Canadian Apartment Properties Real Estate Investment Trust (CAR-UN) Q3 2025 earnings summary

Executive summary

• Disposed of $411M in non-core Canadian properties and $783M in European assets, redeploying proceeds into $366M of high-quality Canadian acquisitions and $200M in NCIB repurchases at a discount to NAV per unit.

• Focused on portfolio repositioning, reducing non-core exposure to 11% in Canada and 2% in Europe, and returning to a pure-play Canadian apartment provider.

• Maintained strong operational performance with 97.8% occupancy and 4.4% growth in average monthly rent in the Canadian portfolio.

• Achieved disciplined execution on strategic, operational, and financial priorities, focusing on free cash flow and earnings growth for unitholders.

• NCIB program used to repurchase Trust Units at a discount to NAV, enhancing returns.

Financial highlights

• Same property NOI margin expanded to 66.4% in Q3, up 0.8 percentage points year-over-year, with same property NOI up 5.0% to $151.1M.

• Diluted FFO per unit increased 0.6% for the quarter to $0.663, with FFO payout ratio at 58.6%.

• Operating revenues for Q3 2025 were $252.3M, down 10.7% year-over-year due to asset sales.

• Net asset value per unit (diluted) at $56.07 as of September 30, 2025.

• Weighted average units outstanding (diluted) decreased 6.4% to 158,731,000.

Outlook and guidance

• Expect continued transformation toward a pure-play Canadian apartment REIT, with ongoing capital recycling and disciplined cost management.

• Management remains focused on internal optimization, revenue growth, vacancy mitigation, and cost reduction.

• Turnover from above-market leases expected to weigh on stats for another 12–18 months, with 3–4% turnover seen as a reasonable bottom before growth resumes.

• ERES continues to explore sale of its remaining portfolio, with proceeds expected to be distributed to unitholders after costs.

• No specific guidance provided on future capital recycling volumes.