TORONTO–(BUSINESS WIRE)–Tricon Residential Inc. (NYSE: TCN, TSX: TCN) (“Tricon” or the “Company”), an owner and operator of single-family rental homes and multi-family rental apartments in the United States and Canada, announced today its consolidated financial results for the three months ended March 31, 2022.

All financial information is presented in U.S. dollars unless otherwise indicated.

The Company reported strong operational and financial results in the first quarter, including the following highlights:

• Net income from continuing operations increased by 290% year-over-year to $163.5 million compared to $41.9 million in Q1 2021; diluted earnings per share from continuing operations increased by 181% year-over-year to $0.59 compared to $0.21 per share in Q1 2021;

• Core FFO per share increased by 7.7% to $0.14, reflecting overall Core FFO growth of 32% driven by strong operating fundamentals and continued growth in the single-family rental portfolio, as well as higher fees generated from new Investment Vehicles created over the past year, partially offset by a 26% increase in weighted average diluted shares outstanding stemming largely from Tricon’s U.S. public offering in October 2021;¹

• Same home Net Operating Income (“NOI”) for the single-family rental portfolio grew by 11.6% year-over-year and same home NOI margin increased by 0.7% to 67.8%. Same home occupancy increased by 0.7% year-over-year to a record-high of 98.0%, same home turnover hit a record low of 14.7% and blended rent growth was 8.7% (comprised of new lease rent growth of 18.7% and renewal rent growth of 6.3%);

• The Company expanded its single-family rental portfolio by 6.5% (32% year-over-year) during the quarter through the organic acquisition of 1,935 homes at an average price of $347,000 per home (including closing and up-front renovations costs) for a total acquisition cost of $671 million, of which Tricon’s proportionate share was $202 million; and

• Positive trends continued into the second quarter, with same home rent growth of 8.6% in April 2022, including 17.9% growth on new leases and 6.5% growth on renewals, while same home occupancy increased to 98.4% and same home turnover remained low at 14.2%. The steady pace of acquisitions is expected to continue and management is on track to reach its target of 8,000 home acquisitions in 2022.

“After a tremendous 2021 highlighted by significant public and private capital raising, Tricon’s management team focused squarely on growth and operating performance to deliver a solid first quarter of 2022 featuring a 22.6% year-over-year increase in the total proportionate NOI. Our acquisition pace of 1,935 homes during a typically slow quarter puts us firmly on track to reach our goal of acquiring over 8,000 homes this year,” said Gary Berman, President and CEO of Tricon. “Meanwhile, our robust rent growth, record-high occupancy and record-low turnover resulted in 11.6% same home NOI growth. The strength we see in our results heading into Q2 gives us the conviction to increase our same home NOI growth guidance by 50 bps, to a range of 7.5% to 9.5% this year. Importantly, we have been able to accomplish these results while doing what’s right for our residents in today’s supply-constrained housing market. This quarter we continued to voluntarily cap rent increases on renewals for existing residents, and rolled out our pioneering Tricon Vantage program with close to 1,400 residents now enrolled in our Credit Builder program. We are off to a great start in 2022, and I want to thank our employees for their unwavering commitment to serving our residents, and our shareholders for their ongoing support.”

Financial Highlights

For the three months ended March 31
(in thousands of U.S. dollars, except per share amounts which are in U.S. dollars, unless otherwise indicated)		2022			2021
Financial highlights on a consolidated basis
Net income from continuing operations, including:	$	163,457		$	41,904
Fair value gain on rental properties		299,572			112,302
Basic earnings per share attributable to shareholders of Tricon from continuing operations		0.59			0.21
Diluted earnings per share attributable to shareholders of Tricon from continuing operations		0.59			0.21
Net loss from discontinued operations		—			(67,562	)
Basic loss per share attributable to shareholders of Tricon from discontinued operations		—			(0.34	)
Diluted loss per share attributable to shareholders of Tricon from discontinued operations		—			(0.35	)
Dividends per share(1)	$	0.058		$	0.056
Weighted average shares outstanding – basic		274,064,375			194,898,627
Weighted average shares outstanding – diluted		276,763,567			196,327,468
Non-IFRS(2) measures on a proportionate basis
Core funds from operations (“Core FFO”)	$	43,035		$	32,522
Adjusted funds from operations (“AFFO”)		33,658			25,817
Core FFO per share(3)		0.14			0.13
AFFO per share(3)		0.11			0.10

(1) Dividends are issued and paid in U.S. dollars. Prior to November 8, 2021, dividends were declared and paid in Canadian dollars; for reporting purposes, amounts recorded in equity were translated to U.S. dollars using the daily exchange rate on the applicable dividend record date.

(2) Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s performance. For the basis of presentation of the Company’s Non-IFRS measures and reconciliations, refer to the “Non-IFRS Measures” and Appendix A. For definitions of the Company’s Non-IFRS measures, refer to Section 6 of Tricon’s MD&A.

(3) Core FFO per share and AFFO per share are calculated using the total number of weighted average potential dilutive shares outstanding, including the assumed exchange of preferred units issued by Tricon PIPE LLC, which was 311,843,796 and 248,103,423 for the three months ended March 31, 2022 and March 31, 2021, respectively.

Net income from continuing operations in the first quarter of 2022 was $163.5 million compared to $41.9 million in the first quarter of 2021, and included:

• Revenue from single-family rental properties of $138.8 million compared to $99.4 million in the first quarter of 2021, largely as a result of a 32% expansion in the single-family rental portfolio to 31,032 homes and a 9.6% year-over-year increase in average effective monthly rent (from $1,483 to $1,625), partially offset by a 2.5% decrease in occupancy driven by an accelerated pace of acquisition of vacant homes.

• Direct operating expenses of $45.5 million compared to $33.2 million in the first quarter of 2021, primarily driven by the growth of the rental portfolio, higher property tax expenses associated with increasing property values, and elevated repairs and maintenance expenses as a result of an increased number and scope of work orders, and general inflationary pressures reflecting a tighter labor market and rising material costs.

• Revenue from private funds and advisory services of $12.4 million compared to $8.9 million in the first quarter of 2021, largely driven by property management and asset management fees from the U.S. multi-family portfolio after its syndication and the internalization of its property management functions, as well as higher development fees generated from Johnson communities.

• Fair value gain on rental properties of $299.6 million compared to $112.3 million in the first quarter of 2021 attributable to higher home values for the single-family rental portfolio. The appreciation in home prices reflected a number of factors, including strong population and job growth in the U.S. Sun Belt markets and a relatively low supply of existing and new homes for sale.

Core funds from operations (“Core FFO”) for the first quarter of 2022 was $43.0 million, an increase of $10.5 million or 32% compared to $32.5 million in the first quarter of 2021. The increase in Core FFO was driven by significant NOI growth from the single-family rental business and higher fees earned by the Company’s Private Funds and Advisory business from new Investment Vehicles.

Adjusted funds from operations (“AFFO”) for the three months ended March 31, 2022 was $33.7 million, an increase of $7.8 million (30%) from the same period in the prior year. This growth in AFFO was driven by the increase in Core FFO discussed above, partially offset by higher recurring capital expenditures associated with a larger single-family rental portfolio, inflationary cost pressures for both materials and labor, as well as a larger scope of work performed on properties as non-essential repairs and maintenance activities were deferred or foregone in the comparative period due to the pandemic.

Single-Family Rental Operating Highlights

The measures presented in the table below and throughout this press release are on a proportionate basis, reflecting only the portion attributable to Tricon’s shareholders based on the Company’s ownership percentage of the underlying entities and excludes the percentage associated with non-controlling and limited partners’ interests, unless otherwise stated. A list of these measures, together with a description of the information each measure reflects and the reasons why management believes the measure to be useful or relevant in evaluating the underlying performance of the Company’s businesses, is set out in Section 6 of Tricon’s MD&A.

For the three months ended March 31
(in thousands of U.S. dollars, except percentages and homes)		2022			2021
Total rental homes managed		31,146			23,535
Total proportionate net operating income (NOI)(1)	$	63,291		$	51,627
Total proportionate net operating income (NOI) growth(1)		22.6	%		8.3	%
Same home net operating income (NOI) margin(1)		67.8	%		67.1	%
Same home net operating income (NOI) growth(1)		11.6	%		N/A
Same home occupancy		98.0	%		97.3	%
Same home annualized turnover		14.7	%		21.2	%
Same home average quarterly rent growth – renewal		6.3	%		4.0	%
Same home average quarterly rent growth – new move-in		18.7	%		12.3	%
Same home average quarterly rent growth – blended		8.7	%		6.5	%

(1) Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s performance. For the basis of presentation of the Company’s Non-IFRS measures and reconciliations, refer to the “Non-IFRS measures” and Appendix A. For definitions of the Company’s Non-IFRS measures, refer to Section 6 of Tricon’s MD&A.

Single-family rental NOI was $63.3 million for the three months ended March 31, 2022, an increase of $11.7 million or 22.6% compared to the same period in 2021. The favorable variance in NOI was mainly attributable to a $14.7 million or 19.7% increase in rental revenues driven by a 9.6% increase in the average monthly rent ($1,625 in Q1 2022 vs. $1,483 in Q1 2021), growth in the portfolio size (Tricon’s proportionate share of rental homes was 20,253 in Q1 2022 compared to 18,091 in Q1 2021, an increase of 12.0%) as well as a decrease in bad debt expense as collection rates improved. Other revenue also increased by $1.9 million or 63.4% as ancillary services such as smart-home technology and renters insurance were provided to more residents. This favorable change in revenue was partially offset by a $5.0 million or 19.0% increase in direct operating expenses due to incremental costs associated with a larger portfolio of homes, higher property taxes and higher repairs and maintenance expense caused by wage and material price pressures and a deferral of non-essential activities in the same period in 2021 due to the pandemic.

Single-family rental same home NOI growth was 11.6% in the first quarter of 2022, primarily driven by revenue growth of 10.4% reflecting a 7.2% increase in average monthly rent ($1,589 in Q1 2022 compared to $1,482 in Q1 2021) coupled with a 70 basis point improvement in occupancy to a record-high 98.0%, ancillary revenue growth of 31.7% and lower bad debt expense. This favorable growth was partially offset by an 8.1% increase in operating expenses attributable to higher property taxes, higher repairs and maintenance expense as explained above, and additional costs incurred to provide ancillary services to more residents.

Single-Family Rental Investment Activity

The Company continued to expand its single-family rental portfolio through the acquisition of an additional 1,935 homes during the quarter, bringing its total managed portfolio to 31,032 rental homes. The homes were purchased at an average cost per home of $347,000, including up-front renovations, for a total acquisition cost of $671 million, of which Tricon’s share was approximately $202 million. Tricon plans to purchase over 2,000 homes in the second quarter of 2022.

Adjacent Residential Businesses Highlights

Quarterly highlights of the Company’s adjacent residential businesses include:

• Tricon’s share of U.S. multi-family rental NOI was $3.8 million compared to $3.2 million for the same period in 2021, a $0.6 million or 17.5% increase on a same-property basis. The growth in NOI is primarily attributable to a $0.7 million or 12.8% year-over-year increase in revenue driven by a 10.7% year-over-year increase in average monthly rent, aided by a 0.9% year-over-year improvement in occupancy to 95.5%. Total operating expenses moderately increased by $0.2 million to $2.5 million attributable to increased usage and rising prices of third-party contract services, partially offset by a decline in marketing and leasing costs due to stronger leasing demand;

• In the Canadian multi-family business, The Selby experienced a surge in leasing activity, with occupancy increasing 14.3% year-over-year and blended rent growth of 9.4%, resulting in year-over-year NOI growth of 24.2%;

• Across Tricon’s Canadian residential developments portfolio, construction continues to progress on schedule, with the majority of projects under construction being funded by construction loans. Of note, Queen & Ontario and the Canary Landing (West Don Lands) – Block 20 projects are on schedule to begin construction in Q2 2022, and The Taylor and Canary Landing (West Don Lands) – Block 8 projects are on schedule to achieve their first occupancy by the end of 2022;

• The Company and Canada Pension Plan Investment Board (“CPPIB”) successfully closed on their second joint venture investment (“Symington”), a 1.95 acre development site in the Junction, one of Toronto’s character neighborhoods undergoing rapid gentrification. Once complete, the project will be a 17-story, 341-unit rental apartment community; and

• Tricon’s investments in U.S. residential developments generated $11.9 million of distributions to the Company in Q1 2022, including $0.7 million in performance fees.

Change in Net Assets

As at March 31, 2022, Tricon’s net assets grew by $160.2 million to $3.2 billion compared to $3.1 billion as at December 31, 2021. The increase was largely driven by reported net income of $162.3 million for the quarter (including fair value gains of $299.6 million on the single-family rental portfolio or $215.4 million on a proportionate basis). Accordingly, Tricon’s book value (net assets) per common share outstanding also increased by 5% sequentially to $11.77 (C$14.71) as at March 31, 2022 compared to $11.22 (C$14.22) as at December 31, 2021.

Balance Sheet and Liquidity

Tricon’s liquidity consists of a $500 million corporate credit facility with approximately $415 million of undrawn capacity as at March 31, 2022. The Company also had approximately $143 million of unrestricted cash on hand, resulting in total liquidity of $558 million.

As at March 31, 2022, Tricon’s pro-rata net debt (excluding exchangeable instruments) was $2.5 billion, reflecting a pro-rata net debt to assets ratio of 35.7%. For the three months ended March 31, 2022, Tricon’s pro-rata net debt to Adjusted EBITDAre ratio was 8.1x.²

On April 7, 2022, SFR JV-2 closed a new securitization transaction involving the issuance and sale of six classes of fixed-rate pass-through certificates with a face amount of approximately $530 million, a weighted average coupon of 4.32% (including servicing fees) and a term to maturity of five years, secured indirectly by a pool of 2,484 single-family rental homes. The transaction proceeds were used to refinance existing short-term SFR JV-2 debt and net proceeds of $29.9 million were returned to SFR JV-2 to fund future acquisitions of rental properties.

2022 Guidance Update

As a result of the strong operating performance during the first quarter, the Company updated its guidance for the Core FFO per share and same home metrics for the current fiscal year as follows:

For the year ended December 31	Current 2022 Guidance							Previous 2022 Guidance
Core FFO per share	$	0.60		–	$	0.64		$	0.60		–	$	0.64
Same home revenue growth		7.5	%			9.5	%		7.0	%	–		9.0	%
Same home expense growth		7.0	%			9.0	%		6.5	%	–		8.5	%
Same home NOI growth		7.5	%			9.5	%		7.0	%	–		9.0	%
Single-family rental home acquisitions	8,000+							8,000+

Note: Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s performance. Refer to the “Non-IFRS Measures” and Section 6 of the Company’s MD&A for definitions. See also the “Forward-Looking Information” section, as the figures presented above are considered to be “financial outlook” for purposes of applicable securities laws and may not be appropriate for purposes other than to understand management’s current expectations relating to the future of the Company. The reader is cautioned that this information is forward-looking and actual results may vary materially from those reported. Although the Company believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information. The Company reviews its key assumptions regularly and may change its outlook on a going-forward basis if necessary.

Quarterly Dividend

On May 10, 2022, the Board of Directors of the Company declared a dividend of $0.058 per common share in U.S. dollars payable on or after July 15, 2022 to shareholders of record on June 30, 2022.

Tricon’s dividends are designated as eligible dividends for Canadian tax purposes in accordance with subsection 89(14) of the Income Tax Act (Canada), and any applicable corresponding provincial and territorial legislation. Tricon has a Dividend Reinvestment Plan (“DRIP”) which allows eligible shareholders of the Company to reinvest their cash dividends in additional common shares of the Company. Common shares issued pursuant to the DRIP in connection with the announced dividend will be issued from treasury at a 1% discount from the market price, as defined in the DRIP. Participation in the DRIP is optional and shareholders who do not participate in the plan will continue to receive cash dividends. A complete copy of the DRIP is available in the Investors section of Tricon’s website at www.triconresidential.com.

Conference Call and Webcast

Management will host a conference call at 11 a.m. ET on Wednesday, May 11, 2022 to discuss the Company’s results. Please call (888) 550-5422 or (646) 960-0676 (Conference ID #3699415). The conference call will also be accessible via webcast at www.triconresidential.com (Investors – News & Events). A replay of the call will be available from 2 pm ET on May 11, 2022 until midnight ET on June 11, 2022. To access the replay, call (800) 770-2030 or (647) 362-9199, followed by Conference ID #3699415.

This press release should be read in conjunction with the Company’s Interim Financial Statements and Management’s Discussion and Analysis (the “MD&A”) for the three months ended March 31, 2022, which are available on Tricon’s website at www.triconresidential.com and have been filed on SEDAR (www.sedar.com) as well as with the SEC as part of the Company’s filed Form 6-K. The financial information therein is presented in U.S. dollars.

The Company has also made available on its website supplemental information for the three months ended March 31, 2022. For more information, visit www.triconresidential.com.

About Tricon Residential Inc.

Tricon Residential Inc. is an owner and operator of a growing portfolio of approximately 39,000 single-family rental homes and multi-family rental apartments in the United States and Canada with a primary focus on the U.S. Sun Belt. Our commitment to enriching the lives of our residents and local communities underpins Tricon’s culture and business philosophy. We strive to continuously improve the resident experience through our technology-enabled operating platform and innovative approach to rental housing. At Tricon Residential, we imagine a world where housing unlocks life’s potential. For more information, visit www.triconresidential.com.

Forward-Looking Information

This news release contains forward-looking statements pertaining to expected future events, financial and operating results, and projections of the Company, including statements related to targeted financial performance and leverage, anticipated home acquisitions, the single-family rental unit acquisition and development pipeline and the benefits to the Company of such factors. Such forward-looking information and statements involve risks and uncertainties and are based on management’s current expectations, intentions and assumptions in light of its understanding of relevant current market conditions, its business plans, and its prospects. If unknown risks arise, or if any of the assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from management expectations as projected in such forward-looking statements. Examples of such risks include, but are not limited to the Company’s inability to execute its growth strategies; the impact of changing economic and market conditions, increasing competition and the effect of fluctuations and cycles in the Canadian and U.S. real estate markets; changes in the attitudes, financial condition and demand of the Company’s demographic markets; fluctuation in interest rates and volatility in financial markets; developments and changes in applicable laws and regulations; and the impact of COVID-19 on the operations, business and financial results of the Company. Accordingly, although the Company believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Certain statements included in this press release, including with respect to 2022 guidance for Core FFO per share and same home metrics, are considered to be financial outlook for purposes of applicable securities laws, and as such, the financial outlook may not be appropriate for purposes other than to understand management’s current expectations relating to the future of the Company, as disclosed in this press release. These forward-looking statements have been approved by management to be made as at the date of this press release. Although the forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions (including in particular the revenue growth, expense growth and portfolio growth assumptions set out herein which themselves are based on, respectively: assumed ancillary revenue growth and continuing favorable market rent growth; increased internalization of maintenance activities and improved management efficiencies accompanying portfolio growth; and the availability of homes meeting the Company’s single-family rental acquisition objectives), there can be no assurance that actual results, performance or achievements will be consistent with these forward-looking statements.

Contacts

Wissam Francis

EVP & Chief Financial Officer

Wojtek Nowak

Managing Director, Capital Markets

Email: investorsupport@triconresidential.com

Read full story here

Leveraging Strong ties to the Lone Star State, including investors and board members, and relationships with local realtors, including Texas Premier Realty, Brixstone Real Estate, eXp Realty LLC, and others, Nobul brings its award-winning, consumer-centric marketplace for home buyers and sellers to thriving Texas real estate market

TORONTO & HOUSTON–(BUSINESS WIRE)–#Marketplace–Nobul Technologies (www.nobul.com), a consumer-centric real estate technology company connecting home buyers and sellers to the right real estate agents that meet their needs, is proud to announce today that its marketplace is now available throughout the state of Texas, including but not limited to Dallas, Fort Worth, Houston, Austin, San Antonio, and El Paso. With Nobul, buyers and sellers in Texas now have the ability to review criteria and data that help them choose the right real estate agent for them, while agents compete for their business in real time. To date, Nobul has achieved billions of dollars in sales across more than 100 markets throughout North America, including Canada, Florida and Georgia. Nobul’s entry into the Texas real estate market is part of a national U.S. rollout strategy for the company.

“Texas is the second most popular state in the United States for relocation, with more than 500,000 people moving to the Lone Star State every year,” said Regan McGee, Founder, Chairman, CEO and of Nobul. “With our strong ties to the state, thanks to multiple investors and shareholders of Nobul’s residing there, not to mention the burgeoning technology industry growing in the state, Texas is a perfect fit for Nobul and there couldn’t be a better time for our technology to finally be available there. Our marketplace is both revolutionary and evolutionary. Consumers have grown accustomed to online marketplaces, price and product comparison tools, professional and consumer reviews to make purchases. Nobul is the next logical step in this evolution when it comes to real estate. With home sales on the rise, days on market continuing to fall, and more than 30 million people living in Texas alone, we couldn’t be prouder to provide our technology to the thriving Texas real estate market.”

Nobul saves home buyers and sellers the hassle of trying to find a real estate agent by providing easy access to verified reviews, track records, transaction history, services offered and commission rate comparisons, which allows consumers to choose the agent that best fits their needs. Nobul’s innovative platform is poised to help everyone in Texas, current residents and people looking to relocate alike, who are looking to buy or sell a home. The platform also provides prospective buyers with curated property listings.

To ensure its path to success in the Lone Star State, Nobul has already built relationships with realtors from numerous brokerages, including Texas Premier Realty, Brixstone Real Estate, eXp Realty LLC and more, who are getting to know the Nobul platform. In addition to Nobul’s marketplace empowering buyers and sellers in their real estate transactions, realtors and agents continue to see the value in the company’s platform for making the home buying and selling process more transparent and providing choice, accountability, and simplicity to the real estate industry. Since there is no cost for agents to participate, and through the agent ranking system, agents compete for consumers’ business with no preferential treatment.

“We’re happy to have Nobul’s innovative technology platform come to Texas to help Texas Premier Realty’s 600+ agents get quality client referrals, to improve our deal flow and give buyers and sellers a better experience,” said Daryl Zipp, Broker for Texas Premier Realty.

Since 2010, roughly 700,000 people have moved to Texas from California alone. The low cost of living, no state income tax, thriving economy, great schools, and recreation are named as some of the top reasons to move to Texas.

“I’ve lived in Texas for over 25 years and believe Nobul is a perfect fit for the market,” said Texas-based Nobul board member Scott Reed. “As the platform continues to gain traction, I believe the Texas real estate market could gain greatly from Nobul’s disruptive and transparent residential real estate marketplace technology. Tech-savvy home buyers and sellers here are looking for more customized and easier ways to evaluate agents submitting bids for their business. We believe Nobul is exactly what they’ve been looking for.”

ABOUT NOBUL

Nobul Technologies (www.nobul.com) is the world’s only open digital consumer-centric marketplace connecting home buyers and sellers to the best real estate agent for them. Nobul’s platform enables buyers and sellers to easily access real estate agents’ transaction histories, pricing, services offered, and genuine reviews from people who have actually used them. The platform brings transparency, choice, accountability and simplicity to the real estate industry through powerful innovative technology supported by real people who truly care. Nobul has won many prestigious awards including the CNBC Upstart 100 Award and has crossed over $5,000,000,000 (five billion dollars) in completed sales, since its inception. For more information on Nobul, visit www.nobul.com.

Contacts

Nicole Rodrigues

nicole@nrprgroup.com

Edmonton office to create more than 100 tech jobs in fast-growing Alberta market

TORONTO–(BUSINESS WIRE)–Alida, a leader in Total Experience Management (TXM) software, today announced it will be opening a new Edmonton, Alberta office in June 2022, with plans to hire over 100 employees by 2025. This expansion comes as Alida looks to further push growth momentum in North America.

“Canada is an untapped resource within the North American tech market and will be integral to the future of this industry,” said Ross Wainwright, CEO at Alida. “Edmonton is a fantastic city with a fast-growing population and an equally booming tech industry — perfect for establishing and growing longterm roots. This expansion will play a key role in the growth strategy of our organization and will further solidify our place as a Visionary leader in the customer experience market.”

Alida conducted an international search before selecting Edmonton for the future talent it harbors. Edmonton has experienced significant tech sector growth, seeing upwards of a 50 per cent increase over the past five years and was recognized on CBRE’s top 50 markets report for the first time in 2021.

In addition to the new Edmonton office, Alida’s 2022 growth plans have a global focus. The company recently announced a new Data Centre launching in Sydney, Australia this summer to support its customers in the Oceania region. Additionally, Alida has appointed a new Executive Vice President for EMEA, Nick Morley to lead expansion plans in the region, and also invested in Prague as a new region of focus for Alida’s growing R&D organization.

Over the past year, Alida’s growth agenda has continued to excel with the unveiling of Total Experience Management (TXM), a unique and holistic platform encompassing all areas of experience including customer, employee, product and brand, making this CX offering the first of its kind. Alida has also been globally recognized for its leading corporate culture, garnering numerous awards and recognition from Comparably, Great Place to Work® Canada, Canada’s Top 100 Employers, and more.

Most recently, the company made the decision to launch a pilot program for a 4-day work week in July 2022 after listening to employee feedback using its own Voice of Employee technology.

“Alida has experienced immense growth this year but none of it would be possible without the amazing work from all of our employees,” said Hermina Khara, SVP of People and Culture. “As we welcome this new opportunity, we look forward to continuing to build on our award-winning culture — one that is supportive, inclusive, and a place where employees are excited about growing their careers.”

With a rich heritage and a start-up mentality, Alida is looking for people with a fresh perspective, a collaborative mindset, and a sense of relentless curiosity. Find Alida’s open roles at www.alida.com/careers.

About Alida

Alida believes in a world where customers are respected as the ultimate source of truth. Because knowing the whole truth about your customers—even the parts that are hard to hear—can help companies make better decisions that drive long-term customer loyalty and growth. With the Alida Total Experience Management (TXM) Platform, leading brands like HBOMax, Adobe, Red Bull, and J.Crew turn their customer truth into action to power exceptional customer, employee, product, and brand experiences.

Founded over 20 years ago, Alida helps the world’s largest brands improve their total experience with its team of 500+ experts across 11 countries.

Join us on our mission to reimagine the experience at www.alida.com and @alidaTXM.

Contacts

Media

Genevieve Raveau

Senior Manager, Global PR

genevieve.raveau@alida.com

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OTTAWA, Ontario–(BUSINESS WIRE)–InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) today reported financial results for the first quarter ended March 31, 2022.

InterRent REIT reports double digit growth in same property NOI in Q1 2022

• Same property occupancy of 96.4% in March 2022, an increase of 10bps compared to December 2021 and 480bps compared to March 2021.
• Same property operating costs lowered to 14.4% of operating revenues in Q1 2022, an improvement of 100bps compared to Q1 2021.
• Same property NOI margin in Q1 2022 of 62.8%, an improvement of 120bps relative to Q1 2021.
• Same property NOI of $28.9 million for the quarter, an increase of 12.1% compared to Q1 2021.
• FFO increases to $19.1 million ($0.133 per Unit – diluted) in Q1 2022; growth of 17.8% overall and 16.7% on a per Unit basis compared to Q1 2021.
• Refinancing activity in the quarter lengthens average term to maturity to 4.5 years and increases share of CMHC-insured mortgages to 71%.
• Development at 473 Albert on track for 2022 delivery and continued acquisitions in Vancouver in Q1 2022.
• Moving forward on climate and diversity, equity and inclusion (DEI) commitments in 2nd sustainability report.

Solid operating results in the first quarter, despite cost pressures

The REIT maintained strong occupancy through Q1 despite historical seasonality, where the REIT often sees an uptick in vacancy in the first quarter of the year. At 95.5% in March 2022, the occupancy rate in InterRent’s portfolio held relative to December 2021 (95.6%) and improved 420bps over March 2021 (91.3%). The REIT’s same property portfolio saw sequential occupancy gains continue in Q1 2022, posting a quarter-over-quarter increase of 10bps and a year-over-year gain of 480bps as of March 2022.

As of March 31, 2022, InterRent had 100% ownership in 12,445 suites, up 8.6% from 11,468 as of Q1 2021. Including properties that the REIT owns in its joint operations, InterRent owned or managed 12,925 suites as of March 31, 2022. After a record acquisition year in 2021, InterRent posted strong growth in total portfolio operating revenues in Q1 2022 (+20.5%). Narrowing to the same property portfolio, operating revenues grew 10.0% in Q1 2022 to $46.1 million, driven by occupancy gains, improvements in average rent per suite (+5.3%), and growth in ancillary revenue streams such as parking, laundry, and locker rentals.

The current inflationary environment is impacting operating costs for the REIT’s portfolio. Utility costs in Q1 have increased over last year as both a percentage of operating revenues and on a per suite basis primarily due to a large increase in the rates for natural gas across the portfolio. For the REIT’s same property portfolio, utilities as a percentage of operating revenues increased 90bps to 11.4% in Q1 2022 relative to Q1 2021 (10.5%).

While InterRent is mainly a cost taker for utilities, its internalized structure allows it to closely manage property operating costs. In the first quarter of the year, the REIT’s high-performing team managed property operating costs for its same property portfolio down 100bps as a percentage of operating revenues relative to Q1 2021, leading to NOI margin expansion of 120bps in the first three months of 2022 compared to Q1 2021, despite an increase in maintenance capital investment on repositioned suites. Management continues to expect that top line growth should outpace inflationary pressure in operating expenses in 2022 as the elevated level of rebates granted during the pandemic normalizes by the end of the year.

Net income for Q1 2022 was $94.6 million, a decrease of $10.1 million compared to Q1 2021. This difference was due primarily to the $65.8 million fair value gain on investment properties ($97.6 million in Q1 2021). The decrease was offset by an increase in net operating income of $5.9 million and an increase in the unrealized gain on financial liabilities of $18.9 million (a gain of $10.0 million in Q1 2022 compared to a loss of $8.8 million in Q1 2021).

The REIT posted a strong FFO result in the quarter. At $19.1 million ($0.133 per Unit – diluted), FFO increased by 17.8% compared to Q1 2021 ($16.2 million or $0.114 per Unit – diluted), resulting in 16.7% growth on a per Unit basis. AFFO likewise grew from $14.5 million ($0.102 per Unit – diluted) in Q1 2021 to $17.3 million ($0.120 per Unit – diluted) in Q1 2022, representing 18.9% and 17.6% growth on an absolute and per Unit basis, respectively.

Active management of debt book leads to longer average term to maturity and growing share of CHMC-insured mortgages

During the quarter, the REIT added two new mortgages on properties acquired during the quarter for $8.3 million, two new mortgages on the existing portfolio for $23.4 million, and up-financed eleven mortgages for $77.6 million. As a result, the average term to maturity of the REIT’s mortgage debt was approximately 4.5 years at March 31, 2022, compared to 3.6 years at December 31, 2021, and the share of mortgage debt backed by CMHC insurance increased from 63% at the end of Q4 2021 to 71% at the end of Q1 2022. As expected, this refinancing activity saw the weighted average cost of mortgage debt increase to 2.51%, 13bps higher relative to December 31, 2021. The REIT will continue its conservative approach in proactively managing its remaining 2022 mortgage maturities.

InterRent is committed to increase housing supply and improve quality of existing rental housing stock in Canada

The REIT currently has four development projects in various stages that will increase housing supply by more than 4,000 suites over the next decade. This includes one ongoing project at 473 Albert in Ottawa involving the adaptive reuse of obsolete office stock that will provide 158 new suites and generate an expected yield of 4.4%. The expected cost to complete this project is $34.6 million and construction costs are approximately 95% contracted. The REIT has finalized the property branding and shall begin its marketing and pre-leasing activities in late Q2 2022 to prepare for partial occupancy commencing late Q3 2022.

During Q1 2022, InterRent closed on previously announced transactions for a combined purchase price of $25.6 million (of which InterRent’s interest is 50%). Comprising 57 suites, these two properties offer operational synergies with the REIT’s existing Vancouver portfolio and will undergo repositioning in the coming years, with individual suite upgrades following the cadence of natural resident turnover.

Date	Property	City	Region	Ownership Interest	Suites	Price ($m)
Jan 24, 2022	2183 W 44th Ave	Vancouver	GVA	50%	36	16.5
Feb 28, 2022	1918 Haro St	Vancouver	GVA	50%	21	9.1
Q1 2022 Acquisitions					57	25.6(1)

⁽¹⁾ At 100% share; $12.8 million based on InterRent’s ownership interest.

2021 sustainability report explains how InterRent is moving forward on its climate and DEI commitments

InterRent is publishing its 2021 sustainability report today alongside its Q1 2022 results. In its inaugural 2020 report, the REIT aimed to bring stakeholders up to speed on sustainability efforts to date and shared its future plans. The intent with this 2021 report is to provide a status update on social and environmental performance in 2021 and share progress on how the REIT is moving forward on its commitments for climate change and diversity, equity, and inclusion (DEI). The report is available for download in the sustainability section of InterRent’s website (https://www.interrentreit.com/sustainability/).

Commenting on the results published today, Brad Cutsey, President & CEO of InterRent, said: “Our strong financial results for the first quarter of 2022 demonstrate the strength of our Team and our commitment to deliver an unsurpassed resident experience. We are also excited to share the progress on our climate change and DEI commitments in our 2^nd sustainability report published today, and we encourage all our stakeholders to explore the progress we’re making across our sustainability objectives. We invite you to engage with us, to share your ideas and perspectives, and to hold us accountable.”

“I am more than pleased with the results. We are basically back to pre-pandemic performance. We had a strategy at the beginning of COVID and we stuck to it. The results have proven our thesis and we anticipate they will continue to shine as we burn off the incentives that were used to hold rents. The depth of the Team is very apparent in delivering these results. I have tremendous confidence in them and look forwards to spending more time with them on strategy, capital allocation, coaching, and mentoring,” said Mike McGahan, Executive Chair.

Financial Highlights

Selected Consolidated Information In $000’s, except per Unit amounts and other non-financial data	3 Months Ended March 31, 2022		3 Months Ended March 31, 2021		Change
Total suites	12,445	(1)	11,468		+8.5%
Average rent per suite (March)	$1,404		$1,325		+6.0%
Occupancy rate (March)	95.5%		91.3%		+420bps
Operating revenues	$51,863		$43,051		+20.5%
Net operating income (NOI)	$32,359		$26,488		+22.2%
NOI %	62.4%		61.5%		+90bps
Same Property average rent per suite (March)	$1,391		$1,321		+5.3%
Same Property occupancy rate (March)	96.4%		91.6%		+480bps
Same Property operating revenues	$46,079		$41,883		+10.0%
Same Property NOI	$28,927		$25,794		+12.1%
Same Property NOI %	62.8%		61.6%		+120bps
Net Income	$94,632		$104,709		-9.6%
Funds from Operations (FFO)	$19,067		$16,192		+17.8%
FFO per weighted average unit – diluted	$0.133		$0.114		+16.7%
Adjusted Funds from Operations (AFFO)	$17,267		$14,526		+18.9%
AFFO per weighted average unit – diluted	$0.120		$0.102		+17.6%
Distributions per unit	$0.0855		$0.0814		+5.0%
Adjusted Cash Flow from Operations (ACFO)	$13,170		$13,174		no change
Debt-to-GBV	36.4%		32.7%		+370bps
Interest coverage (rolling 12 months)	3.31x		3.53x		-0.22x
Debt service coverage (rolling 12 months)	1.84x		1.93x		-0.09x
(1) Represents 11,965 suites fully owned by the REIT and 960 suites owned 50% by the REIT.

Conference Call

Management will host a webcast and conference call to discuss these results and current business initiatives on Tuesday, May 10, 2022 at 10:00 AM EST. The webcast will be accessible at: https://www.interrentreit.com/2022-q1-results. A replay will be available for 7 days after the webcast at the same link. The telephone numbers for the conference call are 1-888-440-6928 (toll free) and 646-960-0328 (international). No access code required.

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) grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) maintain a conservative payout ratio and balance sheet.

*Non-GAAP Measures

InterRent prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS (GAAP). In this and other earnings releases, as a complement to results provided in accordance with GAAP, InterRent also discloses and discusses certain non-GAAP financial measures, including Gross Rental Revenue, NOI, Same Property results, Repositioned Property results, FFO, AFFO, ACFO and EBITDA. These non-GAAP measures are further defined and discussed in the MD&A dated May 10, 2022, which should be read in conjunction with this press release. Since Gross Rental Revenue, NOI, Same Property results, Repositioned Property results, FFO, AFFO, ACFO and EBITDA are not determined by GAAP, they may not be comparable to similar measures reported by other issuers. InterRent has presented such non-GAAP measures as Management believes these measures are relevant measures of the ability of InterRent to earn and distribute cash returns to Unitholders and to evaluate InterRent’s performance. These non-GAAP measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with GAAP as an indicator of InterRent’s performance.

Cautionary Statements

The comments and highlights herein should be read in conjunction with the most recently filed annual information form as well as our consolidated financial statements and management’s discussion and analysis for the same period. InterRent’s publicly filed information is located at www.sedar.com.

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.

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

Contacts

For further information, please contact:

Sandy Rose, CFA

Director – Investor Relations & Sustainability

(514) 704-2459

sandy.rose@interrentreit.com
www.interrentreit.com