Last Updated on August 8, 2025
Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) is one of Canada’s largest residential landlords, with a diversified portfolio spanning apartments, townhomes, and manufactured housing communities. As Canada faces ongoing housing shortages and high rental demand, CAPREIT has positioned itself as a stable, income-generating investment. In this article, we’ll explore its financial performance, market outlook, and the opportunities it presents for investors in 2025.
Company Overview and Business Model
Canadian Apartment Properties REIT (traded as CAR.UN on the Toronto Stock Exchange) owns and manages over 66,000 residential units across Canada, with additional holdings in the Netherlands and Ireland. Its portfolio includes high-rise apartments in urban centers, affordable housing, and manufactured home communities. CAPREIT’s revenue model is primarily driven by rental income, which benefits from Canada’s low rental vacancy rates and strong population growth through immigration.
Financial Performance and Dividend Yield
As of 2025, CAPREIT maintains a market capitalization of roughly CAD $9 billion, with a dividend yield around 3%—paid monthly, making it attractive for income investors. In FY2024, revenue grew by approximately 6%, driven by higher occupancy rates and above-average rental increases in key cities like Toronto, Vancouver, and Ottawa.
Key 2025 Stats:
- Occupancy Rate: 98%
- Funds from Operations (FFO) Growth: +5.2% YoY
- Debt-to-Equity Ratio: 0.72
CAPREIT’s steady cash flow allows it to maintain dividend stability, even during periods of economic uncertainty.
Market Outlook for Canadian Apartment Properties
Canada’s rental housing market continues to face supply constraints, with vacancy rates in many metropolitan areas below 2%. Immigration targets exceeding 400,000 new residents annually are boosting demand for rental housing. Additionally, rising interest rates have priced many buyers out of the housing market, pushing them toward rentals—further benefiting CAPREIT. However, regulatory factors such as rent control laws in Ontario and British Columbia may limit the pace of rent increases in certain markets.
How to Invest in Canadian Apartment Properties
Investors can purchase CAPREIT units directly through Canadian brokerage platforms such as:
- Questrade
- Wealthsimple Trade
- TD Direct Investing
International investors can access CAPREIT through brokers that support TSX-listed securities. Many ETFs also hold CAPREIT as part of their Canadian REIT allocations, providing indirect exposure.
Risks and Considerations
While CAPREIT offers stable returns, investors should consider risks such as:
- Interest Rate Sensitivity: Higher borrowing costs can reduce profitability.
- Regulatory Risks: Rent control policies may limit revenue growth.
- Economic Downturns: Job losses could impact occupancy rates.
Conclusion
Canadian Apartment Properties REIT remains one of the most stable and income-oriented real estate investments in Canada. With a strong portfolio, consistent occupancy rates, and exposure to high-demand rental markets, CAPREIT is well-positioned for continued growth in 2025. Investors seeking a mix of income and stability should keep CAPREIT on their watchlist.