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, disciplined management, and sustained profitability.

• Maintained high occupancy at 97.0% and robust rent growth, with average monthly rent up 6.6% year-over-year to CAD 1,702.

• Strategic capital allocation included property dispositions generating CAD 93.3M in net proceeds and repurchasing 2.3% of outstanding units.

• Portfolio repositioning and capital recycling supported financial flexibility and robust FFO/AFFO growth.

Financial highlights

• Same property NOI increased 9.4% to $162.2M in 2024; total portfolio NOI up 6.2% to $165.9M.

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

• NOI margins reached a record 67.1% (same property) and 67% (total portfolio).

• Operating expenses as a percentage of revenue declined by 140 basis points to 33.0%.

• Distributions per unit increased 5% for the 13th consecutive year.

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 flat to modestly improving.

• Focus remains on operating efficiency, prudent asset allocation, and continued unit buybacks at a discount to NAV.