Then and Now – Canadian Apartment Properties REIT
Welcome to another Then and Now post, a continuation of my series where I revisit some older blogposts and either rip them to shreds (because my thinking has changed on such subjects) or I’ll confirm my position on various personal finance topics or specific stock and ETF investments.
You can check out my previous posts in this series about these stocks below:
Today’s post is about a popular Real Estate Investment Trust (REIT): Canadian Apartment Properties REIT (CAR.UN).
- Unlike other dividend paying companies that I’ve owned for over 10 years now, companies like Royal Bank, CIBC, BMO, Fortis, Procter & Gamble and J&J to name a few, I actually don’t have a dedicated post talking about CAR.UN and my initial purchase.
- I do recall when I started to look at this stock though, about 8-9 years ago.
- CAPREIT (CAR.UN) has been growing its portfolio over time. They’ve always had a diverse portfolio of multi-unit residential properties, including townhomes, in many major Canadian urban centres.
- They have been one of Canada’s leading and largest REITs for many years now.
- I recall looking at owning some CAR.UN around 2012 although unfortunately I didn’t buy any shares until early 2014.
- I’ve held these initial shares and periodically added more shares over the years in my RRSP.
- CAR.UN was a top REIT I put on my radar to buy more of in 2019:
- I did buy a bit then and I bought more of it in 2020.
- I now own a few hundred shares of CAR.UN.
- I enjoy the built-in diversification from this company – they now have over 65,000 residential rental apartment and townhouse suites and manufactured home community sites in their portfolio – owning properties in Canada, the Netherlands, and Ireland.
- I like the fact this company (and some rental income in general, with housing supply so low across Canada right now) is largely recession proof.
- I own REITs like this as a hedge for higher inflation (that’s now here).
- Since owning this stock, my total return is almost 90%. It would have been higher had I made a larger initial purchase in 2014 and if I didn’t continue to nibble and buy more shares over the last few years.
- I have no plans to sell any portion of CAR.UN, I will continue to own it for the distribution payout and more expected growth over time.
- I would not be surprised at this time next year, if this stock is more than $60 per share. We’ll see!
Not every stock in my portfolio is a winner. Far from it. Look no further than that TransAlta link above. I’ve also recently ditched HR.UN completely from my portfolio as well which suffered mightily during the pandemic.
However, through a disciplined buy and hold and buy some more approach for the majority of my holdings, the dividends and distributions keep flowing in pushing my income stream higher and higher.
What do you make of my decision to own CAR.UN? Do you see more growth for CAPREIT going forward?
Thanks for your readership.