Constructive In Our Outlook
Price Target 56.50
• We remain constructive in our outlook for multifamily and believe CAP REIT's units present good
value, despite the +10% move so far this week on positive broad market sentiment.
• The near-term asset class outlook has been muted by lower multifamily rental demand arising from
COVID-19 and rent freeze legislation in Ontario, which will likely add some short-term pressure on
occupancy and rent growth.
• That said, the in-place average rent is still estimated to be ~20% below market, providing a
comfortable cushion. We believe the long-term fundamental growth drivers remain intact.