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 Canadian properties and completing $2 billion in gross transaction volume in 2025.

• Completed $659M in Canadian acquisitions, with the portfolio now at 45,905 suites/sites valued at $14.7 billion as of December 31, 2025.

• Repurchased and cancelled 7.2 million Trust Units for $294 million under the NCIB program, totaling $960 million since 2022, supporting per-unit earnings.

• Portfolio repositioning resulted in 68% core, 19% recently constructed, 11% opportunistic disposition, and 2% ancillary assets, with ERES now just 2% of the portfolio.

• Focused on operational efficiency, leasing, and retention, resulting in improved margins and cash flow.

Financial highlights

• Same-property occupancy remained strong at 97.3% as of December 31, 2025, with average rent up 3.8% to $1,718 per month.

• Same-property NOI margin expanded to 64.7% for 2025, up 0.5 percentage points year-over-year, with NOI up 4.7%.

• Q4 same-property operating revenues grew 2.8% year-over-year to CAD 224.4 million; full-year operating revenues were $1.00 billion, down from $1.11 billion in 2024 due to asset sales.

• 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%.

• NAV per unit (diluted) as of December 31, 2025, was $56.41, up from $55.50 year-over-year.

Outlook and guidance

• Targeting 2–3% revenue growth for 2026, with renewal rates expected above 2% overall and continued focus on strategic portfolio repositioning, cash flow generation, and disciplined capital allocation.

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

• Management expects stable, sustainable value for unitholders and growth in earnings and cash flow in 2026.

• Spring leasing season expected to provide clearer direction on market trends and turnover.