INTERRENT REIT REPORTS THIRD QUARTER 2025 RESULTS

Executive Summary

• InterRent reported Q3 2025 results, showing modest rent growth (3.3% YoY) and occupancy improvement to 96.8%, but NOI margins fell 70 bps due to higher operating costs.
• The REIT recorded Funds from Operations of $14.1 M ($0.101 per diluted unit) and Adjusted Funds from Operations of $10.8 M ($0.077 per diluted unit), both down year‑over‑year after absorbing $8.5 M in one‑time transaction costs related to the pending acquisition.
• The all‑cash acquisition by Carriage Hill Properties Acquisition Corp. (valued at ≈ $4 B) received Investment Canada Act and Competition Act approvals, a final Ontario court order, and unitholder approval; closing is now expected in H1 2026.

Key Details

• Transaction Update – Arrangement Agreement approved by regulators and court; $13.55 per unit cash consideration to unitholders; go‑shop period ended July 7 2025 with no superior proposal; anticipated close in first half of 2026.
• Rent & Occupancy – Average monthly rent (AMR) rose 3.3% YoY to $1,742; same‑property AMR up 2.6%; occupancy increased 40 bps YoY to 96.8% (30 bps for same‑property).
• Leasing Activity – Executed 1,463 new leases in the same‑property portfolio (+21.2% YoY).
• NOI & Margins – Same‑property proportionate NOI $41.1 M (+1.9% YoY); total portfolio NOI $42.4 M (+1.6% YoY); NOI margin down 70 bps to 67.5% due to a 9.0% rise in operating costs (marketing, leasing, waste‑management fees).
• FFO / AFFO – FFO $14.1 M ($0.101/unit), down 39.6% YoY; AFFO $10.8 M ($0.077/unit), down 48.5% YoY. After removing $8.5 M transaction costs, Normalized FFO (NFFO) fell 3.5% to $22.6 M, but NFFO per unit rose 1.9% to $0.162. NAFFO declined 8.0% YoY to $19.2 M ($0.138/unit).
• Distributions – Distributions per unit increased 5.0% YoY to $0.0992.
• Balance Sheet – Debt‑to‑GBV rose 30 bps QoQ to 42.0%; available liquidity $185 M; weighted‑average mortgage rate 3.29% (down from 3.33%).
• Capital Expenditure – Maintenance capex per suite up 21.9% YoY, driven by two large life‑cycle projects accounting for 78% of the increase.
• Acquisition Activity – Completed purchase of a single‑suite property in Ottawa for $0.6 M, adding future development potential.
• ESG Performance – GRESB score improved to 84 (3‑star rating), +3 points YoY, outperforming global and peer averages.

Notable Quotes

“We delivered solid results through the critical 2025 fall move‑in period… We’ve also achieved key milestones toward our proposed transaction and will continue to let the dedication of our team and our strong culture of service guide us through this next phase.” – Brad Cutsey, President & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in InterRent’s Management Information Circular and recent filings.