Canadian Apartment Properties Real Estate Investment Trust (CAR-UN) Q2 2026 earnings summary

Executive summary

• Leadership transition with Brad Cutsey as CEO, emphasizing continuity, operational discipline, and disciplined capital allocation.

• Portfolio comprised approximately 45,400 residential suites as of June 30, 2026, valued at $14.4 billion, primarily in Canada and some in the Netherlands.

• Achieved $66M in Canadian acquisitions/dispositions and $145M in European dispositions as of June 30, 2026.

• Completed privatization of European Residential REIT for approximately $99M and repurchased $71M in Trust Units via NCIB program.

• Maintained 97.5% same property Canadian residential occupancy and 2.3% same property Canadian occupied AMR growth year-over-year.

Financial highlights

• Q2 2026 operating revenues were $246.4 million, down from $254.4 million year-over-year; net operating income (NOI) was $163.4 million, down from $169.8 million.

• Same-property Canadian operating revenues up 0.8% in Q2 and 1% year-to-date; operating costs grew 0.7% in Q2 and were flat year-to-date.

• Same-property NOI margin stable at 66.2% in Q2 and up to 64.2% for the first six months.

• Diluted FFO per unit was $0.654 in Q2 2026 (down 1.1% year-over-year) and $1.249 year-to-date; FFO payout ratio at 62%.

• Net loss for Q2 2026 was $63.97 million, mainly due to fair value losses on investment properties.

Outlook and guidance

• Revenue growth for 2026 expected to be around 1% for the full year.

• Management expects to complete $1.2–$1.3 billion in total mortgage financings for 2026, assuming no further acquisitions or dispositions.

• Focus remains on maintaining occupancy, controlling costs, and preserving margins, with an emphasis on prudent leverage and per-unit earnings growth.

• Blended leasing spreads expected to remain modest and stable through the remainder of the year.

• New lease spreads in Toronto anticipated to approach inflationary levels by first half of 2027 if current trends persist.