Update shared on 23 Nov 2025
Fair value Decreased 8.68%Analysts have reduced their price target for Canadian Apartment Properties Real Estate Investment Trust from $52.16 to $47.64. This change reflects updated expectations for revenue growth, profit margins, and sector outlook.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight the company's consistent rental income, which provides a reliable base for future revenue growth and supports overall valuation stability.
- Management continues to execute on operational efficiencies, helping to maintain healthy profit margins despite market fluctuations.
- Positive demographic trends in Canada, including urbanization and population growth, are expected to support long-term demand for rental apartments.
- The trust has maintained an Outperform rating, reflecting sustained confidence in its business model and sector positioning relative to peers.
Bearish Takeaways
- Bearish analysts caution that the lowered price target reflects heightened sector uncertainties, such as potential regulatory changes and interest rate volatility.
- There are concerns about slower than anticipated revenue growth due to potential headwinds in the rental market.
- Profit margin pressures, possibly from increased operating costs or repair needs, could limit upside for earnings in the near term.
What's in the News
- Announced the acquisition of five strategically aligned Canadian rental apartment properties for a total purchase price of $214.0 million (Key Developments)
- Completed two non-core property sales in Canada, generating combined gross proceeds of $82.5 million (Key Developments)
- Expanded presence into West Vancouver with the acquisition of a centrally located, fully leased 30-suite rental property, purchased for $13.0 million with an assumed mortgage at 4.1% interest (Key Developments)
- Acquired another prime building in West Vancouver for $14.0 million with an assumed mortgage at 4.2% interest (Key Developments)
- Entered agreements to purchase two newly constructed properties in Canada, including a 320-suite site in Regina offering contemporary finishes and extensive amenities (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has decreased from CA$52.16 to CA$47.64, representing a notable reduction in expected upside.
- Discount Rate has remained stable at 6.19%, with only a slight downward movement.
- Revenue Growth projections have increased meaningfully, rising from 2.22% to 4.22%.
- Net Profit Margin expectations have improved significantly, moving up from 69.60% to 78.34%.
- Future P/E ratio has decreased from 10.24x to 9.00x, indicating a more attractive valuation compared to previous estimates.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.