OTTAWA – InterRent Real Estate Investment Trust (TSX:IIP.UN) grew its fourth-quarter profits by nearly 442 per cent mainly on higher average rent charged at its properties and lower expenses.
The Ottawa-based property owner said Tuesday distributable income rose to $3.1 million, or seven cents per share, from $572,000, or two cents per share, a year earlier.
Operating revenue increased to $12.7 million from $9.9 million.
The average monthly rent for the entire portfolio as of December 2012 grew to $888 per unit from $843 in December 2011.
Occupancy also increased to 97.8 per cent in December 2012 from 96.6 per cent a year prior.
Funds from operations — a key industry metric — grew 190 per cent to $3.8 million compared to $1.3 million in the fourth quarter of 2011.
Operating expenses fell to 41.2 per cent of its operating revenues from 45.4 per cent a year earlier.
The change “was driven by operating efficiencies, as the number of suites have increased. By reduced operating costs, as a result of the previous capital expenditures, and improvement to the overall quality of portfolio,” the company said in a release.
For the year, distributable income increased to $11.9 million from $4.2 million in 2011. Operating revenue was up to $47.5 million from $38.5 million.
InterRent is a real estate trust focused on residential properties.