InterRent Real Estate Investment Trust (IIP-UN) Q1 2025 earnings summary

Executive summary

• Portfolio occupancy remained high at 96.8%, with same property occupancy up 10 bps to 96.9% year-over-year, reflecting proactive leasing and strong market fundamentals.

• Achieved solid year-over-year growth in average monthly rent (AMR), with total portfolio AMR up 6.2% to $1,723 and same-property AMR up 5% to $1,722.

• FFO reached $21.8 million, up 3.3% year-over-year, with FFO per unit rising 4.2% to $0.150; AFFO per unit grew 0.8% to $0.127.

• Dispositions generated $39 million in net proceeds in Q1 2025, supporting unit buybacks and balance sheet strength.

• Repurchased 6.7 million units YTD 2025, representing up to 4.4% of the public float, at a discount to IFRS NAV.

Financial highlights

• Same property AMR grew 5% year-over-year in March; total portfolio AMR up 6.2% to $1,723.

• FFO per unit was $0.15, up 4.2% year-over-year; AFFO per unit was $0.127, up 0.8% year-over-year.

• NOI margin was 64.1%–65.2%, with a dip due to higher operating costs, mainly from increased utility expenses.

• Utility costs per suite rose 16.6%–18.1% year-over-year, mainly from a colder winter and higher rates.

• Net income declined 63.2% year-over-year to $9.8 million, reflecting the impact of property sales and other factors.

Outlook and guidance

• Management maintains 5%-6% same property revenue growth guidance for 2025, with cautious optimism for Q2 and Q3.

• NOI margins expected to benefit from carbon tax removal, with estimated $1 million in savings for the remainder of 2025.

• High-quality portfolio and embedded value expected to support stable top-line and FFO/unit growth.

• Leasing spreads and occupancy trends expected to remain stable, with potential for mid to high single-digit rent lifts.

• Disciplined execution of the disposition pipeline to fund value-enhancing unit repurchases and preserve balance sheet flexibility.