Is this Canada’s Best REIT?

Interrent Reit

This REIT is the gift that just keeps on giving.  I originally purchased IIP.UN about 15 months ago when it scored very highly on my stock screen.  The original purchase price was around 9.90/share.  I also recently added to my position when it dipped due to a stock offering to purchase more properties.

In the 15 months I have owned this REIT, I’ve already seen a couple of dividend increases, capital gains of over 35% and the future looks even better.  I wont get into what Interrent Reit is since I’ve already written about them a couple a times.  Here is the article I wrote when I originally purchased this stock:  New Purchase..and the one that got away(for now)

Well, Interrent just released their earnings and they looked GREAT.  A few highlights:

• Operating revenues increased by 12.4% over Q2 2018
• Average rent per suite increased by 6.9% over Q2 2018
• Net Operating Income increased 15% over Q2 2018
• Same property NOI increased 15.2% over Q2 2018
• AFFO increased 29.9% while Fully diluted AFFO increased 16.8%
• Eight consecutive quarters of double digit growth!

Basically every single metric is getting better, the payout ratio is still extremely low (for a REIT) and I’d expect them to continue to raise the dividend over the years.  The only downside to this company right now is the yield is low for a REIT, however I will gladly take a lower yield (that is growing every year) when the stock price is generating a +25% annual  average return over the last 4 years!

Stock Analysts love it too!

Don’t take my word for it.  The analysts continue to upgrade the stock as well.  Here are a few from this week:

• Laurentian Bank analyst changed his rating from HOLD to BUY
• TD maintains their BUY rating and increased price target to $16.50
• RBC increased price target by $1.00

 

My only regret (both times I purchased it) was not having enough capital to buy more!  I’ll be keeping an eye on IIP and look to add if it dips again (if that ever happens).

What do you think? Do you own IIP.UN? Would you consider adding at the current price?