BMO Capital lifts InterRent REIT target to Cdn$12.50

Published 20/05/2025, 14:46
BMO Capital lifts InterRent REIT target to Cdn$12.50

On Tuesday, BMO Capital Markets updated its outlook on InterRent REIT (TSX:IIP_u) (IIP-U:CN), increasing the price target to Cdn$12.50 from the previous Cdn$11.50. The firm maintained its Outperform rating on the stock. BMO Capital’s analyst highlighted the company’s consistent performance and strategic financial maneuvers as the basis for the revised target.

InterRent REIT’s first-quarter results of 2025 met analyst expectations, according to a recent review by BMO Capital. The company’s commitment to providing high-quality rentals was noted, though the quarterly release did not include additional news that some investors were expecting. Despite this, the analyst underscored InterRent REIT’s ability to demonstrate its intrinsic value through the sale of assets at prices aligned with its IFRS book value per unit (BVPU), which stands at Cdn$16.40, and the repurchase of its units at a significant discount.

The reassessment of the company’s net asset value (NAV) and the forecast for its 2026 funds from operations (FFO) prompted BMO Capital to adjust its price target upwards. The analyst’s statement conveyed confidence in the company’s operational strategy and financial health, reinforcing the decision to reiterate the Outperform rating.

InterRent REIT’s strategic approach to asset sales and unit repurchases has been a key factor in its valuation, according to the analyst. The firm’s actions are seen as a reflection of its understanding of market conditions and its commitment to maximizing shareholder value. The analyst’s revised price target suggests a positive outlook for the company’s future performance.

In conclusion, BMO Capital’s revised price target for InterRent REIT reflects a positive view of the company’s financial strategies and its ability to maintain value for its shareholders. The maintained Outperform rating indicates that the firm believes InterRent REIT will continue to perform well relative to the market.

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