| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 34.50 | 199 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 8.79 | -24 |
| Graham Formula | 14.17 | 23 |
Automotive Properties Real Estate Investment Trust (APR-UN.TO) is Canada's only publicly traded REIT specializing in automotive dealership properties. Focused on income-producing commercial real estate, the trust owns and acquires dealership properties across major metropolitan markets in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Québec. With a portfolio of 64 income-generating properties and one development property spanning approximately 2.5 million square feet of gross leasable area, Automotive Properties REIT offers investors unique exposure to Canada's automotive retail real estate sector. The REIT's specialized focus on dealership properties provides a defensive investment profile with long-term leases to creditworthy tenants in an essential service industry. As a niche player in Canadian REITs, Automotive Properties combines the stability of commercial real estate with the specialized automotive retail sector, making it an attractive option for investors seeking diversification within the real estate market.
Automotive Properties REIT presents a specialized investment opportunity in Canada's commercial real estate sector with its unique focus on automotive dealership properties. The REIT's defensive characteristics include long-term triple net leases (typically 10+ years) with national dealership groups, providing stable cash flows. With a market cap of approximately CAD 532 million and a beta of 0.41, the trust offers lower volatility than broader real estate markets. Financials show solid fundamentals with CAD 93.9 million in revenue and CAD 72 million net income for the period, supporting its attractive 6.8% dividend yield (based on CAD 0.885 annual dividend per share). However, investors should consider concentration risks in the automotive sector and potential sensitivity to auto industry cycles. The REIT's modest debt level (CAD 502 million) appears manageable given its stable cash flows, but expansion opportunities may be limited by its niche focus.
Automotive Properties REIT holds a unique competitive position as Canada's only publicly traded REIT specializing in automotive dealership properties. This specialization allows for deep sector expertise and relationships with major automotive dealership groups, creating barriers to entry for generalist REITs. The trust's competitive advantages include: 1) Niche focus that reduces direct competition for assets, 2) Long-term triple net leases that provide stable cash flows, 3) Geographic diversification across Canada's major markets, and 4) Strategic relationships with national dealership operators. However, the specialized nature also presents challenges - the REIT faces indirect competition from private investors and dealership groups that may acquire their own properties. Compared to broader commercial REITs, Automotive Properties has less flexibility to pivot to other property types during market shifts. The trust's value proposition lies in its ability to consolidate a fragmented market of dealership properties while offering investors pure-play exposure to this defensive commercial real estate subsector. Its management team's specialized knowledge of automotive real estate dynamics provides an edge in underwriting and managing these unique properties.