InterRent Real Estate Investment Trust
TSX : IIP.UN
TSX : IIP.DB

InterRent Real Estate Investment Trust

November 13, 2009 09:00 ET

InterRent REIT Reports on Operations for Third Quarter 2009

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2009) - InterRent Real Estate Investment Trust (TSX:IIP.UN)(TSX:IIP.DB) ("InterRent") today reported sustained growth in Operating revenues and Net Operating Income (NOI) for the three months ended September 30, 2009 over the three months ended September 30, 2008. The results were reported in conjunction with the REIT's financial and operating results for the three and nine months ended September 30, 2009.

Highlights for the Three Months Ended September 30, 2009

- Operating revenues grew to $8.9 million, a 2.2% increase over the three months ended September 30, 2008.

- Net Operating Income (NOI) increased by 0.5% to $4.9 million over the three months ended September 30, 2008.

- Funds from Operations (FFO) was $(0.3 million), down from $1.8 million over the three months ended September 30, 2008. This decrease was as the result of a $2.3 million charge incurred in the strategic review process to improve Unitholder value and re-organization costs. Excluding this charge, FFO per REIT unit was $0.09 for the three months ended September 30, 2009 compared to $0.10 in 2008.

- Distributable Income (DI) was $(0.9 million), or $(0.04) per unit compared to $1.3 million, or $0.07 per REIT unit over the three months ended September 30, 2008. This decrease was the result of a $2.3 million charge incurred in the strategic review process and one-time re-organization costs. Excluding this charge, DI per REIT unit was $0.07 for the three months ended September 30, 2009.

- A Private Placement garnered proceeds of $14,000,000.

- At the Annual and Special Meeting of the unitholders held on September 30, 2009, the unitholders elected a new board of trustees and approved the Property Management Agreement with CLV Group Inc.

- On September 30, 2009 the board of trustees appointed Mike McGahan as InterRent's new Chief Executive Officer.



Financial Highlights
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In 000's, except for per Unit
-----------------------------
Results from Continuing Operations for:
For the three months ended September 30, 2009 September 30, 2008

Operating Revenues $8,898 $8,704
Net Operating Income (NOI) $4,909 $4,881
Net Income (Loss) before
Amortization ($1,869) $878
Net Loss from Continuing Operations ($3,641) ($1,490)
Funds from Operations ($304) $1,801
Funds from Operations per Unit ($0.01) $0.10
(i)Funds from Operations $2,033 $1,801
(i)Funds from Operations per Unit $0.09 $0.10
Distributable Income ($918) $1,353
Distributable Income per Unit ($0.04) $0.07
(i)Distributable Income $1,419 $1,353
(i)Distributable Income per Unit $0.07 $0.07
Weighted Average Units Outstanding 21,782,489 18,289,407

(i) excluding costs associated with the strategic review process and
re-organization costs


Results for the Three Months Ended September 30, 2009

Operating Revenues for the three months ended September 30, 2009 were $8.9 million compared to $8.7 million over the three months ended September 30, 2008, representing an increase of 2.2%. The increase was due primarily to the acquisition of income-producing properties made during 2009 as well as increased monthly rents over the previous year.

Net Operating Income for the three months ended September 30, 2009 was $4.9 million, a 0.5% increase over the three months ended September 30, 2008.

FFO decreased to ($0.3 million) from $1.8 million over the three months ended September 30, 2008. FFO per unit declined to ($0.01) per unit from $0.10 per unit over the three months ended September 30, 2008. Excluding the $2.3 million charge for costs associated with InterRent's strategic review process and re-organization costs, InterRent's FFO was $2.0 million and $0.09 per unit for the three months ended September 30, 2009.

DI was ($0.9 million) compared to $1.3 million in the third quarter of 2008. Distributable income per unit was ($0.04) per unit compared to $0.07 per unit in the third quarter of 2008. Excluding the $2.3 million charge for costs associated with InterRent's strategic review process and re-organization costs, InterRent's DI was $1.4 million and $0.07 per unit for the three months ended September 30, 2009.

Net same property revenues grew by 0.6% to $8.8 million, from $8.7 million over the three months ended September 30, 2008. Same building NOI decreased slightly to $4.8 million over the three months ended September 30, 2008.

Mike McGahan, CEO, reports that InterRent has a considerable number of changes to make in order to have portfolio wide efficient operations; however, it has started to effect changes that will lead to achieving the standards that already exist in Ottawa for the other locations. In the near term, InterRent will be concentrating on increasing operating efficiencies through installation of energy efficient devices including boilers as well as water and hydro saving devices. InterRent will be upgrading common areas throughout the portfolio in order to maximize the potential to increase rents on turnover throughout the portfolio. The results of this will not be immediate as the rental market is usually fairly stagnant until late spring/summer.

InterRent will also undergo a major reorganization of its' on and off-site personnel in order to provide better and more timely service to its tenant clientele. The first priority is to reduce vacancies in the western Ontario portfolio, which is currently underway through new staffing changes, building and unit upgrades, and marketing efforts. Additionally, InterRent is converting its computer systems to an industry leading accounting and property management program. This shall provide more timely reporting.

The portfolio will continue to be reviewed in detail over the next 6-12 months to assess each property's viability for retention or divestment.

Plans are presently underway to reposition InterRent's properties with a new brand and culture that management believes, over the long term, shall provide consistent improved bottom line results for all unitholders.

InterRent has a new very experienced management team along with some extremely knowledgeable Board Members who shall strive to carry out what this team has done in private enterprises for many years.

Non-GAAP Measures

InterRent REIT assesses and measures segmented operating results based on performance measures referred to as "Funds From Operations" ("FFO") and Distributable Income ("Dl"). Both FFO and DI are widely accepted supplemental measures on the performance of a Canadian real estate investment trust; however, they are not measures defined by Canadian generally accepted accounting principles ("GAAP"). The GAAP measurement most comparable to FFO and DI is total cash flow from operating activities and net earnings. FFO and DI, however, should not be construed as an alternative to net earnings or cash flow from operating activities determined in accordance with GAAP as indicators of InterRent REIT's performance. In addition, InterRent REIT's calculation methodology for FFO and Dl may differ from that of other real estate companies and trusts and therefore readers should not place reliance on these measures.

About InterRent

InterRent is a rapidly expanding, growth oriented real estate investment trust engaged in building unitholder value through the accretive acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 4,033 apartment suites under ownership.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent's publicly filed information which may be located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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