Dividend Investing Blog Personal Finance Canada REIT

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!








6 thoughts on “New Purchase..and the one that got away(for now)

  1. 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.


  2. 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!


  3. 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.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s