Mark Rothschild, an analyst from Canaccord Genuity, maintained the Buy rating on Allied Properties Real Estate Investment Trust. The associated price target is C$18.00.
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Mark Rothschild has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. Although Allied Properties Real Estate Investment Trust reported results below expectations, Rothschild believes the broader office market is on an upswing, which could eventually benefit Allied’s portfolio. The company’s current trading at a significant discount to its net asset value compared to peers indicates potential for capital appreciation.
While the management has indicated a likely distribution cut, Rothschild views the decision to retain cash positively for long-term stability. Despite a decrease in normalized funds from operations per unit and high vacancy rates, leasing spreads have been positive, suggesting potential for improvement. The target price has been adjusted to C$18.00, reflecting a cautious yet optimistic outlook, with an implied return of 24.5% indicating a favorable risk-reward scenario for investors.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of APYRF in relation to earlier this year.