InterRent's Announces Normal Course Issuer Bid for its 7% Convertible Debentures Accepted by the TSX

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InterRent Real Estate Investment Trust ("InterRent") (TSX:IIP.UN)(TSX:IIP.DB) announced today that the Toronto Stock Exchange (the "TSX") has accepted its normal course issuer bid (the "Bid") to purchase for cancellation its 7% Series A convertible redeemable unsecured subordinated debentures with a maturity date of January 31, 2013 (the "Debentures") (Trading Symbol: IIP.DB).

As of the date hereof, there are $25,000,000 principal amount of the Debentures outstanding. InterRent intends to purchase for cancellation up to a maximum of $2,480,000 principal amount of its Debentures, representing approximately 10% of the public float of such Debentures.

The Debentures will be purchased for cancellation through the facilities of the TSX in accordance with the policies of the TSX and at market price. The actual number of Debentures that may be purchased for cancellation and the timing of such purchases will be determined by InterRent. The average daily trading volume for the Debentures for the six months ended November 30, 2008 was $47,400.

The Bid will commence on January 8, 2009 and will terminate on January 7, 2010 or such earlier time as the Bid is completed or terminated at the option of InterRent.

The Debentures are currently trading at $50.00, based on the closing price of the Debentures on December 18, 2008 (the day before InterRent announced its intention to make the Bid), and represent a yield to maturity of 26.33%. In the opinion of management of InterRent, the purchase of Debentures at current prices represents an accretive use of capital and is in the best interests of InterRent and is expected to result in a reduction of debt service costs.

InterRent has purchased 44,074 trust units (Trading Symbol: IIP.UN) at a weighted average price per security of $2.10 per trust unit under a normal course issuer bid that will expire on July 7, 2009.

About InterRent

InterRent is a rapidly expanding, growth oriented real estate investment trust engaged in building unitholder value through the accretive acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 3,987 apartment suites under ownership.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward- looking statements contained in this release. A full description of these risk factors can be found in InterRent's publicly filed information which may be located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward-looking statements and InterRent assumes no obligation to update or revise the forward-looking statements contained in this release to reflect actual events or new circumstances.

Website: www.interrentreit.com