InterRent REIT Announces $175 Million Equity Offering to Fund Property Acquisitions in the City of Montreal

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

OTTAWA, June 18, 2019 (GLOBE NEWSWIRE) — InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) announced today that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by Scotiabank, Desjardins Capital Markets and BMO Capital Markets, as joint bookrunners, to purchase 12,500,000 trust units (the “Units”) of the REIT on a bought deal basis at a price of $14.00 per Unit (the “Offering Price”) for gross proceeds of approximately $175 million (the “Offering”).

InterRent has also granted the Underwriters an over-allotment option, exercisable, in whole or in part, at any time until and including 30 days following the closing of the Offering, to purchase up to an additional 1,875,000 Units at the Offering Price for additional gross proceeds of approximately $26 million, to cover over-allotments, if any.

Closing of the Offering is anticipated to occur on or about July 9, 2019 and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange. The Units will be offered in all provinces and territories of Canada by way of a short form prospectus.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The net proceeds from the Offering will be used to fund acquisitions, repay existing indebtedness, fund previously announced developments and for working capital purposes.

InterRent has entered into conditional agreements to acquire four different properties located in the city of Montreal. Should the REIT elect to waive the conditions and close on all four properties, it will acquire a total of 716 suites and approximately 15,000 square feet of commercial space for a combined purchase price of approximately $166 million. The REIT intends to enhance the value of these properties through its active asset repositioning program.

In addition, InterRent recently announced that it had entered into an unconditional agreement to purchase Hampstead Towers (Montreal), containing 121 residential suites and approximately 31,500 square feet of commercial space, for $38 million.

With the addition of the properties under contract and Hampstead Towers, InterRent’s Montreal portfolio would consist of 20 properties totaling 2,735 suites, thereby increasing the REIT’s Montreal exposure to 27.0% of its total suites. The City of Montreal has continued to experience significant population growth with an estimated increase of 1.6% from 2017 to 2018, outpacing the Quebec average of 1.1% and the National average of 1.4%. Montreal also saw a 10-year low in unemployment rates (5.4%) and approximately 4% nominal growth of disposable income in 2018. Montreal accounts for over 50% of the population of Quebec and attracted 85.6% of immigrants to the province last year. Statistics Canada estimates that 41,314 people immigrated to Montreal between July 1, 2017 and July 1, 2018, representing 13.6% of Canada’s total immigration. With 18 post-secondary institutions, the city welcomes approximately 248,000 students, and according to Ryerson University’s Centre for Urban Research and Land Development, Montreal is the sixth-fastest growing metro in North America.

“These acquisitions are all concrete, high-rise assets well-situated within central Montreal. In addition to providing significant value creation potential through our repositioning strategy, these properties will provide operational synergies given the close proximity to existing properties in our portfolio. This equity offering allows us to fund these acquisitions while reducing the REIT’s leverage, better positioning the balance sheet as we move forward with some of the other attractive acquisition and development opportunities that we have before us,” said Mike McGahan, CEO.

Pro forma the Offering and the intended use of proceeds, InterRent’s debt to gross book value ratio is expected to be approximately 37.6%.

About InterRent

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.

Forward Looking Statements

This news release contains “forward-looking statements” within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent’s most recently publicly filed information located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

For further information about InterRent please contact:

Mike McGahan	Brad Cutsey, CFA	Curt Millar, CPA, CA
Chief Executive Officer	President	Chief Financial Officer
Tel: (613) 569-5699 Ext 244	Tel: (613) 569-5699 Ext 226	Tel: (613) 569-5699 Ext 233
Fax: (613) 569-5698	Fax: (613) 569-5698	Fax: (613) 569-5698
e-mail: mmcgahan@interrentreit.com	e-mail : bcutsey@interrentreit.com	e-mail: cmillar@interrentreit.com
web site: www.interrentreit.com

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.