TSX Shariah screener · October 2026

Is Inovalis Real Estate Investment Trust (INO.UN) Halal?

FAIL

Inovalis Real Estate Investment Trust · TSX: INO.UN · Real Estate

The short answer

Inovalis Real Estate Investment Trust (TSX: INO.UN) is a FAIL in our October 2026 screen. The debt gate fails badly: C$68.5M of mortgage loans and interest-bearing loans at June 30, 2026 is about 302% of the C$22.7M market cap (September 30, 2026) — roughly nine times the ~33% ceiling. The income gate also fails marginally: C$1.36M of interest on joint-venture loans is ~5.1% of H1 2026 total income, just above the ~5% ceiling (the C$17.3M 'other finance income' was a one-off mortgage forgiveness on the Trio sale, not interest). The business gate passes (European office rentals).

Gate 1 — Business activity: PASS

Inovalis Real Estate Investment Trust is an open-ended REIT owning office properties in France, Germany and Spain (13 assets, held via the CanCorpEurope alternative investment fund, managed by related party Inovalis S.A.), leased to corporate clients with revenue from rental income. Owning and leasing office space is a permissible business; no alcohol, pork, gambling, conventional finance, tobacco, cannabis or weapons lines. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: FAIL

At June 30, 2026 the REIT carried C$68.211M of mortgage loans plus C$0.330M of interest-bearing loans — C$68.5M of interest-bearing debt (C$103.5M of lease liabilities excluded from the ratio; including them would be worse). Against a market cap of C$22.69M (September 30, 2026), debt is about 302% of market cap — roughly nine times the ~33% ceiling. Gate 2 fails. Context: 33,554,507 units outstanding; the unit price has fallen ~93% over five years. Facts only.

Gate 3 — Non-compliant income: FAIL

H1 2026 interest income was C$1,358k — interest on loans to joint ventures (note 16 of the Q2 2026 statements). The much larger C$17,329k of 'other finance income' was a one-off gain from the Trio property's senior lender partially forgiving the mortgage on the January 2026 sale, not interest. Against H1 2026 total income of ~C$26.5M (rental revenue C$5.747M + recoveries C$1.622M + other revenue C$0.491M + finance income C$18.687M), the C$1.36M of interest is about 5.1% — marginally above the ~5% ceiling (excluding the one-off gain from the denominator, the ratio would be far higher). Gate 3 fails. Facts only.

Key figures used

Interest-bearing debt C$68.5M at Jun 30, 2026 (mortgage loans C$68.211M + interest-bearing loan C$0.330M) → ≈ 302% of C$22.69M market cap (Sep 30, 2026).
C$103.5M of lease liabilities excluded from the ratio (including them would be worse); cash C$15.9M.
H1 2026 interest income C$1,358k (JV loans) ≈ 5.1% of ~C$26.5M total income; C$17,329k 'other finance income' was a one-off Trio mortgage forgiveness.
33,554,507 units outstanding at Jun 30, 2026; unit price down ~93% over five years.
Office portfolio: 13 assets in France, Germany, Spain via CanCorpEurope; managed by Inovalis S.A.
No Zoya, Musaffa or ShariaPortfolio rating found for INO.UN.

Frequently asked questions

Is Inovalis REIT (INO.UN) halal?

Our October 2026 screen gives Inovalis REIT (INO.UN) a FAIL. The debt gate fails badly: C$68.5M of mortgage loans and interest-bearing loans at June 30, 2026 is about 302% of its C$22.7M market cap, far above the ~33% ceiling. The income gate also fails marginally: interest on joint-venture loans (C$1.36M in H1 2026) is ~5.1% of total income, just above the ~5% ceiling. Only the business gate (office rentals) passes. No Musaffa/Zoya/ShariaPortfolio rating was found.

Why did Inovalis REIT fail the debt gate?

At June 30, 2026 the REIT carried C$68.211M of mortgage loans plus C$0.330M of interest-bearing loans (note: a further C$103.5M of lease liabilities was excluded from the ratio; including it would be worse). Against a market cap of just C$22.69M (September 30, 2026), debt is about 302% of market cap - roughly nine times the ~33% ceiling.

What does Inovalis REIT do?

Inovalis REIT is an open-ended REIT that owns office properties in France, Germany and Spain (13 assets, held via the CanCorpEurope fund and managed by Inovalis S.A.), earning rental income from corporate tenants. Collecting office rent is a permissible business; no haram lines were found. Gate 1 passes.

What is Inovalis REIT's interest income?

The Q2 2026 statements (note 16) disclose C$1,358k of interest on loans to joint ventures in H1 2026 - genuine interest income. The much larger C$17,329k of 'other finance income' was a one-off gain: the Trio property's senior lender forgave part of the mortgage on the sale. Against H1 2026 total income of ~C$26.5M (rental revenue C$5.7M + recoveries C$1.6M + other revenue C$0.5M + finance income C$18.7M), the C$1.36M of interest is ~5.1% - marginally above the ~5% ceiling. Gate 3 fails.

Where can I find more REIT stock screeners?

See our full list of stock screeners at halal-stock-verdicts.html, which covers every company screened so far.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.