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Automotive Properties
(TSX:APR.UN)
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Rating:74Outperform
Price Target:
C$13.50
â–²(13.26% Upside)
Action:Reiterated
Date:08/17/26
The score is driven mainly by solid financial performance (strong profitability and cash generation, but with earnings variability and moderately rising leverage) and a favorable earnings update (distribution increase, full occupancy, and strong FFO/AFFO growth, tempered by higher interest costs and near-term debt maturity risk). Valuation is supportive given the low P/E and high yield, while technicals indicate only moderate momentum.
Positive Factors
Occupancy and Lease Visibility
Full occupancy and no material expiries until 2028 provide visible rental income, while long renewals and rent increases support retention and contractual growth. This reduces vacancy risk and makes cash flows more predictable.
Negative Factors
Leverage and Refinancing Exposure
Rising debt and a relatively short weighted average maturity reduce financial flexibility. Refinancing obligations could increase interest costs or constrain acquisitions if funding conditions remain difficult, even with fixed-rate debt and available liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Occupancy and Lease Visibility
Full occupancy and no material expiries until 2028 provide visible rental income, while long renewals and rent increases support retention and contractual growth. This reduces vacancy risk and makes cash flows more predictable.
Read all positive factors
Automotive Properties (APR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$638.72M
Dividend Yield7.15%
Average Volume (3M)47.44K
Price to Earnings (P/E)9.8
Beta (1Y)0.47
Revenue Growth18.00%
EPS Growth68.37%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)1.18
Shares Outstanding54,359,386
10 Day Avg. Volume40,563
30 Day Avg. Volume47,435
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)0.77
Price to Sales (P/S)5.44
P/FCF Ratio10.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.43Price Target Upside12.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.25
Revenue Forecast (FY)C$118.95M
Automotive Properties Business Overview & Revenue Model
Company Description
Automotive Properties REIT functions as an unincorporated, open-ended real estate investment trust, with a core mission to acquire and own primarily revenue-generating properties utilized by automotive dealerships across Canada. Its present portfo...
How the Company Makes Money
APR.UN makes money primarily by earning rental revenue from leasing its automotive retail properties to tenants (typically car dealership operators) under long-term commercial leases. Its key revenue stream is base rent collected under lease contr...
Automotive Properties Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum driven primarily by acquisitions: meaningful revenue (+22.8%), NOI (+20% total cash NOI), FFO/AFFO growth (~19%/~18%), record per-unit FFO, a distribution increase, full occupancy and a strategic Vaughan transaction that crystallized value. Offsetting items include higher interest expense from acquisition-related debt, modest same-property NOI growth (+2.2%), reliance on noncash valuation adjustments in net income, a still-elevated AFFO payout ratio (78.3%), and some refinancing timing risk given a 2.9-year weighted average debt maturity. On balance, the positives from growth, portfolio diversification (including U.S. expansion), and proactive capital management outweigh the headwinds.Positive Updates
Strong Top-Line Rental Revenue Growth
Property rental revenue increased 22.8% year-over-year to $30.2 million (Q2 vs. prior-year Q2), driven by acquisitions completed in 2025 and early 2026 and contractual rent escalations.
Negative Updates
Rising Interest Costs
Interest expense and other financing charges increased to $8.1 million for the quarter, up $1.7 million year-over-year, reflecting additional debt taken to fund acquisitions; higher interest costs partially offset earnings gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Rental Revenue Growth
Property rental revenue increased 22.8% year-over-year to $30.2 million (Q2 vs. prior-year Q2), driven by acquisitions completed in 2025 and early 2026 and contractual rent escalations.
Read all positive updates
Company Guidance
Management guided that Trustees approved an ~2% annual cash distribution increase to $0.839/unit (monthly $0.0699 vs $0.0685), effective for the Sept. 15, 2026 payment (record Aug. 31); the portfolio remains 100% leased with no material lease expirations until 2028; Q2 property rental revenue rose 22.8% to $30.2M (from $24.6M), total cash NOI was $24.8M (up 20%) and same‑property cash NOI $21.1M (up 2.2%); net income & OCI were $18.1M (vs $11.2M), interest expense $8.1M (up $1.7M), G&A $1.6M (up ~$80k); FFO and AFFO increased 19.4% and 18.6% (FFO/unit $0.270 diluted vs $0.244; AFFO/unit $0.263 vs $0.249), with an AFFO payout ratio of 78.3% (vs 80.7%) and distributions paid of $0.206/unit in the quarter; portfolio cap rate 6.7% (flat), 74% of debt fixed at a weighted avg rate of 4.49%, weighted avg swap/mortgage term 3.9 years, weighted avg debt maturity 2.9 years, debt‑to‑GBV 47.5%, ~$64M undrawn capacity, 11 unencumbered properties valued at $166.7M, Facility 2 non‑revolving increased by $35M and extended to June 2030, and a 50% sale of the 69,000 sq ft Vaughan property for $16M with rent expected to commence Dec. 1, 2026.Automotive Properties Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 112.63M | 101.83M | 93.88M | 92.48M | 82.86M | 78.22M |
| Gross Profit | 94.16M | 85.88M | 79.33M | 78.41M | 70.58M | 67.08M |
| EBITDA | 93.18M | 70.93M | 96.78M | 75.47M | 102.02M | 101.00M |
| Net Income | 63.77M | 44.58M | 72.00M | 50.99M | 119.67M | 122.38M |
Balance Sheet | ||||||
| Total Assets | 1.48B | 1.40B | 1.19B | 1.19B | 1.09B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 659.00K | 657.00K | 336.00K | 298.00K | 396.00K | 474.00K |
| Total Debt | 698.12M | 638.06M | 502.24M | 535.08M | 434.89M | 420.58M |
| Total Liabilities | 734.91M | 675.57M | 527.33M | 653.91M | 572.87M | 591.28M |
| Stockholders Equity | 743.01M | 720.78M | 663.40M | 539.99M | 520.94M | 460.37M |
Cash Flow | ||||||
| Free Cash Flow | 61.39M | 53.84M | 75.91M | 74.27M | 64.55M | 62.21M |
| Operating Cash Flow | 61.39M | 53.84M | 75.91M | 74.27M | 64.55M | 62.21M |
| Investing Cash Flow | -188.60M | -168.58M | 21.38M | -110.42M | -24.74M | -24.87M |
| Financing Cash Flow | 127.24M | 115.06M | -97.26M | 36.06M | -39.88M | -37.18M |
Automotive Properties Technical Analysis
Negative
11.92
Price Trends
11.84
Negative
11.84
Negative
11.38
Positive
Market Momentum
-0.07
Negative
45.37
Neutral
52.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:APR.UN, the sentiment is Negative. The current price of 11.92 is above the 20-day moving average (MA) of 11.59, above the 50-day MA of 11.84, and above the 200-day MA of 11.38, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 52.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:APR.UN.
Automotive Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$638.72M | 9.77 | 8.91% | 7.15% | 18.00% | 68.37% | |
74 Outperform | C$582.17M | 9.40 | 11.07% | 5.32% | 2.84% | 78.07% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | C$682.84M | 77.70 | 0.61% | 4.23% | 10.53% | -88.94% | |
51 Neutral | C$690.36M | 12.65 | 4.92% | 9.10% | 2.17% | 77.48% |
* Real Estate Sector Average
TSE:APR.UN
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11.53
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.