InterRent REIT (IIP.UN.TO) Buy, Sell or Hold

InterRent REIT (IIP.UN.TO)

12.72

+0.04 (0.32%)

as of Jun 5, 2026, 8:00:00 pm Market Open.

139 watching

HOLD

CAR.UN vs IIP.UN He likes both as they both have exposure to apartments in the Toronto market. Both have outstanding management teams and great opportunities ahead. He would hold both of them.

BUY

He likes the management and the location. Management is highly aligned and are good at putting capital into their buildings and get 15-20% returns on that capital. They are all along the highway 401 in Ontario. (Analysts’ price target is $16.50)

DON'T BUY

Likes the apartment space--anything with rentals will play out very well. The earnings haven't kept up with the stock price--which have done amazingly well. This could move back to $12, running out of steam. They've overrun their fair market value by 20%.

HOLD

No reason to sell this one at is continues to outperform the S&P. If interest rates begin to rise next year it might cause him to take some profit.

HOLD

He likes holding this one. Apartments are doing well in the space. He worries if these are being over valued. REIT distribution yeilds need to be re-though. Real Estate is very capital intensive and high distributions may require more debt and more equity to get raised to pay them. He prefers a lower yield and low payout ratios. This REIT has done things well, with a low distribution yield that is allowing free cash flow to grow at 18%. He prefers owning apartment REITs versus owning a condo. Yield 1.8%

COMMENT

All apartment REITs now are beasts--don't sell them. They keep going up. IIP owns great properties in Toronto, Ottawa and Montreal, many apartments which have little supply but strong demand. The IIP valuation is too high for him, but it will generate good cash flow growth at 10% a year. The only thing to stop this is a recession which he doesn't expect.

BUY

A REIT for a TFSA? He likes multi-family residentials and industrials REITs. So, he likes IIP.UN-T and Granite REIT.

BUY ON WEAKNESS

He missed this and kicks himself for it. They own multi-dwelling apartments in Ontario and Quebec. They have executed incredibly well and have record occupancy. The only problem is that it trades at a 25% premium to NAV -- just too expensive.

HOLD

Entry into Montreal? The management team is one of the best out there. They buy undervalued properties and get big uplifts. They have perfected in Ottawa and the GTO. Montreal is not a new market to them. Overall the residential market space is well favoured. The tech industry has spawned in Toronto and it is spreading across the country. There is a shortage of good quality housing across the country. The yield just above 3%, but you are really buying this for their growth opportunities.

DON'T BUY

Rental properties in Ontario. One of the best performing REITs. He kicks himself for not owning it. What he got wrong is that Ontario Government went into rent control he didn't have to deal with that, but they didn't have any hiccup with that at all. They are very good at what they do. It is expensive now.

PAST TOP PICK

(A Top Pick Oct 01/18, Up 25%) It's apartments in Toronto, Ottawa and Montreal. They've done an excellent job buying properities and refurbishing them. Margins are way up. They bought some apartments in Montreal recently. Pays only a 2% yield, but they consistently raise it.

BUY

Apartments in Southern Ontario and Montreal. They had a good 2018. The fundamentals for apartments are quite good. There is a lot of immigration into Southern Ontario. 67% payout ratio. Expect dividend increases in coming years. They will not do as well in 2019 as 2018.

TOP PICK

Apartment in Toronto, Ottawa and Montreal. It's not exposed to tariffs. Management has done a good job and their chart looks good. They internalized management which will boost earnings. They continue to pick up rental units outside the urban core in the GTA. It helps that few rentals are being built. Stock price has risen a lot, but this is a good long-term play. (2.3% dividend, Analysts' price target: $12.10)

WAIT

He likes management. Their ability to increase distributions will be there as their more aggressive development plan starts kicking in. They have a number of large-scale developments, which have taken a bit longer, but the dividend will increase over time. More importantly is the amount of growth you can get in earnings when you are able to buy something broken and fix it. You are paying for broken, but you are getting fixed in the end. Returns are very strong. Thinks this will be issuing equity sometime in 2017, so you may want to wait for the equity deal. Dividend yield of 3.1%.

COMMENT

Immigration significantly contributed to population growth in Canada. In the last year, it has probably accounted for about three quarters of it. There is a benefit to owning apartment REITs if you think the cost of housing is relatively high, and you have an influx of immigrants. This REIT has a fantastic management team that tends to be more focused on “value add”. They will buy a property that is not necessarily maximizing its income possibility. They will gussy it up, increase rents, which will drive a significant increase in the share price and the value proposition. He likes this very much.

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InterRent REIT (IIP.UN.TO)