CAPREIT Reports Fourth Quarter and Year End 2025 Results

Core Insights - CAPREIT reported its operating and financial results for the year ended December 31, 2025, highlighting a strategic focus on enhancing business value and financial resilience through significant property transactions [1][9]. Financial Performance - For the three months ended December 31, 2025, operating revenues decreased to $243.3 million from $276.4 million in 2024, while net operating income (NOI) fell to $158.1 million from $177.9 million [4][38]. - The net income for the year ended December 31, 2025, was $197.1 million, a recovery from a loss of $48.8 million in 2024 [4][9]. - Funds From Operations (FFO) per unit increased to $2.541 in 2025 from $2.534 in 2024, with a payout ratio of 60.8% [4][9]. Portfolio Performance - As of December 31, 2025, CAPREIT's total portfolio consisted of 45,905 suites, down from 48,696 in 2024, with a fair value of approximately $14.7 billion [2][53]. - The occupancy rate for the total portfolio was 97.1%, slightly down from 97.2% in 2024, with the Canadian residential portfolio at 97.3% and the Netherlands portfolio at 90.6% [2][21]. Strategic Initiatives - CAPREIT completed $2 billion in gross transaction volume in 2025, including the acquisition of 15 properties with 1,891 suites for $658.6 million and the disposition of 4,600 suites for $1.2 billion [9][13]. - The company has focused on repositioning its portfolio towards higher-yielding Canadian properties and enhancing operational efficiency, resulting in a same property NOI margin increase to 64.7% for the year [9][14]. Balance Sheet Highlights - As of December 31, 2025, total debt to gross book value was 39.3%, with a weighted average mortgage interest rate of 3.30% and a debt service coverage ratio of 1.9 times [6][19]. - Cash and cash equivalents were reported at $33.2 million, with available borrowing capacity of $182.0 million on its Acquisition and Operating Facility [6][19]. Subsequent Events - Subsequent to year-end, CAPREIT disposed of an additional 33 suites in the Netherlands for a gross sale price of $16.3 million [16][49].