CAPREIT Reports Third Quarter 2026 Results

Brad Cutsey, President and Chief Executive Officer of CAPREIT

“Having completed my first full quarter at CAPREIT, visits to our properties and time spent with our teams have reinforced my confidence in the inherent quality of our portfolio and the opportunities to further optimize operating performance. We expect the next few quarters to remain challenging as the rental market continues to absorb new supply amid slower population growth, while higher mortgage refinancing costs put additional pressure on earnings. Against this backdrop, we are focused on refining leasing execution, resident retention, and consistent, customer-centric service across our communities, while advancing technology and process improvements across our platform. The underlying value of CAPREIT's portfolio is clear – we own high-quality Canadian rental properties located at some of the most sought-after addresses coast to coast, providing a lasting foundation for the business. Realizing their full potential will take time, but we believe disciplined execution and thoughtful capital allocation will translate these strengths into sustainable growth and long-term value for our Unitholders.”

Stephen Co, Chief Financial Officer of CAPREIT

“Our third quarter leasing results showed signs of stabilization, with rental growth on suite turnovers returning to positive territory at 0.3%, and the grant of new residential inducements down by 27% versus the second quarter. However, the amortization of tenant inducements and higher maintenance costs weighed on Canadian same property NOI, which declined by 0.3%. Diluted FFO per Unit was $0.652, down 1.7% year-over-year, primarily reflecting lost NOI from dispositions and higher interest expense, partially offset by lower trust and current tax expenses, and the benefit of NCIB repurchases. At current trading levels, our NCIB remains one of the most accretive uses of capital available to us. We invested $29 million in repurchases during the third quarter at a substantial discount to NAV, and intend to fund further buybacks on a leverage-neutral basis using disposition proceeds. By selling assets where we believe value has been maximized and redeploying the capital into more accretive opportunities, we can enhance near-term per-Unit performance while preserving balance sheet strength.”