CAPREIT Reports Fourth Quarter and Year End 2025 Results

Executive Summary

• Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) reported its operating and financial results for the year and quarter ended December 31, 2025, highlighting a strategic repositioning toward higher-yielding Canadian properties and the completion of significant non-core divestments.
• The company achieved a diluted Funds From Operations (FFO) per unit of $2.541 for the full year 2025, an increase from $2.534 in 2024, driven by reduced interest expense and accretive Trust Unit purchases.
• CAPREIT completed $2 billion in gross transaction volume in 2025, including $658.6 million in acquisitions and $1.2 billion in dispositions, while announcing a special non-cash distribution of $0.90 per Trust Unit.

Key Details

• Financial Performance (Year Ended Dec 31, 2025):
  • Operating Revenues: $1,003.4 million (down from $1,112.7 million in 2024).
  • Net Operating Income (NOI): $653.7 million (down from $730.7 million in 2024).
  • Same Property NOI: $579.4 million (up 4.7% from $553.4 million in 2024).
  • Same Property NOI Margin: 64.7% (up 50 basis points from 64.2% in 2024).
  • Net Income: $197.1 million (down from $292.7 million in 2024).
  • Diluted FFO per Unit: $2.541 (up 0.3% from $2.534 in 2024).
  • Distributions per Unit: $1.546 (up from $1.471 in 2024).
  • FFO Payout Ratio: 60.8%.
• Financial Performance (Q4 2025):
  • Operating Revenues: $243.3 million.
  • NOI: $158.1 million.
  • Same Property NOI: $144.6 million (up 5.0% from Q4 2024).
  • Diluted FFO per Unit: $0.632 (up 1.6% from $0.622 in Q4 2024).
• Portfolio Metrics:
  • Total Portfolio Fair Value: $14.73 billion (excluding assets held for sale).
  • Total Suites/Sites: 45,905 (including 410 suites in Europe classified as assets held for sale).
  • Total Occupancy: 97.1% (Canadian Residential: 97.3%; Netherlands Residential: 90.6%).
  • Canadian Residential Same Property Occupied AMR: $1,711 (up 3.8% YoY).
  • Netherlands Residential Same Property Occupied AMR: €1,458 (up 5.9% YoY).
• Strategic Initiatives & Transactions:
  • Acquisitions: Acquired 15 properties with 1,891 suites in Canada for a gross purchase price of $658.6 million in 2025.
  • Dispositions: Disposed of 4,600 suites/sites for a gross sale price of $1.2 billion in 2025 ($411.3M in Canada, $783.5M in Europe). Achieved the $400 million non-core Canadian disposition target.
  • Future Dispositions: ERES announced agreements to sell four properties (410 suites) in the Netherlands for ~$141.4 million; one sold in Jan 2026, remaining expected March-April 2026.
  • NCIB Program: Purchased and cancelled ~7.2 million Trust Units in 2025 for $294.1 million (weighted avg price $41.09).
  • Special Distribution: Declared a special non-cash distribution of $0.90 per Trust Unit, payable in Trust Units on Dec 31, 2025.
• Balance Sheet & Liquidity:
  • Total Debt to Gross Book Value: 39.3%.
  • Weighted Average Mortgage Effective Interest Rate: 3.30%.
  • Cash and Cash Equivalents: $33.2 million.
  • Available Borrowing Capacity: $182.0 million (includes $100M temporary increase maturing April 30, 2026).
  • Diluted NAV per Unit: $56.41 (up from $55.50 in 2024).
• Subsequent Events:
  • Disposed of 33 suites in the Netherlands for $16.3 million in January 2026.

Notable Quotes

• Mark Kenney, President and CEO: "In 2025, we delivered on our commitment to enhance the value of our business and sharpen our strategic focus, completing $2 billion in gross transaction volume... we enter this next chapter with a better-positioned, future-ready portfolio – one characterized by improved financial resilience, greater operating efficiency, and a higher cash flow profile."
• Stephen Co, CFO: "Our 2025 performance reflects the impact of a consistently strong financial structure, a deliberate repositioning of the portfolio toward higher-yielding Canadian properties, and prudent operational refinement... diluted FFO per Unit rose to $2.541 in 2025."