Canadian Apartment Properties Real Estate Investment Trust (CAR-UN) Q3 2024 earnings summary

Executive summary

• Achieved high occupancy of 98% and average rent of CAD 1,617 per month in Q3 2024, with strong rent growth driving a 5.2% increase in operating revenues and a 6.1% rise in NOI, expanding margins to 67.1%.

• Nine-month results show 6.4% rent growth, 98.1% occupancy, and a 6.5% increase in diluted FFO per unit, with a conservative payout ratio of 56.2%.

• Over $1 billion in Canadian rental property transactions and $219 million in European property sales completed in 2024, with nearly $2 billion in additional non-core dispositions expected by early 2025.

• Strategic focus on acquiring high-quality, recently constructed Canadian properties and divesting non-core, older assets to improve portfolio quality and earnings.

• Increased monthly distributions to $0.125 per unit, effective August 2024.

Financial highlights

• Q3 2024 operating revenues reached $282.4M, up 5.2% year-over-year; NOI increased to $189.4M, up 6.1% year-over-year.

• Diluted FFO per unit increased by 3.3% to $0.659 in Q3; nine-month diluted FFO per unit up 6.5%.

• NOI margin expanded to 67.1% in Q3 and by 100 bps on the total portfolio for the nine months.

• Net asset value per unit (diluted) reported at $55.78 as of September 30, 2024.

• FFO payout ratio improved to 56.2% for Q3 2024.

Outlook and guidance

• Expecting continued moderation in R&M expense growth into Q4 and 2025, with OpEx growth likely in the 3–5% range depending on weather and insurance costs.

• Ongoing focus on portfolio optimization, modernization, and capital recycling to support earnings and cash flow growth.

• Management expects to meet or exceed the 2024 target of over $400M in non-core Canadian property dispositions.

• Conservative capital allocation and disciplined expense management expected to support future growth.

• Anticipate robust demand in core and mid-market segments, with some moderation in high-end rent growth due to new condo deliveries.