The following is a summary of the Canadian Apartment Properties Real Estate Investment Trust (CDPYF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• CAPREIT saw a 5.9% increase in operating revenues for Q4 2023, spurred by strong rent growth throughout the year.

• Net Operating Income (NOI) rose by 7.4% compared to Q4 2022, despite a net decrease of over 2,000 suites.

• NOI margin improved to 64.9% for the quarter, up by 90 basis points due to cost control measures.

• Funds From Operations (FFO) increased by 2.2% compared to Q4 2022.

• For the full year 2023, operating revenues grew by 5.8% and net operating income increased by 6.5%.

• FFO for diluted unit increased by 2.9% to $2.39 for the year ended 2023.

• The company maintained a solid liquidity position with $340 million in available capacity at the end of 2023 and also had $1.5 billion worth of unencumbered investment properties.

Business Progress:

• CAPREIT focused on streamlining the portfolio for value creation, involving the disposal of older, non-core properties and reinvestment into new build rental apartment properties in Canada.

• It invested $101 million in 2023 for the repurchase and cancellation of 2.2 million Trust Units, as part of its NCIB program.

• The firm continued to engage with governmental bodies concerning affordable housing, with four affordable housing sites currently targeted.

• In 2023, the company sold over $400 million in non-core properties and reinvested around $300 million into new, purpose-built rental apartments, acquiring seven properties in the past year.

• The company plans to dispose over $400m worth of off-strategy properties to further upgrade the portfolio in 2024.

• CAPREIT launched an at-the-market program aimed at cost-effectively raising capital when market conditions are favorable, enhancing its financial flexibility for capital allocation strategies.

• The company confirmed the acquisition of two properties amounting to around 600,000 square feet with development potential.

• They are expecting property taxes to increase across their portfolio in the coming year.

More details: CANADIAN APARTMENT PROPERTIES REAL IR

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