Automotive Properties (TSE:APR.UN)
TSX:APR.UN
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Automotive Properties
(TSX:APR.UN)
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Rating:71Outperform
Price Target:
C$13.00
▲(14.04% Upside)
Action:ReiteratedDate:03/06/26
The score is primarily held back by financial factors: increased leverage and weaker 2025 free cash flow despite steady growth and strong margins. Offsetting this, technicals are supportive (price above key moving averages with positive momentum), valuation is appealing for income (high yield with a moderate P/E), and the latest earnings call reinforced improving AFFO per unit and liquidity, tempered by higher interest expense and sector/tenant risks.
Positive Factors
Contracted rental income
The business collects contracted base rent under long-term leases with recoveries for expenses, creating predictable, recurring cash flow. This lease structure supports stable FFO/AFFO and distribution coverage over the medium term, reducing earnings volatility tied to short-term demand swings.
Negative Factors
Rising interest costs and leverage
A meaningful increase in interest expense from higher debt and market rates reduces net income and AFFO margins. Elevated leverage raises refinancing and coverage risk if rates remain higher, compressing cash available for reinvestment or distributions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted rental income
The business collects contracted base rent under long-term leases with recoveries for expenses, creating predictable, recurring cash flow. This lease structure supports stable FFO/AFFO and distribution coverage over the medium term, reducing earnings volatility tied to short-term demand swings.
Read all positive factors
Automotive Properties (APR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$615.30M
Dividend Yield8.08%
Average Volume (3M)41.22K
Price to Earnings (P/E)12.4
Beta (1Y)0.44
Revenue Growth3.80%
EPS Growth-6.93%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.28
Shares Outstanding54,259,403
10 Day Avg. Volume92,408
30 Day Avg. Volume41,215
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$12.92Price Target Upside13.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.02
Revenue Forecast (FY)C$115.23M
Automotive Properties Business Overview & Revenue Model
Company Description
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The REIT's portfolio currently consists of 64 i...
How the Company Makes Money
Automotive Properties generates revenue primarily through long-term lease agreements with automotive dealerships. The company earns rental income from these leases, which are typically structured as net leases where tenants are responsible for pro...
Automotive Properties Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive operational and financial momentum: solid acquisition activity (including U.S. entry), double-digit Q4 growth in revenue and NOI, meaningful per-unit AFFO/FFO improvements, strengthened liquidity and proactive interest-rate hedging. Key risks flagged include higher interest expense from additional leverage and rate increases, non-cash fair value/closing cost impacts, a rent reduction from a prior asset sale, some FX and non-cash adjustments, and ongoing market/regulatory uncertainty tied to the auto sector and EV transition. Management emphasized selective deployment, expanded acquisition capacity and expectation of benefiting from a full year of 2025 acquisitions in 2026.Positive Updates
Acquisitions and U.S. Entry
Completed 13 property acquisitions in 2025 (including first 3 U.S. properties) for an aggregate purchase price of approximately $200 million; Q4 deployments of ~$57.3 million in Greater Montreal; Jan 1, 2026 acquisition of a Hyundai dealership for $13.25 million; waived conditions on Vista, CA (Rivian tenant) for USD 16 million, expected to close H1 2026 — expanding geographic footprint and pipeline (Canada, U.S., heavy equipment vertical).
Negative Updates
Higher Interest Expense from Increased Debt and Rates
Interest expense and other financing charges for Q4 were $7.5M, a $1.9M increase YoY driven by additional debt to fund acquisitions and higher market interest rates; equity offering ($57.1M) in the quarter impacted Q4 AFFO per unit dilution.
Read all updates
Q4-2025 Updates
Positive
Negative
Acquisitions and U.S. Entry
Completed 13 property acquisitions in 2025 (including first 3 U.S. properties) for an aggregate purchase price of approximately $200 million; Q4 deployments of ~$57.3 million in Greater Montreal; Jan 1, 2026 acquisition of a Hyundai dealership for $13.25 million; waived conditions on Vista, CA (Rivian tenant) for USD 16 million, expected to close H1 2026 — expanding geographic footprint and pipeline (Canada, U.S., heavy equipment vertical).
Read all positive updates
Company Guidance
Management said they expect to benefit from the full-year impact of 2025 acquisitions and see continued growth in AFFO per unit as they enter 2026 with solid momentum, noting the 13 properties acquired in 2025 for ~$200M (including Q4 deployments of ~$57.3M and a $57.1M equity raise), a Jan 1 Quebec deal for $13.25M and a pending Vista, CA purchase for USD 16M expected to close in H1 2026 funded from revolver. Key 2025 metrics referenced as the baseline: full-year AFFO/unit diluted $0.998 (up from $0.932), Q4 AFFO/unit $0.251 (from $0.232), Q4 property rental revenue $27.9M (+19.3% YoY), Q4 cash NOI $23.2M (+18.6%), same-property cash NOI +1.9% (Q4) and +2.1% (FY), distribution increase of 2.2% in 2025 with Q4 distributions $0.206/unit (AFFO payout 82.1% vs 86.6% prior), portfolio cap rate 6.75%, debt-to-GBV 49.9%, WALT of debt ~4.1 years, 87% of debt fixed, $102.3M undrawn revolver, 10 unencumbered properties worth ~$130.2M, trailing 12‑month added borrowing capacity of ~$140M, and recent swaps of $25M at ≤4.5% and $45M at 4.45–4.59%.Automotive Properties Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 101.83M | 93.88M | 92.48M | 82.86M | 78.22M |
| Gross Profit | 85.88M | 79.33M | 78.41M | 70.58M | 67.08M |
| EBITDA | 70.93M | 96.78M | 75.47M | 77.61M | 101.00M |
| Net Income | 44.58M | 72.00M | 50.99M | 119.67M | 122.38M |
Balance Sheet | |||||
| Total Assets | 1.40B | 1.19B | 1.19B | 1.09B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 657.00K | 336.00K | 298.00K | 396.00K | 474.00K |
| Total Debt | 638.06M | 502.24M | 535.08M | 434.89M | 420.58M |
| Total Liabilities | 675.57M | 527.33M | 653.91M | 572.87M | 591.28M |
| Stockholders Equity | 720.78M | 663.40M | 539.99M | 520.94M | 460.37M |
Cash Flow | |||||
| Free Cash Flow | 53.84M | 75.91M | 74.27M | 64.55M | 62.21M |
| Operating Cash Flow | 53.84M | 75.91M | 74.27M | 64.55M | 62.21M |
| Investing Cash Flow | -168.58M | 21.38M | -110.42M | -24.74M | -24.87M |
| Financing Cash Flow | 115.06M | -97.26M | 36.06M | -39.88M | -37.18M |
Automotive Properties Technical Analysis
Neutral
11.40
Price Trends
11.40
Negative
11.09
Positive
11.00
Positive
Market Momentum
>-0.01
Positive
43.06
Neutral
19.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:APR.UN, the sentiment is Neutral. The current price of 11.4 is below the 20-day moving average (MA) of 11.53, below the 50-day MA of 11.40, and above the 200-day MA of 11.00, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 19.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$463.83M | 8.66 | 10.04% | 6.56% | 4.53% | 197.86% | |
71 Outperform | C$615.30M | 12.42 | 6.58% | 8.08% | 3.80% | -6.93% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | C$716.40M | 12.68 | 5.54% | 8.07% | 0.41% | 78.32% | |
60 Neutral | C$644.01M | -3.53 | 7.26% | 3.87% | -1.21% | ― | |
58 Neutral | C$748.23M | -43.31 | 5.70% | 3.50% | -17.89% | ― |
* Real Estate Sector Average
TSE:APR.UN
Automotive Properties
11.34
1.78
18.66%
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1.02
16.00%
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.