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

Allan Tong

[Possibleidiot01]

BUY

Canadian Apartment Properties(CAR.UN-T)

20/06/2022 at 08:00pm

 

Allan Tong’s Discover Picks I reiterate a buy on this renown REIT, especially after shares have slid $15 this year to below $44 to 52-week lows, while the dividend has climbed from well below 3% to 3.35%. CAP REIT owns 57,000 units particularly prime real estate in Ontario and to a lesser extent, Quebec. It’s the largest multi-residential REIT on the TSX. CAP REIT’s occupancy rate was 98.6% as stated in the company’s 2021 annual report. The PE is now an attractive 5.75x, though admittedly higher than other residential REITs like Boardwalk, as noted above.
 

investment companies / funds

$0.000

Owned

[Defiance2050]

Kind off blows the recomendation away when someone references P/E ratios on Reits. As it include non-operational aspects such as property valuations.  But we are in a panic sell everything environment. But Residential and Apartment Reits benefits from higher inflation and dont directly get impacted by higher rates. Fixed rates over 3 year maturity rate on average at close to previous prime

[AlwaysLong683]

I agree Defiance.  Adjusted Funds from Operations (AFFO) would be the figure I would look at. Not sure why Mr. Tong is commenting on a REIT if he thinks P/E is a key metric. The Stockchase website list's him as linked to "Stockchase Discover" (not sure what that is), so he may not be a specialist in REIT analysis and perhaps shouldn't be commenting on REITs.....? 

[AlwaysLong683]

For those interested: Two exerpts from CAR.UN's Q1 2022 Financial Report dated March 31, 2022: page 1: For the first three months of 2022, Normalized Funds from Operations (NFFO) increased by 1.8% compared to the same period from last year, primarily due to the increase in operating revenues. Basic NFFO per Unit was consistent with the prior year, despite the 1.7% increase in the weighted