CAPREIT Reports Third Quarter 2025 Results

Executive Summary

• CAPREIT reported Q3 2025 operating and financial results, showing a modest decline in total NOI to $167.8 M (‑11% YoY) but an improvement in same‑property NOI margin to 66.4% (up 0.8 pp).
• Dispositions of non‑core assets generated $1.19 B in proceeds for the nine‑month period, meeting its $400 M Canadian disposition target for 2025, while acquisitions added $309.9 M of new properties.
• The Trust repurchased ~4.7 M Trust Units under its NCIB program at an average price of $42.61 per unit ($200 M total), supporting NAV and FFO per unit (diluted) of $0.663 for the quarter.

Key Details

• Portfolio Size: 45,028 suites/sites as of Sept‑30‑2025 (down from 48,696 at year‑end 2024).
• Fair Value of Investment Properties: $14.485 B (down $384 M YoY).
• Operating Revenues: $252.3 M for Q3 2025 vs $282.4 M prior year (‑10.7%).
• Net Operating Income (NOI): $167.8 M (‑11% YoY); Same‑property NOI $151.1 M (+5.0% YoY).
• NOI Margin: 66.5% Q3 2025 vs 67.1% prior year; Same‑property margin 66.4% (↑0.8 pp).
• Net Income: $26.2 M for the quarter (down from $47.4 M YoY).
• FFO per Unit – Diluted: $0.663 (up 0.6% YoY).
• Distributions per Unit: $0.388 (down from $0.371 YoY).
• FFO Payout Ratio: 58.6% (slightly higher than prior year).

Acquisitions

• Q3 2025: 4 properties, 502 suites, total gross purchase price $157.8 M.
• Nine‑month total: 8 properties, 922 suites, total gross purchase price $309.9 M.

Dispositions

• Q3 2025: Sold 1,559 residential suites (Canada & Netherlands) + 2 commercial properties; gross proceeds $645.9 M (cash).
• Additional Canadian non‑core disposal of 839 suites for $136.7 M (incl. $54.2 M land‑lease sale).
• Nine‑month total disposals: 4,594 suites/sites, gross proceeds $1.193 B ($410.9 M Canada, $782.7 M Europe).

NCIB Repurchases

• Q3 2025: ~0.6 M Trust Units repurchased at $43.36 per unit (cost $28.1 M).
• Nine‑month total: ~4.7 M units at $42.61 per unit (cost $200.0 M).

Financing & Liquidity

• Total debt to gross book value: 37.7% (down from 38.4%).
• Weighted average mortgage rate: 3.26%; term 4.4 years.
• Cash & cash equivalents: $102.2 M.
• Available borrowing capacity (Acquisition & Operating Facility): $196.7 M (excluding accordion and temporary increase).

Balance Sheet Highlights

• Unitholders’ equity: $8.833 B; NAV: $8.891 B.
• Diluted NAV per unit: $56.07 (slightly down from $56.14 in June 2025).

Subsequent Event

• Oct 7 2025 acquisition of a 162‑suite London, ON property for $56.2 M.

Notable Quotes

“CAPREIT delivered another quarter of disciplined execution across our strategic, operational and financial priorities… Our capital recycling program continues to improve our performance…” – Mark Kenney, President & CEO

“Operationally, we remain extremely focused on internal optimization… The expansion of same‑property NOI margin to 66.4% reflects the success of those initiatives.” – Stephen Co, CFO