CAPREIT Reports Fourth Quarter and Year End 2025 Results

Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.Not for distribution to U.S. newswire services or for dissemination in the United States.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.TORONTO, Feb. 12, 2026 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX: CAR.UN) announced today its operating and financial results for the three months and year ended December 31, 2025. Management will host a conference call to discuss the financial results on Friday, February 13, 2026 at 9:00 a.m. ET.HIGHLIGHTS(1) As at December 31, 2025, includes 410 suites in Europe classified as assets held for sale (December 31, 2024 – 1,803 suites and sites in Canada and Europe), but excludes commercial suites. (2) Investment properties exclude assets held for sale, as applicable.(3) Occupied average monthly rent (“Occupied AMR”) is defined as actual residential rents divided by the total number of occupied suites or sites in the property, and does not include revenues from parking, laundry, or other sources.(4) Excludes manufactured home communities (“MHC”) sites.(5) Includes MHC sites, as applicable.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.(1) These measures are not defined by IFRS Accounting Standards (“IFRS”), do not have standard meanings and may not be comparable with other industries or companies. Please refer to the cautionary statements under the heading “Non-IFRS Measures” and the reconciliations provided in this press release.(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies. Please refer to the cautionary statements under the heading “Non-IFRS Measures” and the reconciliations provided in this press release. (2) Based on the trailing four quarters.(3) Consists of $6,238 and $26,938 in Canada and Europe, respectively (December 31, 2024 – $122,941 and $13,302, respectively).(4) Excludes unused accordion option of $200,000 (December 31, 2024 – $200,000). As at December 31, 2025, includes a temporary increase of $100,000 which matures on April 30, 2026.(5) Consists of Trust Units, which are classified as Unitholders’ Equity, as well as Exchangeable LP Units, deferred units (“DUs”), restricted unit rights (“RURs”), and performance unit rights (“PURs”), which are classified as liabilities.“In 2025, we delivered on our commitment to enhance the value of our business and sharpen our strategic focus, completing $2 billion in gross transaction volume,” commented Mark Kenney, President and Chief Executive Officer. “With the majority of our non-core divestments now behind us, we enter this next chapter with a better-positioned, future-ready portfolio – one characterized by improved financial resilience, greater operating efficiency, and a higher cash flow profile. Coupled with active property management, this optimized, high-quality, mid-market apartment portfolio in Canada has performed well, even during a temporary period of softer market fundamentals. Looking ahead, and until such time that supply-demand dynamics become more positive, we remain committed to our current strategy, and confident that we can continue to elevate the living experience of our residents, and produce stable, sustainable value for our Unitholders.”“Our 2025 performance reflects the impact of a consistently strong financial structure, a deliberate repositioning of the portfolio toward higher-yielding Canadian properties, and prudent operational refinement,” added Stephen Co, Chief Financial Officer. “In particular, we were extremely focused this year on advancing our leasing and retention initiatives, lowering controllable expenditures, and reinforcing procurement governance. As a result, we expanded our same property margin by 50 basis points to 64.7% for the year ended December 31, 2025, underscoring the strength of our collective effort and organization-wide commitment to CAPREIT’s strategy. Further supported by disciplined capital allocation, earnings also improved, and diluted FFO per Unit rose to $2.541 in 2025. With a conservative balance sheet and low leverage of 39% at year end, we continue to benefit from the financial flexibility needed to pursue new opportunities in an evolving operating environment, and drive additional growth in earnings and cash flow in 2026.”SUMMARY OF Q4 AND YEAR END 2025 RESULTS OF OPERATIONSStrategic Initiatives UpdateOperating ResultsBalance Sheet HighlightsSubsequent EventsOPERATIONAL AND FINANCIAL RESULTS Portfolio Occupied Average Monthly Rents(1) Includes assets held for sale, as applicable.(2) Same property Occupied AMR and occupancy include all properties held as at December 31, 2024, but exclude properties disposed of or held for sale as at December 31, 2025.The rate of growth in total portfolio Occupied AMR has been primarily driven by (i) new acquisitions completed over the past 12 months; and (ii) same property operational growth. The rate of growth in same property Occupied AMR has been primarily due to (i) rental increases on turnover in the rental markets of most provinces across the Canadian portfolio; and (ii) rental increases on renewals.Occupancy for the total portfolio as at December 31, 2025 decreased by 0.1 percentage points to 97.1% compared to December 31, 2024. Occupancy for the total Canadian residential portfolio as at December 31, 2025 decreased by 0.2 percentage points to 97.3% compared to December 31, 2024, given recent short-term fluctuations in residential market dynamics. Occupancy for the Netherlands total portfolio as at December 31, 2025 decreased by 4.0 percentage points to 90.6% compared to December 31, 2024, predominantly due to ERES’s disposition program, with a number of suites strategically kept vacant each month after residents end their lease in order to maximize sale value.The weighted average gross rent per square foot for total Canadian residential suites was approximately $2.05 as at December 31, 2025, having increased from $1.98 as at December 31, 2024.Canadian Residential PortfolioAs at December 31, 2025, approximately 73% (December 31, 2024 – 77%) of the occupied suites in the Canadian residential portfolio have residents who have been in the suite for two years or longer, with the balance in the suite for less than two years.(1) Percentage of suites turned over or renewed during the period is based on the total weighted average number of residential suites held during the period. (2) The table below summarizes the changes in monthly rent from suite turnovers, by lease tenure, for the three months ended December 31, 2025 and December 31, 2024.(3) Turnover percentages by lease tenure are calculated as the number of suite turnovers within each tenure category divided by the total number of suite turnovers during the period.(1) Percentage of suites turned over or renewed during the year is based on the total weighted average number of residential suites held during the year.(2) The table below summarizes the changes in monthly rent from suite turnovers, by lease tenure, for the year ended December 31, 2025 and December 31, 2024.(3) Turnover percentages by lease tenure are calculated as the number of suite turnovers within each tenure category divided by the total number of suite turnovers during the period.The Netherlands Residential Portfolio(1) Percentage of suites turned over during the period is based on the total weighted average number of the Netherlands residential suites held during the period. (2) On turnover, rents decreased by 2.3% on 3.6% of the Netherlands same property residential portfolio for the three months ended December 31, 2025 compared to an increase of 10.9% on 2.6% of the Netherlands same property residential portfolio for the three months ended December 31, 2024. Same property residential portfolio for turnover purposes includes all properties continuously owned since December 31, 2023, and excludes properties and suites disposed of or held for sale as at December 31, 2025.(1) Percentage of suites turned over during the year is based on the total weighted average number of the Netherlands residential suites held during the year. (2) On turnover, rents increased by 11.4% on 11.4% of the Netherlands same property residential portfolio for the year ended December 31, 2025 compared to an increase of 8.1% on 11.3% of the Netherlands same property residential portfolio for the year ended December 31, 2024. Same property residential portfolio for turnover purposes includes all properties continuously owned since December 31, 2023, and excludes properties and suites disposed of or held for sale as at December 31, 2025.Net Operating IncomeSame properties for the three months and year ended December 31, 2025 are defined as all properties owned by CAPREIT continuously since December 31, 2023, and therefore do not take into account the impact on performance of acquisitions or dispositions completed during 2024 or 2025, or properties that are classified as held for sale as at December 31, 2025.(1) Represents the year-over-year percentage change. (2) Comprises parking and other ancillary income such as laundry and antenna revenue.(3) Comprises repairs and maintenance (“R&M”), wages, insurance, advertising, legal costs and expected credit losses.(1) Represents the year-over-year percentage change. (2) Comprises parking and other ancillary income such as laundry and antenna revenue.(3) Comprises R&M, wages, insurance, advertising, legal costs and expected credit losses.The following table reconciles same property NOI and NOI from acquisitions, dispositions and assets held for sale to total NOI, for the three months and years ended December 31, 2025 and December 31, 2024:Operating RevenuesFor the three months ended December 31, 2025, same property operating revenues increased by $6.0 million, primarily driven by increases in monthly rents on turnovers and renewals. Total operating revenues decreased by $33.1 million during the same period, mainly due to lost revenue from dispositions and assets held for sale as at December 31, 2025 totalling $47.2 million, primarily due to the MHC and ERES portfolio dispositions in 2024, partially offset by revenue generated from acquisitions totalling $8.1 million and operational growth of $6.0 million on the same property operating portfolio as at December 31, 2025.For the year ended December 31, 2025, same property operating revenues increased by $33.7 million, primarily driven by increases in monthly rents on turnovers and renewals. Total operating revenues decreased by $109.4 million during the same period, mainly due to lost revenue from dispositions and assets held for sale as at December 31, 2025 totalling $179.0 million, primarily due to MHC and ERES portfolio dispositions in 2024, partially offset by revenue generated from acquisitions totalling $35.9 million and operational growth of $33.7 million on the same property operating portfolio as at December 31, 2025.Operating ExpensesFor the three months and year ended December 31, 2025, realty taxes for the total property portfolio decreased compared to the same periods in the prior year, primarily due to dispositions in 2024 and 2025, partially offset by acquisitions. For the three months and year ended December 31, 2025, realty taxes for the same property portfolio increased compared to the same periods in the prior year, primarily due to increases in assessed property values and realty tax costs in certain municipalities within the provinces of Ontario, Québec and British Columbia.For the three months and year ended December 31, 2025, total property utilities decreased year-over-year mainly due to lower natural gas costs due to the federal carbon tax removal that came into effect on April 1, 2025 and lower waters costs resulting from the disposition of the MHC portfolio in 2024. These savings were partially offset by higher electricity costs for the year ended December 31, 2025, and by increased consumption due to colder weather in Ontario and Québec during the first quarter.For the three months and year ended December 31, 2025, same property portfolio utilities increased year-over-year, reflecting higher electricity rates in Québec and increased consumption during the colder first quarter, as noted above. In addition, water costs increased mainly due to higher water rates in British Columbia and Ontario. This was partially offset by lower natural gas costs for the three months ended December 31, 2025, mainly due to the federal carbon tax removal that came into effect on April 1, 2025.For the three months and year ended December 31, 2025, other operating expenses for the total property portfolio decreased by $11.0 million and $27.0 million, respectively, or 20.0% and 12.9%, respectively, compared to the same period last year, primarily due to net disposition activity.For the three months ended December 31, 2025, other operating expenses for the same property portfolio decreased by $2.5 million, or 5.7%, compared to the same period last year, primarily due to the following:For the year ended December 31, 2025, other operating expenses for the same property portfolio decreased by $0.4 million, or 0.2%, compared to the same period last year, primarily due to the following:SUBSEQUENT EVENTSThe table below summarizes the disposition of a property, which was classified as asset held for sale as at year end, completed subsequent to December 31, 2025:(1) Gross sale price is the amount stated in the purchase and sale agreement and excludes transaction costs and customary adjustments.ADDITIONAL INFORMATIONMore detailed information and analysis is included in CAPREIT’s consolidated annual financial statements and MD&A for the year ended December 31, 2025, which have been filed on SEDAR+ and can be viewed at www.sedarplus.ca under CAPREIT’s profile or on CAPREIT’s website on the investor relations page at www.capreit.ca.Conference CallA conference call, hosted by CAPREIT’s senior management team, will be held on Friday, February 13, 2026 at 9:00 am ET. The telephone numbers for the conference call are: Canadian Toll Free: +1 (833) 950-0062, International: +1 (929) 526-1599. The conference call access code is 814929.The call will also be webcast live and accessible through the CAPREIT website at www.capreit.ca – click on “For Investors” and follow the link at the top of the page. A replay of the webcast will be available for one year after the webcast at the same link.The slide presentation to accompany management’s comments during the conference call will be available on the CAPREIT website an hour and a half prior to the conference call.About CAPREITCAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at December 31, 2025, CAPREIT owns approximately 45,500 residential apartment suites and townhomes (excluding approximately 400 suites classified as assets held for sale), that are well-located across Canada and, to a lesser extent, the Netherlands, with a total fair value of approximately $14.7 billion (excluding approximately $0.1 billion of assets held for sale). For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosures which can be found under our profile at www.sedarplus.ca.Non-IFRS Measures CAPREIT prepares and releases audited consolidated annual financial statements in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, CAPREIT discloses measures not recognized under IFRS which do not have standard meanings prescribed by IFRS. These include FFO, NAV, Total Debt, Gross Book Value, and Adjusted Earnings Before Interest, Tax, Depreciation, Amortization and Fair Value (“Adjusted EBITDAFV”) (the “Non-IFRS Financial Measures”), as well as diluted FFO per unit, diluted NAV per unit, FFO payout ratio, Total Debt to Gross Book Value, Debt Service Coverage Ratio and Interest Coverage Ratio (the “Non-IFRS Ratios” and together with the Non-IFRS Financial Measures, the “Non-IFRS Measures”). These Non-IFRS Measures are further defined and discussed in the MD&A released on February 12, 2026, which should be read in conjunction with this press release. Since these measures and related per unit amounts are not recognized under IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT presents Non-IFRS Measures because management believes Non-IFRS Measures are relevant measures of the ability of CAPREIT to earn revenue and to evaluate its performance, financial condition, and cash flows. These Non-IFRS Measures have been assessed for compliance with National Instrument 52-112 and a reconciliation of these Non-IFRS Measures is included in this press release below. The Non-IFRS Measures should not be construed as alternatives to net income or cash flows from operating activities determined in accordance with IFRS as indicators of CAPREIT’s performance or the sustainability of CAPREIT’s distributions.Cautionary Statements Regarding Forward-Looking StatementsCertain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to CAPREIT’s future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, occupancy rates, rental rates, productivity, projected costs, capital investments, development and development opportunities, financial results, taxes, plans and objectives of, or involving, CAPREIT. Particularly, statements regarding CAPREIT’s future results, performance, achievements, prospects, costs, opportunities and financial outlook, including those relating to acquisition, disposition and capital investment strategies and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “would”, “should”, “could”, “likely”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “forecast”, “predict”, “potential”, “project”, “budget”, “continue” or the negative thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including: that the Canadian and Dutch economies will generally experience growth, which, however, may be adversely impacted by the geopolitical risks, global economy, inflation and elevated interest rates; potential health crises and their direct or indirect impacts on the business of CAPREIT, including CAPREIT’s ability to enforce leases, perform capital expenditure work, increase rents and apply for above guideline increases (“AGIs”); obtain financings at favourable interest rates; that Canada Mortgage and Housing Corporation (“CMHC”) mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates; that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates; that vacancy rates for CAPREIT properties will be consistent with historical norms; that rental rates on renewals will grow; that rental rates on turnovers will grow; that the difference between in-place and market-based rents will be reduced upon such turnovers and renewals; that CAPREIT will effectively manage price pressures relating to its energy usage; and, with respect to CAPREIT’s financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT’s investment priorities, the properties in which investments will be made, the composition of the property portfolio, the impact and scope of certain commitments and contingencies, and the projected return on investment in respect of specific capital investments. Although the forward-looking statements contained in this press release are based on assumptions and information that is currently available to management, which are subject to change, management believes these statements have been prepared on a reasonable basis, reflecting CAPREIT’s best estimates and judgements. However, there can be no assurance actual results, terms or timing will be consistent with these forward-looking statements, and they may prove to be incorrect. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT’s control, that may cause CAPREIT’s or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: rent control and residential tenancy regulations, general economic conditions, leasing risk, competition for residents, privacy, cyber security and data governance risks, availability and cost of debt, acquisitions and dispositions, valuation risk, liquidity and price volatility of units of CAPREIT (“Trust Units”), catastrophic events, climate change, taxation-related risks (including certain tax liabilities and contingencies), energy costs, environmental matters, vendor management and third-party service providers, operating risk, talent management and human resources shortages, public health crises, other regulatory compliance risks, litigation risk, CAPREIT’s investment in ERES, potential conflicts of interest, investment restrictions, lack of diversification of investment assets, geographic concentration, illiquidity of real property, capital investments, dependence on key personnel, property development, adequacy of insurance and captive insurance, controls over disclosures and financial reporting, the nature of Trust Units, dilution, distributions, and foreign operations and currency risks. There can be no assurance that the expectations of CAPREIT’s management will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT’s Annual Information Form, which can be obtained on SEDAR+ at www.sedarplus.ca, under CAPREIT’s profile, as well as under the “Risks and Uncertainties” section of the MD&A released on February 12, 2026. The information in this press release is based on information available to management as of February 12, 2026. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.SOURCE: Canadian Apartment Properties Real Estate Investment TrustSELECTED NON-IFRS MEASURESA reconciliation of net income to FFO is as follows:(1) For the three months and year ended December 31, 2025, the adjustment is based on applying the 35% weighted average ownership held by ERES non-controlling unitholders (for the three months and year ended December 31, 2024 – 35%).(2) Primarily includes transaction costs and other adjustments on dispositions, amortization of property, plant and equipment (“PP&E”) and right-of-use asset, and enterprise resource planning implementation costs. (3) Included in current income tax expense in the statement of net income and comprehensive income.(4) For the three months and year ended December 31, 2025, includes $100 and $7,965 of reorganization costs (for the three months and year ended December 31, 2024 – $1,489 and $6,673). For the three months and year ended December 31, 2025, includes $nil and $234, respectively, of accelerated vesting of previously granted CAPREIT unit-based compensation (for the three months and year ended December 31, 2024 – $309) and $nil and $1,402, respectively, of accelerated vesting of ERES restricted unit rights (“ERES RUR”) that vested on May 20, 2025 and January 7, 2025 (for the three months and year ended December 31, 2024 – $nil).(5) Relates to forfeitures of previously granted ERES unit options upon restructuring, trustee retirement, and senior management termination.(6) FFO per unit – diluted is calculated using FFO during the period divided by weighted average number of units – diluted. (7) FFO payout ratio is calculated using total distributions declared during the period divided by FFO.Reconciliation of Total Debt and Total Debt Ratios: (1) Gross Book Value (“GBV”) is defined by CAPREIT’s Declaration of Trust.(2) Total Debt to Gross Book Value is calculated using total debt divided by gross book value.(3) Total Mortgages Payable to Gross Book Value is calculated using total mortgages payable divided by gross book value.Reconciliation of Net Income to Adjusted EBITDAFV:Debt Service Coverage Ratio(1) Includes mortgages payable related to assets held for sale, as applicable. (2) Includes net cross-currency interest rate (“CCIR”) and interest rate (“IR”) swap interest, offsetting contractual interest.(3) Net of capitalized interest expense.Interest Coverage Ratio(1) Includes mortgages payable related to assets held for sale, as applicable. (2) Includes net CCIR and IR swap interest, offsetting contractual interest.(3) Net of capitalized interest expense.Reconciliation of Unitholders’ Equity to NAV: (1) CAPREIT accounts for the non-controlling interest in ERES as a liability, measured at the redemption amount, as defined by the ERES Declaration of Trust, of ERES’s units not owned by CAPREIT. The adjustment is made so that the non-controlling interest in ERES is measured at ERES’s disclosed NAV, rather than the redemption amount. The table below summarizes the calculation of the adjustment to ERES non-controlling interest as at December 31, 2025 and December 31, 2024:(2) NAV per unit – diluted is calculated using NAV as at period end divided by diluted number of units.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.