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  5. CAR.UN: I know in the past you have liked CAR. [Canadian Apartment Properties Real Estate Investment Trust]
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Investment Q&A

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Q: I know in the past you have liked CAR.un. But were you disappointed yet again in their earnings report last week? The stock seems dead in the water and the yield is nothing special (for a reit), Do you expect any meaningful increases in the dividend going forward? So why should I hold on to it?
Asked by arnold on August 14, 2025
5i Research Answer:

CAR's cash flow per share did beat estimates (marginally). The payout ratio is very good at 58.5% and it does have a good record of distribution increases. It raised in June and there is certainly potential for more hikes, maybe even before year end. Historically, the REIT has been one of the safest and best-performing. This has given it a premium valuation in the market, which it still has. But that means when things are not perfect it can sell off a bit. It is down less than 1% this year, but we would still consider it attractive for safe income (3.67% yield). In the residential space  yields are low (BEI.UN 2.30% for example). Like all REITs, we would not consider it a 'growth' security. We would be fine owning this for income, though, and sentiment could improve with lower interest rates ahead.