InterRent posts improved Q4 profits as rent, occupancy grows

The Canadian Press ~ OBJ
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InterRent Real Estate Investment Trust (TSX:IIP.UN) grew its fourth-quarter profits by nearly 442 per cent mainly on higher average rent charged at its properties and lower expenses.

An InterRent REIT property at the corner of Metcalfe Street and Gladstone Avenue.

The Ottawa-based property owner said Tuesday distributable income rose to $3.1 million, or seven cents per share, from $572,000, or two cents per share, a year earlier.

Operating revenue increased to $12.7 million from $9.9 million.

The average monthly rent for the entire portfolio as of December 2012 grew to $888 per unit from $843 in December 2011.

Occupancy also increased to 97.8 per cent in December 2012 from 96.6 per cent a year prior.

Funds from operations - a key industry metric - grew 190 per cent to $3.8 million compared to $1.3 million in the fourth quarter of 2011.

Operating expenses fell to 41.2 per cent of its operating revenues from 45.4 per cent a year earlier.

The change "was driven by operating efficiencies, as the number of suites have increased. By reduced operating costs, as a result of the previous capital expenditures, and improvement to the overall quality of portfolio," the company said in a release.

For the year, distributable income increased to $11.9 million from $4.2 million in 2011. Operating revenue was up to $47.5 million from $38.5 million.

InterRent is a real estate trust focused on residential properties.

Geographic location: Ottawa

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