CA - InterRent REIT: Just A 'Hold' Despite Reliable 4% Yield

2025-02-26 10:30:00 ET

Summary

• The REIT reported a 13% increase in AFFO per share for 2024, driven by stable interest expenses and higher rental income in key metropolitan areas.
• InterRent's dividend yield is approximately 4%, with a payout ratio in the low 70% range, ensuring a safe and sustainable distribution.
• Despite strong management and growth prospects, I rate InterRent as a 'hold' due to its high valuation, preferring a price closer to C$8-8.5.

Introduction

It has been more than two years since I last discussed InterRent REIT ( IIP.UN:CA ) ( IIPZF ), I figured it's time for an update to see if my ‘hold’ rating is still warranted . In the past two years, the share price has decreased by approximately 33% while the S&P 500 increased by almost 50%, and I wanted to check if this perhaps creates a new opportunity. ...

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