CAPREIT Announces $297 Million in New Strategic Repositioning Since Q2 2025

Executive Summary

• CAPREIT announced the acquisition of five strategically aligned rental apartment properties in Canada for an aggregate purchase price of $214.0 million and the disposition of two non-core properties for combined gross proceeds of $82.5 million.
• The company has closed on three acquisitions (West Vancouver, Montréal, Vancouver) and entered into agreements for two additional acquisitions (Regina, London, Ontario), totaling $214.0 million in purchase price.
• CEO Mark Kenney highlighted that these transactions represent $366 million of investment in the Canadian housing market in 2025, effectively funded by $357 million in non-core dispositions, aimed at enhancing portfolio quality and cash flow.

Key Details

• Acquisitions (Closed):
  • West Vancouver, BC: 30-suite property purchased for $13.0 million; CAPREIT assumed existing $6.1 million mortgage at 4.1% interest, ~8 years to maturity.
  • Montréal, QC: 10-storey, 121-suite property purchased unencumbered for $54.5 million.
  • Vancouver, BC: 31-suite property in West End purchased for $14.0 million; CAPREIT assumed existing $5.8 million mortgage at 4.2% interest, ~4 years to maturity.
• Acquisitions (Agreements to Close):
  • Regina, SK: 320-suite property (built 2014); gross consideration of $76.3 million; assumed combined $37.3 million in mortgages at blended 2.1% interest, ~6 years to maturity. Closing anticipated later in September 2025.
  • London, ON: 162 townhome suites (built 2012/2015); agreed acquisition price of $56.2 million; assumed combined $24.0 million in mortgages at blended 3.0% interest, ~4 years to maturity. Closing anticipated in October 2025.
• Dispositions (Closed):
  • London, ON: 59-suite property sold for $11.8 million; net proceeds used to repay $4.3 million outstanding mortgage.
  • Edmonton, AB: 309-suite property sold for $70.7 million gross consideration; property was unencumbered.
• Financial Context:
  • Total aggregate purchase price for new acquisitions: $214.0 million.
  • Total gross proceeds from dispositions: $82.5 million.
  • Total investment in Canadian housing market in 2025 to date: $366 million.
  • Total non-core dispositions in Canada in 2025 to date: $357 million.
  • All amounts exclude transaction costs and customary adjustments.

Notable Quotes

• “We’re proud to see these transactions bring us to $366 million of investment into the Canadian housing market so far in 2025, which we’ve effectively funded through $357 million worth of our non-core dispositions in Canada... Through this repositioning strategy, we’re enhancing the quality of our portfolio, cash flow profile and long-run earnings for unitholders...” — Mark Kenney, President and CEO.
• “Our strategy is focused on recycling capital into high-quality, high-performing properties situated in high-demand areas... As an example, the acquisition of the recently constructed Sterling Manor is at a slightly higher capitalization rate than the sale of the 60-year-old Garneau Towers, which improves net operating income, but importantly, with a fraction of the capex requirement...” — Julian Schonfeldt, Chief Investment Officer.