Canadian Apartment (CAR.UN) AI Stock Analysis

• Market Cap: C$5.99B
• Dividend Yield: 4.2%
• Average Volume (3M): 445.85K
• Price to Earnings (P/E): 99.3
• Beta (1Y): 0.75
• Revenue Growth: -6.51%
• EPS Growth: -81.28%
• Country: CA
• Employees: 1,076
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.17
• Shares Outstanding: 153,885,710
• 10 Day Avg. Volume: 421,437
• 30 Day Avg. Volume: 445,852
• PEG Ratio: -0.14
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 6.46
• P/FCF Ratio: 18.01
• 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$48.50
• Price Target Upside: 25.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$39.00 ▲(1.14% Upside)

The overall stock score of 54 reflects a combination of mixed financial performance, bearish technical indicators, and high valuation concerns. The strong profitability margins are overshadowed by declining revenue and cash flow growth. Technical analysis indicates a downtrend, and the high P/E ratio suggests overvaluation, despite an attractive dividend yield.

Positive Factors

Market Position

Canadian Apartment's scale and concentrated focus on multifamily in major Canadian urban centers supports a durable rental income base. A diversified portfolio and in-house property management/development capabilities enhance occupancy control, operational efficiency, and long-term tenant retention.

Operating Margins

Robust gross and EBIT margins indicate resilient operational economics in property operations and leasing. High margins provide a structural buffer against cyclical rent softness and fund maintenance, capex, and distributions, supporting cash available for long-term investor returns.

Moderate Leverage

A debt-to-equity ratio around 0.65 reflects moderate leverage that can finance growth while limiting refinancing stress. This capital structure supports acquisitions and development without excessive debt burden, preserving financial flexibility for cyclical downturns and capital spending.

Negative Factors

Revenue Trend

Sustained revenue decline undermines the REIT's core cash generation and distribution capacity. Falling top-line suggests pressure on rents or occupancy, which reduces internal funding for maintenance, development and dividends, increasing reliance on external financing for growth.

Free Cash Flow Decline

A near 20% decline in free cash flow growth weakens the REIT's ability to self-fund capex, tenant improvements and acquisitions. Lower cash conversion and an operating cash to net income ratio of 0.45 raise the risk of dependence on debt or equity issuance to sustain distributions and growth.

Low ROE

An ROE below 1% signals limited efficiency in generating returns from shareholders' equity. Persistently low ROE can indicate asset underperformance or capital allocation issues, constraining long-term value creation for equity holders relative to peers and alternative investments.

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

Canadian Apartment's financial performance presents a mixed picture. While profitability margins remain strong, the decline in revenue growth and free cash flow growth raises concerns. The balance sheet is stable with moderate leverage, but low ROE suggests potential inefficiencies.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue has decreased by 2.82%, indicating a decline in growth. However, the company maintains a healthy gross profit margin of 59.28% and a net profit margin of 5.77%. The EBIT margin is strong at 34.21%, but the EBITDA margin has slightly decreased compared to the previous year. Overall, the profitability remains stable, but the revenue decline is a concern.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.65, indicating a balanced leverage. The return on equity (ROE) is low at 0.67%, suggesting limited profitability from equity. The equity ratio is not explicitly calculated, but the company maintains a substantial equity base. The financial stability is adequate, but the low ROE highlights potential inefficiencies.

Cash Flow

Cash flow analysis reveals challenges with a 19.42% decline in free cash flow growth. The operating cash flow to net income ratio is 0.45, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.54, suggesting that cash flow supports net income to some extent. The decline in free cash flow growth is a concern, impacting overall cash flow strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.11B	1.07B	1.01B	933.14M	882.64M
Gross Profit	614.37M	672.03M	630.41M	592.44M	609.99M	578.17M
EBITDA	360.82M	552.38M	587.78M	697.07M	541.37M	587.55M
Net Income	59.83M	292.74M	-411.57M	13.64M	1.39B	925.93M
Balance Sheet
Total Assets	14.87B	15.58B	16.97B	17.74B	17.71B	15.50B
Cash, Cash Equivalents and Short-Term Investments	122.69M	146.76M	35.22M	51.68M	73.41M	121.72M
Total Debt	5.75B	6.04B	7.11B	7.01B	6.46B	5.56B
Total Liabilities	6.04B	6.55B	7.69B	7.74B	7.31B	6.23B
Stockholders Equity	8.83B	9.03B	9.28B	10.00B	10.40B	9.27B
Cash Flow
Free Cash Flow	287.33M	399.04M	308.09M	261.56M	252.01M	236.50M
Operating Cash Flow	535.43M	648.85M	615.92M	598.03M	551.43M	481.36M
Investing Cash Flow	2.34B	1.74B	-138.47M	-502.97M	-1.11B	-1.02B
Financing Cash Flow	-2.80B	-2.29B	-495.23M	-132.32M	512.50M	185.45M

Canadian Apartment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 38.56 is below the 20-day moving average (MA) of 38.71, above the 50-day MA of 37.07, and below the 200-day MA of 39.38, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 19.01 is Positive, 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
MRG.UN	76 Outperform	C$952.31M	7.85	6.37%	4.41%	3.83%	63.32%
BEI.UN	74 Outperform	C$3.65B	10.96	6.23%	2.46%	6.52%	-54.45%
KMP.UN	71 Outperform	C$2.13B	3.93	18.10%	4.42%	6.19%	79.98%
MI.UN	70 Outperform	C$638.15M	8.53	7.26%	3.87%	-1.21%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CAR.UN	54 Neutral	C$5.99B	99.33	0.65%	4.20%	-6.51%	-81.28%
IIP.UN	47 Neutral	C$1.86B	-18.68	-4.40%	3.01%	1.55%	-401.05%

Canadian Apartment Corporate Events

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.

CAPREIT Declares November 2025 Distribution

CAPREIT announced its November 2025 monthly distribution of $0.12916 per Unit, payable on December 15, 2025, to Unitholders of record as of November 28, 2025. This announcement underscores CAPREIT’s ongoing commitment to providing consistent returns to its investors, 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$47.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Reports Q3 2025 Financial Results Amid Revenue Decline

CAPREIT reported its third-quarter 2025 results, highlighting a decrease in operating revenues and net income compared to the previous year. Despite these declines, the company maintained strong occupancy rates and increased its average monthly rent in both its Canadian and Netherlands portfolios. The financial metrics indicate a stable debt service coverage ratio and a slight increase in the weighted average mortgage interest rate, reflecting CAPREIT’s ongoing commitment to financial stability and operational efficiency.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Reports Decreased Revenue and Income in Q3 2025 Amid Market Challenges

CAPREIT reported its third-quarter financial results for 2025, highlighting a decrease in operating revenues and net income compared to the previous year. Despite this, the company maintained a strong occupancy rate in its Canadian portfolio and increased its average monthly rent. The results reflect a challenging market environment, with a notable reduction in the number of suites and sites, and a decrease in investment properties’ fair value. CAPREIT’s financial metrics, such as the debt-to-gross book value ratio and interest coverage ratio, indicate stable financial health, although there is a decrease in cash and cash equivalents and available borrowing capacity.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Strengthens Board with New Appointment

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has appointed Francine Moore to its Board of Trustees, effective November 7, 2025. With over 25 years of experience in the real estate industry, including her tenure as President of Homestead Land Holdings Limited, Moore’s expertise is expected to significantly benefit CAPREIT’s board. This strategic appointment is anticipated to enhance CAPREIT’s industry positioning and operational effectiveness, potentially impacting stakeholders positively.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.