Allied Properties Real Estate Investment Trust (AP.UN) AI Stock Analysis

• Market Cap: C$2.10B
• Dividend Yield: 12.06%
• Average Volume (3M): 812.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 4.98%
• EPS Growth: 19.54%
• Country: CA
• Employees: 351
• Sector: Real Estate
• Sector Strength: 75
• Industry: REIT - Office
• EPS (TTM): -2.45
• Shares Outstanding: 127,955,986
• 10 Day Avg. Volume: 1,179,059
• 30 Day Avg. Volume: 812,631
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.64
• Price to Cash Flow (P/CF): 8.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$18.51
• Price Target Upside: 21.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Allied Properties REIT's overall stock score is impacted by financial challenges, particularly in profitability and cash flow. Mixed technical signals and high leverage add risk, although strategic plans for occupancy and debt reduction provide some optimism. The attractive dividend yield offers potential value but raises questions about sustainability given ongoing financial pressures.

Positive Factors

Earnings

Big Q4/24 EPS beat; South America the major growth.

Market Confidence

Increasing confidence in leasing market but occupancy gains.

Negative Factors

Debt Refinancing

Refinancing debt at higher rates is likely to offset any potential near-term improvement in occupancy.

Financial Flexibility

The elevated payout ratio reduces the REIT’s financial flexibility.

Occupancy Challenges

A material improvement in occupancy is not likely in the near term.

Allied Properties Real Estate Investment Trust Business Overview & Revenue Model

Company Description

Allied is a leading owner, manager and developer of (i) distinctive urban workspace in Canada's major cities and (ii) network-dense urban data centres in Toronto that form Canada's hub for global connectivity. Allied's business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity.

How the Company Makes Money

Allied Properties REIT generates revenue primarily through leasing office and retail spaces in its portfolio of urban properties. The company earns rental income from its tenants, which include various businesses ranging from technology firms to creative industries. Additionally, Allied Properties REIT benefits from property appreciation and strategic property developments, which can enhance the overall value of its portfolio. The trust may also engage in selective property sales to realize capital gains. Key partnerships with property management and development firms, as well as maintaining high occupancy rates and attracting high-quality tenants, are significant factors contributing to its earnings.

Allied Properties Real Estate Investment Trust Financial Statement Overview

Summary

Allied Properties REIT faces financial challenges, particularly in profitability and cash generation, with negative margins and declining cash flows. However, the balance sheet shows reasonable equity levels, albeit with increasing leverage, which could pose risks.

Income Statement

The company's revenue growth rate has been inconsistent, with the most recent year showing a modest increase in total revenue. However, profitability metrics such as net profit margin and EBITDA margin are concerning, as both are negative, indicating operational challenges and inefficiencies. The absence of EBIT further highlights these issues.

Balance Sheet

The debt-to-equity ratio has increased over the years, reflecting higher leverage, which could pose financial risks. Despite this, the equity ratio remains healthy, suggesting the company maintains a decent level of financial stability. However, the return on equity has turned negative, highlighting profitability concerns.

Cash Flow

Operating cash flow has decreased significantly, and free cash flow growth is negative, reflecting a decline in cash generation capabilities. The operating cash flow to net income ratio is unfavorable due to negative net income, indicating cash flow challenges. However, the company has managed to maintain positive free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
592.04M	563.98M	519.47M	568.89M	560.50M
	Gross Profit
328.47M	317.03M	295.21M	329.39M	319.01M
	EBIT
0.00	-457.61M	297.68M	274.92M	310.50M
	EBITDA
-227.84M	-440.00M	299.00M	276.08M	311.97M
	Net Income Common Stockholders
-342.53M	-425.71M	103.80M	443.15M	500.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.92M	211.07M	20.99M	22.55M	45.51M
	Total Assets
10.60B	10.61B	11.91B	10.38B	9.40B
	Total Debt
4.42B	3.71B	4.26B	3.61B	2.88B
	Net Debt
4.34B	3.50B	4.24B	3.59B	2.84B
	Total Liabilities
5.04B	4.47B	4.78B	3.96B	3.22B
	Stockholders Equity
5.56B	6.14B	6.58B	6.43B	6.18B
Cash Flow		Free Cash Flow
146.88M	319.05M	320.33M	240.78M	355.48M
	Operating Cash Flow
147.84M	320.89M	321.19M	241.11M	356.26M
	Investing Cash Flow
-381.46M	659.85M	-654.35M	-695.80M	-960.68M
	Financing Cash Flow
96.48M	-790.66M	331.60M	431.72M	441.02M

Allied Properties Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AP.UN, the sentiment is Negative. The current price of 15.19 is below the 20-day moving average (MA) of 15.80, below the 50-day MA of 16.38, and below the 200-day MA of 16.86, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 51.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AP.UN.

Allied Properties Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRC	78 Outperform	$1.21B	4.65	6.46%	0.67%	-7.92%	256.12%
REI.UN	68 Neutral	$4.91B	10.49	6.34%	6.67%	11.62%	1120.60%
AX.UN	67 Neutral	$675.75M	―	-2.86%	8.59%	-10.56%	81.41%
HR.UN	63 Neutral	C$2.50B	―	-2.29%	6.30%	-6.92%	-296.31%
Sector *	60 Neutral	$3.00B	12.40	0.61%	9872.56%	7.62%	-2.59%
AP.UN	58 Neutral	C$2.10B	―	-5.79%	12.06%	4.98%	19.54%
D.UN	53 Neutral	$303.65M	―	-9.20%	6.25%	4.16%	-57.38%

Allied Properties Real Estate Investment Trust Corporate Events

Allied Properties Completes $400 Million Debenture Offering

Allied Properties Real Estate Investment Trust has successfully completed a $400 million private placement offering of senior unsecured debentures in Canada. The proceeds from this offering will be used to prepay an existing $400 million unsecured term loan maturing in October 2025. The debentures, rated ‘BBB’ with a negative trend by Morningstar DBRS, were issued in two series and are part of Allied’s strategy to manage its debt obligations effectively.

Spark’s Take on TSE:AP.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:AP.UN is a Neutral.

Allied Properties REIT’s overall stock score is impacted by financial challenges, particularly in profitability and cash flow. Mixed technical signals and high leverage add risk, although strategic plans for occupancy and debt reduction provide some optimism. The attractive dividend yield offers potential value but raises questions about sustainability given ongoing financial pressures.

To see Spark’s full report on TSE:AP.UN stock, click here.

Allied Properties to Discuss Q1 2025 Financial Results in Upcoming Conference Call

Allied Properties Real Estate Investment Trust announced it will hold a conference call and live audio webcast on May 1, 2025, to discuss its first-quarter financial results for the period ending March 31, 2025. The financial results will be released on April 30, 2025, after market close, providing stakeholders an opportunity to gain insights into the company’s performance and strategic direction.

Allied Properties Announces $400 Million Debenture Offering

Allied Properties Real Estate Investment Trust announced a $400 million private placement offering of senior unsecured debentures in Canada. The proceeds from this offering will be used to prepay an existing $400 million unsecured term loan. The debentures are expected to be rated ‘BBB’ with a negative trend by Morningstar DBRS and will rank equally with other unsecured indebtedness of the company.

Allied Properties REIT Declares March 2025 Distribution

Allied Properties REIT has declared a distribution of $0.15 per unit for March 2025, translating to an annualized distribution of $1.80 per unit. This announcement underscores Allied’s commitment to delivering consistent returns to its unitholders and reflects its stable financial performance in the competitive urban real estate market.

Allied Properties Completes $450 Million Green Bond Offering

Allied Properties Real Estate Investment Trust has successfully completed a $450 million green bond offering, issuing series K senior unsecured debentures with a 4.808% annual interest rate, maturing in 2029. The proceeds from this offering will be used to repay a construction loan for 19 Duncan Street in Toronto and redeem series C debentures, aligning with Allied’s Green Financing Framework to support eligible green projects.

Allied Properties REIT Declares February 2025 Distribution

Allied Properties REIT announced a distribution of $0.15 per unit for February 2025, equating to $1.80 annually, payable to unitholders in March. This announcement underscores Allied’s commitment to providing value to its stakeholders and reflects its stable financial positioning within the Canadian urban workspace market.

Allied Properties Launches $450 Million Green Bond to Fund Sustainable Projects

Allied Properties Real Estate Investment Trust announced a $450 million green bond offering, with the proceeds intended for refinancing eligible green projects. The funds will initially be used to repay a construction loan for 19 Duncan Street in Toronto and series C senior unsecured debentures, emphasizing Allied’s commitment to sustainability and environmental responsibility.

Allied Properties REIT Reports Steady Occupancy and Growth Prospects for 2025

Allied Properties Real Estate Investment Trust reported steady occupancy and leasing rates for the fourth quarter and year-end of 2024. The company’s urban workspace portfolio, particularly in Toronto, outperformed in terms of occupancy and rent growth, with notable demand for its Allied Heritage format in Montréal, Calgary, and Vancouver. Allied expects increased demand and rent growth throughout 2025, as indicated by the 255 lease tours conducted and a renewal rate nearing normal levels.

Allied Properties REIT Declares January 2025 Distribution

Allied Properties REIT has declared a distribution of $0.15 per unit for January 2025, equating to $1.80 on an annual basis, payable to unitholders on February 18, 2025. This announcement underscores Allied’s commitment to providing consistent returns to its stakeholders, reinforcing its stable financial position in the real estate investment industry.