Update shared on05 Sep 2025
Analysts have lowered their rating to Hold on Canadian Apartment Properties REIT due to concerns over increased supply and muted rental demand amid softening sector fundamentals, while the consensus price target remains unchanged at CA$50.36.
Analyst Commentary
- Bearish analysts highlight softening fundamentals in the Canadian rental apartment REIT sector.
- Concern over a significant volume of new apartment supply coming to market.
- Limited population growth dampening expected rental demand.
- A more cautious outlook due to the mismatch between new supply and demand drivers.
- Price target modestly increased to reflect updated risk-reward, but rating lowered to Hold as market headwinds remain.
What's in the News
- Acquired or entered agreements to acquire five rental apartment properties in Canada for $214.0 million; completed sale of two non-core properties for $82.5 million.
- Expanded into West Vancouver with acquisition of a 30-suite, fully leased property for $13.0 million; assumed $6.1 million mortgage at 4.1% interest.
- Entered agreement to buy a 320-suite, recently built property in Regina, Saskatchewan, offering modern amenities and large suite sizes.
- Completed repurchase of 4,276,507 shares (2.64%) for CAD 182.38 million under the buyback program.
- Announced monthly distributions of $0.12916 and $0.12917 per unit (annualized $1.55).
Valuation Changes
Summary of Valuation Changes for Canadian Apartment Properties Real Estate Investment Trust
- The Consensus Analyst Price Target remained effectively unchanged, at CA$50.36.
- The Consensus Revenue Growth forecasts for Canadian Apartment Properties Real Estate Investment Trust remained effectively unchanged, at 2.2% per annum.
- The Future P/E for Canadian Apartment Properties Real Estate Investment Trust remained effectively unchanged, moving only marginally from 10.11x to 10.12x.
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