OTTAWA, ON — March 3, 2026 — Leads & Copy — InterRent Real Estate Investment Trust (TSX: IIP.UN) reported its financial results for the fourth quarter and the full year 2025, which ended December 31, 2025. The report highlights a proposed acquisition by Carriage Hill Properties Acquisition Corp., owned by CLV Group and GIC, in an all-cash transaction valued at approximately $4.0 billion, including net debt.
The transaction has received unitholder, court, and regulatory approvals and is expected to close in the first half of 2026, subject to remaining closing conditions.
In Q4 2025, InterRent achieved a 2.8% year-over-year growth in average monthly rent to $1,749 for the total portfolio and 2.2% to $1,752 for the same-property portfolio for December 2025. The December same-property and total portfolio occupancy rate increased by 10 basis points quarter-over-quarter to 96.9% but was 10 basis points lower year-over-year.
The company executed 698 new leases during Q4, a 9.9% increase in leasing volume compared to the same period last year. Same-property proportionate Net Operating Income increased 1.0% year-over-year to $39.9 million. Total portfolio proportionate NOI of $41.5 million declined 1.3% year-over-year, primarily reflecting a 4.0% reduction in total suite count.
The same-property proportionate NOI margin was 66.4%, down 70 basis points from Q4 2024, reflecting a 3.0% year-over-year increase in utilities due to colder winter conditions and a 4.9% year-over-year increase in property operating costs, primarily due to higher marketing expenses. Total portfolio proportionate NOI margin decreased by 60 basis points to 66.5%.
Funds from Operations totaled $19.6 million, or $0.140 per diluted unit, and Adjusted Funds from Operations reached $16.3 million, or $0.117 per diluted unit, reflecting $1.9 million in one-time transaction costs during the quarter related to the Arrangement Agreement. Adjusting for these costs, Normalized FFO decreased by 7.3% to $21.4 million, with NFFO per diluted unit decreasing 1.9% year-over-year to $0.153.
Normalized AFFO decreased 12.0% year-over-year to $18.2 million, with NAFFO per diluted unit of $0.130 down 6.5% year-over-year, primarily due to higher maintenance capex from two large life-cycle projects and the expansion of the repositioned portfolio, resulting in increased maintenance capital deductions. As of December 31, 2025, the REIT’s Debt-to-GBV decreased by 30 basis points quarter-over-quarter to 41.7%.
For the 12 months ended December 31, 2025, FFO was $72.3 million, or $0.511 per diluted unit. Adjusting for $17.1 million transaction-related costs, NFFO was $89.4 million, down 1.4% year-over-year, while NFFO per diluted unit of $0.632 increased 3.3% year-over-year. Delivered AFFO of $59.2 million for the 12 months ended December 31, 2025, or $0.418 per diluted unit. Adjusting for transaction-related costs, NAFFO per diluted unit decreased 0.7% year-over-year to $0.539, and total NAFFO of $76.3 million declined 5.3%.
The company completed the disposition of eight properties totaling 495 suites across three regional markets, generating net proceeds of $113.7 million before mortgage repayment.
InterRent REIT is focused on expanding its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure, and offer opportunities for accretive acquisitions.
InterRent’s primary objectives are to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; provide unitholders with sustainable and growing cash distributions, payable monthly; and maintain a conservative payout ratio and balance sheet.
Brad Cutsey, President & CEO of InterRent, said the company delivered stable performance in the fourth quarter, concluding another year of disciplined execution in a more competitive environment, and that their teams remain focused on serving residents and managing the portfolio with the same discipline that has defined InterRent over the years.
More information can be found at www.sedarplus.ca.
Source: InterRent Real Estate Investment Trust
