OTCPK:IIPZ.F

Stock Analysis Report

InterRent Real Estate Investment Trust

Executive Summary

InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.


Snowflake Analysis

Established dividend payer and fair value.

Share Price & News

How has InterRent Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IIPZ.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

IIPZ.F

-4.7%

US REITs

-7.6%

US Market


1 Year Return

24.2%

IIPZ.F

11.6%

US REITs

10.2%

US Market

Return vs Industry: IIPZ.F exceeded the US REITs industry which returned 12.8% over the past year.

Return vs Market: IIPZ.F exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

IIPZ.FIndustryMarket
7 Day2.6%-4.7%-7.6%
30 Day0.9%-1.5%-4.5%
90 Day6.1%0.9%-0.6%
1 Year26.7%24.2%16.1%11.6%12.5%10.2%
3 Yearn/a31.7%15.3%37.1%28.3%
5 Year194.3%152.8%52.7%21.3%60.8%43.2%

Price Volatility Vs. Market

How volatile is InterRent Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is InterRent Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

11.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IIPZ.F ($12.65) is trading above our estimate of fair value ($10.69)

Significantly Below Fair Value: IIPZ.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IIPZ.F is good value based on its PE Ratio (11.7x) compared to the REITs industry average (36.3x).

PE vs Market: IIPZ.F is good value based on its PE Ratio (11.7x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IIPZ.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IIPZ.F is good value based on its PB Ratio (1.4x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is InterRent Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if IIPZ.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if IIPZ.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IIPZ.F's revenue (12.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: IIPZ.F's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IIPZ.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has InterRent Real Estate Investment Trust performed over the past 5 years?

40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IIPZ.F has a large one-off gain of CA$149.2M impacting its September 30 2019 financial results.

Growing Profit Margin: IIPZ.F's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: IIPZ.F's earnings have grown significantly by 40.8% per year over the past 5 years.

Accelerating Growth: IIPZ.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IIPZ.F had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the REITs industry average (5.9%).


Return on Equity

High ROE: IIPZ.F's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is InterRent Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: IIPZ.F has a high level of physical assets or inventory.

Debt Coverage by Assets: IIPZ.F's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: IIPZ.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if IIPZ.F has a sufficient allowance for bad loans.

Low Risk Liabilities: IIPZ.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if IIPZ.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IIPZ.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if IIPZ.F has an appropriate level of bad loans.


Next Steps

Dividend

What is InterRent Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%4.0%industryaverage3.7%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: IIPZ.F's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: IIPZ.F's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: IIPZ.F's dividends per share have been stable in the past 10 years.

Growing Dividend: IIPZ.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), IIPZ.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IIPZ.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Mike McGahan 0

10.4yrs

Tenure

CA$1,210,000

Compensation

Mr. Michael Darryl McGahan, also known as Mike, has been the Chief Executive Officer and Trustee of InterRent Real Estate Investment Trust since September 30, 2009. Mr. McGahan is president and chief execu ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD911.63K) is below average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael McGahan
CEO & Trustee10.4yrsCA$1.21m2.76% CA$44.8m
Bradley Cutsey
President4.8yrsCA$960.00k0.0037% CA$61.0k
Curt Millar
Chief Financial Officer9.8yrsCA$565.00k0.22% CA$3.6m
Dave Nevins
Chief Operating Officer2yrsCA$521.07k0.077% CA$1.2m
Will Chan
Chief Information Officer0yrsno datano data
Osbert Drewniak
Vice President of Acquisitions6.8yrsCA$369.15kno data

6.8yrs

Average Tenure

Experienced Management: IIPZ.F's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael McGahan
CEO & Trustee10.4yrsCA$1.21m2.76% CA$44.8m
Ronald Leslie
8.8yrsCA$54.60k0.021% CA$340.5k
Paul Amirault
Chair of the Board of Trustees0yrsCA$49.60k0.024% CA$384.1k
Paul Bouzanis
10.4yrsCA$62.40k0.41% CA$6.6m
Cheryl Pangborn
2.7yrsCA$38.60kno data
John Jussup
1yrsno datano data

8.8yrs

Average Tenure

Experienced Board: IIPZ.F's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IIPZ.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20%.


Top Shareholders

Company Information

InterRent Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: InterRent Real Estate Investment Trust
  • Ticker: IIPZ.F
  • Exchange: OTCPK
  • Founded: 1997
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$2.162b
  • Market Cap: CA$1.602b
  • Listing Market Cap: CA$1.625b
  • Shares outstanding: 124.91m
  • Website: https://www.interrentreit.com

Number of Employees


Location

  • InterRent Real Estate Investment Trust
  • 485 Bank Street
  • Suite 207
  • Ottawa
  • Ontario
  • K2P 1Z2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IIP.UNTSX (The Toronto Stock Exchange)YesREIT UnitsCACADOct 2001
IBVADB (Deutsche Boerse AG)YesREIT UnitsDEEUROct 2001
IIPZ.FOTCPK (Pink Sheets LLC)YesREIT UnitsUSUSDOct 2001

Biography

InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties. InterRent's strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure and, offer opportunities for accretive acquisitions. InterRent's primary objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) to maintain a conservative payout ratio and balance sheet. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:54
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.