CAPREIT Reports First Quarter 2025 Results

Core Insights - CAPREIT reported its operating and financial results for Q1 2025, highlighting a strategic focus on simplifying its platform and upgrading its Canadian apartment portfolio [1][8]. Financial Performance - Operating revenues for Q1 2025 were $253.3 million, down 8.2% from $275.8 million in Q1 2024 [4]. - Net operating income (NOI) decreased to $158.0 million, a 10.7% decline from $177.0 million in the previous year [4]. - The NOI margin fell to 62.4% from 64.2% year-over-year [4]. - Funds From Operations (FFO) per unit diluted was $0.585, down 3.9% from $0.609 in Q1 2024 [4][45]. - The FFO payout ratio increased to 65.4% from 59.5% [4]. Portfolio Performance - As of March 31, 2025, CAPREIT's total portfolio consisted of 47,197 suites, down from 48,696 suites as of December 31, 2024 [2]. - The fair value of investment properties was approximately $14.94 billion, a slight increase from $14.87 billion at the end of 2024 [2]. - Occupancy rates improved slightly in the Canadian residential portfolio to 97.9% from 97.5% in the previous quarter [2][8]. - The average monthly rent (AMR) for the Canadian residential portfolio increased by 5.7% year-over-year [8]. Strategic Initiatives - CAPREIT completed $400 million in strategic dispositions in Canada and Europe, with additional divestments of approximately $522 million expected from the Netherlands [8]. - The company reinvested $137 million of net proceeds into acquiring high-quality mid-market rental properties at prices below replacement cost [8]. - CAPREIT's normal course issuer bid (NCIB) program saw the purchase and cancellation of approximately 0.6 million Trust Units at an average price of $42.79 per unit [8][12]. Balance Sheet Highlights - Total debt to gross book value was 37.7%, down from 38.4% at the end of 2024 [5]. - Cash and cash equivalents stood at $119.0 million, with available borrowing capacity of $195.6 million [5][16]. - Unitholders' equity was approximately $8.99 billion, with a net asset value (NAV) per unit of $55.56, slightly up from $55.50 at the end of 2024 [5][16]. Subsequent Events - CAPREIT announced the sale of 1,446 residential suites in the Netherlands for approximately $522 million, expected to close between early August and mid-September 2025 [16]. - The company acquired an additional 102 suites in Montréal for $39.7 million in April 2025 [16].