stable markets.
Delistings and Listing ChangesM&A Transactions
InterRent REIT Secures Approval for Acquisition by Carriage Hill Properties
Neutral
Sep 30, 2025
InterRent REIT has received approval under the Investment Canada Act for its plan of arrangement with Carriage Hill Properties Acquisition Corp., a new entity owned by CLV Group and GIC. This arrangement, which has already been cleared under the Competition Act and approved by InterRent’s unitholders, involves the acquisition of all REIT units at $13.55 per unit. The transaction is expected to close by early 2026, after which the units will be delisted from the Toronto Stock Exchange, marking a significant shift in InterRent’s operational landscape.
DividendsBusiness Operations and Strategy
InterRent REIT Declares September 2025 Distribution
Positive
Sep 16, 2025
InterRent REIT announced a distribution of $0.033075 per Trust unit for September 2025, equating to $0.3969 annually, payable on October 15, 2025. This announcement reflects InterRent’s commitment to providing sustainable and growing cash distributions to its Unitholders, aligning with its strategic objectives of portfolio growth and financial stability.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.