CAPREIT Reports Second Quarter 2026 Results

Not for distribution to U.S. newswire services or for dissemination in the United States.

TORONTO, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust ( "CAPREIT ") (TSX: CAR.UN) announced today its operating and financial results for the three and six months ended June 30, 2026. Management will host a conference call to discuss the financial results on Friday, August 7, 2026 at 9:00 a.m. ET.

HIGHLIGHTS

"As I begin my tenure at CAPREIT, I have been encouraged by the quality of the portfolio, the strength of the team, and the solid foundation already in place, " commented Brad Cutsey, President and Chief Executive Officer. "Although still in the early stages, my initial observations have reinforced my confidence in CAPREIT 's operating platform and the depth of expertise across the organization. More broadly, while current market conditions remain soft across parts of the Canadian rental market, we believe the long-term fundamentals supporting the business are firmly in our favour. With that, today, our priorities remain clear: direct capital to opportunities that are accretive, including ongoing investment in the NCIB program; strengthen CAPREIT 's sustainable cash flow generation; and further fortify the balance sheet. With the portfolio significantly enhanced over the past few years, I look forward to building on that progress by continuing to optimize our operations, allocate capital with discipline, and deliver long-term value for Unitholders. "

"CAPREIT 's performance during the quarter was resilient despite near-term pressure on market fundamentals, "added Stephen Co, Chief Financial Officer. "Rent growth continues to be supported by lease renewals and the positive mark-to-market opportunity embedded across the portfolio, with our operating teams focused on maintaining occupancy, controlling costs, and preserving margins. As a result, our Canadian same property NOI margin remained strong at66.2% for the quarter. Diluted FFO per Unit was modestly lower than the comparative prior year quarter at$0.654, primarily due to lost NOI from dispositions and higher interest costs, partially offset by the benefits of our NCIB repurchases. Moving ahead, we 're committed to further reinforcing a prudent leverage profile and driving stronger per-unit earnings growth. "

SUMMARY OF Q2 2026 RESULTS OF OPERATIONS

Strategic Initiatives Update

• For the three and six months ended June 30, 2026, CAPREIT acquired one property in Vancouver, British Columbia with 51 suites and completed an operating lease buyout in Mississauga, Ontario for a total gross purchase price of $37.1 million (excluding transaction costs and customary adjustments).
• For the three months ended June 30, 2026, CAPREIT disposed of land adjacent to an existing residential building in Toronto, Ontario, and one residential property with 201 suites and three single residential suites located in the Netherlands. The gross sale price was $72.5 million, consisting of $1.0 million in Canada and $71.5 million in Europe (excluding transaction costs and customary adjustments). Including the above dispositions, for the six months ended June 30, 2026, CAPREIT disposed of 522 suites for a total gross sale price of $173.9 million, consisting of $29.0 million in Canada and $144.9 million in Europe (excluding transaction costs and customary adjustments).
• In March 2026, CAPREIT entered into an agreement to acquire all of the issued and outstanding units of European Residential REIT ( "ERES ") not already owned by CAPREIT for consideration of $1.19 per ERES unit in an all-cash transaction (the "ERES Transaction "). ERES held a special meeting for voting unitholders ( "ERES Unitholders ") to consider and vote on the ERES Transaction on April 27, 2026. During this meeting, ERES Unitholders approved the ERES Transaction. The ERES Transaction closed on May 1, 2026 for $98.7 million (excluding transaction costs). CAPREIT funded the ERES Transaction with cash on hand and availability from the Acquisition and Operating Facility.
• During the three months ended June 30, 2026, CAPREIT purchased and cancelled approximately 0.9 million Trust Units under the Normal Course Issuer Bid ( "NCIB ") program, at a weighted average purchase price of $35.59 per Trust Unit, for a total cost of $30.5 million (excluding the federal 2% tax on repurchases of Trust Units). During the six months ended June 30, 2026, CAPREIT purchased and cancelled approximately 1.6 million Trust Units under the NCIB program, at a weighted average purchase price of $36.16 per Trust Unit, for a total cost of $59.5 million (excluding the federal 2% tax on repurchases of Trust Units).
  
  

Operating Results

• On turnovers and renewals for the Canadian residential portfolio, monthly residential rents for the three and six months ended June 30, 2026 increased by 1.1% and 1.6%, respectively, compared to 3.8% and 3.5%, respectively, for the three and six months ended June 30, 2025. On turnovers and renewals for the Canadian residential portfolio, the change in monthly rent on suite turnovers in July was up 0.2%, while the change in monthly rent on lease renewals was up 1.8%.
• Same Property Occupied AMR for the Canadian residential portfolio as at June 30, 2026 increased by 2.3% compared to June 30, 2025, while same property occupancy for the Canadian residential portfolio decreased to 97.5% (June 30, 2025 – 98.4%). Occupancy for the same property Canadian residential portfolio as at July 31, 2026 decreased to 97.3%, consistent with the typical seasonal trend observed between June and July.
• NOI for the Canadian same property portfolio increased by 0.9% and 1.5%, respectively, for the three and six months ended June 30, 2026 compared to the same periods last year. In addition, NOI margin for the Canadian same property portfolio remained stable at 66.2% for the three months ended June 30, 2026, and increased to 64.2%, up 0.3 percentage point, for the six months ended June 30, 2026 compared to the same periods last year.
• Diluted FFO per unit decreased by 1.1% for the three months ended June 30, 2026, compared to the same period last year, primarily due to lost NOI from disposed properties, higher interest expense on mortgages payable and credit facilities payable, partially offset by the impact of Trust Units purchased and cancelled through the NCIB program, which reduced the overall weighted average Units outstanding by approximately 3.4%. Diluted FFO per unit increased by 0.2%, for the six months ended June 30, 2026, compared to the same period last year, primarily due to lower trust expenses, net of reorganization and retirement costs, and the impact of Trust Units purchased and cancelled through the NCIB program, which reduced the overall weighted average Units outstanding by approximately 3.8%, partially offset by lost NOI from dispositions.
  
  

Balance Sheet Highlights

• As at June 30, 2026, CAPREIT had $179.8 million of available capacity on its Acquisition and Operating Facility.
• Based on the current property portfolio, management expects to complete between $1.2 billion to $1.3 billion in total mortgage financings for 2026, which assumes that there will be no future acquisitions and dispositions. To date, CAPREIT has completed or committed financings totalling $446.7 million, with a weighted average interest rate of 3.83% per annum and a weighted average term to maturity of 6.9 years.
• For the six months ended June 30, 2026, the overall carrying value of investment properties (excluding assets held for sale) decreased by $298.0 million primarily due to fair value loss of $388.8 million, dispositions of $31.8 million, and transfers to assets held for sale of $21.6 million, partially offset by property capital investments of $101.7 million, and acquisitions of $38.6 million.
• Diluted NAV per unit as at June 30, 2026 decreased to $54.38 from $54.79 as at March 31, 2026, primarily due to fair value losses recognized on investment properties.
  
  

Subsequent Events

• Subsequent to June 30, 2026, CAPREIT purchased and cancelled 0.3 million Trust Units under the 2026-2027 NCIB, at a weighted average purchase price of $35.13 per Trust Unit, for a total cost of $11.9 million (excluding the federal 2% tax on repurchases of Trust Units).
  
  

OPERATIONAL AND FINANCIAL RESULTS

Canadian Occupied Average Monthly Rents and Occupancy

The overall rate of growth in Canadian residential 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 renewals; and (ii) rental increases driven by turnover in certain provinces across the Canadian portfolio.

Occupancy for the same property Canadian residential portfolio as at June 30, 2026 decreased by 0.9 percentage points to 97.5% compared to June 30, 2025, reflecting current pressures in residential market dynamics. Occupancy for the same property Canadian residential portfolio as at July 31, 2026 decreased to 97.3%, consistent with the typical seasonal trend observed between June and July. On turnovers and renewals for the Canadian residential portfolio, the change in monthly rent on suite turnovers in July was up 0.2%, while the change in monthly rent on lease renewals was up 1.8%.

The weighted average monthly gross rent per square foot for total Canadian residential suites was approximately $2.07 as at June 30, 2026, having increased from $2.03 as at June 30, 2025.

Suite Turnovers and Lease Renewals – Canadian Residential Portfolio

As at June 30, 2026, approximately 69% (June 30, 2025 – 75%) 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. Approximately 20% of leases with resident tenure of less than two years have in-place rents more than 5% above CAPREIT 's estimated market rents.

Net Operating Income

Same properties for the three and six months ended June 30, 2026 are defined as all properties owned by CAPREIT continuously since December 31, 2024, and therefore do not take into account the impact on performance of acquisitions or dispositions completed during 2025 or 2026, or properties that are classified as held for sale as at June 30, 2026.

The following table reconciles same property NOI and NOI from acquisitions, dispositions and assets held for sale to total NOI, for the three and six months ended June 30, 2026 and June 30, 2025:

Canadian Operating Revenues

For the three months ended June 30, 2026, Canadian same property operating revenues increased by $1.9 million, primarily driven by increases in monthly rents on renewals and to a lesser extent on turnovers. Total Canadian operating revenues increased by $5.3 million during the same period, mainly due to revenue generated from acquisitions totalling $8.6 million and operational growth of $1.9 million on the same property operating portfolio as at June 30, 2026, partially offset by lost revenue from dispositions and assets held for sale as at June 30, 2026 totalling $5.2 million.

For the six months ended June 30, 2026, Canadian same property operating revenues increased by $4.3 million, primarily driven by increases in monthly rents on renewals and to a lesser extent on turnovers. Total Canadian operating revenues increased by $10.5 million during the same period, mainly due to revenue generated from acquisitions totalling $18.6 million and operational growth of $4.3 million on the same property operating portfolio as at June 30, 2026, partially offset by lost revenue from dispositions and assets held for sale as at June 30, 2026 totalling $12.4 million.

CanadianOperating Expenses

For the three and six months ended June 30, 2026, realty taxes for Canadian total and same property portfolio increased compared to the same periods in the prior year, primarily due to increases in realty tax rates in Ontario and higher property value assessments in Nova Scotia. Canadian total portfolio increased further due to acquisitions, partially offset by dispositions.

For the three months ended June 30, 2026, Canadian total and same property utilities increased year-over-year mainly due to higher water rates in Ontario, partially offset by lower natural gas rates in Ontario, Alberta, and Nova Scotia.

For the six months ended June 30, 2026, Canadian total and same property portfolio utilities decreased year-over-year mainly due to federal carbon tax removal that came into effect on April 1, 2025 and lower water consumption due to water renewal efficiency projects implemented during the second quarter of 2025 for Ontario, partially offset by increased water rates in Ontario and Nova Scotia, increased electricity consumption driven by colder weather in Ontario and Québec during the first quarter of 2026, and higher electricity rates in British Columbia and Québec.

For the three and six months ended June 30, 2026, other operating expenses for the Canadian total portfolio remained flat compared with the same periods last year, while the same property portfolio saw an overall decline, mainly due to improved operating efficiencies.

ADDITIONAL INFORMATION

More detailed information and analysis is included in CAPREIT 's condensed consolidated interim financial statements and MD&A for the three and six months ended June 30, 2026, 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 Call

A conference call, hosted by CAPREIT 's senior management team, will be held on Friday, August 7, 2026 at 9:00 am ET. The telephone numbers for the conference call are: Canadian Toll Free: +1 (833) 769-6440, International: +1 (585) 542-9983. The conference call conference ID is 720123871.

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 CAPREIT

CAPREIT is Canada 's largest publicly traded provider of quality rental housing. As at June 30, 2026, CAPREIT owns approximately 45,400 residential apartment suites and townhomes (excluding approximately 100 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 $14.4 billion (excluding approximately $21.6 million 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 unaudited condensed consolidated interim financial statements and 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 EBITDAFVA (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, Net Debt to Adjusted EBITDAFVA, 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 August 6, 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 (loss) 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 Statements

Certain 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 generally grow; that rental rates on turnovers will generally 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, 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 August 6, 2026. The information in this press release is based on information available to management as of August 6, 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 Trust

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