INTERRENT REIT REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
Executive Summary
- InterRent reported Q4 2025 and FY 2025 results, showing modest rent growth but slight declines in NOI and FFO due to transaction‑related costs and portfolio dispositions.
- The REIT remains under an all‑cash acquisition agreement with Carriage Hill Properties Acquisition Corp. (valued at ≈ $4 billion) that is expected to close in the first half of 2026.
- Disposition of eight properties generated $113.7 million net proceeds; debt‑to‑GBV improved to 41.7%.
Key Details
- Q4 2025 Highlights
- Average monthly rent (AMR) up 2.8% YoY to $1,749 (total portfolio).
- Occupancy at 96.9%, down 10 bps YoY but +10 bps QoQ.
- New leases: 698 (↑9.9% YoY).
- Same‑property NOI: $39.9 M (+1.0% YoY); total portfolio NOI: $41.5 M (‑1.3% YoY).
- FFO: $19.6 M ($0.140 per diluted unit) – down 15.4% YoY; AFFO: $16.3 M ($0.117/unit).
- Normalized FFO (NFFO): $21.4 M (‑7.3% YoY); NFFO per unit $0.153 (‑1.9%).
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Debt‑to‑GBV: 41.7% (down 14 bps QoQ).
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FY 2025 Highlights
- Same‑property NOI: $158.1 M (+2.1% YoY); total portfolio NOI: $165.8 M (≈ flat).
- FFO: $72.3 M ($0.511/unit); NFFO: $89.4 M (‑1.4% YoY) but per‑unit NFFO rose 3.3%.
- AFFO: $59.2 M ($0.418/unit); NAFFO: $76.3 M (‑5.3%).
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Disposition proceeds: $113.7 M from eight properties (495 suites).
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Transaction Update
- Arrangement Agreement signed 27 May 2025 with Carriage Hill Properties Acquisition Corp. (owned by CLV Group & GIC).
- Purchase price: ≈ $4 billion cash (including net debt).
- Unitholders to receive $13.55 per unit in cash.
- Go‑shop period (28 May – 6 July 2025) ended with no superior proposal.
- Approvals obtained: Investment Canada Act, Competition Act, Ontario Superior Court order; unitholder approval on 25 Aug 2025.
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Closing expected in H1 2026; outside date extended to 11 May 2026.
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Operational Metrics
- Suite count down 4.0% YoY to 11,673 (from 12,160).
- Lease‑up: 3,439 new leases FY 2025 (↑14.1% YoY).
- Gain‑on‑lease: $1.3 M annualized from higher rents vs. expiring contracts.
- Market rental gap narrowed to ~18% (down from 26%).
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Suite turnover increased to 27.2% (from 24.0%).
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Financial Ratios
- Interest coverage (12‑mo): 2.55× (‑0.03).
- Debt service coverage (12‑mo): 1.65× (‑0.04).
Notable Quotes
“We delivered stable performance in the fourth quarter, concluding another year of disciplined execution… As we progress toward the closing of our proposed transaction, our teams remain focused on serving residents and managing the portfolio with the same discipline that has defined InterRent over the years.” – Brad Cutsey, President & CEO
All forward‑looking statements are subject to risks and uncertainties detailed in InterRent’s most recent filings.