Canadian Apartment Properties Real Estate Investment Trust (CAR-UN) Q1 2026 earnings summary

Executive summary

• Announced CEO transition with Mark Kenney retiring and Brad Cutsey succeeding effective July 2nd.

• Completed CAD 45 million in Canadian asset repositioning/acquisitions and CAD 143 million in European property dispositions through April 2026.

• Closed privatization of European Residential REIT for approximately CAD 99 million.

• Repurchased and canceled CAD 42 million of trust units at a discount to NAV via NCIB program.

• Maintained strong operational performance and continued portfolio optimization despite sector pressures.

Financial highlights

• Same property NOI margin in Canada expanded to 62.2% for Q1 2026.

• Occupancy in Canadian residential portfolio at 97.1% as of March 31, 2026.

• Occupied average monthly rent (AMR) grew by up to 3.3% year-over-year to CAD 1,732.

• Same property operating revenues in Canada grew by 1.1%; OpEx decreased by 0.5%.

• Diluted FFO per unit up 1.7% to $0.595, with a payout ratio of 65.1%.

Outlook and guidance

• Cautious optimism for spring and summer leasing seasons, with seasonal improvements in traffic and occupancy.

• Expect elevated turnover among short-tenure leases to persist near-term; longer-tenure leases provide downside protection.

• Revenue growth for 2026 expected in the 1%-2% range, with OpEx growth of 2%-3%.

• Incentive use peaked in Q1; expected to moderate in subsequent quarters.

• Strategic focus on core Canadian assets, ongoing repositioning, and selective European divestitures.