Investment Thesis
Canadian Apartment Properties REIT (CDPYF) (TSX: “CAR.UN”) delivered another strong quarter in Q1 2020 despite the outbreak of COVID-19. Its rents collected and occupancy ratio remain elevated. However, the REIT may see a slowdown in its rent growth due to fewer than expected immigrants coming to Canada in 2020 and 2021 caused by COVID-19. Fortunately, the company has a solid balance sheet with ample liquidity to handle this healthcare crisis. Canadian Apartment currently pays a safe 2.8%-yielding dividend and is trading at a discount to its valuation before the outbreak of