Canadian Apartment Properties Real Estate Investment Trust (CAR-UN) Q4 2025 earnings summary

Executive summary

• Achieved over CAD 400 million ($411M) in Canadian non-core asset sales and CAD 784 million ($784M) in European dispositions, recycling capital into higher-yielding, lower-capital properties.

• Completed CAD 659 million ($658.6M) in well-located, recently constructed Canadian acquisitions, reducing portfolio age and enhancing cash flow.

• Maintained strong operational performance with 97.3% occupancy and 3.8% average rent growth, despite softer rental market conditions.

• Repurchased and cancelled 7.2 million Trust Units for CAD 294 million ($294.1M) under the NCIB program, enhancing per-unit earnings.

• Portfolio now consists of 45,905 suites/sites, with a fair value of $14.7 billion as of December 31, 2025.

Financial highlights

• Same-property operating revenues grew 3.9% year-over-year in 2025 to CAD 224.4 million, while operating expenses decreased 1% year-over-year.

• Same-property NOI margin expanded to 64.7% for 2025, with NOI up 4.7% year-over-year.

• Diluted FFO per unit increased 1.6% in Q4 to CAD 0.632 and 0.3% for the year to CAD 2.541, with a payout ratio of 60.8%.

• Distributions per unit for 2025 were $1.546, up 3.5% year-over-year in Q4.

• NAV per unit (diluted) as of December 31, 2025, was $56.41.

Outlook and guidance

• Targeting 2–3% revenue growth for 2026, with renewal rates expected above 2% overall.

• OpEx growth forecasted at about inflation, with potential upside from ongoing cost initiatives, but weather and carbon tax impacts to be monitored.

• Management remains committed to Canadian mid-market apartments, focusing on stable value and growth in earnings and cash flow.

• Expecting continued impact from negative mark-to-market leases until market conditions inflect, with spring leasing season seen as pivotal.

• Continued emphasis on maintaining high occupancy and rent growth.