InterRent Real Estate Investment Trust : 2024 Q1 - MD&A

InterRent REIT

Management's Discussion & Analysis

For the Quarter Ended March 31, 2024

May 9, 2024

MANAGEMENT'S DISCUSSION & ANALYSIS
TABLE OF CONTENTS
FORWARD-LOOKING STATEMENTS	3
INTERRENT REAL ESTATE INVESTMENT TRUST	4
DECLARATION OF TRUST	4
ACCOUNTING POLICIES	4
NON-GAAP MEASURES	4
OVERVIEW	6
BUSINESS OVERVIEW AND STRATEGY	6
OPERATIONS UPDATE	6
OUTLOOK	7
Q1 PERFORMANCE HIGHLIGHTS	8
PORTFOLIO SUMMARY	9
DISPOSITIONS	10
PROPERTIES UNDER DEVELOPMENT	10
ANALYSIS OF PROPORTIONATE OPERATING RESULTS	12
REVENUE	12
PROPERTY OPERATING COSTS	15
PROPERTY TAXES	15
UTILITY COSTS	15
PROPORTIONATE NET OPERATING INCOME (NOI)	15
SAME PROPERTY PROPORTIONATE PORTFOLIO PERFORMANCE	16
REPOSITIONED PROPERTY PROPORTIONATE PORTFOLIO PERFORMANCE	17
PROPORTIONATE FINANCING AND ADMINISTRATIVE COSTS	18
FINANCING COSTS	18
ADMINISTRATIVE COSTS	19
PROPORTIONATE OTHER INCOME AND EXPENSES	20
OTHER INCOME AND FEES	20
SALE OF ASSETS	20
FAIR VALUE ADJUSTMENTS OF INVESTMENT PROPERTIES	20
UNREALIZED FAIR VALUE GAIN/LOSS ON FINANCIAL LIABILITIES	20
DISTRIBUTION EXPENSE	21
INVESTMENT PROPERTIES	21
UNITHOLDERS' EQUITY	22
DISTRIBUTIONS	22
WEIGHTED AVERAGE NUMBER OF UNITS	23
NON-IFRS RECONCILIATIONS AND PERFORMANCE MEASURES	23
CASH FROM OPERATING ACTIVITIES AND CASH DISTRIBUTIONS	25
RECONCILIATION OF Q1 PROPORTIONATE INCOME STATEMENT	26
RECONCILIATION OF PROPORTIONATE BALANCE SHEET	27
LIQUIDITY AND CAPITAL RESOURCES	27
INTEREST AND DEBT SERVICE COVERAGE	28
MORTGAGE AND DEBT SCHEDULE	28
ACCOUNTING	29
RISKS AND UNCERTAINTIES	29
OFF-BALANCE SHEET ARRANGEMENTS	30
RELATED PARTY TRANSACTIONS	30
OUTSTANDING SECURITIES DATA	31
COMMITMENTS AND CONTINGENCIES	31
ADDITIONAL INFORMATION	31
InterRent REIT	2024 Q1 Management's Discussion and Analysis	2

FORWARD-LOOKING STATEMENTS

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Management's Discussion and Analysis ("MD&A") of InterRent Real Estate Investment Trust ("InterRent REIT", the "REIT" or the "Trust") contains "forward-looking statements" within the meaning of applicable securities legislation. This document should be read in conjunction with material contained in the Trust's audited consolidated financial statements for the year ended December 31, 2023, along with InterRent REIT's other publicly filed documents. Forward-looking statements appear in this MD&A under the heading "Outlook" and generally include, but are not limited to, statements with respect to management's beliefs, plans, estimates and intentions, and similar statements concerning anticipated future events, results circumstances, performance or expectations, including but not limited to financial performance and equity or debt offerings, new markets for growth, financial position, comparable multi-residential REITs and proposed acquisitions. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of InterRent REIT to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the risks related to the market for InterRent REIT's securities, the general risks associated with real property ownership and acquisition, that future accretive acquisition opportunities will be identified and/or completed by InterRent REIT, risk management, liquidity, debt financing, credit risk, competition, general uninsured losses, interest rate fluctuations, environmental matters, restrictions on redemptions of outstanding InterRent REIT securities, lack of availability of growth opportunities, diversification, potential unitholder liability, potential conflicts of interest, the availability of sufficient cash flow, fluctuations in cash distributions, the market price of InterRent REIT's trust units, the failure to obtain additional financing, dilution, reliance on key personnel, changes in legislation, failure to obtain or maintain mutual fund trust status and delays in obtaining governmental approvals or financing as well as those additional factors discussed in the section entitled "Risks and Uncertainties" and in other sections of this Management's Discussion and Analysis.

In addition, certain material assumptions are applied by the Trust in making forward looking statements including, without limitation, factors and assumptions regarding:

• Overall national economic activity
• Regional economic and demographic factors, such as employment rates and immigration trends
• Inflationary/deflationary factors
• Long-,medium-, and short-term interest rates
• Availability of financing
• Housing starts
• Housing affordability
• Provincial government housing policies
• Canadian Mortgage and Housing Corporation (CMHC) policies

Although the forward-looking information contained herein is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. InterRent REIT has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, however there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. InterRent REIT does not

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undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Certain statements included herein may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this MD&A.

INTERRENT REAL ESTATE INVESTMENT TRUST

InterRent Real Estate Investment Trust ("InterRent REIT", the "REIT" or the "Trust") is an unincorporated, open- ended real estate investment trust created pursuant to a Declaration of Trust, dated October 10, 2006, as most recently amended on May 21, 2019, under the laws of the Province of Ontario. InterRent REIT was created to invest in income producing multi-family residential properties within Canada initially through the acquisition of InterRent International Properties Inc. (the "Corporation") and of the Silverstone Group by the way of a plan of arrangement (the "Arrangement") under the Business Corporations Act (Ontario), which was completed on December 7, 2006.

InterRent REIT's principal objectives are to provide its unitholders ("Unitholders") with stable and growing monthly cash distributions, and to increase the value of its trust units (the "Units") through the effective management of its residential multi-family revenue producing properties, the acquisition of additional, accretive properties, and delivering new supply through intensification and development.

DECLARATION OF TRUST

The investment policies of the Trust are outlined in the Trust's Amended and Restated Declaration of Trust (the "DOT") dated as of May 21, 2019, and a copy of this document is available on SEDAR (www.sedarplus.ca).

At March 31, 2024 the Trust was in material compliance with all investment guidelines and operating policies stipulated in the DOT.

ACCOUNTING POLICIES

InterRent REIT's accounting policies are described in note 3 of the audited consolidated financial statements for the year ended December 31, 2023 and note 2 of the condensed consolidated interim financial statements for March 31, 2024.

In applying these policies, in certain cases it is necessary to use estimates, which management determines using information available to the Trust at the time. Management reviews key estimates on a quarterly basis to determine their appropriateness and any change to these estimates is applied prospectively in compliance with IFRS. Significant estimates are made with respect to the fair values of investment properties and the fair values of financial instruments.

NON-GAAP MEASURES

Proportionate results represent financial information adjusted to reflect the Trust's equity accounted joint ventures on a proportionately consolidated basis at the Trust's ownership percentage of the related investment. Under IFRS (GAAP), the Trust's equity accounted joint ventures are presented on one line in the consolidated balance sheets and the consolidated statement of income (loss) in aggregate. In this MD&A the consolidated balance sheets and consolidated statement of income (loss) are presented as if the joint ventures were proportionately consolidated. The presentation of financial information at the Trust's proportionate interest provide a more detailed view of performance and reflect how Management operates the business. Reconciliations of the proportionate balance sheet and proportionate statement of income (loss) to those prepared on a GAAP basis are found in the non-IFRS reconciliations and performance measures section of this MD&A.

Gross Rental Revenue, Net Operating Income, Same Property results, Repositioned Property results, Funds from Operations, Adjusted Funds from Operations, Adjusted Cash Flows from Operations and EBITDA (or, in each case, substantially similar terms) are measures sometimes used by Canadian real estate investment trusts as indicators of

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financial performance, however they do not have standardized meanings prescribed by IFRS (GAAP). These measures may differ from similar computations as reported by other real estate investment trusts and, accordingly, may not be comparable to similarly termed measures reported by other such issuers.

Gross Rental Revenue is the total potential revenue from suite rentals before considering vacancy and rebates and excludes other revenue from ancillary sources.

Net Operating Income ("NOI") is a key measure of operating performance used in the real estate industry and includes all rental revenues generated at the property level, less related direct costs such as utilities, realty taxes, insurance and on-site maintenance wages and salaries. As one of the factors that may be considered relevant by readers, management believes that NOI is a useful supplemental measure that may assist prospective investors in assessing the Trust.

Same property results are revenues, expenses and NOI from properties owned by the Trust throughout the comparative periods, which removes the impact of situations that result in the comparative period to be less meaningful. Some examples include: acquisitions, dispositions, properties held for sale, redevelopments or properties going through a lease-up period.

Repositioned property results are revenues, expenses and NOI from properties owned by the Trust prior to January 1, 2021.

Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") are financial measures commonly used by many Canadian real estate investment trusts which should not be considered as an alternative to net income, cash flow from operations, or any other operating or liquidity measure prescribed under GAAP. The Trust presents FFO and AFFO in accordance with the REALpac White Paper on Funds from Operations and Adjusted Funds from Operations for IFRS dated January 2022. Management considers FFO and AFFO a useful measure of recurring economic earnings.

Adjusted Cash Flows from Operations ("ACFO") is an additional financial measure of economic cash flow based on the operating cash flows of a business adjusted for specific items. The Trust presents ACFO in accordance with the REALpac White Paper dated February 2019. Management considers ACFO a useful measure of sustainable cash flow.

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") is calculated as earnings before interest, taxes, depreciation, amortization, and other adjustments including gain/loss on sale and fair value adjustments.

Readers are cautioned that Gross Rental Revenue, NOI, Same property, Repositioned property, FFO, AFFO, ACFO and EBITDA are not alternatives to measures under GAAP and should not, on their own, be construed as indicators of the Trust's performance or cash flows, measures of liquidity or as measures of actual return on Units of the Trust. These non-GAAP measures, as presented, should only be used in conjunction with the consolidated financial statements of the Trust.

As a result of the redeemable feature of the Trust Units, the Trust's Units are defined as a financial liability and not considered an equity instrument. Therefore, no denominator exists to calculate per unit calculations. Consequently, all per unit calculations are considered non-GAAP measures. Management feels that certain per unit calculations are an important method of measuring results from period to period and as such has determined basic and diluted weighted average number of units. Per unit calculations as computed by the Trust may differ from similar computations as reported by other real estate investment trusts and, accordingly, may not be comparable to other such issuers.

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OVERVIEW

BUSINESS OVERVIEW AND STRATEGY

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, development, and ownership of multi-residential properties. The REIT generates revenues, cash flows and earnings from rental operations and continually assesses its assets for accretive capital recycling purposes. InterRent REIT's largest and most consistent source of income is its rental operations, which involves leasing individual suites to residents for lease terms generally ranging from month-to-month to twelve-months.

InterRent's strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure and, offer opportunities for accretive acquisitions.

InterRent's primary objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) maintain a conservative payout ratio and balance sheet.

In the first three months of 2024, the Trust sold five properties comprising 224 suites in Côte Saint-Luc, Québec for a sale price of $46.0 million, or $205,000 per suite.

As at March 31, 2024, the Trust has 100% ownership interest in 11,876 suites, a 50% financial interest in 1,214 suites, and a 10% financial interest in 605 suites, representing 13,695 total suites, of which: a) 12,593 are included in same property suites; and, b) 10,799 are included in repositioned property suites. On a proportionate basis, this amounts to 12,544 total suites, 11,896 on a same property basis (or 95.6% of the portfolio), and 10,799in repositioned property suites (or 86.1% of the portfolio).

The Government of Canada has recently introduced measures aimed at moderating population growth in the upcoming years, including a cap on international student permits and plans to reduce the proportion of temporary workers in the country. Although these efforts may help restore Canada's population growth to a more balanced state, it is anticipated that the substantial supply-demand gap in the housing market will persist. The Trust is working with various levels of government to try and create policies to encourage more supply and currently has over 4,000 suites under various stages of development with the potential for further intensification at various sites within its portfolio.

OPERATIONS UPDATE

• Total portfolio occupancy of 96.8% for March 2024 was down 20 basis points from 97.0% in December 2023, and is consistent with March 2023. Occupancy has remained steady through the first four months of 2024 and the trend is inline with Q2 2023.
• Delivered strong average monthly rent ("AMR") growth of 7.8% for the total portfolio and 7.1% for the same property portfolio for March 2024, as compared to March 2023. AMR growth into 2024 has continued at a rate that is in-line with what we've seen in recent years moving from Q4 to Q1.
• The Trust signed 461 new leases during the quarter for an average gain-on-lease of 20.3%. As average monthly rents continue to increase, the Trust expects that the average length of its tenancies will increase.
• The Trust continues to invest in its portfolio as a driver of future organic growth, spending $17.2 million during the quarter on a proportionate basis, of which $2.3 million was spent on improvements for non- repositioned properties ($1,318 per suite), $2.7 million on properties under development, and $12.2 million on the repositioned portfolio ($1,130 per suite). This investment in the portfolio and the programming offered at the properties allows the Trust to capture above average market rents within its various communities, which is of the utmost importance especially in an environment of declining turnover.

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OUTLOOK

1. Management remains committed to growing the REIT in a strategic and structured manner, although timing is being impacted by the current economic environment, future growth is still anticipated to come from:
2. 1. continuing to source properties in our core markets that allow us to build scale within these areas and apply our repositioning experience and expertise in a manner that continues to provide long term accretion for our Unitholders;
   2. continuously looking for new ways and opportunities to drive existing revenues, create new revenue streams and reduce operating costs within our portfolio;
   3. re-deployingcapital from areas where management believes that properties have reached their economic peak or that the area will not allow the REIT to reach the desired level of scale;
   4. developing purpose-built rental on existing sites that have the ability to add more density; and
   5. participating in joint ventures where the REIT can add value through its experience and expertise in owning and operating multi-family rentals.
3. The REIT continues to evaluate intensification opportunities within the portfolio.
4. In addition to the intensification projects, the REIT is continuing to make progress on its four active developments, see "Properties Under Development" for further details on ongoing development projects.
5. Disposition Update:
6. • During the quarter, the trust sold five properties, totaling 224 suites, in Côte-Saint-Luc, Québec for a sale price of $46.0 million, or approximately $205,000 per suite; and committed to sell four properties and one vacant parcel of land, totaling 497 suites, in Gatineau, Québec for a sale price of $92.0 million, or approximately $185,000 per suite, scheduled to close in June 2024.
   • Proceeds from the sale of properties may be used to fund the REIT's capital requirements, pay down debt, or to repurchase units under the NCIB.
7. Liquidity Update:
8. • With a debt-to-GBV ratio of 37.5%, the REIT has significant liquidity available through both CMHC insured and conventional mortgage financing to fund future capital programs, development opportunities and acquisitions.
   • The Trust's current credit facilities total $223.0 million of available credit. There was nothing drawn on these facilities as at March 31, 2024.
   • With proceeds from the financings and dispositions during the quarter, the REIT has reduced its variable rate exposure, including credit facilities, to below 1%.
   • As of the date of this report, the Trust had approximately $147.3 million in unencumbered properties that do not have mortgages nor provide security for any credit facilities.

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Q1 PERFORMANCE HIGHLIGHTS

The following table presents a summary of InterRent's proportionate operating performance for the three months ended March 31, 2024 compared to the same period in 2023:

	Selected Consolidated Information			3 Months Ended			3 Months Ended			Change
	In $000's, except per Unit amounts
			March 31, 2024			March 31, 2023
	and other non-financial data
	Total suites		12,544(1)			12,689(1)		-1.1%
	Average rent per suite (March)	$	1,622		$	1,504		+7.8%
	Occupancy rate (March)		96.8%			96.8%			no change
	Proportionate operating revenues	$	62,104		$	57,740		+7.6%
	Proportionate net operating income (NOI)	$	40,396		$	36,321		+11.2%
	NOI %		65.0%			62.9%			+210 bps
	Same Property average rent per suite (March)	$	1,635		$	1,526		+7.1%
	Same Property occupancy rate (March)		96.8%			96.7%			+10 bps
	Same Property proportionate operating revenues	$	59,409		$	55,125		+7.8%
	Same Property proportionate NOI	$	38,717		$	34,669		+11.7%
	Same Property NOI %		65.2%			62.9%			+230 bps
	Net Income	$	26,699		$	82,761		-67.7%
	Funds from Operations (FFO)	$	21,128		$	18,910		+11.7%
	FFO per weighted average unit - diluted	$	0.144		$	0.130		+10.8%
	Adjusted Funds from Operations (AFFO)	$	18,534		$	16,430		+12.8%
	AFFO per weighted average unit - diluted	$	0.126		$	0.113		+11.5%
	Distributions per unit	$	0.0945		$	0.0900		+5.0%
	Adjusted Cash Flow from Operations (ACFO)	$	15,202		$	8,194		+85.5%
	Debt-to-GBV		37.5%			38.0%			-50 bps
	Interest coverage (rolling 12 months)		2.31x		2.52x		-0.21x
	Debt service coverage (rolling 12 months)		1.55x		1.59x		-0.04x

1. Represents 11,876 (2023 - 12,021) suites fully owned by the REIT, 1,214 (2023 - 1,214) suites owned 50% by the REIT, and 605 (2023 - 605) suites owned 10% by the REIT.

• Overall Portfolio:
• 1. Proportionate operating revenues for the quarter increased by $4.4 million to $62.1 million, an increase of 7.6% over Q1 2023.
  2. Average monthly rent per suite increased to $1,622 (March 2024) from $1,504 (March 2023), an increase of 7.8%, and from $1,596 (December 2023) an increase of 1.6%.
  3. Occupancy for March 2024 was 96.8%, a decrease of 20 basis points compared to December 2023 and no change when compared to March 2023.
  4. Proportionate NOI for the quarter was $40.4 million, an increase of $4.1 million, or 11.2%, over Q1 2023. NOI margin for the quarter was 65.0%, an increase of 210 basis points from Q1 2023.
• Same Property Portfolio:
• 1. Proportionate operating revenues for the quarter increased by $4.3 million to $59.4 million, an increase of 7.8% from Q1 2023.
  2. Average monthly rent per suite for the same property portfolio increased to $1,635 (March 2024) from $1,526 (March 2023), an increase of 7.1%, and from $1,616 (December 2023) an increase of 1.2%.
  3. Occupancy for March 2024 was 96.8%, a decrease of 20 basis points compared to December 2023 and an increase of 10 basis points when compared to March 2023.

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• 1. Same property proportionate NOI for the quarter was $38.7 million, an increase of $4.0 million, or 11.7% over Q1 2023. Same property NOI margin for the quarter was 65.2%, an increase of 230 basis points from Q1 2023.
• Repositioned properties had an average monthly rent per suite of $1,594 and occupancy of 96.9% for March 2024. Repositioned properties had proportionate NOI for the quarter of $34.5 million and NOI margin of 65.3%.
• Net income for the quarter was $26.7 million, a decrease of $56.1 million compared to 2023. This decrease was due primarily to unrealized gains on the fair value adjustment of investment properties, dropping from a $70.2 million gain in 2023 to a $8.2 million gain in 2024. This is offset by the increase in NOI and a lower unrealized loss on the revaluation of unit-based liabilities.
• FFO for the quarter was $21.1 million, an increase of $2.2 million, or 11.7%, over Q1 2023 and on a per unit basis increased by 10.8% over Q1 2023.
• AFFO for the quarter was $18.5 million, an increase of $2.1 million, or 12.8%, over Q1 2023 and on a per unit basis increased by 11.5% over Q1 2023.
• ACFO increased by $7.0 million, or 85.5%, to $15.2 million compared to Q1 2023.
• Debt-to-GBVat quarter end was 37.5%, a decrease of 50 basis points and a decrease of 60 basis points compared to March 2023 and December 2023, respectively.

PORTFOLIO SUMMARY

The Trust started the year with 12,756 suites. During the quarter ended March 31, 2024, the Trust:

• added two suites to the Greater Montréal Area as part of our conversion of C-Class office space to new residential supply (the Montréal intensification project);
• brought 11 suites online at The Slayte development in the National Capital Region;
• disposed of five properties comprising 224 suites in the Greater Montréal Area; and
• removed one suite at a property in the Greater Toronto and Hamilton Area to make room for a parcel locker to better serve our residents.

At March 31, 2024, the Trust owned 12,544 suites. Management continuously reviews the markets that the REIT operates in to maintain a suitable portfolio mix. Management believes there are significant organic growth opportunities within the portfolio through continued robust rent growth, further operational streamlining, and reductions in operating costs. At March 31, 2024, 95.6% of the portfolio was included in same property suites and 86.1% of the portfolio was included in repositioned property suites. The REIT continues to evaluate opportunities within our target markets, as well as other gateway cities in Canada. Given current market conditions, the REIT will remain judicious with its investment strategy in order to continue to grow in a fiscally prudent manner. The following chart shows suite mix by region. InterRent's focus on recycling capital and growing its core markets of the Greater Toronto & Hamilton Area ("GTHA"), National Capital Region ("NCR"), Greater Montréal Area ("GMA"), and Greater Vancouver Area ("GVA") has resulted in approximately 84% of its suites being located in these core markets.

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• SUITES BY REGION AT MARCH 31, 2024

	Region						Total Portfolio						Same Property
				Suites - 100%		Suites -		% of				Suites - 100%		Suites -		% of
					basis		proportionate		Portfolio				basis		proportionate		Portfolio
	Greater Toronto &			4,747		4,156		33.0%				4,142		4,095		34.2%
	Hamilton Area
			3,057		3,057		24.4%				2,560		2,560		21.4%
	National Capital Region
	Other Ontario			2,004		2,004		16.0%				2,004		2,004		16.7%
	Greater Montreal Area			3,021		2,894		23.1%				3,021		2,894		24.1%
	Greater Vancouver Area			866		433		3.5%				866		433		3.6%
	Total			13,695		12,544		100.0%				12,593		11,986		100.0%

DISPOSITIONS

During the quarter, the Trust completed the sale of five properties, in Côte-Saint-Luc, Québec for a sale price of $46.0 million, or approximately $205,000 per suite, against a carrying value of $45.2 million. The properties were sold for $0.8 million above their fair market value, however selling costs of $1.7 million (which includes commission, legal expense, any unamortized portion of the CMHC insurance premium and mortgage discharge penalties) were incurred as part of the transactions, resulting in a loss on disposition. Proceeds from the sale were used to fund the REIT's capital requirements and pay down debt.

The Trust also committed to sell four properties and one vacant parcel of land in Gatineau, Québec totaling 497 suites for a sale price of $92.0 million, or approximately $185,000 per suite, scheduled to close in June of 2024. The properties are included in assets held for sale in the REIT's March 31, 2024 consolidated balance sheets.

PROPERTIES UNDER DEVELOPMENT

Development activity is another important way through which the REIT generates long-term value through FFO and NAV accretion. The REIT's development pipeline will add much needed housing to Canada's rental market. InterRent's development strategy is to expand its portfolio in supply-constrained markets where acquiring a significant scale of stabilized, new-build rental product would be challenging. Development opportunities are regularly reviewed by Management, and are selectively undertaken based on a rigorous analysis of projected returns relative to the REIT's cost of capital, market dynamics, and broader capital allocation decision making.

The REIT currently has four ongoing development projects that, when complete, could provide over 4,000 additional suites and over 650,000 square feet of commercial and retail space.

Ownership

Target

Project

City

Suite Count

Commercial Sq. Ft.

Completion

Interest

Date

360 Laurier

Ottawa

139

1,736

25.0%

Q3 2025

Richmond & Churchill

Ottawa

177

11,591

100.0%

H2 2027

Burlington GO Lands

Burlington

1,526 (Phases 1-2)

20,081 (Phases 1-2)

25.0%

2032

989 (Phases 3-4)

19,779 (Phases 3-4)

(Phases 1-2)

900 Albert Street

Ottawa

1,241

597,368

50.0%

TBD

Transfers into the operating portfolio occur when the property is operating in the manner intended by Management. Generally this occurs upon completion of construction, as well as the receipt of all necessary permits.

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