Canada's CAPREIT Q3 revenue misses estimates, FFO per unit down 1.7%
CAPREIT reported Q3 revenue of C$246.62 million, slightly below the C$248.10 million estimate, while FFO per unit fell 1.7% year over year. The company repurchased C$29 million in units during the quarter.
1. Quarterly results
Q3 revenue was C$246.62 million, compared with an estimate of C$248.10 million. Net operating income was C$162.99 million, with a 66.10% margin. FFO per unit declined 1.7% year over year, mainly due to property sales and higher interest expense.
2. Costs and outlook
Amortization of tenant inducements and higher maintenance costs weighed on Canadian same-property NOI. CAPREIT expects the next few quarters to remain challenging because of new supply and slower population growth, and said higher mortgage refinancing costs are expected to add pressure to earnings. It also reported signs of leasing stabilization: rental growth on suite turnovers turned positive and new inducements declined.
