Canada's InterRent REIT Q4 total NOI down due to suite count reduction

Overview

• Canada real estate REIT's Q4 total portfolio NOI declined 1.3% due to suite count reduction

• Same-property NOI increased despite higher utility and marketing costs

• Company's FFO and AFFO impacted by $1.9 mln transaction costs for acquisition agreement

Outlook

• InterRent anticipates acquisition by Carriage Hill Properties to close in H1 2026

• Company did not provide specific financial guidance due to pending acquisition

Result Drivers

• RENT GROWTH - Achieved 2.8% YoY growth in average monthly rent to $1,749 for total portfolio

• SUITE COUNT REDUCTION - Total portfolio NOI decline due to 4.0% reduction in suite count from property dispositions

• HIGHER COSTS - Same-property NOI margin decreased due to 3.0% increase in utilities and 4.9% rise in property operating costs

Company press release: ID:nCNW4PPx5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy."

• Wall Street's median 12-month price target for InterRent Real Estate Investment Trust is C$13.55, about 1.5% above its March 2 closing price of C$13.35

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

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