News Release
InterRent REIT Results for the First Quarter of 2015
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ottawa, Ontario (May 12, 2015) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) today reported financial results for the first quarter ended March 31, 2015.
Highlights
Average monthly rent per suite for the entire portfolio increased 3.3% from $938 (March 2014) to $969 (March 2015). The stabilized portfolio increased to $957 (March 2015) from $927 (March 2014), an increase of 3.2%.
Gross rental revenue for the quarter increased by $2.5 million, or 15.5%, over Q1 2014 while operating revenue increased by $2.4 million, or 15.3% compared to Q1 2014.
Gross rental revenue from stabilized were $13.5 million for the quarter, an increase of $0.4 million, or 3.4%, over Q1 2014 while operating revenue were also $13.5 million, an increase of $0.5 million, or 3.5% over Q1 2014.
Economic vacancy decreased from 3.9% in December 2014 to 3.6% in March 2015, an improvement of 30 basis points.
NOI for the quarter increased from $8.4 million for Q1 2014 to $9.8 million for Q1 2015, an increase of $1.4 million, or 16.3%. NOI margin also increased in the quarter over quarter comparison going from 53.1% to 53.5%.
For the stabilized portfolio, NOI for the quarter increased from $7.1 million for Q1 2014 to $7.4 million for Q1 2015, an increase of $0.3 million, or 4.2%. Stabilized NOI margin increased by 30 basis points in the quarter-over-quarter comparison, going from 54.5% to 54.8%.
The weighted average interest rate on mortgage debt at the end of the quarter was 2.98% with an average life to maturity of 3.8 years.
Funds from operations (FFO) for the quarter increased by $0.6 million to $4.4 million (or $0.07 per unit) compared to $3.8 million (or $0.07 per unit) for Q1 2014.
Adjusted funds from operations (AFFO) for the quarter increased by $0.5 million to $3.7 million (or $0.06 per unit) compared to $3.2 million (or 0.06 per unit) for Q1 2014.
The REIT acquired a property in one of its operating regions that has been targeted for growth. The Montreal acquisition is a concrete high-rise consisting of 280 suites and closed on March 11, 2015 for $33.0 million.
The REIT completed the build out of 5 additional suites within existing properties during the quarter.
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| Financial Highlights Selected Consolidated Information In $000’s, except per Unit amounts and other non-financial data | 3 Months Ended
March 31, 2015 |
3 Months Ended
March 31, 2014 |
| Total suites | 6,985 | 6,103 |
| Occupancy rate (March) | 96.4% | 96.4% |
| Average rent per suite (March) | $969 | $938 |
| Operating revenues | $18,261 | $15,832 |
| Net operating income (NOI) | $9,766 | $8,400 |
| NOI % | 53.5% | 53.1% |
| NOI per weighted average unit – basic | $0.15 | $0.15 |
| NOI per weighted average unit – diluted | $0.15 | $0.15 |
| Funds from operations (FFO) | $4,385 | $3,820 |
| FFO per weighted average unit – basic | $0.07 | $0.07 |
| FFO per weighted average unit – diluted | $0.07 | $0.07 |
| Adjusted funds from operations (AFFO) | $3,651 | $3,185 |
| AFFO per weighted average unit – basic | $0.06 | $0.06 |
| AFFO per weighted average unit – diluted | $0.06 | $0.06 |
| Cash distributions per unit | $0.0549 | $0.0501 |
| AFFO payout ratio | 96% | 90% |
| Stabilized average rent per suite | $957 | $927 |
| Stabilized NOI % | 54.8% | 54.5% |
| Interest coverage (rolling 12 months) | 2.38x | 2.62x |
| Debt service coverage (rolling 12 months) | 1.37x | 1.55x |
| Debt to GBV | 47.3% | 48.7% |