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OTTAWA, ON, March 2, 2026 /CNW/ - InterRent Real Estate Investment Trust (TSX: IIP.UN) ("InterRent" or the "REIT") today reported financial results for the fourth quarter and full year 2025 ended December 31, 2025.
Q4 2025 Highlights:
-- Achieved 2.8% year-over-year ("YoY") growth in average monthly rent
("AMR") to $1,749 for the total portfolio, and 2.2% to $1,752 for the
same-property portfolio for December 2025.
-- December same-property and total portfolio occupancy rate increased by 10
basis points quarter over quarter ("QoQ") to 96.9% and was 10 basis
points lower YoY.
-- Executed 698 new leases during Q4, an increase of 9.9% in leasing volume
compared to the same period last year.
-- Q4 2025 same-property proportionate Net Operating Income ("NOI")
increased 1.0% YoY to $39.9 million. Total portfolio proportionate NOI of
$41.5 million declined 1.3% YoY, primarily reflecting a 4.0% reduction in
total suite count.
-- Same-property proportionate NOI margin was 66.4%, down 70 basis points
from Q4 2024, reflecting a 3.0% YoY increase in utilities due to colder
winter conditions, and a 4.9% YoY increase in property operating costs
primarily due to higher marketing expenses. Total portfolio proportionate
NOI margin decreased by 60 basis points to 66.5%.
-- Funds from Operations ("FFO") of $19.6 million, or $0.140 per diluted
unit, and Adjusted Funds from Operations ("AFFO") of $16.3 million, or
$0.117 per diluted unit, reflecting $1.9 million in one-time transaction
costs during the quarter related to the Arrangement Agreement.
-- Adjusting for $1.9 million transaction-related costs, Normalized FFO
("NFFO") decreased by 7.3% to $21.4 million, with NFFO per diluted unit
decreasing 1.9% YoY to $0.153.
-- Normalized AFFO ("NAFFO") decreased 12.0% YoY to $18.2million, with NAFFO
per diluted unit of $0.130 down 6.5% YoY, primarily due to higher
maintenance capex from two large life-cycle projects, and the expansion
of the repositioned portfolio, resulting in increased maintenance capital
deductions.
-- As at December 31, 2025, the REIT's Debt-to-GBV decreased by 30 basis
points QoQ to 41.7%.
2025 Fiscal Year Highlights:
-- On May 27, 2025, entered into an arrangement agreement to be acquired by
Carriage Hill Properties Acquisition Corp., an entity owned by CLV Group
and GIC, in an all-cash transaction valued at approximately $4.0 billion
including net debt. The transaction has received required unitholder,
court, and regulatory approvals and is expected to close in the first
half of 2026, subject to remaining closing conditions.
-- Same-property proportionate NOI reached $158.1 million for the 12 months
ended December 31, 2025, an increase of 2.1% from 2024. Total portfolio
proportionate NOI down slightly from $165.9 million to $165.8 million.
-- Same-property and total portfolio NOI margin of 66.2% for the year, a
decrease of 90 bps and 80 bps, respectively, from record levels achieved
in 2024.
-- For the 12 months ended December 31, 2025, FFO was $72.3 million, or
$0.511 per diluted unit. Adjusting for $17.1 million transaction-related
costs, NFFO was $89.4 million, down 1.4% YoY, while NFFO per diluted unit
of $0.632 increased 3.3% YoY.
-- Delivered AFFO of $59.2 million for the 12 months ended December 31,
2025, or $0.418 per diluted unit. Adjusting for transaction-related costs,
NAFFO per diluted unit decreased 0.7% YoY to $0.539, and total NAFFO of
$76.3 million declined 5.3%.
-- Completed the disposition of eight properties totalling 495 suites across
three regional markets, generating net proceeds of $113.7 million before
mortgage repayment.
Brad Cutsey, President & CEO of InterRent, commented on the results:
"We delivered stable performance in the fourth quarter, concluding another year of disciplined execution in a more competitive environment. While market conditions evolved during 2025, our focus on operational fundamentals was unchanged. As we progress toward the closing of our proposed transaction, our teams remain focused on serving residents and managing the portfolio with the same discipline that has defined InterRent over the years."
Financial Highlights:
Selected 3 Months 3 Months Change 12 Months 12 Months EndedDecember Change
Consolidated EndedDecember EndedDecember EndedDecember 31, 2024
Information 31, 2025 31,2024 31, 2025
In $000's, except
per Unit amounts
and other
non-financial data
Total suites 11,673(1) 12,160(1) -4.0 %
Average rent per
suite (December) $ 1,749 $ 1,702 +2.8 %
Occupancy rate
(December) 96.9 % 97.0 % -10 bps
Proportionate
operating revenues $ 62,381 $ 62,614 -0.4 % $ 250,603 $ 247,718 +1.2 %
Proportionate net
operating income no
(NOI) $ 41,493 $ 42,021 -1.3 % $ 165,845 $ 165,880 change
NOI % 66.5 % 67.1 % -60 bps 66.2 % 67.0 % -80 bps
Same Property
average rent per
suite (December) $ 1,752 $ 1,714 +2.2 %
Same Property
occupancy rate
(December) 96.9 % 97.0 % -10 bps
Same Property
proportionate
operating revenues $ 60,098 $ 58,850 +2.1 % $ 238,771 $ 231,012 +3.4 %
Same Property
proportionate NOI $ 39,891 $ 39,504 +1.0 % $ 158,136 $ 154,913 +2.1 %
Same Property NOI % 66.4 % 67.1 % -70 bps 66.2 % 67.1 % -90 bps
Net Income (Loss) $ 16,738 $ (107,120) NMF $ 18,495 $ (155,646) NMF
Funds from
Operations (FFO) $ 19,556 $ 23,104 -15.4 % $ 72,339 $ 90,738 -20.3 %
FFO per weighted
average unit -
diluted $ 0.140 $ 0.156 -10.3 % $ 0.511 $ 0.612 -16.5 %
Normalized Funds
from Operations
(FFO) $ 21,425 $ 23,104 -7.3 % $ 89,425 $ 90,738 -1.4 %
NFFO per weighted
average unit -
diluted $ 0.153 $ 0.156 -1.9 % $ 0.632 $ 0.612 +3.3 %
Adjusted Funds from
Operations (AFFO) $ 16,302 $ 20,645 -21.0 % $ 59,174 $ 80,494 -26.5 %
AFFO per weighted
average unit -
diluted $ 0.117 $ 0.139 -15.8 % $ 0.418 $ 0.543 -23.0 %
Normalized Adjusted
Funds from
Operations (AFFO) $ 18,171 $ 20,645 -12.0 % $ 76,260 $ 80,494 -5.3 %
NAFFO per weighted
average unit -
diluted $ 0.130 $ 0.139 -6.5 % $ 0.539 $ 0.543 -0.7 %
Distributions per
unit $ 0.0992 $ 0.0977 +1.5 % $ 0.3969 $ 0.3812 +4.1 %
Adjusted Cash Flow
from Operations
(ACFO) $ 17,104 $ 26,441 -35.3 % $ 67,020 $ 81,840 -18.1 %
+140
Debt-to-GBV 41.7 % 40.3 % bps
Interest coverage
(rolling 12 months) 2.55x 2.58x -0.03x
Debt service
coverage (rolling
12 months) 1.65x 1.69x -0.04x
(1) Represents 10,880 (2024 - 11,368) suites fully owned
by the REIT, 1,462 (2024 - 1,462) suites owned 50%
by the REIT, 2 suites (2024 - nil) owned 25% by the
REIT, and 605 (2024 - 605) suites owned 10% by the
REIT.
(2) Normalized FFO and AFFO remove the transaction costs
associated with the Arrangement Agreement of $1.9
million in Q4 2025 and $17.1 million in FY2025 (2024
- nil).
Operational Performance
As of December 31, 2025, InterRent had proportionate ownership of 11,673 suites, a decrease of 4.0% from December 31, 2024, reflecting the impact of recent dispositions, which had no or only partial contribution to Q4 and full year 2025 results and impacted year-over-year comparison at the total portfolio level.
Market conditions remained competitive in the fourth quarter, consistent with much of 2025. Despite this backdrop, the REIT achieved positive rent growth across all regional markets. For December 2025, AMR increased 2.8% YoY to $1,749 for the total portfolio and 2.2% to $1,752 for the same-property portfolio. Occupancy remained stable. December same-property and total portfolio occupancy increased 10 basis points quarter over quarter to 96.9% and was 10 basis points lower compared to the prior year.
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