InterRent Real Estate Investment Trust (IIP-UN) Q4 2024 earnings summary

Executive summary

• Achieved record-high annual NOI margins of 67.0% in 2024, reflecting strong operational performance, robust rent growth, and high occupancy rates of 97.0%.

• Strategic capital allocation included property dispositions generating $93.3M in net proceeds and repurchasing 2.3% of outstanding units, supporting financial flexibility.

• Disciplined management and portfolio repositioning prioritized unit buybacks, debt reduction, and operational efficiency.

Financial highlights

• Same property revenue grew 7.2% for the year; same property NOI increased 9.4% to $162.2M, with NOI margins reaching 67.1%.

• FFO for 2024 was $90.7M (+12.6% YoY); AFFO was $80.5M (+14.3% YoY); Q4 FFO was $23.1M (+11.2% YoY), AFFO $20.6M (+13.9% YoY).

• Average monthly rent grew 6.6% year-over-year to $1,702; occupancy held at 97%.

• Operating expenses as a percentage of revenue declined to 33.0% from 34.4% in 2023.

• Financing costs reduced by 2.7% for the year; weighted average interest rate at 3.37%.

Outlook and guidance

• Targeting disposition of $200–$250M in non-core assets over the next 12 months, expected to generate $125–$140M in net equity proceeds.

• Expecting mid-single-digit same-store NOI and revenue growth in 2025, with margins projected to remain flat or modestly improve.

• Focus remains on NCIB activity, prudent asset allocation, and cautious approach to new development.