Canadian Apartment (CAR.UN) AI Stock Analysis

• Market Cap: C$7.13B
• Dividend Yield: 3.44%
• Average Volume (3M): 365.44K
• Price to Earnings (P/E): 64.2
• Beta (1Y): 0.96
• Revenue Growth: 0.93%
• EPS Growth: N/A
• Country: CA
• Employees: 1,076
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Residential
• EPS (TTM): 0.05
• Shares Outstanding: 156,897,130
• 10 Day Avg. Volume: 361,882
• 30 Day Avg. Volume: 365,444
• PEG Ratio: -1.05
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.64
• 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$49.33
• Price Target Upside: 9.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: C$48.00 ▲(6.64%Upside)

Canadian Apartment Properties Real Estate Investment Trust demonstrates stable financial performance and positive corporate events bolstering its strategic positioning. However, a high valuation presents a risk if growth expectations are unmet, and technical signals indicate only modest upward momentum.

Positive Factors

Balance Sheet Strength

Meaningful balance sheet improvement with a strong financial position has afforded CAR the flexibility to opportunistically allocate capital.

Dividend Growth

Management appears confident in the long-term FFO growth, and the Board of Trustees approved a 3.4% increase to the monthly distribution.

Portfolio Transition

The Canadian residential portfolio now accounts for 91% of SP-NOI, illustrating considerable progress in transitioning to a pure-play residential company.

Negative Factors

Asset Sales Impact

FFO per unit has been negatively impacted in the near term due to asset sales.

Financial Performance

Consolidated NOI was $1.2M short of the forecast, with higher-than-expected operating expenses offsetting revenue.

Rental Growth

Rental growth is moderating, and bad debt expense has increased.

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 (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 exhibits stable revenue growth and robust operational efficiency, as reflected in healthy EBIT and EBITDA margins. While the balance sheet shows a strong equity position and manageable leverage, profitability fluctuations have impacted returns. The cash flows are resilient, with consistent free cash flow generation supporting financial health.

Income Statement

The company shows moderate revenue growth with a TTM revenue of $1.09 billion, up from $1.03 billion in the previous year, indicating a stable revenue trajectory. The gross profit margin remains healthy at approximately 59.64%, though the net profit margin has significantly declined to 10.88% in TTM due to a drop in net income. EBIT and EBITDA margins are robust at 57.61% and 33.91%, respectively, suggesting strong operational efficiency, although profitability has been volatile.

Balance Sheet

The balance sheet highlights a solid equity base with an equity ratio of 58.66%, providing a cushion against liabilities. The debt-to-equity ratio is relatively moderate at 0.65, suggesting manageable leverage levels. However, return on equity has decreased, reflecting a decline in profitability. Overall, the balance sheet indicates stability but with reduced profitability impacting returns.

Cash Flow

Operating cash flow remains strong at $580.82 million in TTM, with a slight decrease from the previous year. The free cash flow to net income ratio is favorable, indicating good cash generation relative to net income. Free cash flow growth is consistent, supporting reinvestment and debt servicing. The cash flow statement shows resilience despite fluctuations 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
EBITDA	552.38M	587.78M	697.07M	541.37M	587.55M
Net Income	292.74M	-411.57M	13.64M	1.39B	925.93M
Balance Sheet
Total Assets	15.58B	16.97B	17.74B	17.71B	15.50B
Cash, Cash Equivalents and Short-Term Investments	146.76M	35.22M	51.68M	73.41M	121.72M
Total Debt	6.04B	7.11B	7.01B	6.46B	5.56B
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: Positive
• Last Price: 45.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 45.01 is above the 20-day moving average (MA) of 44.46, above the 50-day MA of 43.74, and above the 200-day MA of 42.89, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 55.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CAR.UN.

Canadian Apartment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	75 Outperform	C$2.30B	3.58	22.26%	3.75%	5.77%	108.23%
MRG.UN	75 Outperform	C$958.41M	8.65	5.83%	4.15%	3.85%	-31.81%
MI.UN	71 Outperform	C$539.27M	6.08	9.03%	3.52%	-0.29%	―
IIP.UN	70 Outperform	C$1.88B	―	-7.00%	2.93%	2.52%	-573.45%
CAR.UN	68 Neutral	C$7.13B	64.22	1.29%	3.44%	0.93%	―
Sector *	63 Neutral	$6.74B	18.42	-1.93%	7.60%	4.67%	-25.44%
BOWFF	―	$2.79B	8.80	8.71%	2.03%	―	―

Canadian Apartment Corporate Events

CAPREIT Announces June 2025 Distribution to Unitholders

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced its June 2025 monthly distribution of $0.12917 per Unit, payable on July 15, 2025. This announcement reflects CAPREIT’s ongoing commitment to providing value to its unitholders, with a significant growth in cash distributions since its IPO in 1997.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Secures Strong Unitholder Support at 2025 Annual Meeting

At its 2025 Annual and Special General Meeting, CAPREIT announced that all proposed items, including the election of trustees, appointment of auditors, and executive compensation approach, were approved by a significant majority of unitholders. This successful meeting reflects strong support for CAPREIT’s current management and strategic direction, reinforcing its position as a leading player in the rental housing market.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT to Expand Housing Supply with New Developments and Conversions

CAPREIT announced plans to invest in two infill development projects in Mississauga, Ontario, to construct approximately 120 residential rental suites, and convert underutilized spaces within its existing portfolio into 50 additional suites. These initiatives aim to address the housing supply gap in the Greater Toronto Area and leverage government incentives and construction efficiencies to achieve attractive returns. The projects are expected to enhance CAPREIT’s market position by increasing its rental suite offerings while maintaining low development risks and costs.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Renews $300 Million At-The-Market Equity Program

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has renewed its at-the-market equity program, allowing the company to issue up to $300 million in Trust Units through the Toronto Stock Exchange or other permitted marketplaces. This program provides CAPREIT with additional financial flexibility for future investments, debt repayment, and general business purposes, enhancing its operational capabilities and market positioning.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Announces May 2025 Distribution

CAPREIT announced its May 2025 monthly distribution of $0.12916 per Unit, payable on June 16, 2025, continuing its trend of growing cash distributions since its IPO in 1997. This announcement underscores CAPREIT’s strong market position and commitment to providing consistent returns to its stakeholders.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

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.