INTERRENT REIT DELIVERS STRONG Q4 AND FULL YEAR RESULTS, ACHIEVING RECORD ANNUAL NOI MARGINS

InterRent Real Estate Investment Trust (TSX: IIP.UN) ("InterRent" or the "REIT") reported strong financial results for the fourth quarter and the year ended December 31, 2023, delivering double-digit NOI and FFO growth and achieving record annual NOI margins. The REIT's strategic disposition program has contributed significantly to its financial flexibility and growth opportunities.

Key Highlights:

* Total and same-property portfolio occupancy rate of 97.0% for December 2023, an improvement of 180 bps from September 2023, and 20 bps compared to December 2022.
* Average Monthly Rent ("AMR") growth of 7.9% for the total portfolio and 7.5% for the same property portfolio for December 2023, as compared to December 2022.
* For the three months ended December 31, 2023, same property proportionate Net Operating Income ("NOI") of $39.7 million, an increase of $3.8 million, or 10.5% year-over-year ("YoY"). Total portfolio proportionate NOI of $40.6 million, an increase of $4.0 million for the three months ended December 31, 2023, or 11.1% YoY.
* Same property NOI margin increased by 140 bps from December 2022 to reach 65.6% for the three months ended December 31, 2023.
* Funds from Operations ("FFO") of $20.8 million for the three months ended December 31, 2023, an increase of 11.2% compared to the same period last year. FFO per unit (diluted) of $0.142, an increase of 10.1% YoY.
* Adjusted Funds from Operations ("AFFO") of $18.1 million, reflecting an improvement of 13.1%. AFFO per unit (diluted) of $0.124, up 12.7% YoY.
* Lease-up at the REIT's first office conversion community, The Slayte, exceeded 90% by the end of February 2024.
* Announced refreshed brand identity with new logo, brand message, and new website: irent.com.
* Sold five properties in Côte-Saint-Luc, Quebec totalling 224 suites for $46.0 million, or approximately $205,000 per suite, above their IFRS values. The transaction generated net cash proceeds of approximately $22 million. Proceeds have been used to reduce variable rate debt exposure which is immediately accretive to the REIT.
* Subsequent to the quarter, successfully financed $183.5 million of maturing mortgages at an average rate of 4.25% (maturing mortgages of $144.9 million at an average rate of 6.06%).
* 2023 Fiscal Year Highlights:
+ Same property proportionate NOI reached $153.4 million for the 12 months ended December 31, 2023, an increase of $16.2 million, or 11.8% from 2022.
+ For year ended December 31, 2023, total portfolio proportionate NOI of $156.3 million, an increase of $17.8 million, or 12.9% YoY.
+ Total portfolio and same property NOI margin of 65.6% for the year, an improvement of 160 bps and 170 bps respectively.
+ FFO of $80.6 million for the 12 months ended December 31, 2023 ($0.551 per Unit – diluted) is up 4.8%, or 3.6% on a per-unit basis compared to 2022.
+ AFFO of $70.4 million for the 12 months ended December 31, 2023 ($0.482 per Unit – diluted) reflects a YoY increase of 4.5%, or 3.4% on a per-unit basis.
+ The REIT ended the year in a strong financial position, with $252.2 million of available liquidity, and Debt-to-Gross Book Value ("GBV") of 38.1%, a 20 bps improvement compared to December 2022 of 38.3%.
+ Achieved building certification for 10,174 suites through the Certified Rental Building Program (CRBP), representing 73.2% of total suites as of December 2023.

The REIT's strategic disposition program has been instrumental in enhancing its financial flexibility and growth opportunities. By selling non-core properties, the REIT has generated net cash proceeds that have been used to fund operating and investment priorities, including the reduction of variable rate debt exposure. This has made the REIT's capital structure more efficient and accretive. Additionally, the REIT's strong operational performance, as evidenced by its double-digit NOI and FFO growth and record annual NOI margins, demonstrates its ability to generate organic growth and drive long-term value for stakeholders.

In conclusion, InterRent Real Estate Investment Trust's strong Q4 and full-year results, driven by its strategic disposition program and operational excellence, position the REIT for continued growth and success in the years to come. With a solid financial position and a focus on enhancing operating efficiency, InterRent REIT is well-positioned to deliver value to its stakeholders.