INTERRENT REIT REPORTS SECOND QUARTER 2025 RESULTS AND RELEASES 2024 SUSTAINABILITY REPORT

Executive Summary

• InterRent Real Estate Investment Trust reported its Q2 2025 financial results, highlighting a significant all-cash acquisition agreement valued at approximately $4 billion, including net debt.
• The company reported a decline in reported FFO and AFFO due to $6.5 million in one-time transaction costs, though normalized metrics showed growth in NFFO per unit.
• Operational metrics showed a 4.0% year-over-year increase in same-property average monthly rent, while occupancy decreased by 90 basis points year-over-year to 95.3%.

Key Details

• M&A Transaction: Entered into an Arrangement Agreement to be acquired by Carriage Hill Properties Acquisition Corp. (owned by CLV Group and GIC) in an all-cash transaction valued at ~$4 billion (including net debt).
  • Unitholders to receive $13.55 per unit in cash.
  • Represents a 35% premium to the unaffected unit price and a 29% premium to the 90-day VWAP.
  • Board unanimously recommends voting in favor; proxy voting deadline is August 21, 2025.
  • Special Meeting of Unitholders scheduled for August 25, 2025.
  • Expected closing in late 2025 or early 2026, subject to regulatory approvals (including CMHC) and unitholder consent. Units will be delisted from the TSX upon completion.
• Financial Performance (Q2 2025 vs Q2 2024):
  • FFO: $16.8 million ($0.120 per diluted unit), down 27.1% YoY, primarily due to $6.5 million in transaction costs.
  • Normalized FFO (NFFO): $23.3 million ($0.166 per diluted unit), up 1.0% YoY in total and 5.7% per unit.
  • AFFO: $13.6 million ($0.096 per diluted unit), down 33.4% YoY.
  • Normalized AFFO (NAFFO): $20.1 million ($0.143 per diluted unit), down 1.5% YoY in total but up 3.6% per unit.
  • Net Loss: $(11.6) million, compared to $(1.1) million in Q2 2024.
  • Distributions: $0.0992 per unit, up 5.0% YoY.
• Operational Metrics:
  • Average Monthly Rent (AMR): Same-property AMR increased 4.0% YoY to $1,732; Total portfolio AMR increased 4.6% to $1,736.
  • Occupancy: Same-property and total portfolio occupancy decreased 90 bps YoY to 95.3%. Post-quarter occupancy improved to 95.8% in August.
  • NOI: Same-property proportionate NOI increased 2.4% YoY to $41.1 million. Total portfolio proportionate NOI decreased 0.6% to $41.5 million (due to dispositions).
  • NOI Margin: Same-property NOI margin decreased 80 bps YoY to 66.9%; Total portfolio NOI margin decreased 90 bps YoY to 66.6%.
  • Leasing: Executed 719 new leases (total portfolio), up 12.3% YoY. Average gain-on-lease was 3.7%. Turnover (excluding disposed properties) was 25.8%.
  • Dispositions: Disposed three communities (222 suites) for gross proceeds of $55.9 million, achieving a premium to IFRS value.
• Balance Sheet & Liquidity:
  • Debt-to-GBV: 41.7%, up 80 bps QoQ.
  • Liquidity: $210 million available as of August 6, 2025, with $77 million drawn on credit facilities.
  • Interest Rate: Weighted average interest rate on mortgage debt was 3.33%; average term to maturity 4.1 years.
  • Coverage Ratios: Interest coverage 2.61x; Debt service coverage 1.70x.
• Sustainability: Released 2024 Sustainability Report, noting a 6.2% YoY reduction in Scope 1 and 2 GHG emissions and 100% certification of multi-family suites under CRBP or BOMA BEST.

Notable Quotes

• Brad Cutsey, President & CEO: "I'm proud of how the team delivered solid results in a more competitive market. We remained focused on what we can control and continued to invest in our communities. These efforts helped drive leasing momentum in July and have positioned us well for the fall move-in period. The Arrangement Agreement announced in May reflects the value we've built together."