The Globe and Mail reports in its Tuesday edition that RBC's Jimmy Shan has downgraded InterRent REIT to "sector perform" from "outperform" following its acquisition deal with Carriage Hill Properties. The Globe's David Leeder writes that Mr. Shan believes investors see a low chance of a better offer but a reasonable possibility of a slightly improved one. Mr. Shan lowered his unit target to $13.55 from $14.50. Analysts on average target the units at $13.42. Mr. Shan says in a note: "Any upside left in the stock? We believe that the answer comes down to a matter of who has the better leverage, as with any negotiated transaction. On the one hand, a deal structure characterized by a relatively short 40-day (ending July 6) go-shop window, a right to match by CLV/GIC combined with a break fee that shaves 10 basis points of cap rate could deter other bidders. This is in the context of a private market generally lacking depth in institutional bids. This suggests a diminished likelihood of a materially superior offer." Mr. Shan thinks the InterRent news "may have set a floor" for other Canadian-focused apartment equities, noting "while they have all rerated, they are still trading at an average 19-per-cent discount to NAV."