Real Estate
InterRent's entire portfolio is located in provinces with rent controls (with renewal caps set below the prevailing inflation rate) and coupled with the trend for declining turnover rates, Veritas estimates that InterRent's NOI per unit growth will moderate to MSD by the end of FY23. In addition to being the most vulnerable REIT within Veritas’ residential coverage to a further rise in interest rates, InterRent’s potential for unitholder returns and distribution growth is also the weakest in the group. The stock trades at a ~40% premium to sector peers. TP C$9.25 (30% downside).
Edition: 156
- 17 March, 2023