InterRent Announces $39.5 Million Acquisition in Mississauga, Ontario

InterRent acquires additional properties in Mississauga with a 5.3% cap rate, probably a reasonable yield considering these tenants are lower than “A” class, but with a cost to borrow below 5.3%, the purchase will be accretive.  I would rather own CAP REIT or Boardwalk REIT for better quality.  CAP REIT has a similar yield and slightly higher quality with a little more diversification, and Boardwalk REIT is higher quality and lower risk.  Both CAP REIT and Boardwalk REIT shareholders also gain access to listed options on the Montreal Exchange, whereas trading in InterRent is less liquid and shareholders do not enjoy access to exchange listed options.

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