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

Executive summary

• Achieved over CAD 400 million in non-core Canadian asset sales and CAD 784 million in European dispositions, with total gross transaction volume reaching $2 billion in 2025, and recycled capital into higher-yielding Canadian properties.

• Completed $659 million in Canadian acquisitions, focusing on mid-market, newer assets, and reduced ERES exposure to 2% of the portfolio.

• Repurchased and cancelled $294 million in Trust Units (7.2 million units) through the NCIB program at a discount to NAV, supporting per-unit earnings.

• Portfolio repositioning resulted in 79% value-add assets, with 68% as core long-term holdings and 19% in recently constructed properties.

• Portfolio now consists of 45,905 suites/sites valued at $14.7 billion as of December 31, 2025.

Financial highlights

• Same-property NOI margin expanded to 64.7% for 2025, up 0.5 percentage points year-over-year.

• Diluted FFO per unit for 2025 was $2.541, a 0.3% increase from 2024, with a payout ratio of 60.8%.

• Q4 same-property operating revenues grew 2.8% year-over-year to $224.4 million; full-year same-property revenues increased 3.9%.

• Same-property operating expenses decreased 1% year-over-year in Q4, but full-year costs rose 2.5%.

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

Outlook and guidance

• Targeting 2–3% revenue growth for 2026, with spring leasing season expected to clarify trends.

• Renewal rates expected to remain above 2%, with Ontario anchored by guideline increases.

• OpEx growth forecasted at or below inflation, excluding weather and carbon tax impacts; further cost savings anticipated through technology and procurement initiatives.

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