TSX:CAR.UN

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Canadian Apartment Properties Real Estate Investment Trust

Executive Summary

CAPREIT is one of Canada's largest real estate investment trusts.


Snowflake Analysis

Established dividend payer with imperfect balance sheet.

Share Price & News

How has Canadian Apartment Properties Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAR.UN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.9%

CAR.UN

-0.1%

CA REITs

2.1%

CA Market


1 Year Return

-5.4%

CAR.UN

-21.3%

CA REITs

-10.3%

CA Market

Return vs Industry: CAR.UN exceeded the Canadian REITs industry which returned -21.7% over the past year.

Return vs Market: CAR.UN exceeded the Canadian Market which returned -11.4% over the past year.


Shareholder returns

CAR.UNIndustryMarket
7 Day-0.9%-0.1%2.1%
30 Day-3.4%2.5%5.8%
90 Day-22.6%-27.6%-6.4%
1 Year-2.8%-5.4%-17.0%-21.3%-7.3%-10.3%
3 Year51.2%37.9%1.2%-14.3%1.9%-7.6%
5 Year104.6%71.8%23.4%-7.2%18.4%1.0%

Price Volatility Vs. Market

How volatile is Canadian Apartment Properties Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canadian Apartment Properties Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

7.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAR.UN (CA$46.84) is trading above our estimate of fair value (CA$37.98)

Significantly Below Fair Value: CAR.UN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAR.UN is poor value based on its PE Ratio (7.1x) compared to the REITs industry average (6.2x).

PE vs Market: CAR.UN is good value based on its PE Ratio (7.1x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CAR.UN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CAR.UN is overvalued based on its PB Ratio (0.9x) compared to the CA REITs industry average (0.7x).


Next Steps

Future Growth

How is Canadian Apartment Properties Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAR.UN's earnings are forecast to decline over the next 3 years (-5.8% per year).

Earnings vs Market: CAR.UN's earnings are forecast to decline over the next 3 years (-5.8% per year).

High Growth Earnings: CAR.UN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CAR.UN's revenue (8.9% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: CAR.UN's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CAR.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Canadian Apartment Properties Real Estate Investment Trust performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAR.UN has a large one-off gain of CA$743.9M impacting its March 31 2020 financial results.

Growing Profit Margin: CAR.UN's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: CAR.UN's earnings have grown significantly by 31.1% per year over the past 5 years.

Accelerating Growth: CAR.UN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CAR.UN had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the REITs industry average (24.2%).


Return on Equity

High ROE: CAR.UN's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is Canadian Apartment Properties Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: CAR.UN's short term assets (CA$232.3M) do not cover its short term liabilities (CA$669.0M).

Long Term Liabilities: CAR.UN's short term assets (CA$232.3M) do not cover its long term liabilities (CA$5.1B).


Debt to Equity History and Analysis

Debt Level: CAR.UN's debt to equity ratio (61.2%) is considered high.

Reducing Debt: CAR.UN's debt to equity ratio has reduced from 85.1% to 61.2% over the past 5 years.

Debt Coverage: CAR.UN's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: CAR.UN's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Canadian Apartment Properties Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

2.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAR.UN's dividend (2.95%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: CAR.UN's dividend (2.95%) is low compared to the top 25% of dividend payers in the Canadian market (6.35%).


Stability and Growth of Payments

Stable Dividend: CAR.UN's dividends per share have been stable in the past 10 years.

Growing Dividend: CAR.UN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), CAR.UN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAR.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Mark Kenney (51yo)

1.25yrs

Tenure

CA$3,185,816

Compensation

Mr. Mark Kenney has been President of Canadian Apartment Properties Real Estate Investment Trust since November 14, 2018 and serves as its Chief Executive Officer since March 27, 2019. Mr. Kenney also serv ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.36M) is below average for companies of similar size in the Canadian market ($USD3.52M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Kenney
CEO, President & Director1.25yrsCA$3.19m0.15% CA$11.9m
Scott Cryer
Chief Financial Officer9yrsCA$1.24m0.0057% CA$459.1k
Jonathan Fleischer
Executive Vice Presidentno dataCA$685.57kno data
Stephen Co
Vice President of Accounting2.08yrsno datano data
Corinne Pruzanski
General Counsel & Corporate Secretaryno datano data0.0074% CA$594.1k
Jodi Lieberman-zbar
Chief Human Resources Officerno datano data0.0014% CA$110.2k
Gobal Mailwaganam
MD and Director of Housing & Municipal Affairsno datano datano data
Patti Baker
Managing Directorno datano datano data
Judy Harkai
Managing Directorno datano datano data
Carmen Perez
Managing Directorno datano datano data

2.1yrs

Average Tenure

Experienced Management: CAR.UN's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Kenney
CEO, President & Director1.25yrsCA$3.19m0.15% CA$11.9m
Michael Stein
Independent Chairman of the Board23.42yrsCA$270.00k0.22% CA$17.6m
René Tremblay
Independent Trustee0.42yrno datano data
Harold Burke
Independent Trustee10.08yrsCA$131.25kno data
Poonam Puri
Independent Trustee1yrCA$93.03kno data
Gina Cody
Independent Trustee3.08yrsCA$197.36k0.013% CA$1.1m
Elaine Todres
Independent Trustee7.08yrsCA$152.50k0.0018% CA$140.5k
Jamie Schwartz
Independent Trustee2.25yrsCA$170.00k0.00010% CA$8.0k

2.7yrs

Average Tenure

63yo

Average Age

Experienced Board: CAR.UN's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CAR.UN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.8%.


Top Shareholders

Company Information

Canadian Apartment Properties Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canadian Apartment Properties Real Estate Investment Trust
  • Ticker: CAR.UN
  • Exchange: TSX
  • Founded: 1997
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: CA$7.985b
  • Shares outstanding: 170.47m
  • Website: https://www.caprent.com

Number of Employees


Location

  • Canadian Apartment Properties Real Estate Investment Trust
  • 11 Church Street
  • Suite 401
  • Toronto
  • Ontario
  • M5E 1W1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAR.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADMay 1998
CDPY.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDMay 1998
CARUN NBMV (Bolsa Mexicana de Valores)YesTrust UnitsMXMXNMay 1998

Biography

CAPREIT is one of Canada's largest real estate investment trusts. CAPREIT owns approximately 56,800 suites, including townhomes and manufactured housing sites, in Canada and, indirectly through its investment in ERES, approximately 5,600 suites in the Netherlands. CAPREIT manages approximately 60,900 of its owned suites in Canada and Netherlands, and additionally 3,700 suites in Ireland as at March 31, 2020. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 02:18
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.