A YEAR OF
FOCUS AND
RESILIENCE
INTERRENT REIT ANNUAL REPORT 2022
8405 Place St Charles, QC
A WORD FROM OUR CEO
2022 was a year of nearly unprecedented volatility. From persistent COVID concerns to one of the steepest interest rate increases in recent memory, the year presented no shortage of challenges. However, by focusing on our strategy, we were able to adapt despite the continued changes around us.
Our strategy starts with our residents. They are the heart of our communities, and we take pride in providing them with a leading customer experience within well-maintained communities they call home. We are also proud to be part of the solution to Canada's housing shortage with over 3,500 units of rental housing in various stages of development. We started the initial lease-up and occupancy of our first office conversion project at The Slayte in Ottawa, creating capacity while demonstrating our commitment to sustainability.
Our team members remain our strongest asset. This year, we welcomed team members to our brand-new Montreal regional office. We also continued to focus on investments in software and systems, improvements to our processes, and we implemented robust team training programs. Our employee engagement survey had an industry-leading 86% completion rate.
2022 was a year of disciplined, targeted growth. We grew in Vancouver through acquisitions that complemented our existing footprint and value-add program. In Quebec, we acquired 8405 Place Saint-Charles on Montréal's South Shore, a new build allows us to create upside by bringing our leading operating platform to an existing, best-in-class community. In both instances, our joint venture relationships allowed us to access capital in turbulent times.
We remain on sound financial footing. We continued to optimize our balance sheet, laddering out our debt maturity profile while reducing our exposure to variable-rate debt. Our debt to gross book value ratio of 38.3% and liquidity position gives us continued flexibility to navigate uncertain times and make strategic capital allocation decisions.
We re-invested $124M in capital into our communities; focused both on repositioning and on maintaining a strong state of repair. We improved our GRESB score through significant headway on climate-related initiatives with our CDP submission, establishment of our science-based carbon emission reduction targets, and completion of our baseline climate risk assessment. We also continued to give back. Together with CLV Group, our annual Mike McCann Charity Golf Tournament raised an astounding $1.4M to be distributed to various local charities.
We're proud of our accomplishments in a difficult 2022 climate, and we look to the future with renewed focus on finding tangible ways to deliver value to all our stakeholders. Canada needs more housing and we are part of the solution whether by re-investing in existing communities to revitalize them and extend the life of existing properties or by building new communities for our residents to call home.
Brad Cutsey,
President and CEO
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INTERRENT REIT | ANNUAL REPORT 2022 |
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TABLE OF CONTENTS
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ACCOMPLISHMENTS IN 2022 |
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INVESTING IN OUR COMMUNITIES |
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OUR EXECUTIVE TEAM |
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BUILDING ON OUR FOUNDATION - 5 REASONS TO INVEST WITH US |
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DEVELOPMENT HIGHLIGHT: THE SLAYTE |
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OUR STAKEHOLDERS |
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OUR RESIDENTS |
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OUR TEAM |
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OUR COMMUNITIES |
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OUR VENDORS |
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OUR INVESTORS |
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MANAGEMENT'S DISCUSSION AND ANALYSIS |
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CONSOLIDATED FINANCIAL STATEMENTS |
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INTERRENT REIT | ANNUAL REPORT 2022 |
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Net operating income growth driven by strong occupancy and supported by portfolio growth and operational efficiency.
Number of suites we developed or acquired in 2022. Occupancy has begun at our newly completed community in Ottawa "The Slayte", adding much-needed supply to the market.
Number of community partners across Canada we supported through funds raised during the 2022 Mike McCann Memorial Charity Golf Tournament.
DURING 2022 WE CONTINUED TO INVEST OUR RESOURCES IN THE THINGS THAT MAKE US WHO WE ARE: OUR PASSIONATE TEAM MEMBERS,
OUR SUSTAINABILITY COMMITMENTS, AND OUR INCREDIBLE COMMUNITIES.
December 2022 occupancy; a 120 bps improvement over 2021 as we returned to our long-term expectation.
Funds from Operations (FFO) generated in 2022; a 6% increase over 2021 and resulting in growing FFO per unit (diluted) to $0.53.
Exposure to variable rate debt as of Dec. 31, 2022. Reduced from approximately 20% at Dec. 31, 2021 as we adjusted to the unprecedented pace of interest rate increases in 2022.
INTERRENT REIT |
Distribution increase approved in 2022, underpinned by strong operating performance and marking the 11th consecutive year of growing our distribution by 5% or more.
INVESTING IN OUR COMMUNITIES
Our communities are at the heart of everything we do, and we take great pride in the work we do with our residents, team members, and community partners. During 2022 we have continued to modernize our buildings, investing in energy efficiency improvements, like new boilers and building automation systems, as well as safety and accessibility upgrades.
Behind our accomplishments stands an incredible team of diverse and dedicated professionals. We recognize that our team is our most critical asset which is why we continue to invest in their capabilities. We've expanded our technical and managerial training programs and we've continued to invest in technology that enables our teams to work more efficiently and focus on meaningful work that drives added-value for our residents and all our stakeholders.
Our MISSION is to treat each team member with professionalism, integrity and respect while supporting the individual needs of each to grow. By doing this, we believe each team member will in turn treat each customer, supplier and stakeholder the same way.
Guided by our VALUES and the strength of our culture, we are confident we have the right mix of ingredients to create value for our Unitholders and deliver a sustainable and growing distribution. We love what we do and our appetite to continuously improve is insatiable.
DEMAND FOR RENTAL HOUSING FAR EXCEEDS CURRENT SUPPLY, PLACING CANADA IN A SUPPLY AND AFFORDABILITY CRISIS. WE ARE COMMITTED TO DOING OUR PART TO ADDRESS THIS ISSUE. TOGETHER WITH OUR DEVELOPMENT PARTNERS, WE ARE BRINGING NEW SUPPLY TO IN- DEMAND MARKETS AND ARE PROUD TO BE PART OF THE SOLUTION.
MEET JOY
Joy moved to Canada from Trinidad as a young woman with her family in 1967. She attended Algonquin
College in Ottawa and completed her studies in Accounting. Shortly after her husband also
relocated to Canada. Joy joined our family in 1991 at a time when she was the only person in Accounts Payable. Today, Joy continues to be a valued member of our Accounts Payable team where she feels appreciated and supported. Click on the play button to listen to Joy's story.
QUALITY
Investing in our communities to ensure safe, clean and high-quality homes for our residents.
INTEGRITY
Inspiring trust by saying what we mean, acting honestly and taking responsibility for our actions.
STRONG TEAMS & COMMUNITIES
Encouraging and working with our teams to give back to our residents and communities through sustainable programs and philanthropic efforts.
RESPECT
Showing, as well as having respect for our residents, suppliers, Unitholders and communities while maintaining an environment of teamwork and growth.
SERVICE EXCELLENCE
Continuously building on our accomplishments and setting best in class standards within our industry.
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Disclaimer
InterRent Real Estate Investment Trust published this content on 07 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2023 23:16:03 UTC.
Publicnow 2023
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Technical analysis trends INTERRENT REAL ESTATE INVESTMENT TRUST
| Short Term | Mid-Term | Long Term | |
| Trends | Bullish | Bullish | Bullish |
Income Statement Evolution
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Sell  Buy |
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| Mean consensus | OUTPERFORM |
| Number of Analysts | 12 |
| Last Close Price | 14,49 CAD |
| Average target price | 15,15 CAD |
| Spread / Average Target | 4,53% |
