InterRent REIT Un (IIP.UN) AI Stock Analysis

• Market Cap: C$1.88B
• Dividend Yield: 2.98%
• Average Volume (3M): 845.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 2.52%
• EPS Growth: -573.45%
• Country: CA
• Employees: 482
• Sector: Real Estate
• Sector Strength: 58
• Industry: REIT - Residential
• EPS (TTM): 0.07
• Shares Outstanding: 140,792,250
• 10 Day Avg. Volume: 1,282,642
• 30 Day Avg. Volume: 845,231
• PEG Ratio: 1.05
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.59
• Price Target Upside: 1.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: C$14.50 ▲(8.78%Upside)

The overall stock score of 70 reflects a balanced view of InterRent REIT's current position. The positive technical analysis and corporate events, particularly the acquisition announcement, are strong positives. However, the negative net income impacting valuation and financial performance scores tempers the overall score. The company is well-positioned with strategic initiatives and stable operations, but addressing profitability challenges remains crucial.

Positive Factors

Acquisition

The acquisition of InterRent REIT by Carriage Hill Properties highlights the value of the apartment sector, with the transaction providing a fair bid value.

Revenue Growth

Revenue optimization shows a SP-revenue growth of +4.7% driven by an SP-AMR increase and high occupancy rates.

Valuation

The acquisition provides evidence of discounted valuation for Canadian REITs and could lead to an uplift in valuations.

Negative Factors

Debt Levels

The increase in net debt drives a higher debt-to-gross book value ratio, which could be a modest headwind to earnings growth.

Growth Moderation

Though still healthy, internal growth has moderated and was 3.1% in the quarter, compared to 7.6% in the previous quarter.

Interest Rates

REITs have been out of favor due to higher interest rates and wider credit spreads, resulting in less positive fund flows and reduced activity from private investors.

InterRent REIT Un Business Overview & Revenue Model

Company Description

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) 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 Money

InterRent REIT generates revenue primarily through rental income from its portfolio of multi-residential properties. By acquiring and managing apartment buildings in desirable locations, the company collects monthly rent payments from tenants, which constitute the core source of its revenue. Additionally, InterRent REIT enhances property value and increases rental rates through strategic renovations and upgrades, thus boosting income. The company also benefits from economies of scale and operational efficiencies that reduce costs and improve profitability. Furthermore, InterRent REIT may engage in selective property dispositions to capitalize on favorable market conditions, generating additional income through gains on the sale of assets. The trust's earnings are further supported by its focus on urban centers with strong rental demand, contributing to stable and reliable cash flow.

InterRent REIT Un Financial Statement Overview

Summary

InterRent REIT Un demonstrates strong revenue growth and operational efficiency. However, recent periods show negative net income affecting profitability metrics. The balance sheet is robust with a healthy equity position and moderate leverage, while cash flows indicate positive operational cash generation despite profitability challenges.

Income Statement

InterRent REIT Un shows a consistent increase in total revenue over the years, with a 4.8% revenue growth from 2023 to 2024 and 0.4% from 2024 to TTM 2025. However, the net income has turned negative in the latest periods, indicating profitability challenges. Gross profit margins remain strong, but the negative net profit margin for TTM 2025 (-69.7%) suggests significant pressure on bottom-line profitability. The EBIT margin remains robust at 69.5% for TTM 2025, reflecting efficient operational management despite negative EBITDA.

Balance Sheet

The balance sheet of InterRent REIT Un is stable with a debt-to-equity ratio of 0.74 in TTM 2025, showcasing a reasonable leverage position. The equity ratio stands at 55.7%, indicating a strong equity base. Return on equity has declined due to negative net income, signaling potential concerns in generating returns for shareholders. Overall, the balance sheet reflects a solid asset base and manageable leverage.

Cash Flow

Operating cash flow remains positive, although it decreased slightly to $72.4 million in TTM 2025 from $89.6 million in 2023. Free cash flow has shown growth, with a 7.3% increase from 2024 to TTM 2025. However, the operating cash flow to net income ratio is strained due to negative net income, indicating challenges in converting earnings into cash flow. The company maintains a positive free cash flow to net income ratio, highlighting operational cash generation capability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.25M	237.13M	216.40M	185.15M	159.96M
Gross Profit	181.79M	173.63M	157.39M	132.44M	114.00M
EBITDA	-96.41M	142.31M	144.11M	88.14M	103.31M
Net Income	-155.65M	92.24M	103.96M	369.69M	150.65M
Balance Sheet
Total Assets	4.20B	4.44B	4.32B	4.12B	3.21B
Cash, Cash Equivalents and Short-Term Investments	4.52M	2.55M	4.27M	2.06M	51.64M
Total Debt	1.69B	1.69B	1.66B	1.51B	999.60M
Total Liabilities	1.80B	1.86B	1.82B	1.70B	1.15B
Stockholders Equity	2.39B	2.57B	2.50B	2.42B	2.07B
Cash Flow
Free Cash Flow	67.48M	89.62M	91.18M	96.02M	61.94M
Operating Cash Flow	67.48M	89.62M	91.18M	96.02M	61.94M
Investing Cash Flow	14.45M	-111.86M	-197.55M	-605.72M	-290.71M
Financing Cash Flow	-79.96M	20.52M	108.57M	460.12M	279.65M

InterRent REIT Un Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 13.33 is below the 20-day moving average (MA) of 13.44, above the 50-day MA of 13.01, and above the 200-day MA of 11.11, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 15.58 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	75 Outperform	C$2.30B	3.58	22.26%	3.79%	5.77%	108.23%
MRG.UN	75 Outperform	C$958.41M	8.65	5.83%	4.15%	3.85%	-31.81%
MI.UN	71 Outperform	C$539.27M	6.08	9.03%	3.56%	-0.29%	―
IIP.UN	70 Outperform	C$1.88B	―	-7.00%	2.98%	2.52%	-573.45%
CAR.UN	68 Neutral	C$7.13B	64.22	1.29%	3.44%	0.93%	―
Sector *	59 Neutral	C$1.25B	-2.58	-8.19%	4.99%	10.84%	-23.78%
BOWFF	―	$2.79B	8.80	8.71%	2.25%	―	―

InterRent REIT Un Corporate Events

InterRent REIT Declares July 2025 Distribution

InterRent REIT announced a distribution of $0.033075 per Trust unit for July 2025, translating to $0.3969 annually, with payment scheduled for August 15, 2025. This announcement reflects the company’s ongoing commitment to providing sustainable cash distributions to its unitholders, reinforcing its strategic focus on growth and stability in the multi-residential property sector.

The most recent analyst rating on ($TSE:IIP.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on InterRent REIT Un stock, see the TSE:IIP.UN Stock Forecast page.

InterRent REIT Concludes Go-Shop Period, Proceeds with $4 Billion Acquisition

InterRent REIT announced the conclusion of its 40-day go-shop period, during which it sought alternative acquisition proposals following an arrangement agreement with Carriage Hill Properties Acquisition Corp. No alternative proposals were received, and the REIT will proceed with the all-cash transaction valued at approximately $4 billion. The transaction requires various approvals, including from unitholders and regulatory bodies, and is structured as a statutory plan of arrangement under Ontario law.

The most recent analyst rating on ($TSE:IIP.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on InterRent REIT Un stock, see the TSE:IIP.UN Stock Forecast page.

InterRent REIT Declares June 2025 Distribution

InterRent REIT has announced a distribution of $0.033075 per Trust unit for June 2025, equating to $0.3969 annually, payable to unitholders by mid-July. This announcement underscores InterRent’s commitment to providing consistent and growing returns to its stakeholders, reflecting its strategic focus on sustainable growth and efficient portfolio management in the multi-residential property sector.

The most recent analyst rating on ($TSE:IIP.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on InterRent REIT Un stock, see the TSE:IIP.UN Stock Forecast page.

InterRent REIT to be Acquired in $4 Billion All-Cash Deal

InterRent REIT has announced an agreement to be acquired by CLV Group and GIC in a $4 billion all-cash transaction, offering a 35% premium to its unaffected closing unit price. This strategic move, endorsed by InterRent’s Board, includes a 40-day go-shop period to explore superior proposals, potentially impacting its market positioning and offering significant value to its stakeholders.

The most recent analyst rating on ($TSE:IIP.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on InterRent REIT Un stock, see the TSE:IIP.UN Stock Forecast page.

InterRent REIT Declares May 2025 Distribution

InterRent REIT has declared a distribution of $0.033075 per Trust unit for May 2025, equating to $0.3969 annually, with payment scheduled for June 16, 2025. This announcement underscores InterRent’s commitment to providing consistent returns to its unitholders and reflects its strategic focus on maintaining a conservative payout ratio while expanding its portfolio in stable markets.

The most recent analyst rating on ($TSE:IIP.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on InterRent REIT Un stock, see the TSE:IIP.UN Stock Forecast page.

InterRent REIT Reports Strong Q1 2025 Results and Strategic Dispositions

InterRent REIT reported solid financial results for Q1 2025, with a notable increase in same-property portfolio occupancy and average monthly rent. The company’s net operating income saw moderate growth, while funds from operations increased by 3.3% year-over-year. The REIT continued its capital recycling program by disposing of several properties at prices above their market values, enhancing shareholder value through unit repurchases. Despite a slight decrease in adjusted funds from operations, InterRent remains focused on long-term growth and maintaining balance sheet flexibility.

The most recent analyst rating on ($TSE:IIP.UN) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on InterRent REIT Un stock, see the TSE:IIP.UN Stock Forecast page.

InterRent REIT to Announce Q1 2025 Financial Results

InterRent REIT announced it will release its first quarter 2025 financial results on May 15, 2025, followed by a conference call and webcast on May 16, 2025. This announcement is part of InterRent’s ongoing strategy to maintain transparency with stakeholders and support its objectives of providing sustainable cash distributions and maintaining a conservative financial structure.