Canadian Apartment Properties Real Estate Investment Trust T.CAR.UN

Alternate Symbol(s): CDPYF

Canadian Apartment Properties Real Estate Investment Trust is a Canada-based provider of rental housing. The Company owns and manages interests in multiunit residential rental properties, including apartments, townhomes and manufactured home communities (MHC), principally located in and near urban centers across Canada. The Company owns approximately 64,300 residential apartment suites, town homes and manufactured home community sites located across Canada and the Netherlands, with approximately $16.5 billion of investment properties in Canada and Europe. The Company’s objectives are to maintain a focus on maximizing occupancy and responsibly growing occupied average monthly rent (Occupied AMR) in accordance with local conditions in each of its markets; grow FFO per unit, sustainable distributions and NAV per unit by actively managing its properties; invest capital within the property portfolio and adopt edge technologies and solutions; and maintain financial management.

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Canadian Apartment Properties Real Estate Investment Trust

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Post by retiredcfon Nov 10, 2020 9:09am

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Post# 31869150

TD

Maintain their Action Buy List and $59.00 target. GLTA

Canadian Apartment Properties REIT

(CAR.UN-T) C$47.31

Q3/20 First Look: Results in Line; SPNOI +4.0%

Event

Q3/20 results

Impact: NEUTRAL

Q3/20 NFFO/unit (f.d.) was $0.59, +6% versus Q3/19, directly in line with our estimate and $0.02 ahead of consensus. AFFO/unit (our calculation) of $0.51 was also in line.

Conference call today at 9:00 AM ET (1-833-714-0874; passcode: 7396279).

Operating Highlights

Canadian Residential Suite SPNOI growth was +3.5% (YTD: +4.1%), on a 2.2% increase in revenue and a modest 0.2% decline in operating expenses. SPNOI margins were +80bps y/y to 66.3%. Ontario (50% of SPNOI) was +4.0%, Quebec (18%) was +9.0%, and B.C. (13%) was +0.8%. MHC SPNOI was -1.0% (YTD: +2.6%). Total portfolio SPNOI including Europe (ERES Q3 results here) was +4.0% (YTD +4.1%)..
Residential suite same-property occupancy was -60bps y/y at 98.2%. Net AMR increased 3.4% y/y to $1,283 due to gains on turnovers in Ontario (+3.2%), Quebec (+1.7%), and B.C. (+2.3%).
Canadian Portfolio generated +7.0% AMR growth on suite turnover (6.1% of suites) on strength in Ontario and Quebec. Management estimates the MTM on its Canadian residential portfolio is ~20%. The REIT's weighted-average rent/sf is ~$1.60.
Rent Collections are 99%+ YTD.

Acquisition/Disposition/Development Activity

Acquired two Western Ontario assets aggregating 301 suites for $50mm (~ $166,100/suite) [link] and an 88-suite apartment property in Halifax for $22.4mm ($254,500/suite). Post-Q3, acquired an Ontario MHC park for $9.0mm ($53,300/ site) and bought out a Toronto operating leases for $7.8mm
Disposed of a 188-unit Calgary townhome property for $30.5mm (~$162,235/unit).
The REIT lowered the number of development projects to seven totaling 6,622 potential suites, from nine totaling 6,988 potential suites. During the quarter received development entitlements for a project in the GTA and a project in PEI.

Balance Sheet

Q3 IFRS property-level FV increase of $233.4mm ($1.36/unit), driven largely by an 8bps q/q decline in the average cap rate to 3.99%. IFRS NAV is +3% to $51.66.
CAPREIT had $372.2mm of liquidity ($234.4mm cash; $137.8mm available on credit lines), up from $338.2mm at Q2/20. The REIT has unencumbered assets valued at $817.2mm.
Leverage (Debt/GBV) was -30bps q/q to 36.0%. Management expects to raise $900-$950mm in total mortgage renewals and refinancings in 2021.