The Motley Fool
Published May 11, 2022 13:45
InterRent REIT Stock Q1 2022 Earnings Results: Investor Takeaways
Few stocks are left unscathed in the current market downturn. Unfortunately, InterRent REIT (TSX:IIP.UN) stock is not one of them, but that’s good for long-term investors, because it now provides a compelling buying opportunity in the solid real estate investment trust (REIT).
The monthly dividend stock is oversold right now, having fallen more than 31% from its 52-week high. However, its recent business results aren’t half as bad.
InterRent REIT stock Q1 2022 results InterRent REIT reported its first-quarter (Q1) 2022 financial results yesterday. On the day, the stock bounced 1.8%, suggesting that the stock is oversold while the business fundamentals are stable.
For the quarter, the company’s operating revenues increased by 20.5% to $51.9 million, while its property operating costs rose at a lower pace of 14.3%, helped by management lowering the same-property operating costs by 1.0% to 14.4% of operating revenues. Property taxes and utility costs that are uncontrollable costs rose 10.2% and 31.8%, respectively, year over year. Consequently, the total operating expenses ended up increasing 17.8% to $19.5 million versus Q1 2021.
Here is some key information from the Q1 2022 earnings report:
Foolish investor takeaway InterRent REIT’s interest coverage and debt service coverage were 3.31 times and 1.84 times, respectively, at the end of Q1 2022. They are slightly lower than a year ago but still healthy.
The market correction is a good time to build a position in undervalued InterRent REIT stock. As a smaller player in the residential REIT space, it has greater price appreciation potential when the stock market turns around — whenever that may be.
The post InterRent REIT Stock Q1 2022 Earnings Results: Investor Takeaways appeared first on The Motley Fool Canada.
The Motley Fool has no position in any of the stocks mentioned. Fool contributor Kay Ng owns shares of InterRent REIT.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
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