Canadian Apartment (CAR.UN) AI Stock Analysis

• Market Cap: C$6.04B
• Dividend Yield: 4.2%
• Average Volume (3M): 445.85K
• Price to Earnings (P/E): 101.1
• Beta (1Y): 0.80
• 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: 154,045,240
• 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: 24.81% 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$37.00 ▼(-4.79% Downside)

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

Profitability Margins

Strong profitability margins indicate efficient cost management and pricing strategies, supporting long-term financial health and shareholder returns.

Balance Sheet Health

A moderate debt-to-equity ratio suggests financial stability, providing the company with flexibility to invest in growth opportunities without overleveraging.

Dividend Yield

A high dividend yield can attract income-focused investors, supporting stock demand and providing a steady income stream, enhancing shareholder value.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining market share or pricing power, potentially impacting future profitability and growth prospects.

Free Cash Flow Decline

A decline in free cash flow growth limits the company's ability to fund operations, invest in growth, and return capital to shareholders, affecting long-term sustainability.

Low ROE

Low ROE indicates potential inefficiencies in using shareholder equity to generate profits, which could hinder the company's ability to attract new investment.

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 shows a stable financial position with strong cash flow generation and reasonable leverage. However, the decline in revenue growth and low return on equity are areas of concern. The company maintains healthy profit margins, which is a positive sign for operational efficiency. Continued focus on improving revenue growth and returns on equity will be crucial for enhancing financial performance.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by -2.17%, which is concerning. However, the company maintains a healthy gross profit margin of 59.63% and a net profit margin of 10.88% in the TTM period. The EBIT margin is strong at 34.21%, indicating efficient operational management. Despite the decline in revenue, the company has managed to maintain profitability, although the net income has decreased significantly from the previous year.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.65, which is reasonable for the industry. The return on equity is low at 1.29% in the TTM period, indicating limited returns on shareholders' investments. The equity ratio stands at 57.79%, suggesting a solid equity base relative to total assets. Overall, the balance sheet shows financial stability but highlights a need for improved returns on equity.

Cash Flow

Cash flow analysis reveals a positive trend with a 7.55% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.59, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.57, reflecting efficient cash management. The company demonstrates strong cash flow generation, which is a positive indicator for future financial flexibility.

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: 38.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 38.86 is above the 20-day moving average (MA) of 37.13, above the 50-day MA of 37.52, and below the 200-day MA of 40.64, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 70.11 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
MRG.UN	76 Outperform	C$939.79M	7.82	6.37%	4.41%	3.83%	63.32%
BEI.UN	74 Outperform	C$3.65B	10.92	6.23%	2.46%	6.52%	-54.45%
KMP.UN	71 Outperform	C$2.11B	3.88	18.10%	4.42%	6.19%	79.98%
MI.UN	70 Outperform	C$641.45M	8.62	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$6.04B	101.13	0.65%	4.20%	-6.51%	-81.28%
IIP.UN	47 Neutral	C$1.86B	-18.63	-4.40%	3.01%	1.55%	-401.05%

Canadian Apartment Corporate Events

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.

CAPREIT Announces October 2025 Distribution

CAPREIT announced its October 2025 monthly distribution of $0.12917 per Unit, payable on November 17, 2025, to Unitholders of record as of October 31, 2025. This announcement reflects CAPREIT’s continued commitment to providing consistent returns to its investors, reinforcing its strong position in the rental housing market.

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.