CAPREIT Reports Fourth Quarter and Year End 2025 Results
Not for distribution to U.S. newswire services or for dissemination in the United States.
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
| As at | December 31, 2025 | December 31, 2024 | ||||
| Total Portfolio Performance and Other Measures | ||||||
| Number of suites and sites(1) | 45,905 | 48,696 | ||||
| Investment properties fair value(2)(000s) | $ | 14,732,478 | $ | 14,868,362 | ||
| Assets held for sale (000s) | $ | 141,392 | $ | 307,460 | ||
| Occupied AMR(1)(3) | ||||||
| Canadian Residential Portfolio(4) | $ | 1,718 | $ | 1,636 | ||
| The Netherlands Residential Portfolio | € | 1,349 | € | 1,222 | ||
| Occupancy(1) | ||||||
| Canadian Residential Portfolio(4) | 97.3 | % | 97.5 | % | ||
| The Netherlands Residential Portfolio | 90.6 | % | 94.6 | % | ||
| Total Portfolio(5) | 97.1 | % | 97.2 | % |
(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.
| Three Months Ended | Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Financial Performance | ||||||||||||
| Operating revenues (000s) | $ | 243,298 | $ | 276,361 | $ | 1,003,364 | $ | 1,112,742 | ||||
| Net operating income ( "NOI ") (000s) | $ | 158,067 | $ | 177,942 | $ | 653,711 | $ | 730,654 | ||||
| NOI margin | 65.0 | % | 64.4 | % | 65.2 | % | 65.7 | % | ||||
| Same property NOI (000s) | $ | 144,595 | $ | 137,744 | $ | 579,360 | $ | 553,389 | ||||
| Same property NOI margin | 64.4 | % | 63.1 | % | 64.7 | % | 64.2 | % | ||||
| Net income (loss) (000s) | $ | 88,405 | $ | (48,813 | ) | $ | 197,051 | $ | 292,742 | |||
| Funds From Operations ( "FFO ") per unit – diluted(1) | $ | 0.632 | $ | 0.622 | $ | 2.541 | $ | 2.534 | ||||
| Distributions per unit | $ | 0.388 | $ | 0.375 | $ | 1.546 | $ | 1.471 | ||||
| FFO payout ratio(1) | 61.3 | % | 59.8 | % | 60.8 | % | 57.9 | % |
(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.
| As at | December 31, 2025 | December 31, 2024 | ||||
| Financing Metrics and Liquidity | ||||||
| Total debt to gross book value(1) | 39.3 | % | 38.4 | % | ||
| Weighted average mortgage effective interest rate | 3.30 | % | 3.11 | % | ||
| Weighted average mortgage term (years) | 4.4 | 4.8 | ||||
| Debt service coverage ratio (times)(1)(2) | 1.9 | x | 1.9 | x | ||
| Interest coverage ratio (times)(1)(2) | 3.4 | x | 3.3 | x | ||
| Cash and cash equivalents (000s)(3) | $ | 33,176 | $ | 136,243 | ||
| Available borrowing capacity – Acquisition and Operating Facility (000s)(4) | $ | 181,971 | $ | 500,292 | ||
| Capital | ||||||
| Unitholders ' equity (000s) | $ | 8,761,196 | $ | 9,027,312 | ||
| Net asset value ( "NAV ") (000s)(1) | $ | 8,809,579 | $ | 9,042,068 | ||
| Total number of units – diluted (000s)(5) | 156,180 | 162,927 | ||||
| NAV per unit – diluted(1) | $ | 56.41 | $ | 55.50 |
(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 OPERATIONS
Strategic Initiatives Update
- For the three months ended December 31, 2025, CAPREIT acquired seven properties with 969 suites in Canada for a total gross purchase price of $348.7 million (excluding transaction costs and customary adjustments). For the year ended December 31, 2025, CAPREIT acquired 15 properties with 1,891 suites in Canada for a total gross purchase price of $658.6 million (excluding transaction costs and customary adjustments).
- For the three months ended December 31, 2025, CAPREIT disposed of two townhomes in Canada and four single residential suites located in the Netherlands. The gross sale price was $2.7 million, consisting of $0.4 million in Canada and $2.3 million in Europe (excluding transaction costs and customary adjustments).
- Including the above dispositions, for the year ended December 31, 2025, CAPREIT disposed of 4,600 suites and sites for a total gross sale price of $1.2 billion, consisting of $411.3 million in Canada and $783.5 million in Europe (excluding transaction costs and customary adjustments). CAPREIT has achieved the disposition target of $400 million of non-core Canadian properties during 2025.
- In addition to the completed dispositions, European Residential Real Estate Investment Trust ( "ERES ") has announced that it has entered into agreements to sell four properties consisting of 410 residential suites in the Netherlands for approximately $141.4 million (excluding transaction costs and other customary adjustments). One of the four properties was sold subsequent to the year ended December 31, 2025, in January 2026, and completion of the remaining announced dispositions is anticipated between March 2026 and April 2026, subject to the satisfaction of closing conditions. There can be no assurance that all requirements for closing will be obtained, satisfied or waived.
- The announced dispositions by ERES represent attractive transaction values for the individual assets and support ERES’s ongoing sale process for its remaining portfolio. ERES is continuing to work on a sale process for the remaining portfolio and has retained a financial advisor. There can be no assurance that this process will result in the successful completion of the sale of any portion of the remaining portfolio or that such sales will be completed at, or above, reported IFRS fair value. Transaction expenses, taxes, wind-up costs, and other costs and expenses (which could be significant) will be deducted from the proceeds of any sales. These efforts are being advanced in parallel with certain structural and outstanding tax matters, including the previously disclosed reassessment of certain subsidiaries by the Dutch tax authority. These reassessments are subject to ongoing discussions that may extend over a prolonged period, and actual amounts reassessed may differ significantly from what is currently estimated. It is also possible that additional subsidiaries could be subject to reassessments, which ERES is actively monitoring and managing in consultation with its advisors.
- During the three months ended December 31, 2025, CAPREIT purchased and cancelled approximately 2.5 million Trust Units under the Normal Course Issuer Bid ( "NCIB ") program, at a weighted average purchase price of $38.20 per Trust Unit, for a total cost of $94.1 million (excluding the federal 2% tax on repurchases of Trust Units). During the year ended December 31, 2025, CAPREIT purchased and cancelled approximately 7.2 million Trust Units under the NCIB program, at a weighted average purchase price of $41.09 per Trust Unit, for a total cost of $294.1 million (excluding the federal 2% tax on repurchases of Trust Units).
- On December 15, 2025, CAPREIT declared a special non-cash distribution of $0.90 per Trust Unit, payable in Trust Units on December 31, 2025 to Unitholders of record on December 31, 2025 (the "2025 Special Distribution "). The 2025 Special Distribution was made to distribute to Unitholders a portion of the net capital gain realized by CAPREIT from transactions completed during the year ended December 31, 2025. Immediately following the issuance of these Trust Units, the Trust Units were consolidated such that each Unitholder held the same number of Trust Units after the consolidation of the Trust Units as each Unitholder held prior to the 2025 Special Distribution.
Operating Results
- On turnovers and renewals, monthly residential rents for the three months and year ended December 31, 2025 increased by 2.6% and 3.4%, respectively, for the Canadian residential portfolio, compared to 6.2% and 5.8%, respectively, for the three months and year ended December 31, 2024.
- Same Property Occupied AMR for the Canadian residential portfolio as at December 31, 2025 increased by 3.8% compared to December 31, 2024, while same property occupancy for the Canadian residential portfolio decreased to 97.3% (December 31, 2024 – 97.6%).
- NOI for the same property portfolio increased by 5.0% and 4.7%, respectively, for the three months and year ended December 31, 2025 compared to the same periods last year. In addition, NOI margin for the same property portfolio increased to 64.4%, up 1.3 percentage point, for the three months ended December 31, 2025, and increased to 64.7%, up 0.5 percentage point, for the year ended December 31, 2025 compared to the same periods last year.
- Diluted FFO per unit increased by 1.6% and 0.3%, respectively, for the three months and year ended December 31, 2025, compared to the same periods last year. Gains to diluted FFO per unit in the current year primarily resulted from reduced interest expense on credit facilities and mortgages payable and accretive Trust Unit purchases and cancellations through the NCIB program. In contrast, FFO growth was negatively impacted by lower NOI due to dispositions. Higher vacancies also impacted performance versus prior year periods, including increasingly elevated vacancy in the Netherlands arising from ERES 's disposition program, which strategically holds more suites vacant each month in order to maximize sale value.
Balance Sheet Highlights
- As at December 31, 2025, CAPREIT 's financial position remains strong, with approximately $188.2 million of available Canadian liquidity, comprising $6.2 million of Canadian cash and cash equivalents and $182.0 million of available capacity on its Acquisition and Operating Facility, including a $100 million temporary increase in borrowing capacity which matures on April 30, 2026, but excluding the $200 million unused accordion option.
- For the year ended December 31, 2025, CAPREIT has completed financings totalling $428.6 million, with a weighted average interest rate of 3.57% per annum and a weighted average term to maturity of 5.3 years.
- For the year ended December 31, 2025, the overall carrying value of investment properties (excluding assets held for sale) decreased by $135.9 million due to transfers to assets held for sale of $728.1 million, dispositions of $292.9 million, fair value loss of $80.5 million, and derecognition of right-of-use asset of $12.5 million, partially offset by acquisitions of $661.2 million, property capital investments of $232.8 million, and foreign currency translation adjustment of $84.1 million.
- Diluted NAV per unit as at December 31, 2025 increased to $56.41 from $55.50 as at December 31, 2024, primarily due to the effects of accretive purchases of Trust Units for cancellation through the NCIB program.
Subsequent Events
- Subsequent to year end, CAPREIT disposed of an additional 33 suites in the Netherlands for a total gross sale price of $16.3 million (excluding transaction costs and customary adjustments), which was classified as asset held for sale as at December 31, 2025.
OPERATIONAL AND FINANCIAL RESULTS
Portfolio Occupied Average Monthly Rents
| Total Portfolio(1) | Same Property Portfolio(2) | |||||||||||
| As at December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||
| Occupied AMR | Occ. % | Occupied AMR | Occ. % | Occupied AMR | Occ. % | Occupied AMR | Occ. % | |||||
| Total Canadian residential suites | $ | 1,718 | 97.3 | $ | 1,636 | 97.5 | $ | 1,711 | 97.3 | $ | 1,649 | 97.6 |
| The Netherlands residential portfolio | € | 1,349 | 90.6 | € | 1,222 | 94.6 | € | 1,458 | 89.3 | € | 1,377 | 93.9 |
| Total portfolio | 97.1 | 97.2 | 97.2 | 97.5 |
(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 Portfolio
As 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.
| For the Three Months Ended December 31, | 2025 | 2024 | ||
| Change in Monthly Rent | Turnovers and Renewals of Suites(1) | Change in Monthly Rent | Turnovers and Renewals of Suites(1) | |
| % | % | % | % | |
| Suite turnovers(2) | 1.5 | 4.2 | 13.6 | 3.3 |
| Lease renewals | 3.1 | 11.2 | 4.0 | 12.0 |
| Weighted average of turnovers and renewals | 2.6 | 6.2 |
(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.
| For the Three Months Ended December 31, | 2025 | 2024 | ||
| Change in Monthly Rent | Turnovers(3) | Change in Monthly Rent | Turnovers | |
| Lease Tenure | % | % | % | % |
| Less than two years | (8.3) | 45.8 | 0.2 | 47.8 |
| Two years or longer | 11.1 | 54.2 | 29.7 | 52.2 |
| Change in monthly rent on suite turnovers | 1.5 | 13.6 |
(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.
| For the Year Ended December 31, | 2025 | 2024 | ||
| Change in Monthly Rent | Turnovers and Renewals of Suites(1) | Change in Monthly Rent | Turnovers and Renewals of Suites(1) | |
| % | % | % | % | |
| Suite turnovers(2) | 4.2 | 18.4 | 18.8 | 13.6 |
| Lease renewals | 3.2 | 85.2 | 3.6 | 90.5 |
| Weighted average of turnovers and renewals | 3.4 | 5.8 |
(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.
| For the Year Ended December 31, | 2025 | 2024 | ||
| Change in Monthly Rent | Turnovers(3) | Change in Monthly Rent | Turnovers | |
| Lease Tenure | % | % | % | % |
| Less than two years | (6.3) | 48.0 | 6.0 | 49.5 |
| Two years or longer | 16.0 | 52.0 | 34.7 | 50.5 |
| Change in monthly rent on suite turnovers | 4.2 | 18.8 |
(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
| For the Three Months Ended December 31, | 2025 | 2024 | ||
| Change in Monthly Rent | Turnovers and Renewals of Suites(1) | Change in Monthly Rent | Turnovers and Renewals of Suites(1) | |
| % | % | % | % | |
| Suite turnovers(2) | (1.7) | 4.1 | 8.9 | 1.3 |
| Lease renewals | — | — | — | — |
| Weighted average of turnovers and renewals | (1.7) | 8.9 |
(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.
| For the Year Ended December 31, | 2025 | 2024 | ||
| Change in Monthly Rent | Turnovers and Renewals of Suites(1) | Change in Monthly Rent | Turnovers and Renewals of Suites(1) | |
| % | % | % | % | |
| Suite turnovers(2) | 7.2 | 5.8 | 14.9 | 7.7 |
| Lease renewals | 4.1 | 85.2 | 5.5 | 94.0 |
| Weighted average of turnovers and renewals | 4.5 | 6.2 |
(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 Income
Same 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.
| ($ Thousands) | Total NOI | Same Property NOI | ||||||||||||||
| For the Three Months Ended December 31, | 2025 | 2024 | %(1) | 2025 | 2024 | %(1) | ||||||||||
| Operating revenues | ||||||||||||||||
| Rental revenues | $ | 230,636 | $ | 263,267 | (12.4 | ) | $ | 212,633 | $ | 207,396 | 2.5 | |||||
| Other(2) | 12,662 | 13,094 | (3.3 | ) | 11,775 | 10,979 | 7.3 | |||||||||
| Total operating revenues | $ | 243,298 | $ | 276,361 | (12.0 | ) | $ | 224,408 | $ | 218,375 | 2.8 | |||||
| Operating expenses | ||||||||||||||||
| Realty taxes | $ | (24,518 | ) | $ | (25,320 | ) | (3.2 | ) | $ | (22,543 | ) | $ | (21,503 | ) | 4.8 | |
| Utilities | (16,803 | ) | (18,210 | ) | (7.7 | ) | (16,348 | ) | (15,735 | ) | 3.9 | |||||
| Other(3) | (43,910 | ) | (54,889 | ) | (20.0 | ) | (40,922 | ) | (43,393 | ) | (5.7 | ) | ||||
| Total operating expenses | $ | (85,231 | ) | $ | (98,419 | ) | (13.4 | ) | $ | (79,813 | ) | $ | (80,631 | ) | (1.0 | ) |
| NOI | $ | 158,067 | $ | 177,942 | (11.2 | ) | $ | 144,595 | $ | 137,744 | 5.0 | |||||
| NOI margin | 65.0 | % | 64.4 | % | 64.4 | % | 63.1 | % |
(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.
| ($ Thousands) | Total NOI | Same Property NOI | ||||||||||||||
| For the Year Ended December 31, | 2025 | 2024 | %(1) | 2025 | 2024 | %(1) | ||||||||||
| Operating Revenues | ||||||||||||||||
| Rental revenues | $ | 953,248 | $ | 1,059,382 | (10.0 | ) | $ | 849,908 | $ | 818,507 | 3.8 | |||||
| Other(2) | 50,116 | 53,360 | (6.1 | ) | 45,945 | 43,687 | 5.2 | |||||||||
| Total operating revenues | $ | 1,003,364 | $ | 1,112,742 | (9.8 | ) | $ | 895,853 | $ | 862,194 | 3.9 | |||||
| Operating expenses | ||||||||||||||||
| Realty taxes | $ | (99,232 | ) | $ | (100,657 | ) | (1.4 | ) | $ | (90,256 | ) | $ | (85,373 | ) | 5.7 | |
| Utilities | (68,301 | ) | (72,340 | ) | (5.6 | ) | (64,186 | ) | (61,012 | ) | 5.2 | |||||
| Other(3) | (182,120 | ) | (209,091 | ) | (12.9 | ) | (162,051 | ) | (162,420 | ) | (0.2 | ) | ||||
| Total operating expenses | $ | (349,653 | ) | $ | (382,088 | ) | (8.5 | ) | $ | (316,493 | ) | $ | (308,805 | ) | 2.5 | |
| NOI | $ | 653,711 | $ | 730,654 | (10.5 | ) | $ | 579,360 | $ | 553,389 | 4.7 | |||||
| NOI margin | 65.2 | % | 65.7 | % | 64.7 | % | 64.2 | % |
(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:
| ($ Thousands) | Three Months Ended | Year Ended | ||||||
| December 31, | December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Same property NOI | $ | 144,595 | $ | 137,744 | $ | 579,360 | $ | 553,389 |
| NOI from acquisitions | 11,280 | 5,768 | 36,455 | 12,187 | ||||
| NOI from dispositions and assets held for sale | 2,192 | 34,430 | 37,896 | 165,078 | ||||
| Total NOI | $ | 158,067 | $ | 177,942 | $ | 653,711 | $ | 730,654 |
Operating Revenues
For 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 Expenses
For 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:
- lower R&M of $2.7 million resulting from prudent cost control and enhanced procurement governance, including sourcing and tendering processes, and the absence of the elevated R&M costs incurred last year in Québec and Ontario, as well as lower on‑site costs of $0.4 million;
- partially offset by higher advertising costs of $0.5 million across most Canadian regions to combat vacancy pressures amid current rental market conditions; and
- higher expected credit losses of $0.8 million mainly due to delays in regulatory processes in Ontario and elevated past due balances in the Netherlands in the fourth quarter of 2025.
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:
- lower R&M of $3.8 million primarily due to same reasons as described above;
- partially offset by higher expected credit losses of $2.0 million due to delays in regulatory processes in Ontario, as well as factors such as the rising cost of living and elevated past due balances not being cleared by prior residents across most Canadian regions and to a lesser extent in the Netherlands; and
- higher advertising costs of $1.7 million due to the same reason described above.
SUBSEQUENT EVENTS
The table below summarizes the disposition of a property, which was classified as asset held for sale as at year end, completed subsequent to December 31, 2025:
| ($ Thousands) | ||||
| Disposition Date | Suite Count | Region | Gross Sale Price(1) | |
| January 15, 2026 | 33 | The Netherlands | $ | 16,267 |
| Total | 33 | $ | 16,267 |
(1) Gross sale price is the amount stated in the purchase and sale agreement and excludes transaction costs and customary adjustments.
ADDITIONAL INFORMATION
More 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 Call
A 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 CAPREIT
CAPREIT 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 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 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 Trust
| CAPREIT Mr. Mark Kenney President & Chief Executive Officer (416) 861-9404 | CAPREIT Mr. Stephen Co Chief Financial Officer (416) 306-3009 |
SELECTED NON-IFRS MEASURES
A reconciliation of netincome to FFO is as follows:
| ($ Thousands, except per unit amounts) | Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Net income (loss) | $ | 88,405 | $ | (48,813 | ) | $ | 197,051 | $ | 292,742 | |||
| Adjustments: | ||||||||||||
| Fair value adjustments of investment properties | 15,536 | 97,419 | 84,690 | (58,486 | ) | |||||||
| Fair value adjustments of financial instruments | (6,012 | ) | (51,830 | ) | 19,871 | 5,994 | ||||||
| Interest expense on Exchangeable LP Units | 559 | 618 | 2,233 | 2,429 | ||||||||
| Loss (gain) on non-controlling interest | (3,317 | ) | 61,363 | 39,656 | 118,526 | |||||||
| FFO impact attributable to ERES Units held by non-controlling unitholders(1) | (816 | ) | (4,336 | ) | (7,276 | ) | (18,736 | ) | ||||
| Deferred income tax expense (recovery) | (1,629 | ) | 6,034 | (1,343 | ) | 23,726 | ||||||
| Loss (gain) on foreign currency translation | (3,743 | ) | 24,624 | 4,034 | 26,782 | |||||||
| Transaction costs and other activities(2) | 11,553 | 9,762 | 42,588 | 28,532 | ||||||||
| Tax related to ERES dispositions and Dutch tax authority audits(3) | 219 | 4,664 | 13,900 | 6,726 | ||||||||
| Net loss (gain) on derecognition of debt | 7 | 3,322 | 4,493 | (3,012 | ) | |||||||
| Lease principal repayments | (258 | ) | (333 | ) | (1,254 | ) | (1,281 | ) | ||||
| Reorganization, senior management termination, and retirement costs(4) | 100 | 1,798 | 9,601 | 6,982 | ||||||||
| Unit-based compensation amortization recovery relating to ERES unit option forfeitures(5) | (1,106 | ) | — | (1,856 | ) | (2,284 | ) | |||||
| FFO | $ | 99,498 | $ | 104,292 | $ | 406,388 | $ | 428,640 | ||||
| Weighted average number of units (000s) – diluted | 157,394 | 167,742 | 159,935 | 169,160 | ||||||||
| Total distributions declared | $ | 61,023 | $ | 62,388 | $ | 247,191 | $ | 248,146 | ||||
| FFO per unit – diluted(6) | $ | 0.632 | $ | 0.622 | $ | 2.541 | $ | 2.534 | ||||
| FFO payout ratio(7) | 61.3 | % | 59.8 | % | 60.8 | % | 57.9 | % |
(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 – $nil).
(5) Relates to forfeitures of previously granted ERES unit options upon restructuring, trustee retirement, and senior management termination.
(6) FFO per unit – diluted is calculated using FFO during the period divided by weighted average number of units – diluted.
(7) FFO payout ratio is calculated using total distributions declared during the period divided by FFO.
Reconciliation of Total Debt and Total Debt Ratios:
| ($ Thousands) | ||||||
| As at | December 31, 2025 | December 31, 2024 | ||||
| Mortgages payable – non-current | $ | 4,856,580 | $ | 5,343,549 | ||
| Mortgages payable – current | 777,021 | 644,320 | ||||
| Total mortgages payable | $ | 5,633,601 | $ | 5,987,869 | ||
| Credit facilities payable – non-current | 331,250 | 4,145 | ||||
| Total Debt | $ | 5,964,851 | $ | 5,992,014 | ||
| Total Assets | $ | 15,132,363 | $ | 15,576,093 | ||
| Add: Accumulated amortization of PP&E | 45,104 | 43,164 | ||||
| Gross Book Value(1) | $ | 15,177,467 | $ | 15,619,257 | ||
| Total Debt to Gross Book Value(2) | 39.3 | % | 38.4 | % | ||
| Total Mortgages Payable to Gross Book Value(3) | 37.1 | % | 38.3 | % |
(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 ofNet Income to Adjusted EBITDAFV:
| ($ Thousands) | ||||||
| For the Years Ended | December 31, 2025 | December 31, 2024 | ||||
| Net income | $ | 197,051 | $ | 292,742 | ||
| Adjustments: | ||||||
| Interest expense on debt and other financing costs | 191,013 | 220,162 | ||||
| Interest expense on Exchangeable LP Units | 2,233 | 2,429 | ||||
| Total current income tax expense and deferred income tax expense (recovery), net | 17,473 | 39,439 | ||||
| Amortization of PP&E and right-of-use asset | 6,413 | 6,363 | ||||
| Total unit-based compensation amortization expense, net | 9,522 | 6,306 | ||||
| Employee unit purchase plan unit-based compensation expense | (476 | ) | (523 | ) | ||
| Fair value adjustments of investment properties | 84,690 | (58,486 | ) | |||
| Fair value adjustments of financial instruments | 19,871 | 5,994 | ||||
| Net loss (gain) on derecognition of debt | 4,493 | (3,012 | ) | |||
| Loss on non-controlling interest | 39,656 | 118,526 | ||||
| Loss on foreign currency translation | 4,034 | 26,782 | ||||
| Transaction costs and other adjustments on dispositions and other | 36,175 | 22,169 | ||||
| Adjusted EBITDAFV | $ | 612,148 | $ | 678,891 |
Debt Service Coverage Ratio
| ($ Thousands) | ||||
| For the Years Ended | December 31, 2025 | December 31, 2024 | ||
| Contractual interest on mortgages payable(1)(2)(3) | $ | 165,178 | $ | 171,254 |
| Amortization of deferred financing costs and fair value adjustments on mortgages payable(1)(3) | 9,723 | 8,025 | ||
| Contractual interest on Credit Facilities payable, net(2) | 5,035 | 25,049 | ||
| Amortization of deferred financing costs on Credit Facilities payable | 919 | 731 | ||
| Mortgage principal repayments(1) | 148,180 | 153,237 | ||
| Debt service payments | $ | 329,035 | $ | 358,296 |
| Adjusted EBITDAFV | $ | 612,148 | $ | 678,891 |
| Debt service coverage ratio (times) | 1.9x | 1.9x |
(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
| ($ Thousands) | ||||
| For the Years Ended | December 31, 2025 | December 31, 2024 | ||
| Contractual interest on mortgages payable(1)(2)(3) | $ | 165,178 | $ | 171,254 |
| Amortization of deferred financing costs and fair value adjustments on mortgages payable(1)(3) | 9,723 | 8,025 | ||
| Contractual interest on Credit Facilities payable, net(2) | 5,035 | 25,049 | ||
| Amortization of deferred financing costs on Credit Facilities payable | 919 | 731 | ||
| Interest Expense | $ | 180,855 | $ | 205,059 |
| Adjusted EBITDAFV | $ | 612,148 | $ | 678,891 |
| Interest coverage ratio (times) | 3.4x | 3.3x |
(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:
| ($ Thousands, except per unit amounts) | ||||||
| As at | December 31, 2025 | December 31, 2024 | ||||
| Unitholders ' equity | $ | 8,761,196 | $ | 9,027,312 | ||
| Adjustments: | ||||||
| Exchangeable LP Units | 53,270 | 70,220 | ||||
| Unit-based compensation financial liabilities excluding ERES RURs and ERES Unit options | 23,826 | 23,701 | ||||
| Deferred income tax liability | 4,140 | 32,076 | ||||
| Deferred income tax asset | — | (11,793 | ) | |||
| Derivative financial assets – non-current | — | (8,813 | ) | |||
| Derivative financial assets – current | (1,878 | ) | (10,263 | ) | ||
| Derivative financial liabilities – current | 2,739 | 3,684 | ||||
| Adjustment to ERES non-controlling interest(1) | (33,714 | ) | (84,056 | ) | ||
| NAV | $ | 8,809,579 | $ | 9,042,068 | ||
| Diluted number of units | 156,180 | 162,927 | ||||
| NAV per unit – diluted(2) | $ | 56.41 | $ | 55.50 |
(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:
| ($ Thousands) | ||||||
| As at | December 31, 2025 | December 31, 2024 | ||||
| ERES 's NAV | € | 209,986 | € | 486,259 | ||
| Ownership by ERES non-controlling interest | 35 | % | 35 | % | ||
| Closing foreign exchange rate | 1.60937 | 1.49288 | ||||
| Impact to NAV due to ERES 's non-controlling unitholders | $ | 118,281 | $ | 254,074 | ||
| Less: ERES Units held by non-controlling unitholders | 84,567 | 170,018 | ||||
| Adjustment to ERES non-controlling interest | $ | 33,714 | $ | 84,056 |
(2) NAV per unit – diluted is calculated using NAV as at period end divided by diluted number of units.
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