InterRent's Silent Quarter: Is No Call a Sign of Strength or Stealth?

By Sandra Patterson, Market Movers

Toronto – InterRent Real Estate Investment Trust (TSX: IIP.UN) is generating buzz – not for its upcoming earnings, but for how it’s delivering them. The growth-oriented REIT announced it will release its third-quarter 2025 results on November 10th, but notably, will not host a subsequent conference call with analysts and investors. This decision, unusual in a sector traditionally committed to transparent communication, is prompting questions about the state of InterRent’s business and a potential shift in investor relations strategies within the Canadian REIT landscape.

While the press release itself is standard fare, the absence of a call is the key story. For many publicly traded companies, especially those in the real estate sector, quarterly earnings calls are a crucial opportunity to elaborate on financial performance, address investor concerns, and provide forward-looking guidance. Skipping this forum raises eyebrows, and Market Movers delved into the potential reasons behind this unconventional approach.

A Departure from Tradition

Historically, InterRent has consistently held conference calls following its quarterly earnings releases. A review of archived investor materials confirms calls were held for at least the past five years. This makes the current decision all the more noteworthy. “The lack of a call is definitely unusual,” notes one Toronto-based analyst who requested anonymity. “It forces investors to rely solely on the written materials, which leaves room for interpretation and speculation.”

Our investigation reveals InterRent isn’t entirely alone in this trend, but remains an outlier. Several larger North American REITs have scaled back on calls in recent quarters, citing cost-cutting measures and a desire to streamline communication. However, these companies generally offer alternative communication channels, such as pre-recorded presentations or one-on-one meetings with key investors. InterRent, so far, is offering neither.

Decoding the Silence: Strength or Stealth?

There are several possible explanations for InterRent's decision. A bullish scenario suggests the company is confident in its performance and believes the results speak for themselves. “If everything is going exceptionally well, and there are no major concerns, a company might feel comfortable forgoing the call,” explains another analyst we spoke with. “They might believe the written materials are sufficient to convey a positive message.”

However, a more cautious interpretation points to potential underlying issues. A company might choose to avoid a call if it anticipates difficult questions about declining occupancy rates, rising interest expenses, or a weakening rental market. The current economic environment, with high inflation and rising interest rates, is putting pressure on many Canadian REITs.

Canadian Rental Market Under Scrutiny

The Canadian rental market is currently experiencing a complex dynamic. While demand remains strong in many urban centers, affordability is a growing concern. Rising interest rates are increasing mortgage costs for landlords, potentially leading to higher rents. At the same time, a slowing economy could lead to job losses and reduced demand for rental properties.

InterRent’s portfolio is heavily concentrated in Ontario, and specifically in the Greater Toronto Area (GTA). This market is particularly sensitive to economic fluctuations and interest rate changes. Our analysis of recent market data reveals a slight softening in rental rates in the GTA in recent months, although demand remains robust.

“The GTA is a competitive market, and landlords are facing increasing pressure to balance rental rates with affordability,” says a real estate consultant specializing in the GTA rental market. “InterRent needs to demonstrate that it can maintain occupancy rates and generate healthy cash flow in this challenging environment.”

Portfolio Performance: A Closer Look

InterRent’s recent financial reports show a consistent track record of growth in net operating income (NOI) and funds from operations (FFO). However, the company’s debt levels have also been increasing. A rising interest rate environment could significantly impact InterRent’s borrowing costs and reduce its profitability.

We reached out to InterRent’s investor relations department for comment on the decision to forgo the earnings call. A spokesperson responded with a brief statement: “InterRent remains committed to transparent communication with its investors. We believe the written materials will provide a comprehensive overview of our third-quarter performance.” They declined to elaborate further.

A Potential Shift in Investor Relations?

While InterRent’s decision is unusual, it could signal a broader shift in investor relations strategies within the Canadian REIT sector. Some companies are exploring alternative ways to communicate with investors, such as leveraging social media, hosting virtual investor days, and focusing on long-term shareholder value creation.

However, abandoning the traditional earnings call format altogether is a risky move. It could alienate some investors and raise concerns about transparency. “Investors value direct communication with management,” says the anonymous analyst. “A conference call provides an opportunity to ask questions, clarify concerns, and gain a deeper understanding of the company’s business.”

The Bottom Line

InterRent’s decision to forgo its earnings call is a head-scratcher. While a confident company might believe its results speak for themselves, the lack of direct communication raises questions about transparency and underlying performance. Investors will be scrutinizing the written materials closely, looking for clues about the state of InterRent’s business and the company’s outlook for the future. The silence, in this case, may be more telling than any words spoken on a conference call. The market will ultimately decide if this is a shrewd move or a misstep.