InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

July 16, 2008 07:30 ET

InterRent REIT Provides Updates on Refinancing Transactions, and Portfolio Occupancy Rates

TORONTO, ONTARIO--(Marketwire - July 16, 2008) -


InterRent Real Estate Investment Trust (TSX:IIP.UN)(TSX:IIP.DB) ("InterRent") provided an update today on its recent refinancing transactions and current portfolio occupancy rates from continuing operations.

Refinancing: Between April 1, 2008 and July 1, 2008, $15,272,520 in acquisition lines was repaid from the proceeds of CMHC insured first mortgages. These new mortgages replaced 92% of the utilized portion of the $50 million acquisition facility available to InterRent, that was established in May 2007. The weighted average annual interest rate on the CMHC insured first mortgages is 4.43% with a term to maturity of 5 years, and an amortization period of 30 years. The average Loan to Value (LTV) ratio of the CMHC insured first mortgages is 56%. The term of the acquisition facility was for a period of one year, payable as to interest only and had an average annual interest rate of 6.075% over its term. The new mortgages will reduce annual mortgage interest payments by approximately $250,000.

Portfolio Occupancy Rates: InterRent's portfolio of 4,012 apartment suites located throughout Ontario had an average occupancy rate of 96.87% as at July 1, 2008. This compares to 97.35% as at March 31, 2008, and 96.18% as at July 1, 2007. At July 1, 2008, 43 units were undergoing renovations and were thus unavailable for rental, as compared to 87 as at March 31, 2008, and 100 as at July 1, 2007. Average monthly rents per suite at July 1, 2008 increased to $747, as compared to $724 as at March 31, 2008 and $739 as at July 1, 2007. Vacancies are historically at their highest during the summer months as tenants relocate prior to the commencement of the new school year.

Commenting on the updates, Michael Newman, InterRent's CEO stated, "Despite the current uncertainty in global credit markets, we are pleased to have been able to reduce our long term borrowing costs through the replacement of high interest rate, short term credit lines with longer term permanent mortgages at significantly lower interest rates. Multi residential real estate continues to be the safest sector of investment in Canadian real estate and is a hedge against inflation. Year over year, occupancy within our portfolio has trended upward, partially as a consequence of tightening consumer credit. The newly introduced CMHC mortgage lending rules will further restrict the ability of many first time buyers to purchase a home, and will undoubtedly further improve occupancy rates across the country."

About InterRent

InterRent is a rapidly expanding, growth oriented real estate investment trust engaged in building unit holder value through the accretive acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 4,012 apartment suites under ownership, and 191 under conditional purchase contract, for a total of 4,203 suites in the province of Ontario.

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 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.

Contact Information