TSX:CAR.UN - Post Discussion
Post by
retiredcf on Nov 10, 2020 9:09am
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
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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%)..
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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%).
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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.
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Rent Collections are 99%+ YTD.
Acquisition/Disposition/Development Activity
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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
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Disposed of a 188-unit Calgary townhome property for $30.5mm (~$162,235/unit).
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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
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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.
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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.
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Leverage (Debt/GBV) was -30bps q/q to 36.0%. Management expects to raise $900-$950mm in total mortgage renewals and refinancings in 2021.
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