Not for distribution to U.S. newswire services or for dissemination in the United States.
TORONTO, May 07, 2026 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX: CAR.UN) announced today its operating and financial results for the three months ended March 31, 2026. Management will host a conference call to discuss the financial results on Friday, May 8, 2026 at 9:00 a.m. ET.
HIGHLIGHTS
| As at | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
| Total portfolio performance and other measures | ||||||||||
| Number of suites(1) | 45,587 | 45,905 | 46,840 | |||||||
| Investment properties fair value(2) (000s) | $ | 14,486,194 | $ | 14,732,478 | $ | 14,941,512 | ||||
| Assets held for sale (000s) | $ | 68,575 | $ | 141,392 | $ | 12,500 | ||||
| Occupied AMR(3) | ||||||||||
| Canadian residential portfolio | $ | 1,732 | $ | 1,718 | $ | 1,677 | ||||
| Occupancy | ||||||||||
| Canadian residential portfolio | 97.1 | % | 97.3 | % | 97.9 | % | ||||
| (1) As at March 31, 2026, includes 201 suites in Europe classified as assets held for sale (December 31, 2025 – 410 suites in Europe, March 31, 2025 – nil suites). Commercial suites are excluded in all periods; March 31, 2025 excludes 357 sites. (2) Investment properties exclude assets held for sale. (3) Occupied average monthly rent (“Occupied AMR”) is defined as actual residential rents divided by the total number of occupied suites in the property, and does not include revenues from parking, laundry, or other sources. |
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| For the Three Months Ended March 31, | 2026 | 2025 | |||||
| Financial performance | |||||||
| Operating revenues (000s) | $ | 247,900 | $ | 253,311 | |||
| Net operating income (“NOI”) (000s) | $ | 155,033 | $ | 158,019 | |||
| NOI margin | 62.5 | % | 62.4 | % | |||
| Same property NOI (000s) | $ | 146,283 | $ | 143,624 | |||
| Same property NOI margin | 62.4 | % | 62.0 | % | |||
| Net income (loss) (000s) | $ | (182,453 | ) | $ | 7,985 | ||
| Distributions per unit | $ | 0.388 | $ | 0.383 | |||
| Funds From Operations (“FFO”) per unit – diluted(1) | $ | 0.595 | $ | 0.585 | |||
| FFO payout ratio(1) | 65.1 | % | 65.4 | % | |||
| (1) These measures are not defined by IFRS Accounting Standards (“IFRS”), do not have standard meanings and may not be comparable with other industries or companies. Please refer to the cautionary statements under the heading “Non-IFRS Measures” and the reconciliations provided in this press release. |
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| As at | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
| Financing metrics and liquidity | ||||||||||
| Total Debt to Gross Book Value(1) | 40.3 | % | 39.3 | % | 37.7 | % | ||||
| Weighted average mortgage effective interest rate per annum | 3.30 | % | 3.30 | % | 3.16 | % | ||||
| Weighted average mortgage term (years) | 4.2 | 4.4 | 4.7 | |||||||
| Net Debt to Adjusted EBITDAFVA (years)(1)(2) | 9.8 | x | 9.7 | x | 8.6 | x | ||||
| Debt service coverage ratio (times)(1)(3) | 1.8 | x | 1.9 | x | 1.9 | x | ||||
| Interest coverage ratio (times)(1)(3) | 3.3 | x | 3.4 | x | 3.3 | x | ||||
| Cash and cash equivalents (000s)(4) | $ | 43,366 | $ | 33,176 | $ | 118,989 | ||||
| Available borrowing capacity – Acquisition and Operating Facility (000s)(5) | $ | 123,373 | $ | 181,971 | $ | 195,572 | ||||
| Capital | ||||||||||
| Unitholders’ equity (000s) | $ | 8,492,525 | $ | 8,761,196 | $ | 8,989,395 | ||||
| Net Asset Value (“NAV”) (000s)(1) | $ | 8,526,994 | $ | 8,809,579 | $ | 9,032,079 | ||||
| Total number of units – diluted (000s)(6) | 155,627 | 156,180 | 162,562 | |||||||
| NAV per unit – diluted(1) | $ | 54.79 | $ | 56.41 | $ | 55.56 | ||||
| Closing price of Trust Units | $ | 35.51 | $ | 36.87 | $ | 43.14 | ||||
| (1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies. Please refer to the cautionary statements under the heading “Non-IFRS Measures” and the reconciliations provided in this press release. (2) Net Debt is as at period end. Adjusted Earnings Before Interest, Tax, Depreciation, Amortization and Fair Value Adjustments (“Adjusted EBITDAFVA”) is based on the trailing 12 months ended. (3) Based on the trailing 12 months ended. (4) Consists of $987 and $42,379 in Canada and Europe, respectively (December 31, 2025 – $6,238 and $26,938, respectively, March 31, 2025 – $106,521 and $12,468, respectively). (5) CAPREIT’s credit agreements include a revolving acquisition and operating facility, which can be borrowed in Canadian dollars, US dollars (“USD”) or euros (“Acquisition and Operating Facility”). Excludes an unused accordion option of $200,000 (December 31, 2025 – $200,000, March 31, 2025 – $400,000). (6) Consists of Trust Units, which are classified as Unitholders’ Equity, as well as Exchangeable LP Units, deferred units (“DUs”), restricted unit rights (“RURs”), and performance unit rights (“PURs”), which are classified as liabilities. |
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“CAPREIT is off to a solid start in 2026, reflecting the resilience of our platform and deliberate, measured execution of our strategy,” commented Mark Kenney, President and Chief Executive Officer. “That strategy has remained focused on recycling capital to advance ongoing portfolio optimization and the enhancement of earnings, with $45 million of repositioning in Canada year to date and a pipeline of transaction opportunities in the periods ahead. We also completed the privatization of ERES and acquired all publicly held units not already held by CAPREIT for $99 million, which enables CAPREIT to manage the remaining European assets on our timeline and consistent with our strategic objectives. In addition, we’ve been investing in our NCIB, with $42 million in Trust Unit buybacks so far in 2026. Moving forward, we’ll continue operating with discipline and balanced execution of our capital allocation program, in order to strengthen cash flow generation and deliver sustainable value for our Unitholders.”
“From an operational standpoint, results in the first quarter were sound amid current pressures in the sector,” added Stephen Co, Chief Financial Officer. “Occupancy on the Canadian residential same property portfolio was 97.1%, comparing favourably to industry benchmarks. Turnover remains weighted toward shorter-term leases with a concentration in those that are above-market, and while we continue to work through this, our overall rent growth is supported by renewals alongside the positive mark-to-market opportunity embedded across the rest of the portfolio. Same property Canadian residential Occupied AMR was therefore up by 2.9% to $1,726 on March 31, 2026, from $1,677 as of March 31, 2025. We also further improved operating efficiency, with same property NOI in Canada growing by 2.0% and margins expanding to 62.2%. On the balance sheet, fair value adjustments in the quarter contributed to a modest increase in leverage to just over 40%, which we consider a prudent and manageable ratio within our target range. In the periods ahead, preserving this conservative financial position will remain a key priority within our broader capital allocation framework.”
SUMMARY OF Q1 2026 RESULTS OF OPERATIONS
Strategic Initiatives Update
- For the three months ended March 31, 2026, CAPREIT disposed of a residential property located in Charlottetown, PEI, and three residential properties and a single unit in the Netherlands. The gross sale price was $101.4 million, consisting of $28.0 million in Canada and $73.4 million in Europe (excluding transaction costs and customary adjustments).
- In March 2026, CAPREIT received the Toronto Stock Exchange’s (“TSX”) acceptance of its notice to proceed with a normal course issuer bid (“NCIB”), following expiry of the previous NCIB on March 24, 2026 (“2026-2027 NCIB”). During the three months ended March 31, 2026, CAPREIT purchased and cancelled approximately 0.8 million Trust Units under the NCIB program, at a weighted average purchase price of $36.78 per Trust Unit, for a total cost of $29.0 million (excluding the federal 2% tax on repurchases of Trust Units).
- In March 2026, CAPREIT entered into an agreement to acquire all of the issued and outstanding units of European Residential Real Estate Investment Trust (“ERES”) not already owned by CAPREIT for consideration of $1.19 per ERES unit in an all-cash transaction (the “ERES Transaction”). ERES held a special meeting for voting unitholders (“ERES Unitholders”) to consider and vote on the ERES Transaction on April 27, 2026. During this meeting, ERES Unitholders approved the ERES Transaction. The ERES Transaction closed on May 1, 2026 for $98.7 million. CAPREIT funded the ERES Transaction with cash on hand and availability from the Acquisition and Operating Facility.
Operating Results
- On turnovers and renewals for the Canadian residential portfolio, monthly residential rents for the three months ended March 31, 2026 increased by 1.8%, compared to 3.4% increase for the three months ended March 31, 2025.
- Same Property Occupied AMR for the Canadian residential portfolio as at March 31, 2026 increased by 2.9% compared to March 31, 2025, while same property occupancy for the Canadian residential portfolio decreased to 97.1% (March 31, 2025 – 98.0%).
- NOI for the Canadian same property portfolio increased by 2.0% for the three months ended March 31, 2026 compared to the same period last year. In addition, NOI margin for the Canadian same property portfolio increased to 62.2%, up 0.6 percentage point, for the three months ended March 31, 2026 compared to the same period last year.
- Diluted FFO per unit was up 1.7% for the three months ended March 31, 2026, compared to the same period last year, primarily due to the impact of Trust Units purchased and cancelled through the NCIB program, which reduced the overall weighted average Units outstanding by approximately 4.2%, and growth in same property NOI, partially offset by lower NOI due to net dispositions.
Balance Sheet Highlights
- As at March 31, 2026, CAPREIT had approximately $124.4 million of available Canadian liquidity, comprising $1.0 million of Canadian cash and cash equivalents and $123.4 million of available capacity on its Acquisition and Operating Facility, including a $100.0 million temporary increase in borrowing capacity, with an original maturity of April 30, 2026. On April 30, 2026, the Acquisition and Operating Facility was amended to extend the $100.0 million increase until the maturity of the facility in February 2028.
- To date, CAPREIT has completed or committed financings totalling $288.6 million, with a weighted average interest rate of 3.82% per annum and a weighted average term to maturity of 7.2 years.
- Based on the current property portfolio, management expects to complete between $1.2 billion to $1.3 billion in total mortgage financings for 2026, which assumes that there will be no future acquisitions and dispositions.
- For the three months ended March 31, 2026 the overall carrying value of investment properties (excluding assets held for sale) decreased by $246.3 million due to fair value loss of $265.1 million, dispositions of $28.5 million, and foreign currency translation adjustments of $1.5 million, partially offset by property capital investments of $48.8 million.
- Diluted NAV per unit as at March 31, 2026 decreased to $54.79 from $56.41 as at December 31, 2025, primarily due to fair value losses on investment properties, partially offset by the effects of accretive purchases of Trust Units for cancellation through the NCIB program.
Subsequent Events
- Subsequent to March 31, 2026, CAPREIT purchased and cancelled 0.4 million Trust Units under the 2026-2027 NCIB, at a weighted average purchase price of $36.65 per Trust Unit, for a total cost of $12.9 million (excluding the federal 2% tax on repurchases of Trust Units).
- On April 14, 2026, CAPREIT completed an operating lease buyout for 199 suites in Mississauga, Ontario for a total gross purchase price of $16.8 million (excluding transaction costs and customary adjustments).
- On April 16, 2026, CAPREIT disposed of an additional 201 suites in the Netherlands for a total gross sale price of $69.2 million (excluding transaction costs and customary adjustments).
OPERATIONAL AND FINANCIAL RESULTS
Portfolio Occupied Average Monthly Rents
| Total Portfolio(1) | Same Property Portfolio(2) | |||||||||||
| As at March 31, | 2026 | 2025 | 2026 | 2025 | ||||||||
| Occupied AMR | Occ. % | Occupied AMR | Occ. % | Occupied AMR | Occ. % | Occupied AMR | Occ. % | |||||
| Total Canadian residential suites | $ | 1,732 | 97.1 | $ | 1,677 | 97.9 | $ | 1,726 | 97.1 | $ | 1,677 | 98.0 |
| (1) Includes assets held for sale, as applicable. (2) Same property Occupied AMR and occupancy include all properties owned by CAPREIT continuously since December 31, 2024, and therefore do not take into account the impact of acquisitions or dispositions completed during 2025 and 2026, or properties that are classified as held for sale as at March 31, 2026. |
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The overall rate of growth in Canadian residential Occupied AMR has been primarily driven by (i) new acquisitions completed over the past 12 months; and (ii) same property operational growth. The rate of growth in same property Occupied AMR has been primarily due to (i) rental increases on renewals; and (ii) rental increases on turnover in the rental markets of most provinces across the Canadian portfolio.
Occupancy for the total Canadian residential portfolio as at March 31, 2026 decreased by 0.8 percentage points to 97.1% compared to March 31, 2025, reflecting current pressures in residential market dynamics.
The weighted average monthly gross rent per square foot for total Canadian residential suites was approximately $2.07 as at March 31, 2026, having increased from $1.99 as at March 31, 2025.
Canadian Residential Portfolio
As at March 31, 2026, approximately 72% (March 31, 2025 – 77%) of the occupied suites in the Canadian residential portfolio have residents who have been in the suite for two years or longer, with the balance in the suite for less than two years.
| For the Three Months Ended March 31, | 2026 | 2025 | ||
| Change in Monthly Rent | Turnovers and Renewals of Suites(1) | Change in Monthly Rent | Turnovers and Renewals of Suites(1) | |
| % | % | % | % | |
| Suite turnovers(2) | (2.1) | 4.3 | 7.2 | 3.9 |
| Lease renewals | 2.3 | 38.5 | 2.9 | 41.8 |
| Weighted average of turnovers and renewals | 1.8 | 3.4 | ||
| (1) Percentage of suites turned over or renewed during the period is based on the total weighted average number of residential suites held during the period. (2) The table below summarizes the changes in monthly rent from suite turnovers, by lease tenure, for the three months ended March 31, 2026 and March 31, 2025. |
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| For the Three Months Ended March 31, | 2026 | 2025 | ||
| Change in Monthly Rent | Turnovers(3) | Change in Monthly Rent | Turnovers(3) | |
| Lease Tenure | % | % | % | % |
| Less than two years | (10.8) | 44.7 | (5.7) | 47.1 |
| Two years or longer | 5.7 | 55.3 | 22.0 | 52.9 |
| Change in monthly rent on suite turnovers | (2.1) | 7.2 | ||
| (3) Turnover percentages by lease tenure are calculated as the number of suite turnovers within each tenure category divided by the total number of suite turnovers during the period. |
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Net Operating Income
Same properties for the three months ended March 31, 2026 are defined as all properties owned by CAPREIT continuously since December 31, 2024, and therefore do not take into account the impact on performance of acquisitions or dispositions completed during 2025 or 2026, or properties that are classified as held for sale as at March 31, 2026.
| ($ Thousands) | Total NOI | Same Property NOI | ||||||||||||||
| For the Three Months Ended March 31, | 2026 | 2025 | %(1) | 2026 | 2025 | %(1) | ||||||||||
| Canadian operating revenues | ||||||||||||||||
| Rental revenues | $ | 227,687 | $ | 223,224 | 2.0 | $ | 216,864 | $ | 215,238 | 0.8 | ||||||
| Other(2) | 12,990 | 12,273 | 5.8 | 12,440 | 11,676 | 6.5 | ||||||||||
| Total Canadian operating revenues | $ | 240,677 | $ | 235,497 | 2.2 | $ | 229,304 | $ | 226,914 | 1.1 | ||||||
| Canadian operating expenses | ||||||||||||||||
| Realty taxes | $ | (25,527 | ) | $ | (24,228 | ) | 5.4 | $ | (24,061 | ) | $ | (23,214 | ) | 3.6 | ||
| Utilities | (22,038 | ) | (23,285 | ) | (5.4 | ) | (21,386 | ) | (22,502 | ) | (5.0 | ) | ||||
| Other(3) | (43,298 | ) | (43,261 | ) | 0.1 | (41,332 | ) | (41,526 | ) | (0.5 | ) | |||||
| Total operating expenses | $ | (90,863 | ) | $ | (90,774 | ) | 0.1 | $ | (86,779 | ) | $ | (87,242 | ) | (0.5 | ) | |
| NOI – Canada | $ | 149,814 | $ | 144,723 | 3.5 | $ | 142,525 | $ | 139,672 | 2.0 | ||||||
| NOI margin – Canada | 62.2 | % | 61.5 | % | 62.2 | % | 61.6 | % | ||||||||
| NOI – Europe | $ | 5,219 | $ | 13,296 | (60.7 | ) | $ | 3,758 | $ | 3,952 | (4.9 | ) | ||||
| NOI margin – Europe | 72.3 | % | 74.6 | % | 73.3 | % | 80.6 | % | ||||||||
| Total NOI | $ | 155,033 | $ | 158,019 | (1.9 | ) | $ | 146,283 | $ | 143,624 | 1.9 | |||||
| Total margin | 62.5 | % | 62.4 | % | 62.4 | % | 62.0 | % | ||||||||
| (1) Represents the year-over-year percentage change. (2) Comprises parking and other ancillary income such as laundry and antenna revenue. (3) Comprises repairs and maintenance (“R&M”), wages, insurance, advertising, legal costs and expected credit losses. |
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The following table reconciles same property NOI and NOI from acquisitions, dispositions and assets held for sale to total NOI, for the three months ended March 31, 2026 and March 31, 2025:
| ($ Thousands) | |||||||
| For the Three Months Ended March 31, | 2026 |
2025 |
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| Same property NOI – Canada | $ | 142,525 | $ | 139,672 | |||
| Same property NOI – Europe | 3,758 | 3,952 | |||||
| NOI from acquisitions | 7,125 | 718 | |||||
| NOI from dispositions and assets held for sale | 1,625 | 13,677 | |||||
| Total NOI | $ | 155,033 | $ | 158,019 | |||
Canadian Operating Revenues
For the three months ended March 31, 2026, Canadian same property operating revenues increased by $2.4 million, primarily driven by increases in monthly rents on turnover and renewals. Total Canadian operating revenues increased by $5.2 million during the same period, mainly due to revenue generated from acquisitions totalling $9.9 million and operational growth of $2.4 million on the Canadian same property operating portfolio as at March 31, 2026, partially offset by lost revenue from dispositions totalling $7.1 million.
Canadian Operating Expenses
For the three months ended March 31, 2026, realty taxes for Canadian total and same property portfolio increased compared to the same period last year, primarily due to increases in realty tax rates in Ontario and higher property value assessments in Nova Scotia. Canadian total portfolio increased further due to acquisitions, partially offset by dispositions.
For the three months ended March 31, 2026, Canadian total and same property utilities decreased year-over-year mainly due to lower natural gas costs due to the federal carbon tax removal that came into effect on April 1, 2025 and lower water consumption due to water renewal efficiency projects implemented in Q2 2025 for Ontario and British Columbia. These savings were partially offset by higher electricity costs due to consumption driven by colder weather in Ontario and Québec, higher electricity rates in Québec, and increased water rates in British Columbia and Ontario.
For the three months ended March 31, 2026, other operating expenses for the Canadian total and same property portfolio remained stable compared to the same period last year.
SUBSEQUENT EVENTS
The table below summarizes the acquisition of an investment property from an operating lease buyout completed subsequent to March 31, 2026:
| ($ Thousands) | ||||
| Acquisition Date | Suite Count | Region | Gross Purchase Price(1) | |
| April 14, 2026 | 199 | Mississauga, ON | $ | 16,782 |
| Total | 199 | $ | 16,782 | |
| (1) Gross purchase price is the amount stated in the purchase and sale agreement and excludes transaction costs and customary adjustments. | ||||
The table below summarizes the disposition of an investment property completed subsequent to March 31, 2026:
| ($ Thousands) | ||||
| Disposition Date | Suite Count | Region | Gross Sale Price(1) | |
| April 16, 2026(2) | 201 | The Netherlands | $ | 69,187 |
| Total | 201 | $ | 69,187 | |
| (1) Gross sale price is the amount stated in the purchase and sale agreement and excludes transaction costs and customary adjustments. (2) Previously included in assets held for sale as at March 31, 2026. |
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ADDITIONAL INFORMATION
More detailed information and analysis is included in CAPREIT’s condensed consolidated interim financial statements and MD&A for the three months ended March 31, 2026, which have been filed on SEDAR+ and can be viewed at www.sedarplus.ca under CAPREIT’s profile or on CAPREIT’s website on the investor relations page at www.capreit.ca.
Conference Call
A conference call, hosted by CAPREIT’s senior management team, will be held on Friday, May 8, 2026 at 9:00 am ET. The telephone numbers for the conference call are: Canadian Toll Free: +1 (833) 950-0062, International: +1 (929) 526-1599. The conference call access code is 155612.
The call will also be webcast live and accessible through the CAPREIT website at www.capreit.ca – click on “For Investors” and follow the link at the top of the page. A replay of the webcast will be available for one year after the webcast at the same link.
The slide presentation to accompany management’s comments during the conference call will be available on the CAPREIT website an hour and a half prior to the conference call.
About CAPREIT
CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at March 31, 2026, CAPREIT owns approximately 45,400 residential apartment suites and townhomes (excluding approximately 200 suites classified as assets held for sale), that are well-located across Canada and, to a lesser extent, the Netherlands, with a total fair value of approximately $14.5 billion (excluding approximately $0.1 billion of assets held for sale). For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosures which can be found under our profile at www.sedarplus.ca.
Non-IFRS Measures
CAPREIT prepares and releases unaudited condensed consolidated interim financial statements and audited consolidated annual financial statements in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, CAPREIT discloses measures not recognized under IFRS which do not have standard meanings prescribed by IFRS. These include FFO, NAV, Total Debt, Gross Book Value, and Adjusted EBITDAFVA (the “Non-IFRS Financial Measures”), as well as diluted FFO per unit, diluted NAV per unit, FFO payout ratio, Total Debt to Gross Book Value, Net Debt to Adjusted EBITDAFVA, Debt Service Coverage Ratio, and Interest Coverage Ratio (the “Non-IFRS Ratios” and together with the Non-IFRS Financial Measures, the “Non-IFRS Measures”). These Non-IFRS Measures are further defined and discussed in the MD&A released on May 7, 2026, which should be read in conjunction with this press release. Since these measures and related per unit amounts are not recognized under IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT presents Non-IFRS Measures because management believes Non-IFRS Measures are relevant measures of the ability of CAPREIT to earn revenue and to evaluate its performance, financial condition, and cash flows. These Non-IFRS Measures have been assessed for compliance with National Instrument 52-112 and a reconciliation of these Non-IFRS Measures is included in this press release below. The Non-IFRS Measures should not be construed as alternatives to net income (loss) or cash flows from operating activities determined in accordance with IFRS as indicators of CAPREIT’s performance or the sustainability of CAPREIT’s distributions.
Cautionary Statements Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to CAPREIT’s future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, occupancy rates, rental rates, productivity, projected costs, capital investments, development and development opportunities, financial results, taxes, plans, and objectives of, or involving, CAPREIT. Particularly, statements regarding CAPREIT’s future results, performance, achievements, prospects, costs, opportunities, and financial outlook, including those relating to acquisition, disposition, and capital investment strategies and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “would”, “should”, “could”, “likely”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “forecast”, “predict”, “potential”, “project”, “budget”, “continue”, or the negative thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including: that the Canadian and Dutch economies will generally experience growth, which, however, may be adversely impacted by the geopolitical risks, global economy, inflation and elevated interest rates; potential health crises and their direct or indirect impacts on the business of CAPREIT, including CAPREIT’s ability to enforce leases, perform capital expenditure work, increase rents, and apply for above guideline increases (“AGIs”); obtain financings at favourable interest rates; that Canada Mortgage and Housing Corporation (“CMHC”) mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates; that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates; that vacancy rates for CAPREIT properties will be consistent with historical norms; that rental rates on renewals will generally grow; that rental rates on turnovers will generally grow; that the difference between in-place and market-based rents will be reduced upon such turnovers and renewals; that CAPREIT will effectively manage price pressures relating to its energy usage; and, with respect to CAPREIT’s financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT’s investment priorities, the properties in which investments will be made, the composition of the property portfolio, the impact and scope of certain commitments and contingencies, and the projected return on investment in respect of specific capital investments. Although the forward-looking statements contained in this press release are based on assumptions and information that is currently available to management, which are subject to change, management believes these statements have been prepared on a reasonable basis, reflecting CAPREIT’s best estimates and judgements. However, there can be no assurance actual results, terms, or timing will be consistent with these forward-looking statements, and they may prove to be incorrect. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT’s control, that may cause CAPREIT’s or the industry’s actual results, performance, achievements, prospects, and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: rent control and residential tenancy regulations, general economic conditions, leasing risk, competition for residents, privacy, cyber security and data governance risks, availability and cost of debt, acquisitions and dispositions, valuation risk, liquidity and price volatility of units of CAPREIT (“Trust Units”), catastrophic events, climate change, taxation-related risks (including certain tax liabilities and contingencies), energy costs, environmental matters, vendor management and third-party service providers, operating risk, talent management and human resources shortages, public health crises, other regulatory compliance risks, litigation risk, CAPREIT’s investment in ERES, potential conflicts of interest, investment restrictions, lack of diversification of investment assets, geographic concentration, illiquidity of real property, capital investments, dependence on key personnel, property development, adequacy of insurance and captive insurance, controls over disclosures and financial reporting, the nature of Trust Units, dilution, distributions, and foreign operations and currency risks. There can be no assurance that the expectations of CAPREIT’s management will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT’s Annual Information Form, which can be obtained on SEDAR+ at www.sedarplus.ca, under CAPREIT’s profile, as well as under the “Risks and Uncertainties” section of the MD&A released on May 7, 2026. The information in this press release is based on information available to management as of May 7, 2026. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.
SOURCE: Canadian Apartment Properties Real Estate Investment Trust
| CAPREIT Mr. Mark Kenney President & Chief Executive Officer (416) 861-9404 |
CAPREIT Mr. Stephen Co Chief Financial Officer (416) 306-3009 |
SELECTED NON-IFRS MEASURES
A reconciliation of net income (loss) to FFO is as follows:
| ($ Thousands, except per unit amounts) | |||||||
| For the Three Months Ended March 31, | 2026 | 2025 | |||||
| Net income (loss) | $ | (182,453 | ) | $ | 7,985 | ||
| Adjustments: | |||||||
| Fair value adjustments of investment properties | 264,959 | 24,787 | |||||
| Fair value adjustments of financial instruments | (11,399 | ) | 13,006 | ||||
| Interest expense on Exchangeable LP Units | 560 | 554 | |||||
| Loss on non-controlling interest | 1,659 | 19,121 | |||||
| FFO impact attributable to ERES Units held by non-controlling unitholders(1) | (904 | ) | (2,227 | ) | |||
| Deferred income tax expense (recovery) | (2,642 | ) | 3,781 | ||||
| Loss on foreign currency translation | 7,201 | 2,681 | |||||
| Transaction costs and other activities(2) | 10,396 | 11,904 | |||||
| Tax related to ERES dispositions and Dutch tax authority audits(3) | 1,214 | 5,720 | |||||
| Net loss on derecognition of debt | 128 | 3,553 | |||||
| Lease principal repayments | (258 | ) | (335 | ) | |||
| Reorganization, senior management termination, and retirement costs(4) | 4,350 | 4,847 | |||||
| FFO | $ | 92,811 | $ | 95,377 | |||
| FFO | $ | 92,811 | $ | 95,377 | |||
| Weighted average number of units (000s) – diluted | 156,090 | 162,981 | |||||
| FFO per unit – diluted(5) | $ | 0.595 | $ | 0.585 | |||
| Total distributions declared | $ | 60,436 | $ | 62,400 | |||
| FFO | $ | 92,811 | $ | 95,377 | |||
| FFO payout ratio(6) | 65.1 | % | 65.4 | % | |||
| (1) The adjustment is based on applying the 35% weighted average ownership held by ERES non-controlling unitholders (March 31, 2025 – 35%). (2) Primarily includes transaction costs and customary adjustments on dispositions, amortization of property, plant, and equipment (“PP&E”) and right-of-use asset, and enterprise resource planning implementation costs. (3) Included in current income tax expense in the statement of net income (loss) and comprehensive income (loss). (4) For the three months ended March 31, 2026, includes $3,640 of reorganization costs and $710 of accelerated vesting of previously granted CAPREIT unit-based compensation. For the three months ended March 31, 2025, includes $4,087 of reorganization costs, $157 of accelerated vesting of previously granted CAPREIT unit-based compensation, and $603 of accelerated vesting of ERES RURs that vested. (5) FFO per unit – diluted is calculated using FFO during the period divided by weighted average number of units – diluted during the period. (6) FFO payout ratio is calculated using total distributions declared during the period divided by FFO during the period. |
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Reconciliation of Total Debt and Total Debt Ratios:
| ($ Thousands) | ||||||||||
| As at | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
| Mortgages payable – non-current | $ | 4,745,670 | $ | 4,856,580 | $ | 5,243,972 | ||||
| Mortgages payable – current | 891,060 | 777,021 | 530,187 | |||||||
| Total mortgages payable | $ | 5,636,730 | $ | 5,633,601 | $ | 5,774,159 | ||||
| Credit facilities payable – non-current | 393,996 | 331,250 | 25,469 | |||||||
| Total Debt | $ | 6,030,726 | $ | 5,964,851 | $ | 5,799,628 | ||||
| Total assets | $ | 14,909,680 | $ | 15,132,363 | $ | 15,323,496 | ||||
| Add: Accumulated amortization of PP&E | 46,387 | 45,104 | 44,712 | |||||||
| Gross Book Value(1) | $ | 14,956,067 | $ | 15,177,467 | $ | 15,368,208 | ||||
| Total Debt to Gross Book Value(2) | 40.3 | % | 39.3 | % | 37.7 | % | ||||
| Total Mortgages Payable to Gross Book Value(3) | 37.7 | % | 37.1 | % | 37.6 | % | ||||
| (1) Gross Book Value (“GBV”) is defined by CAPREIT’s Declaration of Trust. (2) Total Debt to Gross Book Value is calculated using total debt divided by gross book value. (3) Total Mortgages Payable to Gross Book Value is calculated using total mortgages payable divided by gross book value. |
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Reconciliation of Net Income to Adjusted EBITDAFVA:
| ($ Thousands) | ||||||||||
| For the Trailing 12 Months Ended | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
| Net income | $ | 6,613 | $ | 197,051 | $ | 118,614 | ||||
| Adjustments: | ||||||||||
| Interest expense on debt and other financing costs | 194,159 | 191,013 | 213,424 | |||||||
| Interest expense on Exchangeable LP Units | 2,239 | 2,233 | 2,380 | |||||||
| Total current income tax expense and deferred income tax expense (recovery), net | 5,503 | 17,473 | 48,371 | |||||||
| Amortization of PP&E and right-of-use asset | 6,236 | 6,413 | 6,382 | |||||||
| Total unit-based compensation amortization expense, net | 9,065 | 9,522 | 9,985 | |||||||
| Employee unit purchase plan unit-based compensation expense | (468 | ) | (476 | ) | (496 | ) | ||||
| Fair value adjustments of investment properties | 324,862 | 84,690 | 37,620 | |||||||
| Fair value adjustments of financial instruments | (4,534 | ) | 19,871 | 18,427 | ||||||
| Net loss on derecognition of debt | 1,068 | 4,493 | 2,820 | |||||||
| Loss on non-controlling interest | 22,194 | 39,656 | 147,287 | |||||||
| Loss on foreign currency translation | 8,554 | 4,034 | 23,493 | |||||||
| Transaction costs and other adjustments on dispositions and other | 34,844 | 36,175 | 29,373 | |||||||
| Adjusted EBITDAFVA | $ | 610,335 | $ | 612,148 | $ | 657,680 | ||||
Net Debt to Adjusted EBITDAFVA
| ($ Thousands) | ||||||||||
| As at | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
| Mortgages payable – non-current | $ | 4,745,670 | $ | 4,856,580 | $ | 5,243,972 | ||||
| Mortgages payable – current | 891,060 | 777,021 | 530,187 | |||||||
| Total mortgages payable | $ | 5,636,730 | $ | 5,633,601 | $ | 5,774,159 | ||||
| Credit facilities payable – non-current | 393,996 | 331,250 | 25,469 | |||||||
| Total Debt | $ | 6,030,726 | $ | 5,964,851 | $ | 5,799,628 | ||||
| Less: Cash and cash equivalents | (43,366 | ) | (33,176 | ) | (118,989 | ) | ||||
| Net Debt | 5,987,360 | 5,931,675 | 5,680,639 | |||||||
| Adjusted EBITDAFVA(1) | 610,335 | 612,148 | 657,680 | |||||||
| Net Debt to Adjusted EBITDAFVA (years)(2) | 9.8 | x | 9.7 | x | 8.6 | x | ||||
| (1) For the trailing 12 months ended. (2) Net Debt to Adjusted EBITDAFVA is calculated using Net Debt divided by Adjusted EBITDAFVA. |
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Debt Service Coverage Ratio
| ($ Thousands) | ||||||||||
| For the Trailing 12 Months Ended | March 31, 2026 |
December 31, 2025 |
March 31, 2025 |
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| Contractual interest on mortgages payable(1)(2) | $ | 166,047 | $ | 165,178 | $ | 171,652 | ||||
| Amortization of deferred financing costs and fair value adjustments on mortgages payable(2) | 9,693 | 9,723 | 9,204 | |||||||
| Contractual interest on credit facilities payable, net(1) | 7,574 | 5,035 | 18,702 | |||||||
| Amortization of deferred financing costs on credit facilities payable | 887 | 919 | 641 | |||||||
| Mortgage principal repayments | 149,214 | 148,180 | 151,385 | |||||||
| Debt service payments | $ | 333,415 | $ | 329,035 | $ | 351,584 | ||||
| Adjusted EBITDAFVA | $ | 610,335 | $ | 612,148 | $ | 657,680 | ||||
| Debt Service Coverage Ratio (times)(3) | 1.8 | x | 1.9 | x | 1.9 | x | ||||
| (1) Includes net cross-currency interest rate (“CCIR”) and interest rate (“IR”) swap interest, offsetting contractual interest. (2) Net of capitalized interest expense. (3) Debt Service Coverage Ratio is calculated using Adjusted EBITDAFVA divided by debt service payments. |
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Interest Coverage Ratio
| ($ Thousands) | ||||||||||
| For the Trailing 12 Months Ended | March 31, 2026 |
December 31, 2025 |
March 31, 2025 |
|||||||
| Contractual interest on mortgages payable(1)(2) | $ | 166,047 | $ | 165,178 | $ | 171,652 | ||||
| Amortization of deferred financing costs and fair value adjustments on mortgages payable(2) | 9,693 | 9,723 | 9,204 | |||||||
| Contractual interest on credit facilities payable, net(1) | 7,574 | 5,035 | 18,702 | |||||||
| Amortization of deferred financing costs on credit facilities payable | 887 | 919 | 641 | |||||||
| Interest expense | $ | 184,201 | $ | 180,855 | $ | 200,199 | ||||
| Adjusted EBITDAFVA | $ | 610,335 | $ | 612,148 | $ | 657,680 | ||||
| Interest Coverage Ratio (times)(3) | 3.3 | x | 3.4 | x | 3.3 | x | ||||
| (1) Includes net CCIR and IR swap interest, offsetting contractual interest. (2) Net of capitalized interest expense. (3) Interest Coverage Ratio is calculated using Adjusted EBITDAFVA divided by interest expense. |
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Reconciliation of Unitholders’ Equity to NAV:
| ($ Thousands, except per unit amounts) | ||||||||||
| As at | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
| Unitholders’ equity | $ | 8,492,525 | $ | 8,761,196 | $ | 8,989,395 | ||||
| Adjustments: | ||||||||||
| Exchangeable LP Units | 51,305 | 53,270 | 62,329 | |||||||
| Unit-based compensation financial liabilities excluding ERES RUR and ERES unit options | 22,408 | 23,826 | 24,067 | |||||||
| Deferred income tax liability | 1,332 | 4,140 | 24,981 | |||||||
| Deferred income tax asset | — | — | (86 | ) | ||||||
| Derivative financial assets – non-current | — | — | (7,500 | ) | ||||||
| Derivative financial assets – current | (10,386 | ) | (1,878 | ) | (450 | ) | ||||
| Derivative financial liabilities – current | 294 | 2,739 | 3,639 | |||||||
| Adjustment to ERES non-controlling interest(1) | (30,484 | ) | (33,714 | ) | (64,296 | ) | ||||
| NAV | $ | 8,526,994 | $ | 8,809,579 | $ | 9,032,079 | ||||
| Diluted number of units | 155,627 | 156,180 | 162,562 | |||||||
| NAV per unit – diluted(2) | $ | 54.79 | $ | 56.41 | $ | 55.56 | ||||
| (1) CAPREIT accounts for the non-controlling interest in ERES as a liability, measured at the redemption amount, as defined by the ERES Declaration of Trust, of ERES’s units not owned by CAPREIT. The adjustment is made so that the non-controlling interest in ERES is measured at ERES’s disclosed NAV, rather than the redemption amount. The table below summarizes the calculation of the adjustment to ERES non-controlling interest as at March 31, 2026, December 31, 2025 and March 31, 2025. | ||||||||||
| ($ Thousands) | ||||||||||
| As at | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
| ERES’s NAV | € | 208,052 |
€ | 209,986 | € | 462,904 | ||||
| Ownership by ERES non-controlling interest | 35 | % | 35 | % | 35 | % | ||||
| Closing foreign exchange rate | $ | 1.60276 | $ | 1.60937 | $ | 1.55329 | ||||
| Impact to NAV due to ERES’s non-controlling unitholders | $ | 116,710 | $ | 118,281 | $ | 251,658 | ||||
| Less: ERES Units held by non-controlling unitholders | (86,226 | ) | (84,567 | ) | (187,362 | ) | ||||
| Adjustment to ERES non-controlling interest | $ | 30,484 | $ | 33,714 | $ | 64,296 | ||||
| (2) NAV per unit – diluted is calculated using NAV as at period end divided by diluted number of units as at period end. | ||||||||||
