Canadian Apartment (CAR.UN) AI Stock Analysis

• Market Cap: C$5.47B
• Dividend Yield: 4.2%
• Average Volume (3M): 445.85K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.71
• Revenue Growth: -6.51%
• EPS Growth: -81.28%
• Country: CA
• Employees: 1,076
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.56
• Shares Outstanding: 153,555,340
• 10 Day Avg. Volume: 421,437
• 30 Day Avg. Volume: 445,852
• PEG Ratio: -1.04
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 5.85
• P/FCF Ratio: 17.94
• 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$45.75
• Price Target Upside: 29.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.59
• Revenue Forecast (FY): C$998.50M

• Rating: 62 Neutral
• Price Target: C$40.00 ▲(13.41% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by steady and improving free cash flow and a stable (though not low-risk) balance sheet, offset by weakening revenue growth and volatile earnings quality. Technical signals are mildly negative/neutral, and valuation is mixed—an attractive yield but a high P/E.

Positive Factors

Cash generation

CAPREIT’s consistent positive operating and free cash flow, and the notable FCF improvement in 2025, provide durable internal funding for maintenance, renovations and distributions. Steady cash generation supports resilience through business cycles and funds growth without sole reliance on external capital.

Balance sheet stability

Relative leverage metrics are in line with residential REIT norms and equity remains sizable versus assets, giving CAPREIT structural balance-sheet stability. Manageable ratios support refinancing capacity and access to capital markets, enabling execution of value-add and development programs.

Business model & diversification

A core focus on multi-suite rentals and manufactured home communities creates predictable, recurring rent streams and operational scale. Geographic and product diversification, including European platform exposure, reduces single-market concentration and supports steady rental demand and long-term occupancy stability.

Negative Factors

Softening revenue growth

A declining top line signals pressure on leasing spreads, rent growth or occupancy and reduces organic growth runway. Persistent or worsening revenue weakness constrains ability to fund capital projects, impairs margin expansion potential, and increases reliance on asset sales or external financing for growth.

Volatile earnings quality

Material swings in reported profits driven by non-operating items and valuation adjustments undermine predictability of distributable earnings. This volatility complicates cash-flow forecasting, raises the risk to payout sustainability, and can mask underlying operational performance trends.

High absolute debt burden

Even with reasonable debt-to-equity ratios, a large absolute debt stock increases refinancing and interest-rate sensitivity. Heavy nominal obligations can constrain capital allocation, elevate funding costs if markets tighten, and amplify downside exposure if cash flows soften.

Canadian Apartment Business Overview & Revenue Model

Company Description

CAPREIT is one of Canada's largest real estate investment trusts. CAPREIT owns approximately 57,000 suites, including townhomes and manufactured housing sites, in Canada and, indirectly through its investment in ERES, approximately 5,800 suites in the Netherlands. CAPREIT manages approximately 61,200 of its owned suites in Canada and Netherlands, and additionally approximately 3,800 suites in Ireland as at September 30, 2020.

How the Company Makes Money

Canadian Apartment Properties Real Estate Investment Trust (CAR.UN) generates revenue primarily through rental income from its extensive portfolio of residential properties. The company collects monthly rent from tenants residing in its apartment buildings, townhomes, and manufactured home communities. Additionally, CAR.UN benefits from property appreciation and value-added services that may include laundry facilities, parking, and other amenities that enhance tenant satisfaction and retention. The trust's earnings are also influenced by strategic acquisitions and property development initiatives that expand its portfolio and increase rental capacity. Furthermore, CAR.UN may engage in partnerships or joint ventures to optimize property management and development, contributing to its overall financial performance.

Canadian Apartment Financial Statement Overview

Summary

Cash flow is the strongest area with consistently positive operating and free cash flow and improved FCF in 2025, but overall financial performance is tempered by revenue turning negative in 2025 (-3.19%), volatile net income, and only modest/volatile ROE. Leverage is reasonable for a REIT, though absolute debt remains a key risk.

Income Statement

Revenue growth has turned negative in 2025 (-3.19%) after modest growth in 2022–2024, pointing to a softening top-line trajectory. Profitability is mixed: gross and EBITDA margins remain solid for the sector, but net income has been volatile (large loss in 2023, strong profits in 2024–2025), suggesting earnings are influenced by non-operating or valuation-related swings. Overall, the income statement shows decent underlying profitability but uneven earnings quality and momentum.

Balance Sheet

Leverage appears manageable for a residential REIT, with debt-to-equity generally in the ~0.60–0.77 range, and equity remaining sizable versus total assets. However, total debt is high in absolute terms (over $6B), and returns on equity are relatively low in normal years (roughly low-single-digits in 2022/2024/2025) and negative in 2023, indicating limited value creation and sensitivity to market/asset revaluations. Overall balance sheet is stable but not low-risk.

Cash Flow

Cash generation looks comparatively steady: operating cash flow has been consistently positive and free cash flow has remained positive each year, with a meaningful free cash flow improvement in 2025 (+13.889%). That said, cash conversion is only moderate—operating cash flow covers a little over half to two-thirds of reported earnings in recent years—so reported profits are not fully mirrored in cash. Overall, cash flow quality is a strength, with some gap between accounting earnings and cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.00B	1.11B	1.07B	1.01B	933.14M
Gross Profit	591.63M	672.03M	630.41M	592.44M	609.99M
EBITDA	411.95M	552.38M	587.78M	697.07M	541.37M
Net Income	197.05M	292.74M	-411.57M	13.64M	1.39B
Balance Sheet
Total Assets	15.13B	15.58B	16.97B	17.74B	17.71B
Cash, Cash Equivalents and Short-Term Investments	51.74M	146.76M	35.22M	51.68M	73.41M
Total Debt	6.11B	6.04B	7.11B	7.01B	6.46B
Total Liabilities	6.37B	6.55B	7.69B	7.74B	7.31B
Stockholders Equity	8.76B	9.03B	9.28B	10.00B	10.40B
Cash Flow
Free Cash Flow	327.24M	399.04M	308.09M	261.56M	252.01M
Operating Cash Flow	568.82M	648.85M	615.92M	598.03M	551.43M
Investing Cash Flow	441.70M	1.74B	-138.47M	-502.97M	-1.11B
Financing Cash Flow	-1.11B	-2.29B	-495.23M	-132.32M	512.50M

Canadian Apartment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 35.27 is below the 20-day moving average (MA) of 36.83, below the 50-day MA of 37.74, and below the 200-day MA of 38.81, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 29.90 is Positive, neither overbought nor oversold. The STOCH value of 21.52 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRG.UN	70 Outperform	C$855.95M	8.13	6.37%	4.41%	3.83%	63.32%
BEI.UN	66 Neutral	C$3.30B	16.05	3.97%	2.46%	6.52%	-54.45%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CAR.UN	62 Neutral	C$5.47B	29.80	0.65%	4.20%	-6.51%	-81.28%
KMP.UN	61 Neutral	C$1.92B	69.28	0.93%	4.42%	6.19%	79.98%
IIP.UN	60 Neutral	C$1.86B	27.54	0.81%	3.01%	1.55%	-401.05%
MI.UN	60 Neutral	C$637.78M	-3.53	7.26%	3.87%	-1.21%	―

Canadian Apartment Corporate Events

CAPREIT Trims Portfolio but Lifts Per-Unit Metrics in 2025

Canadian Apartment Properties REIT reported 2025 results showing a smaller portfolio but stronger unit economics, as it completed about $2 billion of non-core divestments and sharpened its strategic focus on Canadian mid-market apartments. Investment property fair value edged down to $14.7 billion and total suites and sites fell to 45,905, while Canadian occupancy remained high at 97.3% despite softer market conditions.

Operating revenues declined year over year, but same-property NOI rose and margins improved, supporting a modest increase in diluted FFO per unit to $2.541 and higher distributions. Leverage ticked up slightly with total debt to gross book value at 39.3%, yet coverage ratios stayed stable and NAV per unit grew to $56.41, underscoring management’s message that the streamlined portfolio offers better financial resilience, operating efficiency, and a stronger cash flow profile for unitholders.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Hold with a C$39.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Declares January 2026 Monthly Distribution to Unitholders

CAPREIT has declared a monthly cash distribution for January 2026 of $0.12917 per unit, equivalent to $1.55 on an annualized basis, to be paid in mid-February to unitholders of record at the end of January. The announcement underscores the real estate investment trust’s continued focus on delivering regular income to investors from its large, diversified portfolio of rental properties in Canada and abroad.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$50.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT’s Inaugural Chief Investment Officer to Depart After $6 Billion in Deals

CAPREIT announced that Chief Investment Officer Julian Schonfeldt will depart around April 30, 2026, after leading more than $6 billion in strategic transactions since joining in 2022 as the REIT’s inaugural CIO. His exit marks a notable leadership change for the multifamily landlord, given his role in shaping CAPREIT’s acquisitions, dispositions, capital allocation, development initiatives and investor relations, potentially prompting investor focus on how the REIT will sustain its recent strategic and capital markets momentum.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$50.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Expands Portfolio with $293 Million in Strategic Acquisitions

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has strategically acquired six rental properties across Canada for a total of $292.5 million, enhancing its portfolio with modern and well-located assets. These acquisitions, along with a $94 million investment in its Normal Course Issuer Bid program, reflect CAPREIT’s focus on strengthening its rental apartment portfolio’s quality and cash flow performance, positioning itself for continued growth in the Canadian real estate market.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$50.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Announces December Distribution and Special Non-Cash Distribution

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced its December 2025 monthly distribution of $0.12917 per Unit, payable on January 15, 2026. Additionally, a special non-cash distribution of $0.90 per Unit will be issued on December 31, 2025, in the form of Additional Units to distribute net capital gains realized during the year. This special distribution will be followed by a unit consolidation to maintain the same number of outstanding Units. The announcement impacts unitholders by adjusting their income tax considerations and maintaining the value of their holdings.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$50.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.