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Highlights

  • Desjardins raises target to CAD 13.00 with a “buy” rating maintained.
  • TD Securities lifts target to CAD 12.00 and reiterates a “hold” rating.
  • Consensus stands at “Moderate Buy” with CAD 12.50 average target, indicating upside.

Automotive Properties Real Estate Investment Trust (TSE: APR.UN) received a pair of target hikes that refine the market’s view on the Canadian auto-dealership real estate owner. In a research note issued Monday, Desjardins increased its price objective to CAD 13.00 from CAD 12.00 and maintained a “buy” rating, implying about 12.65% upside from the current share price referenced in the note. Separately, TD Securities raised its target to CAD 12.00 from CAD 11.00 while keeping a “hold” recommendation. Across the broader coverage universe, MarketBeat data indicate two “hold” and five “buy” ratings, producing a “Moderate Buy” consensus and an average target of CAD 12.50.

The updated targets arrive as investors weigh income stability against interest-rate sensitivity across Canadian REITs. Automotive Properties REIT’s portfolio is concentrated in income-producing dealership properties leased to established automotive groups and brands. Its assets are located in major Canadian urban markets across Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec—areas where demographic density and transportation corridors can support dealer operations and, by extension, rent coverage. This geographic and tenant mix contributes to visibility on occupancy and cash flows, though exposure to the auto retail cycle and to borrowing costs remains relevant for valuation.

From a rating perspective, the split between “buy” and “hold” reflects differing views on rate path, capitalization rates, and normalized funds-from-operations growth. Desjardins’ higher CAD 13.00 target suggests room for rerating if financing conditions ease or if the trust continues to execute on asset management and lease renewals. TD’s CAD 12.00 target and “hold” stance imply a more measured outlook, acknowledging improved conditions but also the possibility of lingering headwinds tied to transaction markets and refinancing.