Canadian Apartment Properties Real Estate Investment Trust (CAR-UN) Q3 2026 earnings summary

Executive summary

• Q3 Canadian same-property NOI was $151.8M, down 0.3% YoY; diluted FFO per unit fell 1.7% to $0.652. Canadian residential occupancy was 97.2% at Sept. 30.

• Leasing showed early signs of stabilization, with Q3 turnover rent growth at 0.3%, but management expects near-term challenges from new supply, slower population growth and refinancing costs.

• Portfolio comprised 45,386 residential suites with $14.2B fair value at Sept. 30; Canadian occupied AMR was $1,744, up from $1,709 YoY.

Financial highlights

• Q3 Canadian same-property revenue rose 0.6% to $230.0M; operating costs increased 2.4% to $78.2M, and NOI margin was 66.0%.

• Q3 diluted FFO per unit was $0.652 versus $0.663 YoY; disposition-related NOI losses and higher interest expense were partly offset by tax savings and unit repurchases.

• For 9M 2026, Canadian same-property revenue, costs and NOI each rose 0.8%; NOI was $446.2M, margin 64.8%, diluted FFO per unit $1.900 and payout ratio 61.1%.

• Q3 net loss was $173.9M versus net income of $26.2M YoY; 9M net loss was $420.4M, primarily reflecting property fair-value losses.

Outlook and guidance

• Management expects continued rental-market challenges over the next few quarters as new supply is absorbed, population growth slows and mortgage refinancing costs rise.

• Modest rent growth and occupancy gains are considered achievable next year; some oversupplied markets may need incentives, while lower incentives are expected in the GTA.

• Peak leases’ turnover drag is estimated to have 15–17 months remaining if market rents stay flat; costs could grow 3%–4%.

• Expected 2026 mortgage financings total ~$1.2B; $959.6M was completed or committed at a 4.08% weighted-average rate and 7.6-year term.