What is a REIT?
A Real Estate Investment Trust (“REIT”) is a publicly traded investment vehicle that invests predominantly in income producing real estate assets. REITs pay out a large percentage of their income to their Unitholders, and very little income is retained. Income is distributed on a regular basis, usually quarterly or monthly. A REIT does not pay tax. The primary source of income for a REIT is the rental income derived from its tenants, while the largest expenses are property operating costs, interest and administrative costs.
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Why does CAPREIT invest in capital improvements for its buildings?
CAPREIT’s unique approach to the residential rental property market is focused on providing tenants with comfortable and secure homes. By investing in its properties, the value of CAPREIT’s portfolio is enhanced and occupancy rates remain high.
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Does an investor pay income tax on cash distributions received?
Information on taxation of Cap Reit's distributions can be found under the "Tax Information" section of this website.
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How does CAPREIT manage risk?
One of CAPREIT’s objectives is to provide long-term, stable and predictable monthly distributions for its Unitholders. To achieve this objective, CAPREIT manages risk in a number of ways. First, it ensures its portfolio is not tied to any one demographic sector by balancing its portfolio between luxury, mid-tier and affordable suites. It also diversifies geographically, and is now well positioned in key growth markets from coast-to-coast across Canada Finally, financial risk is mitigated by ensuring there is a blend of mortgages in terms of maturity date and interest rates.
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What is CAP REIT’s pay-out ratio?
As CAP REIT has grown, it has recognized the necessity to retain earnings in order to maintain its superior growth record. Going forward, CAP REIT will maintain a proper balance between growth in distributions and growth in retained distributable income, and intends to maintain a pay-out ratio of approximately 85%.
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Why invest in apartments?
The multi-family rental residential real estate market is perfectly suited for an investment trust structure due to its reduced risk exposure and consistent ability to produce stable and predictable cash flow. Revenues come from a large and diverse group of tenants, ensuring that income remains unaffected by the loss of any one tenant. Compared to commercial leases, residential terms are typically one year in length, allowing for more frequent and predictable rent increases. In addition, mortgages on multi-unit residential properties are typically CMHC-insured, resulting in lower interest rates and a more stable access to capital.
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How can I receive Email alerts from CAP REIT?
To sign up for Email alerts on our Events, Documents, Press Releases and closing stock price information click here to visit our
Email Notification page.
How have rents and vacancies performed over the past ten years?
Over the past ten years, rental rates for apartment suites have remained quite stable with consistently low vacancy rates, resulting in a highly predictable and growing income stream.
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How can I request additional information from CAP REIT?
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What is driving demand for apartments?
Demand for rental accommodation is driven primarily by value and is affected by a number of factors, including increased immigration and a growing seniors’ population, as well as the state of consumer credit markets and the Canadian housing industry.
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How is CAPREIT generating value?
Through its focused program of proactive property management, capital improvements and preventative maintenance, CAPREIT ensures its buildings increase in value. In addition, CAPREIT’s unique approach to the apartment business continues to build its brand as the Landlord of Choice in the Canadian apartment industry. As a result, many of CAPREIT’s properties are worth much more than the CAPREIT’s original acquisition price.
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Are the values of apartment buildings increasing?
The average purchase price per apartment suite has increased steadily in the majority of CAPREIT’s markets while capitalization rates have remained quite stable. CAPREIT’s freehold ownership of its portfolio offers participation in property value increases. As a result of rising property values and declining capitalization rates, the appraised value of CAPREIT’s portfolio is significantly higher than its book value.
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Does an investor pay income tax on cash distributions received?
Information on taxation of CAPREIT's distributions can be found under the "Tax Information" section of this website.
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What is CAPREIT’s pay-out ratio?
As CAPREIT has grown, it has recognized the necessity to retain earnings in order to maintain its superior growth record. Going forward, CAPREIT will maintain a proper balance between growth in distributions and growth in retained Distributable Income, and intends to maintain a pay-out ratio in the range of 85% to 90%.
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