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

InterRent Real Estate Investment Trust

March 31, 2009 16:30 ET

InterRent REIT Reports Solid Gains for the Fourth Quarter and Year End 2008

TORONTO, ONTARIO--(Marketwire - March 31, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

InterRent Real Estate Investment Trust (TSX:IIP.UN)(TSX:IIP.DB) ("InterRent") today reported solid gains in Operating revenues, Net Operating Income (NOI) and Funds From Operations (FFO) in the fourth quarter of 2008 over the same period last year. The increases were reported in conjunction with the REIT's financial and operating results for the fourth quarter and year ended December 31, 2008.

2008 Highlights

- Operating revenues increased 27.8% to $33.9 million from $26.5 million over the same period last year

- NOI grew to $16.7 million, or 25.8%, from $13.3 million for the period ended December 31, 2007

- FFO and FFO per unit increased to $4.4 million and $0.24, from $3.6 million and $0.22 respectively, over the same period last year

- Occupancy levels rose to 97.7% at the end of 2008, from 96.6% for the period ended December 31, 2007

- Raised $3.6 million in equity, and $25 million in 7% convertible debentures in the first quarter

- Increased credit facilities by 90% to $9.5 million

- Completed the acquisition of a 68 suite high-rise property in Sault Ste. Marie, one 42 suite high rise property and one 31 suite low rise in Ottawa.

- Completed the sale of one 68 suite high rise Toronto, and 48 suites in two low rise properties in Vanier.

- Ranked 21st among Canada's fastest growing companies by five year revenue growth in Canada, in the PROFIT100 rankings by PROFIT magazine.

"While InterRent's results indicate a steadily improved financial performance, the state of the economy and capital markets posed some challenges for the REIT in 2008," said Michael Newman, Chief Executive Officer. "These challenges notwithstanding, the REIT made significant progress toward achieving our corporate objectives of improving operations, establishing long-term financial stability and pursuing acquisitions that complement our existing property portfolio. Our occupancy levels continue to improve because of the strengthening demand for apartments, which is a positive sign for the multi-residential real estate sector."



Financial Results
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Results from Continuing Operations for:
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Year Ended December 31, 2008 Year Ended December 31, 2007
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Operating
Revenues $ 33,916,000 $ 26,534,000
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Total Expenses 17,177,000 13,306,000
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Net Operating
Income (NOI) 16,739,000 13,306,000
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Financing Costs 11,752,100 8,175,922
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General and
Administrative
Costs (G&A) 3,350,000 2,958,000
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Amortization 9,071,000 6,557,000
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Net (Loss) (7,435,000) (4,385,000)
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Funds From
Operations (FFO) 4,373,000 3,351,000
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FFO per Unit 0.24 0.22
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Distributable
Income (DI) 2,559,000 2,111,000
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DI per Unit 0.14 0.14
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Weighted Average
Units O/S 18,149,603 14,996,626
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Results for the Three Months Ended December 31, 2008

Rental revenues for the three months ended December 31, 2008 were $8.7 million compared to $8.2 million in the fourth quarter of 2007, representing an increase of 5.9%. Revenues from income producing properties have improved quarter-over-quarter as a result of new acquisitions and steadily increasing monthly rents.

NOI for the fourth quarter remained stable at approximately $4.0 million from the same period in 2007. Net loss was $1.6 million compared to a net loss of $2.2 million in the fourth quarter of 2007.

Net same property revenues grew by 3.4% to $8.3 million from $8.0 million in the fourth quarter of 2007.

FFO increased to $0.8 million from $0.5 million in the fourth quarter of 2007. FFO per unit increased to $0.05 per unit from $0.04 per unit in the same period last year.

Distributable Income grew to $0.4 million from $0.2 million in the fourth quarter of 2007. Distributable Income per unit was $0.02 per unit compared to $0.01 per unit in the fourth quarter of 2007.

Results for the Year Ended December 31, 2008

Operating revenues increased 27.8% to $33.9 million from $26.5 million for the year ended December 31, 2007. The increase was due primarily to acquisitions of income-producing properties in 2007 and 2008, as well as increased monthly rents and a higher occupancy level compared to last year.

Total expenses increased to $17.2 million from $13.2 million for the period ended December 31, 2007 due to the larger size of the portfolio.

Property taxes for the year were $5.4 million, compared to $4.4 million at year end of 2007. Utility costs for the year increased to $5.4 million from $4.3 million in 2007.

General and Administrative Costs (G&A) increased to $3.4 million from $3.0 million at year end of 2007. Financing costs for the 2008 year grew to $11.8 million from $8.2 million at December 31, 2007.

NOI increased by $3.4 million to $16.7 million, from $13.3 million, over the same period last year.

Funds From Operations grew to $4.4 million from $3.4 million for the period ended December 31, 2007. Funds From Operations per unit increased to $0.24 per unit from $0.22 per unit in the same period last year.

Distributable income increased to $2.6 million compared to $2.1 million at December 31, 2008. Distributable income per unit remained stable at $0.14 from the same period last year.

Recent Developments

On February 27, 2009, InterRent REIT confirmed that it received a proposal from Northwest Value Partners to enter into a board supported transaction regarding the potential acquisition by NorthWest of all of the issued and outstanding units of InterRent.

InterRent also received another proposal from a third party in connection with a strategic transaction. The REIT intends to pursue discussions with both parties, as well as others, in an effort to maximize value for its unitholders.

InterRent's Board of Trustees recently announced it formed a special committee of independent trustees in order to consider the range of available alternatives, evaluate the merits of the specific proposals received and make a recommendation to the board of trustees.

The REIT asks that its unitholders take no action until the Special Committee makes its recommendation.

Conference Call and Webcast

Management will hold a conference call and live audio webcast on March 26, 2009 at 10:30 a.m. ET to discuss InterRent's third quarter performance. The call may be accessed by dialing 416-644-3417 or 1-800-732-9303. The webcast will be accessible at www.interrentreit.com.

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 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 4,027 apartment suites under ownership. For additional information visit www.interrentreit.com.

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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