Canadian Apartment (TSE:CAR.UN)
TSX:CAR.UN
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Canadian Apartment
(TSX:CAR.UN)
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Rating:62Neutral
Price Target:
C$40.00
▲(9.20% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Canadian Apartment (CAR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.71B
Dividend Yield4.2%
Average Volume (3M)445.85K
Price to Earnings (P/E)29.8
Beta (1Y)0.72
Revenue Growth-6.51%
EPS Growth-81.28%
CountryCA
Employees1,076
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.56
Shares Outstanding153,555,340
10 Day Avg. Volume421,437
30 Day Avg. Volume445,852
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)0.67
Price to Sales (P/S)5.85
P/FCF Ratio17.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$45.75Price Target Upside24.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.59
Revenue Forecast (FY)C$998.49M
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...
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 ...
Canadian Apartment Earnings Call Summary
Earnings Call Date:Nov 07, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The earnings call reflects strong operational and financial performance, characterized by high occupancy rates, rent growth, and effective capital recycling strategies. Despite increased interest expenses and maintenance costs, the company demonstrated robust financial strength and a strategic focus on optimizing their portfolio. Overall, the sentiment is positive with a clear emphasis on growth and stability.Positive Updates
High Occupancy and Rent Growth
Occupancy remained high at 98%, with average rent at $1,617 per month. Rent growth drove a 5.2% increase in total portfolio operating revenues.
Negative Updates
Higher Interest Expenses
Higher interest expenses partially offset the healthy organic growth achieved in the quarter.
Read all updates
Q3-2024 Updates
Positive
Negative
High Occupancy and Rent Growth
Occupancy remained high at 98%, with average rent at $1,617 per month. Rent growth drove a 5.2% increase in total portfolio operating revenues.
Read all positive updates
Company Guidance
During the Canadian Apartment Properties REIT (CAPREIT) Q3 2024 earnings call, a robust set of metrics highlighted significant operational and strategic achievements. CAPREIT reported a high occupancy rate of 98% with an average rent of $1,617 per month. Rent growth led to a 5.2% increase in total portfolio operating revenues, with a 6.1% rise in NOI, expanding the margin by 60 basis points to 67.1%. Despite higher repairs and maintenance costs, diluted FFO per unit increased by 3.3% to $0.659 for the quarter. Over the first nine months, rent growth was 6.4%, and diluted FFO per unit rose by 6.5%, maintaining a conservative payout ratio of 57.3%. CAPREIT's strategic repositioning involved $1 billion in Canadian rental property transactions and $219 million in European property sales, with further dispositions planned, including a $740 million MHC portfolio sale set for closing in Q4 2024. The company's total debt to gross book value ratio improved to 40.9%, and a strategic CapEx program reduced capital spend by 7% year-over-year, enhancing cash flow generation.Canadian Apartment Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
67
Positive
Cash Flow
73
Positive
| 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
Neutral
36.63
Price Trends
36.96
Negative
36.85
Negative
38.34
Negative
Market Momentum
-0.20
Negative
54.60
Neutral
81.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CAR.UN, the sentiment is Neutral. The current price of 36.63 is above the 20-day moving average (MA) of 35.89, below the 50-day MA of 36.96, and below the 200-day MA of 38.34, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 81.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CAR.UN.
Canadian Apartment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$908.18M | 8.80 | 5.16% | 4.41% | 3.83% | 63.32% | |
66 Neutral | C$3.43B | 16.05 | 3.97% | 2.46% | 6.52% | -54.45% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$5.71B | 29.80 | 2.22% | 4.20% | -6.51% | -81.28% | |
61 Neutral | C$2.04B | 69.28 | 0.93% | 4.42% | 6.19% | 79.98% | |
60 Neutral | C$1.86B | 27.54 | 0.81% | 3.01% | 1.55% | -401.05% | |
57 Neutral | C$646.21M | -3.53 | 7.26% | 3.87% | -1.21% | ― |
* Real Estate Sector Average
TSE:CAR.UN
Canadian Apartment
36.81
-0.98
-2.61%
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Canadian Apartment Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
CAPREIT Trims Portfolio but Lifts Per-Unit Metrics in 2025
Positive
Feb 12, 2026
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. Investm...
Dividends
CAPREIT Declares January 2026 Monthly Distribution to Unitholders
Positive
Jan 15, 2026
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 es...
Business Operations and StrategyExecutive/Board Changes
CAPREIT’s Inaugural Chief Investment Officer to Depart After $6 Billion in Deals
Negative
Jan 13, 2026
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 lea...
Business Operations and StrategyStock BuybackM&A Transactions
CAPREIT Expands Portfolio with $293 Million in Strategic Acquisitions
Positive
Dec 16, 2025
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, alo...
Dividends
CAPREIT Announces December Distribution and Special Non-Cash Distribution
Neutral
Dec 15, 2025
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...
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.