TSX:CAR.UN

Stock Analysis Report

Canadian Apartment Properties Real Estate Investment Trust

Executive Summary

CAPREIT owns interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities (“MHC”) primarily located in and near major urban centres across Canada and the Netherlands.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.

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


Market Performance


7 Day Return

2.8%

TSX:CAR.UN

1.1%

CA REITs

1.0%

CA Market


1 Year Return

13.9%

TSX:CAR.UN

9.0%

CA REITs

-5.0%

CA Market

CAR.UN outperformed the REITs industry which returned 8.3% over the past year.

CAR.UN outperformed the Market in Canada which returned -4.1% over the past year.


Share holder returns

CAR.UNIndustryMarket
7 Day2.8%1.1%1.0%
30 Day7.7%1.7%-2.8%
90 Day6.3%2.1%-1.7%
1 Year17.1%13.9%15.1%9.0%-1.7%-5.0%
3 Year89.4%70.9%31.7%10.7%14.7%4.4%
5 Year168.9%123.3%59.1%18.6%12.5%-3.3%

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 based on future cash flows and its price relative to the stock market?

6.47x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Canadian Apartment Properties Real Estate Investment Trust's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Canadian Apartment Properties Real Estate Investment Trust's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Canadian Apartment Properties Real Estate Investment Trust is good value based on earnings compared to the CA REITs industry average.

Canadian Apartment Properties Real Estate Investment Trust is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Canadian Apartment Properties Real Estate Investment Trust earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Canadian Apartment Properties Real Estate Investment Trust is overvalued based on assets compared to the CA REITs industry average.


Next Steps

Future Growth

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

-48.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Canadian Apartment Properties Real Estate Investment Trust's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Canadian Apartment Properties Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Canadian Apartment Properties Real Estate Investment Trust's revenue growth is expected to exceed the Canada market average.

Canadian Apartment Properties Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Canadian Apartment Properties Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Canadian Apartment Properties Real Estate Investment Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

33.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Canadian Apartment Properties Real Estate Investment Trust has delivered over 20% year on year earnings growth in the past 5 years.

Canadian Apartment Properties Real Estate Investment Trust's 1-year earnings growth is less than its 5-year average (28.7% vs 33.1%)

Canadian Apartment Properties Real Estate Investment Trust's earnings growth has exceeded the CA REITs industry average in the past year (28.7% vs 6%).


Return on Equity

Canadian Apartment Properties Real Estate Investment Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Canadian Apartment Properties Real Estate Investment Trust used its assets more efficiently than the CA REITs industry average last year based on Return on Assets.


Return on Capital Employed

Canadian Apartment Properties Real Estate Investment Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Canadian Apartment Properties Real Estate Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Canadian Apartment Properties Real Estate Investment Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Canadian Apartment Properties Real Estate Investment Trust's level of debt (60.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (95.2% vs 60.5% today).

Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

2.62%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Canadian Apartment Properties Real Estate Investment Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Canadian Apartment Properties Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Canadian Apartment Properties Real Estate Investment Trust's dividend is below the markets top 25% of dividend payers in Canada (5.97%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (257.7x coverage).


Next Steps

Management

What is the CEO of Canadian Apartment Properties Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Mark Kenney 0

0.4yrs

Tenure

CA$1,632,918

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

Mark's remuneration is lower than average for companies of similar size in Canada.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.3yrs

Average Tenure

The average tenure for the Canadian Apartment Properties Real Estate Investment Trust management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

65yo

Average Age

The tenure for the Canadian Apartment Properties Real Estate Investment Trust board of directors is about average.


Insider Trading

Canadian Apartment Properties Real Estate Investment Trust individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellCA$32,27503 Jun 19
Patricia MacPherson
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Operations
Shares650
Max PriceCA$49.65
BuyCA$73,50017 Apr 19
Gina Cody
EntityIndividual
Role
Member of the Board of Directors
Shares1,500
Max PriceCA$49.00
SellCA$158,94321 Mar 19
Patricia MacPherson
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Operations
Shares3,175
Max PriceCA$50.10
SellCA$483,42419 Mar 19
Scott Cryer
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares9,614
Max PriceCA$50.30
BuyCA$182,00001 Feb 19
Gina Cody
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceCA$45.50
SellCA$93,31120 Nov 18
Paul Harris
EntityIndividual
Shares2,000
Max PriceCA$46.88

Ownership Breakdown


Management Team

  • Mark Kenney

    CEO, President & Director

    • Tenure: 0.4yrs
    • Compensation: CA$1.63m
  • Patti Baker

    Managing Director

    • Tenure: 0.0yrs
  • Gobal Mailwaganam

    MD and Director of Housing & Municipal Affairs

    • Tenure: 0.0yrs
  • Trish MacPherson

    Executive Vice President of Operations

    • Tenure: 0.0yrs
  • Jodi Lieberman

    Chief Human Resources Officer

    • Tenure: 0.0yrs
  • Corinne Pruzanski

    General Counsel & Corporate Secretary

    • Tenure: 0.0yrs
  • Scott Cryer (46yo)

    Chief Financial Officer

    • Tenure: 8.2yrs
    • Compensation: CA$1.11m
  • Judy Harkai

    Managing Director

    • Tenure: 0.0yrs
  • Carmen Perez

    Managing Director

    • Tenure: 0.0yrs
  • Stephen Co

    Vice President of Accounting

    • Tenure: 1.3yrs

Board Members

  • Michael Stein (68yo)

    Chairman of the Board

    • Tenure: 22.6yrs
    • Compensation: CA$270.00k
  • Mark Kenney

    CEO, President & Director

    • Tenure: 0.4yrs
    • Compensation: CA$1.63m
  • Harold Burke (72yo)

    • Tenure: 9.3yrs
    • Compensation: CA$131.25k
  • Poonam Puri (47yo)

    • Tenure: 0.0yrs
  • Gina Cody (62yo)

    • Tenure: 2.3yrs
    • Compensation: CA$170.00k
  • Elaine Todres (69yo)

    • Tenure: 6.3yrs
    • Compensation: CA$195.00k
  • Jamie Schwartz (43yo)

    • Tenure: 1.4yrs
    • Compensation: CA$129.39k

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$8.484b
  • Shares outstanding: 160.02m
  • 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

Biography

CAPREIT owns interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities (“MHC”) primarily located in and near major urban centres across Canada ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:33
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.