The Globe and Mail reports in its Tuesday, Oct. 4, edition that iA Capital analyst Johann Rodrigues has added InterRent REIT to his top picks list. The Globe's David Leeder writes that Mr. Rodrigues rates InterRent REIT "strong buy" with an $18 unit target. Analysts on average target the units at $16.11. Rodrigues says in a note: "As to why we like InterRent best, the stellar management/board, the leading track record of NAV growth, the geographic mix (90-per-cent GTA/OTT/MTL/VAN), and the density pipeline are all strong reasons to invest in the name. However, the simplest and most compelling reason is as follows. With 80 per cent of the population living in markets subject to rent control and turnover rates at historic, near-single-digit lows, the majority of any multi-family REIT's portfolio is subject to renewals capped at 2 to 3 per cent. Where excess SPNOI and NAV growth occurs is in the balance -- the portion of the portfolio that turns over and can be marked to market at rents substantially higher than in-place. Therefore, the REIT is poised to deliver excess growth should either have the highest turnover rate or the highest mark-to-market. It just so happens that InterRent has both."
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