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Canadian Apartment
(TSX:CAR.UN)
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Rating:52Neutral
Price Target:
C$35.00
â–²(3.37% Upside)
Action:Reiterated
Date:08/10/26
The score is held up mainly by steady cash generation and a generally solid REIT balance sheet, but is weighed down by deteriorating recent profitability (TTM net loss/revenue slippage), weak technical momentum (below major moving averages with negative MACD), and an exceptionally high P/E despite a moderate dividend yield.
Positive Factors
Consistent cash generation
Recurring positive operating and free cash flow gives CAPREIT internal funding for maintenance, investment and liquidity needs. The ability to generate material cash even when reported net income is negative supports operating resilience and reduces reliance on external capital.
Negative Factors
Declining revenue trajectory
A sustained revenue decline would weaken the growth profile of the rental portfolio and limit operating leverage. It may indicate pressure from dispositions, occupancy, rent regulation or other property-level factors, reducing confidence in medium-term expansion of cash earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Recurring positive operating and free cash flow gives CAPREIT internal funding for maintenance, investment and liquidity needs. The ability to generate material cash even when reported net income is negative supports operating resilience and reduces reliance on external capital.
Read all positive factors
Canadian Apartment (CAR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.79B
Dividend Yield4.97%
Average Volume (3M)470.03K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth-7.18%
EPS Growth-270.79%
CountryCA
Employees1,076
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.85
Shares Outstanding152,306,720
10 Day Avg. Volume564,531
30 Day Avg. Volume470,029
Financial Highlights & Ratios
PEG Ratio-1.03
Price to Book (P/B)0.67
Price to Sales (P/S)5.85
P/FCF Ratio17.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$41.75Price Target Upside23.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.75
Revenue Forecast (FY)C$985.28M
Canadian Apartment Business Overview & Revenue Model
Company Description
Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) is a prominent real estate investment trust operating within Canada. Its extensive portfolio includes approximately 57,000 residential units throughout Canada, such as townhomes ...
How the Company Makes Money
CAPREIT primarily makes money by owning and operating rental housing and earning recurring rental income from residents. Its revenue model is centered on:
1) Residential rent (core revenue stream)
- Monthly rent collected from tenants in multi-su...
Canadian Apartment Earnings Call Summary
Earnings Call Date:Nov 07, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The earnings call reflects strong operational and financial performance, characterized by high occupancy rates, rent growth, and effective capital recycling strategies. Despite increased interest expenses and maintenance costs, the company demonstrated robust financial strength and a strategic focus on optimizing their portfolio. Overall, the sentiment is positive with a clear emphasis on growth and stability.Positive Updates
High Occupancy and Rent Growth
Occupancy remained high at 98%, with average rent at $1,617 per month. Rent growth drove a 5.2% increase in total portfolio operating revenues.
Negative Updates
Higher Interest Expenses
Higher interest expenses partially offset the healthy organic growth achieved in the quarter.
Read all updates
Q3-2024 Updates
Positive
Negative
High Occupancy and Rent Growth
Occupancy remained high at 98%, with average rent at $1,617 per month. Rent growth drove a 5.2% increase in total portfolio operating revenues.
Read all positive updates
Company Guidance
During the Canadian Apartment Properties REIT (CAPREIT) Q3 2024 earnings call, a robust set of metrics highlighted significant operational and strategic achievements. CAPREIT reported a high occupancy rate of 98% with an average rent of $1,617 per month. Rent growth led to a 5.2% increase in total portfolio operating revenues, with a 6.1% rise in NOI, expanding the margin by 60 basis points to 67.1%. Despite higher repairs and maintenance costs, diluted FFO per unit increased by 3.3% to $0.659 for the quarter. Over the first nine months, rent growth was 6.4%, and diluted FFO per unit rose by 6.5%, maintaining a conservative payout ratio of 57.3%. CAPREIT's strategic repositioning involved $1 billion in Canadian rental property transactions and $219 million in European property sales, with further dispositions planned, including a $740 million MHC portfolio sale set for closing in Q4 2024. The company's total debt to gross book value ratio improved to 40.9%, and a strategic CapEx program reduced capital spend by 7% year-over-year, enhancing cash flow generation.Canadian Apartment Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
63
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 989.93M | 1.00B | 1.11B | 1.07B | 1.01B | 933.14M |
| Gross Profit | 588.79M | 591.63M | 672.03M | 630.41M | 592.44M | 609.99M |
| EBITDA | 157.57M | 411.95M | 552.38M | 587.78M | 697.07M | 541.37M |
| Net Income | -131.83M | 197.05M | 292.74M | -411.57M | 13.64M | 1.39B |
Balance Sheet | ||||||
| Total Assets | 14.76B | 15.13B | 15.58B | 16.97B | 17.74B | 17.71B |
| Cash, Cash Equivalents and Short-Term Investments | 61.89M | 51.74M | 146.76M | 35.22M | 51.68M | 73.41M |
| Total Debt | 6.13B | 6.11B | 6.04B | 7.11B | 7.01B | 6.46B |
| Total Liabilities | 6.41B | 6.37B | 6.55B | 7.69B | 7.74B | 7.31B |
| Stockholders Equity | 8.34B | 8.76B | 9.03B | 9.28B | 10.00B | 10.40B |
Cash Flow | ||||||
| Free Cash Flow | 181.26M | 327.24M | 399.04M | 308.09M | 261.56M | 252.01M |
| Operating Cash Flow | 422.69M | 568.82M | 648.85M | 615.92M | 598.03M | 551.43M |
| Investing Cash Flow | 303.86M | 441.70M | 1.74B | -138.47M | -502.97M | -1.11B |
| Financing Cash Flow | -721.37M | -1.11B | -2.29B | -495.23M | -132.32M | 512.50M |
Canadian Apartment Technical Analysis
Negative
33.86
Price Trends
32.84
Negative
33.63
Negative
34.89
Negative
Market Momentum
-0.44
Negative
36.16
Neutral
28.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CAR.UN, the sentiment is Negative. The current price of 33.86 is above the 20-day moving average (MA) of 31.58, above the 50-day MA of 32.84, and below the 200-day MA of 34.89, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 28.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CAR.UN.
Canadian Apartment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$2.98B | -91.31 | -0.66% | 2.82% | 4.56% | -110.12% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
59 Neutral | C$766.00M | 7.87 | 4.74% | 5.44% | -0.84% | 2.95% | |
58 Neutral | C$2.08B | 289.67 | 0.25% | 4.14% | 4.80% | -99.27% | |
52 Neutral | C$4.79B | -36.71 | -1.53% | 4.97% | -7.18% | -270.79% |
* Real Estate Sector Average
TSE:CAR.UN
Canadian Apartment
31.20
-6.13
-16.41%
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Canadian Apartment Corporate Events
Business Operations and StrategyDividends
CAPREIT Declares August 2026 Monthly Distribution for Unitholders
Positive
Aug 17, 2026
Canadian Apartment Properties Real Estate Investment Trust, Canada’s largest publicly traded rental housing provider, owns roughly 45,400 apartment suites and townhomes across Canada and the Netherlands with a portfolio valued at about $14.4...
Business Operations and StrategyFinancial Disclosures
CAPREIT Posts Q2 Loss as Revenues Slip and Leverage Rises
Negative
Aug 6, 2026
Canadian Apartment Properties REIT reported a modest contraction in its Canadian residential portfolio, with the number of suites declining year over year and the fair value of investment properties edging lower. Occupancy remained high at 97.5%, ...
Business Operations and StrategyDividendsFinancial Disclosures
CAPREIT Posts Q2 Loss Amid Higher Leverage but Keeps Distributions Steady
Negative
Aug 6, 2026
Canadian Apartment Properties REIT reported softer operating revenues and net operating income for the second quarter of 2026 compared with a year earlier, even as same-property NOI showed modest growth. The trust’s Canadian residential port...
Business Operations and StrategyDividends
Methanex Declares Quarterly Dividend of US$0.185 per Share
Positive
Jul 16, 2026
Methanex Corporation’s board of directors has declared a quarterly dividend of US$0.185 per share, reinforcing the company’s ongoing capital-return policy to shareholders. The dividend is payable on September 30, 2026, to common shareh...
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.