Canadian Apartment (CAR.UN) AI Stock Analysis

• Market Cap: C$7.02B
• Dividend Yield: 3.55%
• Average Volume (3M): 373.85K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 1.02
• Revenue Growth: 0.93%
• EPS Growth: N/A
• Country: CA
• Employees: 1,076
• Sector: Real Estate
• Sector Strength: 72
• Industry: REIT - Residential
• EPS (TTM): 0.05
• Shares Outstanding: 159,047,870
• 10 Day Avg. Volume: 404,416
• 30 Day Avg. Volume: 373,853
• PEG Ratio: -5.51
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$49.33
• Price Target Upside: 13.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: C$48.00 ▲(10.04%Upside)

The overall score reflects strong financial performance and positive corporate events, supported by stable cash flows and strategic initiatives. However, valuation concerns due to a high P/E ratio and a moderate technical outlook temper the score. Income investors may appreciate the reliable dividend yield.

Positive Factors

Financial Performance

Meaningful balance sheet improvement with a strong financial position has afforded CAR the flexibility to opportunistically allocate capital.

Market Position

Viewed as a core holding for investors seeking broad-based exposure to the multifamily residential market in Canada, with favorable supply/demand dynamics.

Strategic Shift

Increasing investment in recently constructed properties and reduced exposure to Europe is part of the company's strategic shift.

Negative Factors

Asset Sales Impact

FFO per unit has been negatively impacted in the near term due to asset sales.

Earnings Performance

Consolidated NOI was $1.2M short of the forecast, with higher-than-expected operating expenses offsetting revenue.

Revenue Growth

Rental growth is moderating, and bad debt expense has increased.

Canadian Apartment Business Overview & Revenue Model

Company Description

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT), trading under the symbol CAR.UN, is one of Canada's largest residential landlords. The company specializes in the acquisition, ownership, and management of multi-unit residential rental properties, including apartment buildings, townhouses, and manufactured home communities. CAPREIT operates across Canada and has a growing presence in the Netherlands, providing quality rental accommodations to a diverse tenant base.

How the Company Makes Money

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) generates revenue primarily through rental income from its extensive portfolio of residential properties. The company owns and manages a wide variety of rental units, including apartments and townhomes, which provide a steady stream of rental payments from tenants. Additionally, CAPREIT invests in maintaining and upgrading its properties to increase their value and attract higher rental rates, thereby enhancing its income potential. The company may also engage in property acquisitions to expand its portfolio and capitalize on market opportunities. CAPREIT's earnings are influenced by factors such as occupancy rates, rental market trends, and operational efficiency. Strategic partnerships and joint ventures may also play a role in its growth strategy, though specific partnerships are not detailed.

Canadian Apartment Financial Statement Overview

Summary

Canadian Apartment demonstrates stable revenue growth and robust operational efficiency, as evidenced by healthy EBIT and EBITDA margins. The balance sheet reflects a strong equity position and manageable leverage, though profitability has impacted returns. Cash flows remain strong, with consistent free cash flow generation supporting overall financial health.

Income Statement

The company shows moderate revenue growth with a TTM revenue of $1.09 billion, up from $1.03 billion in the previous year, indicating a stable revenue trajectory. The gross profit margin remains healthy at approximately 59.64%, though the net profit margin has significantly declined to 10.88% in TTM due to a drop in net income. EBIT and EBITDA margins are robust at 57.61% and 33.91%, respectively, suggesting strong operational efficiency, although profitability has been volatile.

Balance Sheet

The balance sheet highlights a solid equity base with an equity ratio of 58.66%, providing a cushion against liabilities. The debt-to-equity ratio is relatively moderate at 0.65, suggesting manageable leverage levels. However, return on equity has decreased, reflecting a decline in profitability. Overall, the balance sheet indicates stability but with reduced profitability impacting returns.

Cash Flow

Operating cash flow remains strong at $580.82 million in TTM, with a slight decrease from the previous year. The free cash flow to net income ratio is favorable, indicating good cash generation relative to net income. Free cash flow growth is consistent, supporting reinvestment and debt servicing. The cash flow statement shows resilience despite fluctuations in net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.09B	1.11B	1.07B	1.01B	933.14M	882.64M
	Gross Profit
650.16M	672.03M	630.41M	592.44M	609.99M	578.17M
	EBITDA
369.73M	552.38M	587.78M	697.07M	541.37M	587.55M
	Net Income
118.61M	292.74M	-411.57M	13.64M	1.39B	925.93M
Balance Sheet		Total Assets
15.32B	15.58B	16.97B	17.74B	17.71B	15.50B
	Cash, Cash Equivalents and Short-Term Investments
129.00M	146.76M	35.22M	51.68M	73.41M	121.72M
	Total Debt
5.84B	6.04B	7.11B	7.01B	6.46B	5.56B
	Total Liabilities
6.33B	6.55B	7.69B	7.74B	7.31B	6.23B
	Stockholders Equity
8.99B	9.03B	9.28B	10.00B	10.40B	9.27B
Cash Flow		Free Cash Flow
331.54M	399.04M	308.09M	261.56M	252.01M	236.50M
	Operating Cash Flow
580.82M	648.85M	615.92M	598.03M	551.43M	481.36M
	Investing Cash Flow
1.95B	1.74B	-138.47M	-502.97M	-1.11B	-1.02B
	Financing Cash Flow
-2.52B	-2.29B	-495.23M	-132.32M	512.50M	185.45M

Canadian Apartment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CAR.UN, the sentiment is Neutral. The current price of 43.62 is below the 20-day moving average (MA) of 44.29, above the 50-day MA of 42.65, and below the 200-day MA of 43.75, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CAR.UN.

Canadian Apartment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	79 Outperform	C$2.35B	3.67	22.26%	3.70%	5.77%	108.23%
MRG.UN	75 Outperform	C$945.49M	8.51	5.83%	4.21%	3.85%	-31.81%
BEI.UN	75 Outperform	$3.74B	8.46	8.71%	3.22%	9.53%	-46.06%
IIP.UN	72 Outperform	C$1.91B	―	-7.00%	2.92%	2.52%	-573.45%
MI.UN	71 Outperform	C$538.88M	6.04	9.03%	3.58%	-0.29%	―
Sector *	70 Neutral	¥236.95B	14.10	10.62%	16.56%	17.27%	17.39%
CAR.UN	68 Neutral	C$7.02B	62.39	1.29%	3.55%	0.93%	―

Canadian Apartment Corporate Events

CAPREIT Announces June 2025 Distribution to Unitholders

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced its June 2025 monthly distribution of $0.12917 per Unit, payable on July 15, 2025. This announcement reflects CAPREIT’s ongoing commitment to providing value to its unitholders, with a significant growth in cash distributions since its IPO in 1997.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Secures Strong Unitholder Support at 2025 Annual Meeting

At its 2025 Annual and Special General Meeting, CAPREIT announced that all proposed items, including the election of trustees, appointment of auditors, and executive compensation approach, were approved by a significant majority of unitholders. This successful meeting reflects strong support for CAPREIT’s current management and strategic direction, reinforcing its position as a leading player in the rental housing market.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT to Expand Housing Supply with New Developments and Conversions

CAPREIT announced plans to invest in two infill development projects in Mississauga, Ontario, to construct approximately 120 residential rental suites, and convert underutilized spaces within its existing portfolio into 50 additional suites. These initiatives aim to address the housing supply gap in the Greater Toronto Area and leverage government incentives and construction efficiencies to achieve attractive returns. The projects are expected to enhance CAPREIT’s market position by increasing its rental suite offerings while maintaining low development risks and costs.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Renews $300 Million At-The-Market Equity Program

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has renewed its at-the-market equity program, allowing the company to issue up to $300 million in Trust Units through the Toronto Stock Exchange or other permitted marketplaces. This program provides CAPREIT with additional financial flexibility for future investments, debt repayment, and general business purposes, enhancing its operational capabilities and market positioning.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Announces May 2025 Distribution

CAPREIT announced its May 2025 monthly distribution of $0.12916 per Unit, payable on June 16, 2025, continuing its trend of growing cash distributions since its IPO in 1997. This announcement underscores CAPREIT’s strong market position and commitment to providing consistent returns to its stakeholders.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Reports Strategic Divestments and Reinvestment in Q1 2025

CAPREIT reported its first-quarter 2025 financial results, highlighting a strategic focus on simplifying its platform and upgrading its Canadian apartment portfolio. The company completed $400 million in strategic dispositions in Canada and Europe and plans further divestments in the Netherlands. These moves are part of CAPREIT’s strategy to reinvest proceeds into high-quality, mid-market rental properties, aiming to strengthen its market position and improve operational efficiency.

CAPREIT Announces April 2025 Distribution

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced its April 2025 monthly distribution of $0.12917 per Unit, payable on May 15, 2025. This announcement reflects CAPREIT’s ongoing commitment to providing value to its unitholders, showcasing its strong financial performance and stable growth in the rental housing market.

CAPREIT to Reinvest $189 Million from European Asset Sale into Canadian Market

CAPREIT announced that its subsidiary, ERES, has entered into an agreement to sell 1,446 residential suites in the Netherlands for approximately $522 million. This move is part of CAPREIT’s strategy to reduce its non-core European exposure, with plans to reinvest the proceeds into the Canadian residential apartment market. The transaction is expected to close between early August and mid-September 2025, with CAPREIT anticipating a receipt of approximately $189 million from a special distribution. The funds will be used to repay debt, fund future acquisitions in Canada, and for general business purposes.