New Purchase..and the one that got away(for now)
About 3-4 years ago, I had my eye on a stock – a Residential Reit that kept showing up on all my stock screens. Unfortunately I never pulled the trigger. That stock was Northview Apartment Reit – and at the time it was trading around $14.00/share. Today it is trading at $24 (and would have been paying me a juicy 7%+ dividend on cost for the last 3 years as well.
Truth be told – Northview is still a great stock, and trading at a great price, and one day I may initiate a position – but today is not that day. For now Northview is still the one that got away….
I did learn my lesson though – and I won’t let another great stock get away!
For the last 6+ months, every time I ran a custom stock screen – another company kept coming up. It trades at a very low multiple, has a reasonable payout ratio, pays a solid & more importantly SAFE dividend and a growing revenue/NOI. In a lot of ways it reminds me of Northview REIT.
The company: Interrent Reit
About Interrent (From their website):
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.
A few highlights from their most recent news release:
- Gross rental revenue for the year increased by 9.0%, or $9.0 million, to $108.5 million.
- Gross rental revenue from stabilized operations for the year increased by 4.4%, or $3.5 million, to $83.0 million.
- Occupancy up in 2017 to 98.4%
- NOI margin for the year was 60.7%.
- AFFO per fully diluted unit for the year was $0.374, an increase of 11.0% over 2016.
- AFFO Payout ratio decreased 3% over the year to 65.8%
Aside from all the fundamentals looking strong – it also fits into a category I was looking to get some exposure to (Residential REIT’s). I already own Plaza & Artis, so it was a natural fit.
Unfortunately I didn’t have much capital to deploy so I was only able to pick up 103 shares. This purchase will add $2.31 to my monthly income.
I plan to add to my position over the next few months – until I am able to fully drip a share each month. At the current stock price & dividend , this means I need to acquire another 340 shares or so.
What do you think of this purchase/stock? Do you own it? Let me know!
7 Comments on “New Purchase..and the one that got away(for now)”
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Hi Jordan, Congrats on the purchase. I am not familiar with the company, but I like the sector. Are they focused on residential properties in Canada? Tom
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Hey Tom
Yes, they are focused on multi unit residential properties (currently all in Ontario/Quebec right now).
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Hey Jordan, I must admit I have never heard of this reit but it looks like a good investment on your part. The payout ratio looks good, and it has a nice occupancy percentage. I look forward to hearing about your future buys of this stock.
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I am hoping to buy another 3-500 shares by summer…but the Jets Playoff tickets might get in the way of that goal..haha
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I like this company because of the QC/ON residential exposure. I was looking at it a few years ago when it was trading for $6 per share. I missed it back then but certainly looking forward to get on boar, but it always look expensive on the chart. Hard to catch it on sale!
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Do you mean expensive just as share price – or based on earnings? I found the price/earnings seemed very reasonable – not to mention a great payout ratio. I have a feeling this could get bought out by a larger reit down the road.
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