Automotive Properties Real Estate Investment Trust (TSX: APR.UN) is an unincorporated, open-ended real estate investment trust that specializes in the ownership, acquisition, and leasing of automotive dealership and service properties. The REIT's business model revolves around acquiring high-quality, purpose-built real estate and leasing it back to automotive dealership groups and original equipment manufacturers (OEMs) under long-term, triple-net lease agreements, where tenants are responsible for operating expenses, taxes, and maintenance.
The trust generates 100% of its revenue from rental income derived from its specialized property portfolio. As of recent reporting, the REIT owns over 90 income-producing commercial properties encompassing approximately 3.5 million square feet of gross leasable area. Geographically, the portfolio is heavily concentrated in Canada, with properties located in major metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Québec. The REIT has also expanded its footprint into the United States, acquiring properties in states such as California, Florida, and Ohio.
Automotive Properties REIT was established in 2015 by the Dilawri Group of Companies, Canada's largest automotive dealership group, which remains a significant tenant. However, the REIT has actively diversified its tenant base to include various other dealership operators and direct OEM tenants, such as Tesla and Rivian. As the only publicly traded REIT in Canada exclusively dedicated to automotive dealership real estate, it benefits from a unique competitive position, capitalizing on the ongoing consolidation within the automotive retail sector and the high barriers to entry for prime urban dealership locations.
