Canadian Apartment (CAR.UN) AI Stock Analysis

• Market Cap: C$6.88B
• Dividend Yield: 3.51%
• Average Volume (3M): 455.06K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.00
• Revenue Growth: 4.45%
• EPS Growth: N/A
• Country: CA
• Employees: 1,076
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Residential
• EPS (TTM): 0.05
• Shares Outstanding: 160,250,990
• 10 Day Avg. Volume: 373,344
• 30 Day Avg. Volume: 455,060
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$50.40
• Price Target Upside: 19.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) presents a balanced investment opportunity. The company's strong cash flow and revenue growth are major strengths. However, high leverage and net income volatility pose risks. Technical indicators are favorable, and the valuation is reasonable, supported by a decent dividend yield. Recent corporate strategies and positive events, while not directly impacting the score, suggest a strategic focus on growth and efficiency, potentially benefiting long-term investors.

Positive Factors

Market Valuation

CAP REIT's units currently trade at an 8.6% discount to the NAV estimate, suggesting potential for upside.

Portfolio Strategy

CAP REIT continues to execute its strategy of high grading its portfolio through divesting non-core assets.

Rental Income

Same-property monthly in-place rents rose 5.7% year-over-year, which more than offset a 50bp drop in same-property occupancy to 97.9%.

Negative Factors

Asset Sales Impact

FFO per unit has been negatively impacted due to asset sales, although these transactions are generally accretive to NAV.

Earnings Performance

Q4/24 results were below expectations with NFFO coming in at $104.3M vs. the estimate of $108.6M.

Interest Expense

Greater interest expense from refinancing mortgage debt at higher interest rates impacted financial performance as the weighted average rate on mortgages rose from 2.80% in Q4/23 to 3.11% in Q4/24.

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 steady revenue growth and strong cash-generating abilities. However, high leverage and instability in net income present challenges. The stable equity position is a positive, but reducing debt could further improve financial health.

Income Statement

The company has shown consistent revenue growth with a revenue increase of 4.5% in the latest year. The gross profit margin has remained strong, averaging around 60% over the years. However, the volatility in net income, particularly the negative net income in 2023, indicates potential profitability challenges. The absence of EBIT in the latest data may suggest operational restructuring.

Balance Sheet

The balance sheet reflects a stable equity position, with an equity ratio consistently above 50%. However, the debt-to-equity ratio is relatively high, indicating significant leverage. The company's total debt has decreased slightly over recent years, but the high leverage remains a risk factor.

Cash Flow

The cash flow statements reveal a positive trend in free cash flow growth, with a noticeable increase in 2024. Operating cash flow remains robust, showing the company's strong cash-generating capability. However, the free cash flow to net income ratio fluctuates, partly due to variations in net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.11B	1.07B	1.01B	933.14M	882.64M
	Gross Profit
672.03M	630.41M	592.44M	609.99M	578.17M
	EBIT
0.00	615.95M	728.11M	516.13M	553.58M
	EBITDA
552.38M	-274.86M	697.07M	541.37M	587.55M
	Net Income Common Stockholders
292.74M	-411.57M	13.64M	1.39B	925.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.76M	35.22M	51.68M	73.41M	121.72M
	Total Assets
15.58B	16.97B	17.74B	17.71B	15.50B
	Total Debt
6.04B	7.11B	7.01B	6.46B	5.56B
	Net Debt
5.90B	7.08B	6.97B	6.39B	5.44B
	Total Liabilities
6.55B	7.69B	7.74B	7.31B	6.23B
	Stockholders Equity
9.03B	9.28B	10.00B	10.40B	9.27B
Cash Flow		Free Cash Flow
399.04M	308.09M	261.56M	252.01M	236.50M
	Operating Cash Flow
648.85M	615.92M	598.03M	551.43M	481.36M
	Investing Cash Flow
1.74B	-138.47M	-502.97M	-1.11B	-1.02B
	Financing Cash Flow
-2.29B	-495.23M	-132.32M	512.50M	185.45M

Canadian Apartment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 42.15 is above the 20-day moving average (MA) of 41.27, above the 50-day MA of 41.34, and below the 200-day MA of 44.72, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 54.74 is Neutral, neither overbought nor oversold. The STOCH value of 54.60 is Neutral, 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
BEI.UN	76 Outperform	$3.46B	5.57	8.71%	2.17%	9.53%	-46.06%
KMP.UN	76 Outperform	C$2.11B	3.24	22.26%	3.94%	5.77%	108.23%
MRG.UN	75 Outperform	C$923.94M	8.17	5.83%	4.30%	3.85%	-31.81%
CAR.UN	70 Outperform	C$6.88B	24.48	1.29%	3.51%	4.45%	―
MI.UN	61 Neutral	C$517.80M	14.04	9.03%	3.99%	-0.29%	―
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%
IIP.UN	58 Neutral	C$1.63B	―	-6.27%	3.44%	3.85%	-266.02%

Canadian Apartment Corporate Events

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.

Spark’s Take on TSE:CAR.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:CAR.UN is a Neutral.

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) presents a balanced investment opportunity. The company’s steady revenue growth and strong cash flow generation are significant positives. However, the high leverage and net income volatility pose risks. Technical indicators are neutral, and the valuation remains reasonable. Positive corporate events reflect strategic growth and commitment to shareholder value, but they have no direct weight in the overall score due to the lack of earnings call data.

To see Spark’s full report on TSE:CAR.UN stock, click here.

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.

Spark’s Take on TSE:CAR.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:CAR.UN is a Outperform.

Canadian Apartment’s stock is well-supported by strong financial and operational results. While the financial performance is solid with steady revenue and cash flow growth, high leverage remains a concern. Technical indicators show positive momentum, and recent corporate events highlight strategic advancements. The valuation is reasonable, backed by a decent dividend yield, making the stock a balanced investment with moderate growth potential.

To see Spark’s full report on TSE:CAR.UN stock, click here.

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.

CAPREIT Announces March 2025 Distribution

CAPREIT announced its March 2025 monthly distribution of $0.12917 per Unit, payable on April 15, 2025, to Unitholders of record as of March 31, 2025. This announcement reflects CAPREIT’s ongoing commitment to providing consistent returns to its investors, highlighting its strong position in the rental housing market and its significant growth in cash distributions since its IPO.

CAPREIT Announces Increased February 2025 Distribution

CAPREIT has announced an increase in its February 2025 monthly distribution to $0.12916 per Unit, marking an annualized distribution of $1.55. This decision reflects CAPREIT’s ongoing commitment to enhancing shareholder value and maintaining its strong market presence in the real estate sector, as evidenced by its substantial portfolio and sustained growth in distributions.

CAPREIT Reports Robust 2024 Financial Results Amid Market Adjustments

CAPREIT announced strong financial and operating results for the fourth quarter and full year of 2024. Despite a decrease in the number of suites and sites and a slight decline in overall occupancy, the company reported increased operating revenues and net operating income compared to the previous year. The results underscore CAPREIT’s solid performance in adjusting to market conditions, with improved rental rates in both its Canadian and Dutch portfolios. The company’s financial health is reflected in its net income for the year, signaling a recovery from a loss recorded in the previous year, and a stable distribution per unit.

CAPREIT Enhances Portfolio with $194 Million in Strategic Transactions

CAPREIT has announced a strategic shift in its portfolio with the completion of key acquisitions and dispositions totaling $194 million. The company sold non-core assets in Brampton and Charlottetown while acquiring newly constructed rental properties in Vancouver and Edmonton. These transactions bolster CAPREIT’s presence in Western Canada, aligning with its strategy of upgrading its portfolio with properties that offer both value and growth potential. The moves are part of a broader capital reallocation plan aimed at enhancing the company’s core platform and supporting the Canadian housing market.