InterRent Real Estate Investment Trust (IIP-UN) Q2 2025 earnings summary

Executive summary

• Entered into an Arrangement Agreement for an all-cash acquisition valued at $4 billion, with unitholders to receive $13.55 per unit, a 35% premium to the unaffected unit price.

• Board unanimously recommends unitholders vote in favor of the transaction, with a meeting scheduled for August 25, 2025.

• The transaction is expected to close in late 2025 or early 2026, after which units will be delisted from the TSX.

Financial highlights

• Achieved 4.0% YoY growth in same-property average monthly rent to $1,732 and 4.6% for the total portfolio to $1,736 in June 2025.

• Same-property NOI increased 2.4% YoY to $41.1 million; total portfolio NOI decreased 0.6% YoY to $41.5 million due to dispositions.

• FFO was $16.8 million ($0.120 per diluted unit), down 27.1% YoY, impacted by $6.5 million in one-time transaction costs.

• Adjusted for transaction costs, NFFO per diluted unit rose 5.7% YoY to $0.166; total NFFO up 1.0% YoY to $23.3 million.

• Net loss of $11.6 million, compared to a $1.1 million loss in Q2 2024.

Outlook and guidance

• Leasing momentum improved post-quarter, with August occupancy at 95.8%, the second highest in eight years.

• Management remains focused on supporting residents and delivering consistent performance through the transaction process.