TSX Shariah screener · September 2026

Is Automotive Properties Real Estate Investment Trust (APR.UN) Halal?

FAIL

Automotive Properties Real Estate Investment Trust · TSX: APR.UN · Real Estate

The short answer

Automotive Properties REIT (TSX: APR.UN) is a FAIL. The business gate passes: owning and leasing 95 automotive dealership properties on triple-net leases is a permissible activity. The income gate passes: no interest income is disclosed (≈C$0). But the debt gate fails: debt of at least C$656.9M (March 31, 2026; June 30 was higher) is ≈102.8% of the ~C$639.1M market cap — far over the ~33% guideline.

Gate 1 — Business activity: PASS

Automotive Properties REIT is an unincorporated, open-ended REIT owning 95 income-producing automotive and OEM dealership and service properties (~3.5M sq ft of gross leasable area) in BC, Alberta, Saskatchewan, Manitoba, Ontario and Québec, plus California, Florida and Ohio — “the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate.” All leases are triple-net (tenants pay realty taxes). Major tenants include the Dilawri Group (about a 30.7% effective unitholder and the largest tenant), Penske Automotive Group (Audi South Coast / South Coast VW, acquired April 7, 2026 for US$30.15M), Rivian and Tesla. In September 2026 the REIT agreed to sell a 50% interest in its Vaughan, Ontario dealership property to a Dilawri member for $16.0M. Owning and leasing commercial real estate is a permissible business activity — no prohibited segments. Gate 1 passes.

Gate 2 — Debt and cash: FAIL

Debt: C$656.914M of credit facilities and mortgages payable at March 31, 2026 (Q1 2026 financial statements; no debentures outstanding; lease liabilities immaterial) → ≈102.8% of the ~C$639.1M market cap (C$11.58, September 30, 2026, all unit classes) — far over the ~33% guideline. The exact June 30, 2026 debt figure is not separately verifiable from indexed sources, but the Q2 2026 release confirms debt rose in Q2: Debt to Gross Book Value increased to 47.5% (from 46.3%), and the REIT drew ~C$41.6M on its revolver to fund the April 2026 Orange County acquisition. So ≈102.8% is a floor; the debt gate fails by a wide margin either way. Cash: $0.7M on hand at June 30, 2026 → ≈0.1% of market cap — passes. The debt component fails, so Gate 2 fails.

Gate 3 — Non-compliant income: PASS

No interest income is disclosed. The Q1 2026 income statement has no interest-income line — only “Interest expense and other financing charges” (C$7,286K in Q1) — and the cash flow statement shows interest paid with no interest received; the Q2 2026 release likewise discloses no interest income. Interest income is effectively C$0, ≈0% of H1 rental revenue of C$59.301M — well under the ~5% tolerance. Gate 3 passes.

Key figures used

Q2 2026 rental revenue C$30.205M (+22.8% YoY); H1 2026 C$59.301M (reported August 13, 2026).
Credit facilities and mortgages payable C$656.914M at March 31, 2026 (Q1 2026 FS); no debentures outstanding.
Debt to Gross Book Value 47.5% at June 30, 2026 (up from 46.3% at Mar 31); ~C$41.6M revolver draw for the US$30.15M Orange County acquisition (Apr 7, 2026).
Cash on hand $0.7M at June 30, 2026; $58.0M undrawn revolver capacity.
Market cap ≈C$639.1M (C$11.58 per unit, September 30, 2026; 54,359,385 REIT Units + 833,333 Class B LP Units).
Debt ≥ ≈102.8% of market cap (C$656.914M ÷ C$639.1M) — a floor; June 30 debt was higher.
Interest income effectively C$0 (none disclosed); interest expense C$7,286K in Q1 2026.

Frequently asked questions

Is Automotive Properties REIT (APR.UN) halal?

Our September 2026 screen gives Automotive Properties REIT (APR.UN) a FAIL. The dealership-real-estate business passes the activity gate, and cash (about 0.1% of market cap) and interest income (effectively zero) both pass their gates. But debt of at least C$656.9M is about 102.8% of the ~C$639.1M market cap - far over the ~33% guideline for interest-bearing debt. The June 30, 2026 debt figure is not separately verifiable, but the Q2 2026 release confirms debt rose in Q2 (Debt to Gross Book Value up to 47.5%, plus a ~C$41.6M revolver draw for the Orange County acquisition), so the true ratio is higher than 102.8%.

What business is Automotive Properties REIT in?

It is an unincorporated, open-ended REIT owning 95 income-producing automotive and OEM dealership and service properties - about 3.5 million square feet of gross leasable area - in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec, plus California, Florida and Ohio. All leases are triple-net. Major tenants include the Dilawri Group (about a 30.7% unitholder), Penske Automotive Group, Rivian and Tesla. The REIT describes itself as the only public vehicle in Canada focused on consolidating automotive dealership real estate.

Why does Automotive Properties REIT fail the debt gate?

The last fully verifiable debt figure is C$656.914M of credit facilities and mortgages payable at March 31, 2026 (Q1 2026 financial statements; no debentures outstanding; lease liabilities immaterial). Against a market cap of about C$639.1M (C$11.58 per unit on September 30, 2026, all unit classes), that is roughly 102.8% - far over the ~33% guideline. Debt was higher at June 30, 2026: the REIT's Debt to Gross Book Value rose to 47.5% (from 46.3%) and it drew about C$41.6M on its revolver to buy the Orange County dealership properties for US$30.15M in April 2026. So 102.8% is a floor, and the debt gate fails by a wide margin either way.

How much interest income does the REIT earn?

Effectively none. The Q1 2026 income statement has no interest-income line - only 'Interest expense and other financing charges' (C$7,286K in Q1) - and the cash flow statement shows interest paid with no interest received. The Q2 2026 release likewise discloses no interest income. Interest income is effectively C$0, about 0% of H1 rental revenue of C$59.301M - well under the ~5% tolerance.

What do Musaffa, Zoya or ShariaPortfolio say about Automotive Properties REIT?

No Musaffa page was found for APR.UN, no public Zoya rating was found, and ShariaPortfolio does not publish per-stock screening pages. As general context (not a rating of this REIT), money.ca's halal-investing guide notes that REITs are generally not considered halal because many invest in interest-based loans or non-halal properties and screening is required. This page's FAIL result is based on the debt-to-market-cap ratio from the REIT's own financial statements.

Sources

Screened 2026-09-30 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.