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InterRent Real Estate Investment Trust turned profitable in Q3, reversing a loss from the same period last year, mainly due to higher leasing activity in its existing portfolio. Normalized FFO per unit rose 1.9% despite transaction costs. The trust executed 1,463 new leases, while property operating costs increased by 9% and Ottawa's waste management costs rose sharply. Proportionate operating revenues were CAD 62.77 million, net income CAD 3.52 million, and adjusted cash flow from operations CAD 14.70 million. An all-cash acquisition is expected to close in H1 2026.
InterRent Real Estate Investment Trust reported a net profit for the third quarter, reversing a loss recorded in the same period last year. The improvement was driven by higher leasing activity across its same-property portfolio. Despite transaction-related costs, normalized funds from operations (FFO) per unit increased 1.9% year-on-year. Advertisement
The trust is set to be acquired in an all-cash deal, with the transaction expected to close in the first half of 2026.
Leasing activity strengthened, with InterRent executing 1,463 new leases across its existing portfolio, a 21.2% rise from the previous year. This growth reflects a competitive rental market in Canada. Property operating costs rose 9.0%, mainly due to higher marketing and leasing efforts. Waste management expenses in Ottawa also jumped 83.5% per suite following changes to the local fee structure, highlighting regional cost pressures.
For the quarter, proportionate operating revenues were CAD 62.77 million, while net income reached CAD 3.52 million. Adjusted cash flow from operations stood at CAD 14.70 million. Analysts currently rate the shares as a hold, with recommendations including two strong buy/buy, four hold and two sell/strong sell The residential REIT peer group consensus remains buy. Wall Street's median 12-month price target for InterRent is CAD 13.55, slightly above its November 10 closing price of CAD 13.38. The stock traded at a price-to-earnings ratio of 21, unchanged from three months ago.
InterRent's results show resilience in rental operations and a steady revenue stream, even as operational costs increase. The pending acquisition may influence the trust's financial outlook and market positioning in the near term.
Source Reuters
5th Jun, 2025
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