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 completed $659 million in Canadian acquisitions to reposition the portfolio toward higher-yielding, lower-capex properties and share buybacks.

• Repurchased $294 million in Trust Units through the NCIB program, totaling 7.2 million units at an average price of $41 per unit, with over $960 million spent on NCIB since 2022.

• Portfolio repositioning resulted in 79% value-add assets, with 68% as core long-term holdings, 19% recently constructed, and ERES now representing just 2% of the portfolio, down from 6%.

• Maintained a high Canadian residential occupancy rate of 97.3% and achieved 3.8% growth in average monthly rent (AMR) for 2025.

• 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 NOI margin expanded to 64.7% for 2025, up 0.5 percentage points year-over-year, driven by cost controls and procurement improvements.

• Same-property operating revenues grew 3.9% year-over-year to $1.00 billion, while operating expenses rose 2.5% and NOI increased 4.7% to $653.7 million.

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

• Distributions per unit for 2025 were $1.546, up 3.5% year-over-year, and NAV per unit (diluted) increased to $56.41.

• Total debt to gross book value at 39.3% as of year-end, with a weighted average mortgage interest rate of 3.3% and 4.5-year average term.

Outlook and guidance

• Targeting 2–3% revenue growth for 2026, with renewal rates expected above 2% overall and continued focus on cost controls, leveraging technology and procurement.

• Capital recycling to continue opportunistically, with no rush on remaining 11% of portfolio earmarked for disposition.

• Management remains committed to Canadian mid-market apartments, maintaining stable value and financial flexibility for future growth.