CAPREIT Continues Growth with New Apartment Acquisitions and Sales

CAPREIT has been on a roll, with a string of new apartment acquisitions that have helped boost its portfolio. The company has been aggressively expanding its presence in the Canadian apartment market.

With a focus on high-growth areas, CAPREIT has been eyeing opportunities in cities like Toronto and Vancouver. Its goal is to provide affordable housing options for residents in these rapidly expanding cities.

In addition to acquisitions, CAPREIT has also been actively selling off some of its older properties to focus on newer, more modern developments. This strategy is helping the company to refresh its portfolio and attract new residents.

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CAPREIT is a Canadian real estate investment trust headquartered in Toronto, Ontario, Canada. It's the largest publicly traded apartment landlord in Canada, with over $17.7 billion in assets, as of December 2021.

CAPREIT was founded on May 21, 1997, by Thomas Schwartz. The company has a long history of growth and expansion.

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CAPREIT owns or has interests in approximately 67,000 residential apartments, townhomes, and manufactured housing units across Canada, the Netherlands, and Ireland. This diverse portfolio is a testament to the company's ability to adapt and grow.

Here are some key people who help run CAPREIT: Dr. Gina P. Cody, Chair of the Board, and Mark Kenney, President & CEO.

CAPREIT's financial performance is impressive, with a revenue of $933.1 million in 2021 and an operating income of $535.2 million. The company also reported a net income of $1.4 billion in 2021.

CAPREIT has a significant presence in Canada, with a workforce of 28,500 employees as of 2021. The company's website is www.capreit.ca.

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CAPREIT has been making significant moves in the real estate market, acquiring a range of properties across Canada. The company has closed on several deals, expanding its portfolio of residential suites.

In Montreal, CAPREIT acquired a 253-suite portfolio for $144 million, with an average price of $543 per leasable residential square foot. The properties, known as the Mondev portfolio, are located in the heart of Ville-Marie, a central neighbourhood in Montréal.

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CAPREIT also acquired a 61-suite building in Toronto's Little Italy neighbourhood for $48 million, with a price of $935 per leasable residential square foot. The building is located steps from multiple streetcar lines and subway access points.

The company has been deploying significant funds into its Normal Course Issuer Bid (NCIB) program, repurchasing units at an average discount of 20% to its reported net asset value (NAV) per unit.

Here are some of the key properties acquired by CAPREIT:

CAPREIT made some significant acquisitions in June and July. The company acquired Grafton Park, a 68-unit property in downtown Halifax, for $29.4 million.

This property was built in 2019 and had a mortgage principal outstanding of $14.3 million, which was repaid in full. CAPREIT also acquired The View, a 178-unit high-rise in Edmonton, for $79.3 million.

The View was built in 2023 and had a mortgage of $68.6 million. In July, CAPREIT closed on four more properties: Hillview in Ottawa, The Nuovo in downtown Ottawa, The Pendrell in Vancouver, and Axir in North Vancouver.

Here are the details of these acquisitions:

These acquisitions are a testament to CAPREIT's continued growth and expansion in the Canadian real estate market.

CAPREIT's CEO has made a significant move to secure liquidity by selling a massive portfolio to TPG Real Estate for $740 million.

This deal comprises 12,138 housing units across 75 manufactured housing communities.

The sale is a major development in the Canadian housing market, and it's expected to have a significant impact on the industry.

The transaction is still pending and hasn't been included in the recent announcement of CAPREIT's dispositions to non-profit organizations.

These dispositions include the sale of several properties, such as Parkwood Estates and Brookside Gardens, to non-profit buyers like Catalyst Community Development Society and Scarlett View Housing Corporation.

The funds from this sale will provide CAPREIT with much-needed liquidity, allowing the company to continue its operations and pursue future growth opportunities.

The sale of these properties is a strategic move by CAPREIT to address the Canadian housing crisis, as CEO Kenney mentioned in the recent release.

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