Bullboard - Stock Discussion Forum 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... see more

Add To Watchlist

TSX:CAR.UN - Post Discussion

Canadian Apartment Properties Real Estate Investment Trust > RBC

View:

Post by retiredcf on Nov 10, 2020 9:01am

RBC

November 9, 2020

CAPREIT

Solid Q3 results

Impact: Positive

Q3/20 NFFO/unit of $0.59 was a solid print, above (+6%) our $0.55E and a tad above consensus of $0.57E.

Q3/20 Highlights

NFFO/unit (diluted): $0.587, +6% YoY from Q3/19’s $0.556 and +6% relative to our $0.553E. Consensus was $0.57E.
NOI margin flat YoY: Q3/20 NOI margin was 66.9%, effectively flat YoY (+10 bps; 66.8%) and well above our 64.7% forecast. Revenues of $221.5MM were in line with our $221.9MM forecast. Utilities, property taxes, and other operating costs were slightly favourable to forecast. Bad debts (0.3% of revenue) were materially lower than our 1.8% of revenue forecast and accounted for $0.02/unit of the “beat”.
Healthy SPNOI growth: +4.0%, on organic revenue growth of 2.8% (largely driven by higher rents on turnovers) and offset by expense growth of 0.5%. Operating expenses were impacted by higher utilities expenses and offset by lower R&M costs.
Strong AMR growth on turnovers; rent increases on renewals resume: AMR increases on Q3 suite turnovers (6.1% of the portfolio) averaged +7%. AMR increases on lease renewals (20.6% of suites in Q3) were +1.1%, as CAPREIT re-introduced rent increases following a temporary moratorium through the summer.
High/steady occupancy: Q3/20 occupancy of 97.7% ticked down -30 bps QoQ (98.0%) and -50 bps YoY (98.2%).
Solid liquidity and steady/conservative leverage: As at Q3/20, corporate liquidity of $372MM was in the form of $234MM of cash + $138MM of undrawn credit facilities. D/GBV was moderate and steady at 36%, down 30 bps QoQ (36.3%) and 175 bps YoY.
IFRS BVPU: $51.52, +3% QoQ ($49.97) and +11% YoY ($46.55).

$72MM of acquisitions in southwestern Ontario and Halifax: On September 21, CAPREIT completed the acquisitions of two properties in London and Sarnia, including 301 units in aggregate, for $50MM ($166,000/unit). Springbank Manor, London, a six-storey building with 107 studio, one-, and two-bedroom suites, is within walking distance of the Thames River and a local shopping mall. Pontiac Court, Sarnia, has 194 units within one ten-storey apartment building, a three-storey building, 60 townhomes, and one commercial building. On August 13, CAPREIT purchased The Sterling, an 88-unit property (22 one-bedroom units; 66 two-bedroom units) in West Bedford, a northwest suburb of Halifax, for $22MM ($255,000/unit).

Conference call: Tuesday, November 10, at 9AM ET; dial-in 1-833-714-0874 (access code: 7396279).