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Canadian Apartment Properties (CAR.UN) faces both opportunities and challenges as a significant player in the multi-family residential space. Despite experiencing pressure from rising interest rates, decreased immigration, and rent control measures, experts note that CAR.UN has a strong portfolio, particularly in Ontario. The company benefits from cash flow growth by selling older properties and acquiring newer ones that are not subject to rent control. Analysts recommend caution, as CAR.UN's performance is sensitive to economic conditions and housing market dynamics. Long-term prospects may remain promising if the company can navigate current challenges, including interest rate fluctuations and evolving tenant demand.
Generally, caution is warranted in apartments. Stocks are now coming into interesting levels. Great population growth, but could turn negative next year. Very good portfolio. Selling older buildings and buying new from developers. So cashflow growth should improve -- buildings won't need such extensive repairs, plus new buildings are not subject to rent control.
Sale of manufactured housing communities business will give them lots of cash. Look for share buybacks. Long term, feels good about multi-family residential. Just sit through the mid-term volatility.
In his balanced portfolio to provide income rather than growth. Not the greatest ride for REITs the last few years. Not seeing the pickup in turnover needed in multi-family residential, people need to leave so you can get higher rents. Lots of buildings are under rent control. Yet maintenance costs keep going up.
Cleaned up balance sheet, sold some assets. Future depends on more turnover, which won't happen until interest rates are at a more attractive level (which encourages more people to start buying houses).
Long-term, yes, for residential REITs, like apartment ones. They also benefit from more immigration. This leads to higher rents. InterRent, Minto and CAP are his preferreds in this space. CAP is the biggest, and they hold a super-quality portfolio that they've been upgrading in recent years. All these are focused in Ontario. but they benefit from lower interest rates. A caveat: Ottawa is slowing immigration to Canada, which feeds demand for apartments. Expect choppiness, but these are good holds.
The pay around a 3% dividend, so considers this an income stock. The private apartment rental market they're in is very tight. Half their apartments are in Ontario which has a rent increase cap, so rent rises only 2.5% upon renewal, but over 20% if a tenant leaves. So there's room to raise rental rates to market rates. Also, they're good at selling pre-2018 properties and buying post-2018 ones which don't have rent control.
(Analysts’ price target is $56.79)REIT sector has lagged with interest rates going up. Largest in Canada. Feels rental market will stay quite strong and robust. Good demand with immigration. Shortage of multi-family housing across Canada. 50% exposure in Ontario, which has rent control. Selling older properties, investing in newer and refurbishing. Yields only around 3%, but very safe, good potential for increases. Buys back stock instead of a high dividend.
Press report of offloading manufactured homes, accounts for only 5% of its business. If came through, capital would be deployed into capital recycling program to invest in more modern units.
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
In the last year, 10 stock analysts published opinions about CAR.UN-T. 2 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Canadian Apartment Properties.
Canadian Apartment Properties was recommended as a Top Pick by on . Read the latest stock experts ratings for Canadian Apartment Properties.
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.
10 stock analysts on Stockchase covered Canadian Apartment Properties In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Canadian Apartment Properties (CAR.UN-T) stock closed at a price of $42.74.
CHP.UN is far more defensive. Great portfolio, with about 20% in industrial warehouse space (a sector he's quite bullish on). If you want defense, this is your better bet.
With CAR.UN, you have to think about affordability and how defensive is the tenant base and the cashflow from that base. Great portfolio, with higher concentration in Ontario -- something to keep in mind if you're concerned about tariffs and loss of manufacturing jobs in southwestern Ontario. See his Top Picks.