InterRent revenues grow on acquisitions

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A growing Ottawa real estate investment trust says all of its key financial metrics increased in its first quarter as it added hundreds of new residential units to its portfolio.

InterRent REIT (TSX:IIP.UN) also announced it was increasing its monthly per unit distributions by 25 per cent to an annualized 20 cents.

Its funds from operations - a net income measurement considered the standard measure of a real estate entity’s operating performance - increased by 86.3 per cent year-over-year to $3.7 million.

Operating revenue was up 20.8 per cent to $13.1 million.

InterRent announced the acquisition of 1,395 suites in the first three months of the year, of which 325 were included in the portfolio by the end of the quarter.

"While growing our suite count by 12 per cent in the quarter, our team continued to find savings and eliminate inefficiencies in the existing portfolio,” said CEO Mike McGahan in a statement.

“We continue to believe that our current staffing levels are adequate to address not only the current requirements but also position us well for the integration of planned strategic acquisitions.”

Earlier this month, InterRent announced it was purchasing the 444-unit Ottawa apartment complex on Bell Street, near the intersection of Bronson and Gladstone avenues, for $38.63 million. Mr. McGahan called it InterRent’s “most ambitious repositioning to date.”

Shares in the REIT were up 1.89 per cent to $6.46 in late Tuesday morning trading.