01:25 PM EDT, 07/16/2024 (MT Newswires) -- Canadian Apartment Properties REIT agreed to sell its manufactured homes communities (MHC) portfolio to an entity controlled by TPG Real Estate for $740 million. The announcement puts an end to a four-month period of speculation triggered by a media report that surfaced in March suggesting the two parties were discussing a potential deal, BMO says.

While the near-term financial impact of this divestiture is not material, the sale should supercharge the REIT's efforts to simplify its business and high-grade its Canadian apartment portfolio in the short term, analyst Michael Markidis writes.

Reiterate Outperform rating and $57 target price.

Price: 47.34, Change: -0.18, Percent Change: -0.38