TSX:CAR.UN - Post Discussion
Post by
Possibleidiot01 on Sep 19, 2023 2:17pm
David Baskin - BNN - TOP PICK
Canadian Apartment Properties REIT (CAR.UN TSX) CAPREIT is the largest apartment landlord in Canada. CAPREIT’s portfolio historically focuses on older rent-controlled buildings and CAPREIT has been hurt in recent years by strict rent control guidelines, cost inflation, and low moving activity. CAPREIT has shifted its portfolio strategy recently to focus on acquiring newly completed buildings that are not subject to rent control, at prices below replacement cost, which should result in stronger rent growth going forward. With the current housing crisis, CAPREIT will also benefit from looser land-use restrictions by developing its unused space such as parking lots. We think shares are attractively valued at a 20 per cent discount to net asset value. We should see the distribution and the yield rise as the average rents increase.
Be the first to comment on this post