TSX:CAR.UN - Post Discussion
Post by
retiredcf on Mar 01, 2022 8:28am
TD
Have a $70.00 target. GLTA
Canadian Apartment Properties REIT
(CAR.UN-T) C$52.76
CAPREIT Announces Scott Cryer Stepping Down as CFO Event
Last night, CAPREIT announced that CFO Scott Cryer will be departing to pursue other opportunities, effective April 15, 2022
Impact: NEUTRAL
Our Take: Although this announcement was unexpected, we do not believe Mr. Cryer's departure will have a material impact on the REIT moving forward. A formal search process has commenced to appoint a successor and will include both internal and external candidates. Mr. Cryer had served as the REIT's CFO for over a decade. He also served as the initial CFO of both IRES REIT (HOLD-rated, €1.75 target price) and ERES REIT (BUY-rated, $6.00 target price).
Stephen Co will be assuming the role as CAPREIT's interim CFO after a six-week transition period. Mr. Co has been with CAPREIT since 2011 and currently serves as Vice President, Accounting. Mr. Co also currently holds the position of CFO of ERES, a role he assumed in January 2021, replacing Mr. Cryer. Before joining CAPREIT, Mr. Co worked at PwC, serving clients in the real-estate sector. He holds CPA, CA, and CFA designations. Given Mr. Co's 11-year tenure at CAPREIT, and his current role as CFO of ERES, we believe he is well-positioned to fill the role on an interim basis.
Currently, there is no expected timing on when a permanent replacement will be named.
Valuation. CAPREIT is currently trading at 25.2x 2022F AFFO/unit, which compares with its closest peers (KMP.un, IIP.un, MI.un, and BEI.un) that are trading at 26.1x. On P/NAV, the REIT is trading at a 15% discount versus its closest peers at an ~10% discount and its long-term average of a 2% premium.
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