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% |