Canadian Apartment Properties Real Estate Investment Trust

Latest Results (01.10.2025):

Canadian Apartment Properties Real Estate Trust (CAPREIT) reported strong financial results for the second quarter of 2025, showcasing significant earnings growth driven by strategic portfolio optimization, effective capital recycling, and robust operational performance. The company continues to enhance value for its Unitholders through disciplined investment and cost management.

Capital Recycling and Portfolio Optimization

In Q2 2025, CAPREIT disposed of 1,779 non-core suites and sites in Canada, generating aggregate proceeds of $274 million. Additionally, the company advanced its divestment from Europe, reducing its European exposure to just 2% of the consolidated portfolio through significant property sales in the Netherlands, Belgium, and Germany.

Strategic Reinvestment and NCIB Program

The proceeds from asset disposals were reinvested into acquiring five high-quality Canadian properties for $165 million and enhancing the Normal Course Issuer Bid (NCIB) program. CAPREIT repurchased Trust Units worth $187 million at a 24% discount to NAV, demonstrating a strategic effort to capitalize on market opportunities and increase Unitholder value.

Enhanced Operational Performance

CAPREIT achieved a residential occupancy rate of 98.3% as of June 30, 2025, up from 97.5% the previous year. The same property Canadian residential average rent increased by 5.2% to $1,674 per month, reflecting strong demand and effective rent optimization strategies.

Financial Strength and Low Debt Levels

The company maintained a robust balance sheet with a total debt to gross book value ratio of 38.5%, down from 41.5% as of June 30, 2024. CAPREIT also secured $400 million in its Acquisition and Operating Facility, ensuring ample liquidity to support future acquisitions and investments.

Funds From Operations and Earnings Growth

CAPREIT reported a 2.6% increase in Funds From Operations (FFO) per Unit (diluted) to $0.661 for Q2 2025, driven by organic growth and strategic Trust Unit repurchases. The Net Operating Income (NOI) margin expanded by 40 basis points to 66.3%, highlighting improved operational efficiencies and cost management.