In a report released today, Mark Rothschild from Canaccord Genuity maintained a Hold rating on Allied Properties Real Estate Investment Trust, with a price target of C$16.50.
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Mark Rothschild has given his Hold rating due to a combination of factors impacting Allied Properties Real Estate Investment Trust. Despite some positive developments, such as the narrative of workers returning to the office and positive leasing spreads, Allied’s current results are not particularly encouraging. The challenge of achieving a 90% occupancy rate by 2025 seems ambitious, especially considering the high payout ratio and the significant amount of maturing debt at low rates.
Additionally, the financial performance has been under pressure with a 5.9% drop in FFO per unit year-over-year, primarily due to increased interest expenses from refinancing debt at higher rates. Although there is some growth in same-property NOI driven by leasing activities, the overall vacancy in the national office market remains a concern. The valuation metrics also show that Allied’s units trade at a slight discount to NAV, which is less favorable compared to its Canadian and US peers, supporting the Hold recommendation.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$19.50 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is neutral on the stock.