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

• Market Cap: $2.28B
• Dividend Yield: 10.64%
• Average Volume (3M): 486.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 5.28%
• EPS Growth: -0.79%
• Country: CA
• Employees: 352
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Office
• EPS (TTM): -0.77
• Shares Outstanding: 127,955,986
• 10 Day Avg. Volume: 426,776
• 30 Day Avg. Volume: 486,239
• PEG Ratio: -0.43
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.94
• 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: $16.96
• Price Target Upside: 0.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: C$18.00 ▲(6.51%Upside)

Allied Properties REIT scores a 67, driven by a strong focus on sustainability and strategic resilience amidst financial challenges. The earnings call and corporate events reflect positive strategic direction and commitment to ESG goals, while technical indicators provide moderate positive signals. However, the valuation is impacted by negative profitability, and financial performance remains a concern.

Positive Factors

Leasing Activity

Same-property NOI growth turns positive with a 1.5% increase, driven by leasing activity in Montreal.

Tenant Retention

The retention ratio improved to 75.1%, compared to 69.3% in the previous year, indicating better tenant retention.

Negative Factors

Debt and Interest Rates

FFO per unit drops 12% due to greater interest expense from refinancing debt at higher interest rates and dilution from the Westbank transaction.

Financial Flexibility

The REIT’s financial flexibility is limited with a large volume of debt maturities and no visibility on improvement in the office market.

Occupancy Challenges

Disruption to global trade is impacting leasing activity, making it difficult to achieve management's occupancy target for 2025 of 90%.

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 the leasing of its office and retail properties to a diverse tenant base. The company earns rental income from long-term lease agreements, which provide a steady and predictable cash flow. Additionally, Allied Properties REIT may engage in strategic acquisitions and development projects that enhance its portfolio and contribute to rental income growth. The company also benefits from property appreciation over time, which can increase the value of its real estate holdings and provide opportunities for refinancing or selective asset sales. Allied Properties REIT's earnings are influenced by factors such as occupancy rates, rental rates, property management efficiencies, and general economic conditions in the Canadian real estate market.

Allied Properties Real Estate Investment Trust Financial Statement Overview

Summary

Allied Properties REIT is experiencing mixed financial performance. While revenue growth is modest, profitability is challenged with a deeply negative net income and net profit margin. The balance sheet shows moderate leverage and decent asset backing, while cash flows remain stable, indicating operational efficiency despite profitability issues.

Income Statement

The income statement reflects a challenging period for Allied Properties REIT, with a negative net income for the TTM, indicating profitability issues. Revenue showed a modest growth of 1.2% in TTM compared to 2024, but the net profit margin is deeply negative at -72%, primarily due to significant net losses. The EBIT margin remains positive at 36.1%, suggesting some operational efficiency. However, the negative EBITDA margin indicates increased expenses or restructuring costs, impacting profitability.

Balance Sheet

The balance sheet presents a stable yet leveraged position with a debt-to-equity ratio of 0.83, reflecting moderate financial leverage. The equity ratio stands at 51.5%, indicating a balanced capital structure and decent asset backing. Return on equity is currently not favorable due to negative net income, but the company maintains a strong equity base, which offers potential for recovery.

Cash Flow

The cash flow statement reveals stable operating cash flow, with the operating cash flow to net income ratio being positive despite net losses, indicating efficient cash generation from operations. Free cash flow is also stable, although growth has stagnated due to increased capital expenditures. The free cash flow to net income ratio is positive, reflecting solid cash management despite recent financial losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
599.10M	592.04M	563.98M	519.47M	568.89M	560.50M
	Gross Profit
330.86M	328.47M	317.03M	295.21M	329.39M	319.01M
	EBIT
216.51M	302.47M	-457.61M	297.68M	274.92M	310.50M
	EBITDA
-236.96M	-227.84M	-440.00M	299.00M	276.08M	311.97M
	Net Income Common Stockholders
-431.43M	-342.53M	-425.71M	103.80M	443.15M	500.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
167.48M	73.92M	211.07M	20.99M	22.55M	45.51M
	Total Assets
9.66B	10.60B	10.61B	11.91B	10.38B	9.40B
	Total Debt
3.13B	4.42B	3.71B	4.26B	3.61B	2.88B
	Net Debt
2.96B	4.34B	3.50B	4.24B	3.59B	2.84B
	Total Liabilities
3.46B	5.04B	4.47B	4.78B	3.96B	3.22B
	Stockholders Equity
6.20B	5.56B	6.14B	6.58B	6.43B	6.18B
Cash Flow		Free Cash Flow
142.19M	146.88M	319.05M	320.33M	240.78M	355.48M
	Operating Cash Flow
143.05M	147.84M	320.89M	321.19M	241.11M	356.26M
	Investing Cash Flow
-311.17M	-381.46M	659.85M	-654.35M	-695.80M	-960.68M
	Financing Cash Flow
170.03M	96.48M	-790.66M	331.60M	431.72M	441.02M

Allied Properties Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AP.UN, the sentiment is Positive. The current price of 16.9 is above the 20-day moving average (MA) of 15.51, above the 50-day MA of 15.22, and above the 200-day MA of 16.54, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 73.26 is Negative, neither overbought nor oversold. The STOCH value of 95.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
PMZ.UN	76 Outperform	C$1.55B	27.09	2.99%	5.48%	22.60%	-48.92%
DIR.UN	76 Outperform	C$3.38B	14.89	4.92%	5.97%	6.68%	14.72%
CRR.UN	69 Neutral	C$2.75B	―	-0.49%	5.96%	6.96%	85.15%
AP.UN	67 Neutral	$2.28B	―	-7.48%	10.64%	5.28%	-0.79%
Sector *	61 Neutral	$2.85B	10.96	0.41%	8438.88%	5.73%	-21.25%
HR.UN	58 Neutral	C$2.81B	―	-3.89%	5.57%	-6.43%	-35204.55%
ARESF		$535.25M	―	-1.80%	7.96%	―	―

Allied Properties Real Estate Investment Trust Corporate Events

Allied Properties Releases 2024 ESG Report, Showcasing Sustainability Achievements

Allied Properties Real Estate Investment Trust has released its 2024 Environmental, Social, and Governance (ESG) Report, highlighting its commitment to reducing greenhouse gas emissions in line with the Science Based Targets initiative. The company has increased its portfolio certification to LEED and BOMA BEST standards and improved its Net Promoter Score significantly. Allied’s efforts in Equity, Diversity, and Inclusion have been well-received, with high user satisfaction ratings. This report aligns with global standards and showcases Allied’s dedication to sustainability and operational excellence.

The most recent analyst rating on ($TSE:AP.UN) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Allied Properties Real Estate Investment Trust stock, see the TSE:AP.UN Stock Forecast page.

Allied Properties Commits to Net-Zero Emissions by 2050

Allied Properties Real Estate Investment Trust has announced that its greenhouse gas emissions reduction targets have been validated by the Science Based Targets initiative. The company aims to achieve net-zero emissions across its value chain by 2050, with significant reductions in scope 1, 2, and 3 emissions by 2030 and 2050. This commitment aligns with a 1.5°C decarbonization pathway and reflects Allied’s dedication to sustainability and environmental responsibility, potentially enhancing its industry positioning and stakeholder relations.

The most recent analyst rating on ($TSE:AP.UN) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Allied Properties Real Estate Investment Trust stock, see the TSE:AP.UN Stock Forecast page.

Allied Properties REIT Declares May 2025 Distribution

Allied Properties REIT has declared a distribution of $0.15 per unit for May 2025, amounting to $1.80 per unit on an annualized basis. This announcement reflects Allied’s ongoing commitment to providing value to its unitholders and underscores its stable financial performance in the real estate investment sector.

The most recent analyst rating on ($TSE:AP.UN) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Allied Properties Real Estate Investment Trust stock, see the TSE:AP.UN Stock Forecast page.

Allied Properties REIT Announces 2025 Meeting Results

Allied Properties Real Estate Investment Trust announced the results of its 2025 Annual and Special Meeting of Unitholders, where all trustee nominees were elected, Deloitte LLP was appointed as the auditor, and the unitholder rights plan was reconfirmed. Additionally, the ‘Say-on-Pay’ advisory vote on executive compensation was approved, reflecting strong support for the company’s governance and operational strategies.

Allied Properties Reports Strong Q1 2025 Performance and Strategic Portfolio Moves

Allied Properties Real Estate Investment Trust reported strong operational performance in the first quarter of 2025, with stable occupancy and lease rates across its portfolio, except in Vancouver. The company renewed 75% of its maturing leases and leased over 500,000 square feet of space, indicating robust demand. Allied also finalized a significant lease transaction at KING Toronto, enhancing the commercial appeal of the area. The company continues to optimize its portfolio by selling non-core properties to fund strategic acquisitions, expecting to sell additional properties worth at least $300 million this year to strengthen its financial metrics.

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.

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.