OTCPK:CDPY.F

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.

Rewards

PE ratio (5.7x) is below the US market (18.9x)

Earnings grew by 67.7% over the past year

Pays a high and reliable dividend of 2.6%

Risk Analysis

Earnings are forecast to decline by an average of -34.2% per year for the next 3 years

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven 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

Stable Share Price: CDPY.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

CDPY.F

-0.08%

US REITs

-2.7%

US Market


1 Year Return

24.1%

CDPY.F

15.7%

US REITs

21.2%

US Market

Return vs Industry: CDPY.F exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: CDPY.F exceeded the US Market which returned 22% over the past year.


Shareholder returns

CDPY.FIndustryMarket
7 Day1.8%-0.08%-2.7%
30 Day5.2%3.0%0.09%
90 Day5.1%0.6%6.9%
1 Year27.5%24.1%20.5%15.7%23.8%21.2%
3 Year94.9%77.5%37.4%20.0%48.1%38.6%
5 Year123.7%87.4%48.3%17.7%72.5%53.4%

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

No news available

Valuation

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

6.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDPY.F ($40.56) is trading above our estimate of fair value ($35.59)

Significantly Below Fair Value: CDPY.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CDPY.F is good value based on its PE Ratio (5.7x) compared to the REITs industry average (37.8x).

PE vs Market: CDPY.F is good value based on its PE Ratio (5.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CDPY.F is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (2x).


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 3 analysts?

-34.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDPY.F's earnings are forecast to decline over the next 3 years (-34.2% per year).

Earnings vs Market: CDPY.F's earnings are forecast to decline over the next 3 years (-34.2% per year).

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

Revenue vs Market: CDPY.F's revenue (7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CDPY.F's revenue (7% 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 CDPY.F'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?

33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDPY.F has a large one-off gain of CA$1.2B impacting its September 30 2019 financial results.

Growing Profit Margin: CDPY.F's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: CDPY.F's earnings have grown significantly by 33.9% per year over the past 5 years.

Accelerating Growth: CDPY.F's earnings growth over the past year (67.7%) exceeds its 5-year average (33.9% per year).

Earnings vs Industry: CDPY.F earnings growth over the past year (67.7%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: CDPY.F's Return on Equity (19.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canadian Apartment Properties Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CDPY.F has a high level of physical assets or inventory.

Debt Coverage by Assets: CDPY.F's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: CDPY.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CDPY.F has a sufficient allowance for bad loans.

Low Risk Liabilities: CDPY.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CDPY.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CDPY.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CDPY.F has an appropriate level of bad loans.


Next Steps

Dividend

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

2.41%

Current 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 vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: CDPY.F's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CDPY.F's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

Growing Dividend: CDPY.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46%), CDPY.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CDPY.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


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?

1.7yrs

Average management tenure


CEO

Mark Kenney 0

0.8yrs

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

Compensation vs Market: Mark's total compensation ($USD1.25M) is below average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

Experienced Management: CDPY.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.7yrs

Average Tenure

64yo

Average Age

Experienced Board: CDPY.F's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$23,84903 Jun 19
Patricia MacPherson
EntityIndividual
Shares650
Max PriceUS$36.69
BuyUS$55,13017 Apr 19
Gina Cody
EntityIndividual
Role
Member of the Board of Directors
Shares1,500
Max PriceUS$36.75
SellUS$119,46021 Mar 19
Patricia MacPherson
EntityIndividual
Shares3,175
Max PriceUS$37.65
SellUS$362,26219 Mar 19
Scott Cryer
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares9,614
Max PriceUS$37.69

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.3%.


Management Team

  • Mark Kenney

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: CA$1.63m
  • Patti Baker

    Managing Director

    • Gobal Mailwaganam

      MD and Director of Housing & Municipal Affairs

      • Jodi Lieberman-zbar

        Chief Human Resources Officer

        • Corinne Pruzanski

          General Counsel & Corporate Secretary

          • Scott Cryer (46yo)

            Chief Financial Officer

            • Tenure: 8.6yrs
            • Compensation: CA$1.11m
          • Judy Harkai

            Managing Director

            • Carmen Perez

              Managing Director

              • Stephen Co

                Vice President of Accounting

                • Tenure: 1.7yrs
              • Jonathan Fleischer

                Executive Vice President


                Board Members

                • Michael Stein (68yo)

                  Chairman of the Board

                  • Tenure: 23yrs
                  • Compensation: CA$270.00k
                • René Tremblay (64yo)

                  • Mark Kenney

                    CEO, President & Director

                    • Tenure: 0.8yrs
                    • Compensation: CA$1.63m
                  • Harold Burke (72yo)

                    • Tenure: 9.7yrs
                    • Compensation: CA$131.25k
                  • Poonam Puri (47yo)

                    • Gina Cody (62yo)

                      • Tenure: 2.7yrs
                      • Compensation: CA$170.00k
                    • Elaine Todres (69yo)

                      • Tenure: 6.7yrs
                      • Compensation: CA$195.00k
                    • Jamie Schwartz (43yo)

                      • Tenure: 1.8yrs
                      • 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: CDPY.F
                    • Exchange: OTCPK
                    • Founded: 1997
                    • Industry: Residential REITs
                    • Sector: Real Estate
                    • Market Cap: CA$9.670b
                    • Listing Market Cap: CA$7.337b
                    • Shares outstanding: 170.02m
                    • 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
                    CARUN NBMV (Bolsa Mexicana de Valores)YesTrust UnitsMXMXNMay 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 and the Netherlands. As at September 30, 2019, CAPREIT managed 63,478 suites and sites across Canada, the Netherlands and Ireland. It owned interests directly in Canada and indirectly in the Netherlands through its investment in ERES a total of 59,844 suites and sites. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/28 00:30
                    End of Day Share Price2020/01/27 00:00
                    Earnings2019/09/30
                    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.