CAR-UN.TO
🇨🇦TSXCanadian REITsCanadian Apartment Properties REIT
6-factor analysis
One or more factors show N/A — Finnhub data is incomplete for this ticker. Neutral 50 used as baseline. Methodology
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5-year price history
- NAV per unit grew to $56.41 at year-end 2025 while units trade near $43 — a ~24% discount to NAV — and CAPREIT repurchased 4.7M units at ~$43 in 2025 (spending $294M on buybacks), delivering accretive per-unit value creation at a significant discount.
- Same-property occupancy of 97.3% with average monthly rent of $1,718 (up 3.8% YoY) demonstrates resilient demand, and two-plus year tenures are marking-to-market at ~+20%, signalling embedded future rent upside as units turn over.
- The $2B divestiture of non-core assets completed in 2025 sharpened the portfolio to higher-quality Canadian urban apartments, improving operating margins, reducing capital intensity, and growing diluted FFO/unit to $2.541.
- Ontario's 2026 rent increase guideline is capped at 2.1%, limiting organic revenue growth on existing tenancies in CAPREIT's largest market — management guided only 2–3% revenue growth for 2026, barely above inflation.
- Short-duration lease mark-to-market is running approximately -8% in some segments, meaning near-term lease renewals are occurring below market as affordability constraints and tenant retention incentives cap rent capture.
- Operating expense growth is expected to run above inflation in 2026, squeezing NOI margins on a portfolio where revenue growth is already constrained by rent control legislation.
CAPREIT is a simple bet on Canada's chronic housing shortage. People need to live somewhere, and the supply of apartments in major cities is not growing fast enough to meet demand — that's durable pricing power for a well-run residential landlord. Like all REITs, it's best held in a TFSA or RRSP to shelter the distribution from tax.
| Account | Fit | Why |
|---|---|---|
| TFSA | Ideal | REIT distributions sheltered from tax — no T3 slip on distribution components. Best account type for REITs. |
| RRSP | Ideal | Tax-deferred compounding of residential real estate cash flows — equivalent to owning an apartment building without the landlord headaches. |
| FHSA | OK | NAV discount and cap rate sensitivity add near-term price risk for an FHSA holder planning to buy within a few years. |
| Non-reg | Avoid | Distribution taxed at full marginal rate in non-reg; hold in TFSA or RRSP instead to maximise after-tax return. |
Ideal = best tax outcome · Avoid = material drag or ineligible · Color and symbol, not color alone, indicate fit.
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