CAPREIT

Canadian Apartment Properties Reit is an apartment real estate investment trust, the largest of its kind in Canada.[2] CAPREIT's business model has been to acquire real-estate with the intention of profiting off the rent. It has been doing this since 1997.[3] As of 2020 CAPREIT owns just under 60 thousand residential units in Canada and 5600 in the Netherlands.[4] These include apartment complexes, townhouses, trailer parks, and more recently high end condominiums.

Canadian Apartment Properties REIT
TypePublic
TSX: CAR.UN
S&P/TSX 60 component
IndustryREIT
FoundedMay 24, 1997 (1997-05-24)
Headquarters
Toronto
,
Canada
Key people
Mark Kenney CEO
Scott Cryer CFO
Corinne Pruzanski secr
Jonathan FleischerVP
ProductsApartment
Real estate
Trailor park
Condominium
Town home
RevenueC$778 mil 201917%[1]
C$508 mil 2018 15%[1]
C$1195 mil 20197%[1]
Total assetsC$14,018 mil (Dec'19)[1]40%
Total equityC$8404 mil (Dec'19)[1]33%
Number of employees
28,500
DivisionsERES
CanLiving BV
Websitewww.caprent.com

History

In 1996, Thomas Schwartz partnered with Michael Stein to establish CAPREIT, one of Canada's largest residential landlords, which owns interests in almost 49,000 residential units in Canada and the Netherlands.[5] Canadian Apartment Properties REIT went public with an ipo in 1997. CAPREIT financialized the trailer park concept beginning with an acquisition in 2007 which grew to 6,456 “manufactured home community” (MHC) suites by 2017. [3][6] Paid $500 million in 2004 to acquire smaller rival [7] Residential Equities Real Estate Investment Trust. At the time of the merger the company had 24,238 rental apartments and townhouse units across the country.[8] It became associated with Montreal Olympic Village in 2012.[9] In 2019 the company spun-off 2000 rental units in the Netherlands, into a separate European-focused REIT (Canada's first).

  • CAPREIT was added to the TSX 60 index on June 22, 2020.

Notable Properties

Olympic Village (Montreal)

Criticism

The housing crisis

The company has been accused of exploiting the affordable housing crisis in Canada. In 1999, CAPREIT announced “Apartments make money!” on the cover of their annual report, at the same time the provincial government was handing over more control of social housing to municipalities.[3] Crisis for renters was a lure for investors, as CAPREIT and ResREIT noted in their IPO prospectuses.

References
  1. "CAPREIT financials". 2019.
  2. "largest publicly traded apartment landlord picks up 509 suites". November 11, 2020.
  3. "The financialization of Canadian multi-family rental housing: From trailer to tower, Journal of Urban Affairs" (PDF). February 28, 2020.
  4. "CAPREIT to be Included in the S&P/TSX 60 Index". June 15, 2020.
  5. "real-estate-moguls-death-loss-jewish-community". August 30, 2017.
  6. "CAPREIT acquires major manufactured home communities portfolio". June 1, 2012.
  7. "REIT merger may signal new era of consolidation". March 31, 2004.
  8. "reits in 1 billion dollar merger". 2004.
  9. "Tshuva's Elad sells Montreal's Olympic Village". 2012.


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