Canadian Apartment Properties REIT repurchased units at a discount to NAV while reporting resilient occupancy and improving rental trends.
Canadian Apartment Properties REIT (TSE:CAR.UN) repurchased C$71 million of units at an average C$36, below its C$54 diluted net asset value per unit. The move came as same-property occupancy held at 97.5%, exceeding the national benchmark of 95.3%.
Blended turnover rents declined 1.2% in Q2, an improvement from the 2.1% drop in Q1, and turned positive in July. Management expects further normalization, with potential inflation-linked growth by 2027. Leverage remained steady at 41.2% of gross book value.
The company highlighted competitive rental markets but noted its operating platform provides a stable foundation. New CEO Brad Cutsey indicated plans to assess leasing and operational processes for potential improvements.