Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) logged a $3.4-million profit in the second quarter, pulling itself out of year-ago losses as more people rented units on the REIT’s properties.
CAP’s earnings were worth five cents per basic unit for the quarter ended June 30, compared to a $59 million loss, or 99 cents per unit, a year earlier. Operating revenues moved ahead 10 per cent to $79 million, from $71.5 million, on acquisitions and higher rent prices and occupancy rates. The trust said that occupancy rates were stable at about 99.7 per cent. Average rent prices grew to $935 a month compared to $902 a year earlier, and the company’s management said that the trend towards gradual monthly rent price increases will likely continue for the foreseeable future.
“The outlook for the Canadian residential rental business continues to improve,” said the trust’s president and chief executive Thomas Schwartz in a release. “Demand continues to grow, driven by the high cost of home ownership, tightened availability for home purchase financing, increased immigration, and a rapidly growing seniors population that views rental accommodation as a cost-effective choice.”
CAP REIT owns interests in 27,324 residential suites and two land lease communities comprising 1,267 sites.
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