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Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
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InterRent Real Estate Investment Trust (IIP.UN)
Q: Hi! Wondering if you are still positive on Interrent. Can you please comment on how this company is doing and if you see it as a buy, hold, or sell. With interest rates being lowered do you see this stock improving?
Thank you!
Thank you!
5i Research Answer:
We still like IIP.UN as a residential REIT and we think it has growth upside relative to larger names. Cash flow is expected to grow 6% to 8% over the next few years, vs. flat growth for much of the sector. Occupancy rates are good at 96.2%. It pays a decent distribution yield of 3.2%, it trades at a premium relative to peers in the sector, and its debt levels are around the middle range relative to its peers. We believe that lower rates will positively impact IIP.UN. We would be comfortable holding this name, however, we might prefer the slightly stronger residential REIT, CAR.UN for a long-term hold.