INTERRENT REIT DELIVERS DOUBLE-DIGIT NOI AND FFO GROWTH IN Q1 2024
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
OTTAWA, ON, May 9, 2024 /CNW/ - InterRent Real Estate Investment Trust (TSX:IIP) ("InterRent" or the "REIT") today reported financial results for the first quarter ended March 31, 2024.
Q1 2024 Highlights:
- Total portfolio occupancy rate of 96.8%, consistent with March 2023 and a normal seasonal decrease of 20 basis points from December 2023.
- Same-property portfolio occupancy rate of 96.8% in March, an increase of 10 basis points from March 2023, and a decrease of 20 basis points when compared to December 2023.
- Average Monthly Rent ("AMR") growth of 7.8% for the total portfolio and 7.1% for the same property portfolio for March 2024, as compared to March 2023.
- Executed 461 new leases, achieving an average gain-on-lease of 20.3% compared to expiring rents.
- For the three months ended March 31, 2024, same property proportionate Net Operating Income ("NOI") of $38.7 million, an increase of $4.0 million, or 11.7% year-over-year ("YoY").
- Total portfolio proportionate NOI of $40.4 million, an increase of $4.1 million for the three months ended March 31, 2023, or 11.2% YoY.
- Same property NOI margin increased by 230 bps from March 2023 to reach 65.2% for the three months ended March 31, 2024. Total portfolio NOI margin of 65.0%, an increase of 210 bps YoY.
- Funds from Operations ("FFO") of $21.1 million for the three months ended March 31, 2024, an increase of 11.7% compared to the same period last year. FFO per unit (diluted) of $0.144, an increase of 10.8% YoY.
- Adjusted Funds from Operations ("AFFO") of $18.5 million, reflecting an improvement of 12.8%. AFFO per unit (diluted) of $0.126, up 10.8% YoY.
- Committed to sell non-core properties totalling 497 suites in the National Capital Region for $92.0 million, or approximately $185,000 per suite, above their IFRS values. Proceeds, net of the mortgages associated with the properties and disposition costs, of approximately $66.5 million will be used to fund operating and investment priorities, consistent with the REIT's capital allocation strategy. The transaction is anticipated to close in Q2 2024.
Brad Cutsey, President & CEO of InterRent, commented on the results:
"We delivered another quarter of significant growth in Revenue, Net Operating Income, and Funds from Operations per Unit. We anticipate that sustained strength in rental market fundamentals across all our markets will continue to underpin organic growth and performance in the years to come. We are also pleased to have further advanced our strategic disposition program and achieved premium pricing above IFRS fair values. So far in 2024, net proceeds from our two strategic dispositions have provided us with sufficient capital to fund our capital allocation priorities. With variable debt exposure already reduced to below 1%, we are now well positioned to pursue internal and external growth opportunities as well as NCIB. We will prudently execute our capital allocation strategy to drive long-term value for stakeholders."
Financial Highlights:
Selected Consolidated Information |
3 Months Ended March 31, 2024 |
3 Months Ended March 31, 2023 |
Change |
Total suites |
12,544(1) |
12,689(1) |
-1.1 % |
Average rent per suite (March) |
$ 1,622 |
$ 1,504 |
+7.8 % |
Occupancy rate (March) |
96.8 % |
96.8 % |
no change |
Proportionate operating revenues |
$ 62,104 |
$ 57,740 |
+7.6 % |
Proportionate net operating income (NOI) |
$ 40,396 |
$ 36,321 |
+11.2 % |
NOI % |
65.0 % |
62.9 % |
Full story available on Benzinga.com