InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

July 13, 2007 08:30 ET

InterRent Announces Distribution Reinvestment Plan

Also Announces Effective Date of Consolidation/Deconsolidation of its Trust Units

TORONTO, ONTARIO--(Marketwire - July 13, 2007) - InterRent Real Estate Investment Trust (TSX:IIP.UN)(the "REIT" or "InterRent") today announced the adoption of a Distribution Reinvestment Plan ("DRIP"). Participants may elect to automatically reinvest monthly distributions in additional units of InterRent, and may make optional cash payments (subject to a $250 minimum) to purchase additional units of InterRent without paying brokerage fees.

Units purchased through reinvestment of distributions will be purchased at 96% of the Average Market Price of the Units for the 10 trading days preceding the distribution payment date. Units purchased with cash contributions will be purchased at the average market price of the units for the 10 trading days preceding the distribution payment date. Units acquired under the DRIP will be issued directly from InterRent's treasury. The full text of the DRIP and an enrolment form will be available on the InterRent's website at

"DRIP's are a natural evolution for REITs and speak to our focus of recognizing the needs of our investors," said Michael Newman, President and Chief Executive Officer. "The enactment of a DRIP will make it easier for investors to increase their investment in InterRent."

InterRent also announced that its unitholders approved an amendment to InterRent's declaration of trust to effect a consolidation (reverse split) of its trust units on a 100:1 basis and the immediate deconsolidation (split) of such units on a 1:100 basis. The consolidation is scheduled to take place on Sunday, July 15, 2007 and the deconsolidation will follow on Monday, July 16 2007 at 12:01 a.m. As a result, unitholders holding less than 100 pre-consolidation units will receive a cash payment in exchange for their units equal to the weighted average trading price per unit on the Toronto Stock Exchange for the five trading days prior to July 15, 2007. (The new units will commence trading on July 16, 2007). Unitholders holding 100 or more pre-consolidation units will not be affected by the consolidation/deconsolidation other than to be asked to tender their old unit certificates for a unit certificate bearing the new CUSIP number #46071W205. The approval of the ammendment was granted at InterRent's annual and special meeting of unitholders on June 29, 2007.

InterRent's unitholders also approved a deferred unit plan, a long term incentive plan, amendments to the REIT's unit option plan and certain amendments to its declaration of trust at the REIT's annual and special meeting of unitholders. These ammendments have the effect of temporarily changing the debt limit on specific properties from 75% to 100% for a 12 month period, while retaining the overall 70% debt to net book value cap.

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 3,485 apartment suites under ownership and 317 suites under contract, for a total of 3,802 apartment suites.

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 concerning the business, operations, financial performance and condition of InterRent. 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". Both the forward-looking statements and the business, operations, financial performance and condition of InterRent are subject to known and unknown 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 including, but not limited to, risks related to the public financial market for InterRent's securities, general risks associated with the ownership and operation of real estate and multi-residential buildings, management of lease maturities, liquidity and debt financing, credit risk, interest rate fluctuations, availability of sufficient cash flow and fluctuations in distributions, changes in tax or other legislation, environment liabilities and reliance on key personnel. A full description of these risk factors can be found in InterRent's publicly filed information which may be located at Although InterRent has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. 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.

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