Canadian Apartment Properties (CAR.UN-T)
373 watching
TSE:CAR.UN
43.00
0.41
(0.96%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Oct 4, 2022, 8:00 pm
0
TOP PICK
Stockchase Research Editor: Michael O'Reilly Rising interest rates have impacted the support for this REIT lately; however, given the demand for rental property the value looks good here making Canada's largest residential REIT a TOP PICK. Trading at 11x earnings and under book value, the yield looks supportable with a payout ratio under 40% of cash flow. We recommend placing a stop loss at $36, looking to achieve $61 -- upside over 48%. Yield 3.57% (Analysts’ price target is $60.95)
investment companies / funds
$40.390
Unknown
HOLD
Largest Canadian apartment REIT ($7 billion market cap).
Has owned shares in the past.
Regulatory issues with regards to rental properties a concern.
Share prices reflecting concern regulatory issues will cap profits.
Trading at a discount to net asset value.
investment companies / funds
TOP PICK
Bellwether for apartment REITs. Always so expensive, but now trades at discount to NAV. Biggest concern is energy costs, but these have come down, which will help margins. Rents can be raised about 6-7% on churn. Dynamics are good. Gets funding through CMHC, so loan spreads are not an issue. More apartments needed. Yield is 3.43%. (Analysts’ price target is $57.87)
investment companies / funds
WATCH
She's looking at it, because shares have fallen a lot. But there is demand for apartments. Apartment REITs are down because of higher interest rates. True, rents are rising a lot, but there is also rent control which caps that in older buildings, and some rent increases aren't keeping up with rising costs. That said, the long-term outlook is attractive. Also, she likes CAP REIT's stake in Europe.
investment companies / funds
WATCH
Before, it was richly valued. The pandemic saw money flow out of office and retail REITs into apartments. Now, that's come off, post-Covid. He sees a tougher time ahead for all real estate, though apartments should be stable and will benefit from a softer economy. Their 3% dividend isn't enough to convince him to buy in this inflationary period. Not sure where the share appreciation will come from. He continues to watch it.
investment companies / funds
BUY
Allan Tong’s Discover Picks CAR.UN stock trades at a 12.31x PE which has more than doubled since the end of June. That would be a cause of concern if it wasn’t for the 18.42x PE which hasn’t changed in that time frame. Its 3.25% dividend is safe at its 39.76% payout ratio. Read 3 Promising REIT Stocks for our full analysis.
investment companies / funds
WEAK BUY
Nothing wrong with this name. Very well run. Interest rate sensitivity is lower than you think, as they can access CMHC financing. He'd prefer BEI.UN, with a discount on valuation and comparable growth profile. BEI.UN gives you potential for growth and for multiple expansion.
investment companies / funds
PAST TOP PICK
(A Top Pick Jan 25/22, Down 11%) Reliable income that tends to rise over time. Not an exciting stock, but will let you sleep at night. A major Canadian REIT.
investment companies / funds
TOP PICK
It sounds counter-intuitive being in the real estate market at a time of aggressive interest rate hikes from the Bank of Canada. However there has been a significant cooling down of the housing market with house prices down from March by 10 to 20% in some parts of the country. Some people have paid too much and may be moving out of the market to become renters. Therefore the demand for rentals will increase. He has added and is still adding. Buy 13 Hold 1 Sell 0. (Analysts’ price target is $59.81)
investment companies / funds
BUY
All REITs have come down as interest rates rise. CAP REIT is the largest apartment REIT in Canada and has been incredibly well-run for decades. It offers decent growth because rents are rising. Likes it. Sees growth in share price and dividend. Long term this is a compelling hold.
investment companies / funds
BUY
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. Read 3 defensive stocks to find stability with your money for our full analysis.
investment companies / funds
DON'T BUY
High governance. Hurt by higher utility prices and its high valuation. Rent growth is growing, but this will take a while. Higher interest rates will take their toll. His proxy is KMP.UN, focused in Nova Scotia, with a growth profile of immigration coming into Halifax.
investment companies / funds
PAST TOP PICK
(A Top Pick Mar 30/21, Down 3%) He lightened up on price strength. Market worries about renovictions. 17.5% discount to NAV, an opportunity to buy at these levels.
investment companies / funds
BUY on WEAKNESS
Likes Canadian apartment REITs as a defensive asset class. Stable rent collections. Higher valuations right now. His go-to name is BEI.UN. Sector is rich, wait for a pullback.
investment companies / funds
HOLD
This is the only one he owns, the largest in Canada, incredibly well run, a solid income play. If rates keep going up, the sector will see volatility, because people buy REITs for income.
investment companies / funds
Canadian Apartment Properties(CAR.UN-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 11
Neutral - Hold Signals / Votes : 3
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 15
Canadian Apartment Properties(CAR.UN-T) Frequently Asked Questions
What is Canadian Apartment Properties stock symbol?
Canadian Apartment Properties is a Canadian stock, trading under the symbol CAR.UN-T on the Toronto Stock Exchange (CAR.UN-CT). It is usually referred to as TSX:CAR.UN or CAR.UN-T
Is Canadian Apartment Properties a buy or a sell?
In the last year, 15 stock analysts published opinions about CAR.UN-T. 11 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Canadian Apartment Properties.
Is Canadian Apartment Properties a good investment or a top pick?
Canadian Apartment Properties was recommended as a Top Pick by on . Read the latest stock experts ratings for Canadian Apartment Properties.
Why is Canadian Apartment Properties stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Canadian Apartment Properties worth watching?
15 stock analysts on Stockchase covered Canadian Apartment Properties In the last year. It is a trending stock that is worth watching.
What is Canadian Apartment Properties stock price?
On 2022-10-04, Canadian Apartment Properties (CAR.UN-T) stock closed at a price of $43.
