CAPREIT Reports Third Quarter 2025 Results

Core Insights - CAPREIT reported its operating and financial results for the three and nine months ended September 30, 2025, highlighting a focus on increasing free cash flow and strong earnings for unitholders [1][9][10] Portfolio Performance - As of September 30, 2025, CAPREIT's total portfolio consisted of 45,028 suites, with a fair value of approximately $14.48 billion, down from 48,696 suites and $14.87 billion in December 2024 [2][45] - The occupancy rate for the total portfolio increased to 97.6% compared to 97.3% in September 2024, while the Canadian residential portfolio occupancy was 97.8%, slightly down from 98.0% [2][18] Financial Performance - For the three months ended September 30, 2025, operating revenues were $252.32 million, a decrease of 10.7% from $282.44 million in the same period last year [4][32] - Net operating income (NOI) for the same period was $167.82 million, down 11.4% year-over-year, with an NOI margin of 66.5% [4][27] - Funds From Operations (FFO) per unit for the quarter was $0.663, a slight increase of 0.6% compared to the same period last year [4][15] Strategic Initiatives - CAPREIT's capital recycling program has improved performance, with proceeds from targeted dispositions reinvested into high-quality Canadian properties [9][10] - The company disposed of 1,559 residential suites for a gross sale price of $645.9 million in Q3 2025, contributing to a total of 4,594 suites sold for $1.19 billion in the nine months ended September 30, 2025 [12][33] Operational Metrics - The average monthly rent (AMR) for the Canadian residential portfolio increased by 3.6% for the three months ended September 30, 2025, compared to a 7.4% increase in the same period last year [11][17] - The weighted average gross rent per square foot for Canadian residential suites was approximately $2.04 as of September 30, 2025, up from $1.94 a year earlier [19] Balance Sheet Highlights - As of September 30, 2025, CAPREIT's total debt to gross book value was 37.7%, down from 40.9% a year earlier, indicating improved leverage [6] - The company had cash and cash equivalents of $102.21 million and available borrowing capacity of $196.66 million on its Acquisition and Operating Facility [6][10] Subsequent Events - CAPREIT acquired a property with 162 suites in London, Ontario, for a gross purchase price of $56.2 million on October 7, 2025 [40]