Canadian Apartment Properties Real Estate Investment Trust (CDPYF) Q4 2025 Earnings Call …

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Sat, February 14, 2026 at 6:01 AM GMT+9 4 min read

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**Disposition Target:** Sold over $400 million of non-core assets in Canada and $784 million in Europe.

**Property Acquisitions:** Purchased $659 million in strategically aligned properties.

**Same-Property Occupancy:** 97.3% as of December 31, 2025.

**Average Rent Growth:** 3.8% increase in average rent.

**Same-Property NOI Margin:** Expanded to 64.7% for 2025.

**Total Debt to Gross Book Value Ratio:** 39.3% as of year-end.

**NCIB Program Investment:** $294 million spent at a weighted average purchase price of $41 per unit.

**Same-Property Operating Revenues:** Grew by 2.8% in Q4 to $224.4 million.

**Same-Property Operating Expenses:** Decreased by 1% year over year.

**Diluted FFO per Unit:** Increased by 1.6% to $0.632 in Q4; $2.51 for the year.

**Cash and Credit Facility Capacity:** $188 million available, with an additional $200 million in unused options.

**Capital Expenditure as Percentage of NOI:** Reduced to 37% in 2025.

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Release Date: February 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Canadian Apartment Properties Real Estate Investment Trust (CDPYF) successfully met its disposition target by selling over $400 million of non-core assets in Canada and $784 million in Europe, allowing for strategic reinvestment.

The company achieved a healthy same-property occupancy rate of 97.3% as of December 31, 2025, with average rent growth of 3.8%, indicating effective leasing and retention strategies.

Same-property NOI margin expanded to 64.7% for 2025, reflecting strong cost management and procurement governance.

The company maintained a strong balance sheet with a total debt to gross book value ratio of 39.3%, aligning with its commitment to financial stability.

Canadian Apartment Properties Real Estate Investment Trust (CDPYF) invested $294 million in its NCIB program, enhancing unitholder returns by purchasing units at a substantial discount to NAV.

Negative Points

The broader housing market is experiencing pressure due to a temporary pause in population growth and a wave of new supply, impacting operational results.

A significant portion of leases (27%) are under two years and carry negative mark-to-market value, which may continue to affect financial performance until market conditions improve.

The company faces challenges from elevated vacancy rates and net disposition activity, particularly in Europe, which partially offset earnings growth.

Operational expenses are expected to grow above inflation due to factors like a colder winter and increased snow removal costs, impacting overall cost management.

Market rent growth has decelerated, and the company is navigating unprecedented conditions with temporary residents leaving and new supply impacting key markets like Toronto, Vancouver, and Montreal.

 






Story continues  

Q & A Highlights

Q: On the 27% of the portfolio that are less than two years, how much above market are they? And similarly, on the remaining, how much below market are the above 2-year tenure? A: For the under two years, we’re averaging around negative 8%. For those above two years, it’s in the plus 20% range. We expect this trend to hold in the short term.

Q: How do you expect your renewal rate experience to be affected by the current market conditions? A: We expect Ontario renewals to remain solid, with overall renewals greater than 2%. Different markets will have varied experiences, but we remain strong on the renewal front.

Q: What is your outlook for revenue growth in 2026? A: We are aiming for 2% to 3% revenue growth this year. The spring market will provide more clarity, and we will keep stakeholders updated.

Q: How has leasing demand been at the start of the year, and has the cold weather impacted it? A: Leasing demand has been slower due to the cold weather, which is typical for this season. We expect demand to pick up as the weather improves.

Q: How do you view the current acquisition opportunities in the market? A: We are seeing fewer deals, but there is strong interest in apartments. We remain disciplined in seeking value, and while volumes are light, cap rates are holding strong.

Q: Are you open to joint ventures or partnerships for acquisitions? A: Yes, we are open to joint ventures if they provide good value. We are committed to exploring creative solutions in a market with low trading volumes.

Q: How do you expect operating expenses to trend in 2026? A: Excluding weather and carbon tax impacts, we expect OpEx growth to be above inflation. However, colder weather may have a larger impact than anticipated.

Q: What is your strategy for managing incentives and base rent adjustments? A: We have already adjusted base rents and are now focusing on using incentives strategically. We expect incentives to taper off as the spring leasing season progresses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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