Canadian Apartment Properties Real Estate Investment Trust
TSX : CAR.UN

Canadian Apartment Properties Real Estate Investment Trust

October 03, 2005 08:54 ET

CAP REIT Announces Solid Improvement in Occupancy

TORONTO, ONTARIO--(CCNMatthews - Oct. 3, 2005) -

Apartment Market Strengthening in All Regions

REIT and Management To Continue Purchasing Trust Units

Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT") (TSX:CAR.UN) announced today that occupancy across its portfolio as at September 30, 2005, improved to approximately 98% from 96.5% at the end of the second quarter. Vacancies have been steadily decreasing in the majority of markets in which CAP REIT operates.

"We expect our occupancies will continue to rise, driven by the strengthening in the apartment market and the success of our innovative sales and marketing strategies," commented Thomas Schwartz, President and Chief Executive Officer. "Recent announcements by the federal government on increased immigration levels bode well for even higher demand in our key markets."

CAP REIT also announced today that it would continue the purchase of its Trust Units under its approved Normal Course Issuer Bid (NCIB). For the twelve months ending May 31, 2006, CAP REIT may acquire up to 4.9 million Units, representing 10% of the public float. Purchases will be made at market prices through the facilities of the Toronto Stock Exchange. Certain members of management have also indicated they intend to purchase Trust Units on the TSX for their own accounts. Over the last 3 years, President and CEO Thomas Schwartz has added more than 340,000 Units to his holdings through purchases on the open market and through participation in CAP REIT's incentive programs.

"As management, we strongly believe that the current trading price of our Units does not reflect the solid prospects for our business going forward," Mr. Schwartz continued. "We have never been so confident in our future, and the aggressive steps we are taking to enhance our operating platform and grow and reposition our portfolio ensure we are ready to capitalize on the strengthening in our markets for the benefit of all Unitholders."

As one of Canada's largest residential landlords, CAP REIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 26,049 residential suites located in major urban centres from coast to coast across the country. Since its Initial Public Offering in May 1997, CAP REIT has grown monthly cash distributions per Unit by 51%. For more information about CAP REIT, its business and its investment highlights, please refer to our web site at www.capreit.net.

Contact Information

  • CAP REIT
    Mr. Michael Stein
    Executive Chairman
    (416) 861-5788
    or
    CAP REIT
    Mr. Thomas Schwartz
    President & CEO
    (416) 861-9404
    or
    CAP REIT
    Mr. Yazdi Bharucha
    CFO & Secretary
    (416) 861-5771
    www.capreit.net