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InterRent International Properties Inc., Releases Financial Operating Results For The Second Quarter And First Half Of 2006
InterRent International Properties Inc., Releases Financial Operating Results For The Second Quarter And First Half Of 2006.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX.V - IIP\n\nTORONTO, April 27 /CNW/ - InterRent International Properties Inc. (the\n\"Corporation\" or \"InterRent), an owner and operator of multi-unit residential\nincome producing properties in the GTA and along Ontario's \"HWY No. 401\nCorridor\" from Ottawa to London, released its financial operating results for\nthe three and six months periods ended February 28, 2006.\nFor the quarter ended February 28, 2006, revenues from continuing\noperations increased by 205% to $1,954,965, from $639,371 in the comparable\nquarter of 2005. The increase in revenues was attributable to the addition of\n771 suites to InterRent's portfolio during the prior twelve months, bringing\ntotal ownership to 1,141 apartment suites at the end of the quarter. On a\nsequential basis, revenues increased by 9.7% from the previous quarter. For\nthe six months ended February 28, 2006 revenues grew by 202% to $3,737,554\ncompared to $1,235,226 to the first half of 2005. InterRent exited the last\nmonth of the second quarter with annualized revenues of approximately \n$8.5 Million.\nExpenses for continuing operations grew to $2,320,000 for the second\nquarter, from $734,955 in the comparable quarter of 2005, representing an\nincrease of 215%. On a sequential basis, expenses rose by 12% from $2,065,543\nin the previous quarter. For the six month period ending February 28, 2006\nexpenses were $4,385,698 as compared to $1,527,457 in the six month period\nending February 28, 2005. The increase in expenses for the second quarter and\nfirst half of 2006 were mainly a function of greater unit ownership,\nstabilization costs associated with the new acquisitions, and higher utility\ncosts. Experience shows, and industry statistics confirm, that it takes\nbetween six and eighteen months after the acquisition of a property to\nstabilize its operation to a level where it is delivering optimum financial\nperformance from an occupancy and cost perspective. At the end of the second\nquarter of 2006, only 25 % (458) suites had been under InterRent ownership for\nmore than one year. Revenues from stabilized buildings represented 46% of\nrevenues, but 57% of Net Operating Income (NOI), and 88.80% of net income\nafter mortgage interest. For the first half of 2006, stabilized buildings\noperated with an average NOI of 48% while unstabilized buildings were at 36%....