IIP - TSX.V
TORONTO, Aug. 2 /CNW/ - InterRent International Properties Inc. (the
"Corporation" or "InterRent), an owner, operator and developer of multi-unit
residential income producing properties in the GTA and along Ontario's "HWY
No. 401 Corridor" from Ottawa to London, released its financial results for
the three and nine months, ended May 31, 2005.
For the quarter, revenues increased by 129% to $1,064,500, over the same
period last year. For the nine months, revenues were up by 82 % over the
corresponding nine months of 2004. On a sequential basis, revenues rose by
$285,106 or 37% over the previous quarter of 2005. Net loss increased to
$126,912 from a loss of $50,997 in the third quarter of 2004. For the nine
months the net loss was $328,045 as compared to a gain of $103,902 for the
corresponding nine months of the previous year. Funds From Operations (FFO) a
non-GAAP measurement of operating performance was $35,690 ($0.00 per share)
for the quarter, compared to a negative FFO of $35,393 ($0.00 per share) for
the same reporting period in the prior year. For the nine months FFO was
$55,227 ($0.00 per share) compared to $62,487 for the corresponding nine
months of 2004. Expenses were $1,191,412 for the quarter, up from $516,379 in
the same quarter of the previous year, while for the nine months they were
$2,815,052 compared to $1,263,263 for the nine months of 2004. On a sequential
basis expenses rose by 49.8% from the second quarter of 2005.
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Summary of 2005 Third Quarter and Nine Month Results
----------------------------------------------------
Three Months and Nine Months, Ending May 31
-------------------------------------------
2005 2004 2005 2004
---- ---- ---- ----
Rental Revenues $ 1,028,081 403,199 2,352,363 1,107,519
Other Revenues 36,419 62,183 134,644 269,646
------------ ------------ ------------ ------------
Total Revenues 1,064,500 465,382 2,487,007 1,367,165
Expenses 1,191,412 516,379 2,815,052 1,263,263
------------ ------------ ------------ ------------
Net Income (126,912) (50,997) (328,045) 103,902
Net Income/Share $ (0.00) (0.01) (0.01) 0.01
FFO 35,690 (35,393) 55,227 62,487
FFO/Share 0.00 (0.00) 0.00 0.01
Commenting on the latest financial results, Michael Newman, President and
CEO, stated "The deployment of a large percentage of the $8.0 million from
December 2004's equity financing has now started to positively and
substantively impact our top line. For the first time in our Company's history
we have exceeded one million dollars in quarterly revenues. This is a three
fold increase over where we were just two short years ago. It is also the
twenty-third consecutive quarter of record revenues. The growth in the book
value of our portfolio over this period has also been dramatic, doubling to
$34.1 million from one year ago. With market values rising within the multi
residential real estate sector, Management is of the opinion that the market
value of InterRent's portfolio substantially exceeds its book value. With
$1.1 million left in cash from December 2004's equity issue at the quarter
end, and unused lines of credit, we expect to acquire additional properties in
the final quarter of this year. Subsequent to quarter end we closed on the
purchase of 166 new suites with a value of $7,940,000, and entered into
binding Agreements of Purchase and Sale for an additional 48 suites, valued at
$2,450,000."
"On the expense side, the higher expenses incurred this quarter were in
large part associated with our rapid expansion, and we expect these to come
into line, once the new properties have been absorbed into InterRent's
portfolio and their operations stabilized. A harsher and longer than usual
winter also negatively impacted our utility costs for the period. General and
Administrative (G&A) expenses, a large part of overheads for a small Company
such as ours, declined to 13.7% of revenues, from 18.5% in the same quarter of
the previous year. Management's goal is to reduce G&A expenses at the same
rate for future quarters. It is Management's view that the combination of
greater revenues generated by our new, larger acquisitions, the stabilization
of their operations, and the application of InterRent's management
philosophies, along with continuing low interest rates, will lead to increased
profits and improved cash flows in future periods. We are dedicated to
building a multi residential portfolio of niche properties and providing our
shareholders with superior returns on their investments."
InterRent is a rapidly expanding growth oriented real estate company
engaged in building shareholder value through the acquisition, ownership and
operation of strategically located income producing multi residential real
estate within the Greater Toronto Area (GTA), and other major Ontario
population centers.
Certain information in this press release may contain forward looking
statements. This information is based on current expectations that are subject
to significant risks and uncertainties that are difficult to predict. Actual
results might differ materially from results suggested in any forward looking
statements. The Corporation assumes no obligation to update the forward-
looking statements, or to update the reasons why actual results could differ
from those reflected in the forward-looking statements unless and until
required by securities laws applicable to the Corporation. Additional
information identifying risks and uncertainties is contained in the
Corporation's filings with the Canadian securities regulators, which filings
are available at www.sedar.com.
We seek safe harbour.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
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%SEDAR: 00010579E
