Allied Properties Real Estate Investment Trust (TSE:AP.UN)
TSX:AP.UN
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Allied Properties Real Estate Investment Trust
(TSX:AP.UN)
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Rating:45Neutral
Price Target:
C$9.00
▼(-7.12% Downside)
Action:ReiteratedDate:03/12/26
The score is primarily held back by deteriorating profitability and increasing leverage despite stable gross margin and positive free cash flow. Technicals are notably bearish with the stock well below key moving averages and negative MACD, reinforcing downside momentum. Valuation is mixed: a very high dividend yield is supportive, but the negative P/E and weak earnings quality temper the benefit.
Positive Factors
Cash generation
Consistent positive operating and free cash flow is a durable strength: it supports recurring distributions, funds development/redevelopment activity, and provides liquidity to manage operations even when accounting earnings are weak, cushioning the REIT versus short-term earnings volatility.
Negative Factors
Rising leverage
Material increase in leverage reduces financial flexibility and raises refinancing risk for a capital-intensive REIT. Higher debt ratios limit ability to absorb rent shocks or fund development internally, and increase sensitivity to interest rate movements over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow is a durable strength: it supports recurring distributions, funds development/redevelopment activity, and provides liquidity to manage operations even when accounting earnings are weak, cushioning the REIT versus short-term earnings volatility.
Read all positive factors
Allied Properties Real Estate Investment Trust (AP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.35B
Dividend Yield13.67%
Average Volume (3M)1.15M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth1.86%
EPS Growth1.84%
CountryCA
Employees352
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-7.24
Shares Outstanding127,955,986
10 Day Avg. Volume921,413
30 Day Avg. Volume1,146,168
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.47
Price to Sales (P/S)3.15
P/FCF Ratio7.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$10.15Price Target Upside4.79% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.54
Revenue Forecast (FY)C$572.49M
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 knowle...
How the Company Makes Money
AP.UN makes money primarily by generating rental and related property income from leasing space in its properties to tenants. Its core revenue stream is base rent paid under lease contracts (typically office and other commercial leases), supplemen...
Allied Properties Real Estate Investment Trust Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong leasing activity, financial liquidity, and development progress, but faced challenges with increased interest expenses, occupancy rates, and potential distribution cuts. The sentiment is mixed with optimism for future improvements based on current initiatives.Positive Updates
Leasing Momentum and Occupancy Stability
882,000 square feet of leasing activity completed, with a conversion rate of 81%. Maintained stable operating fundamentals with a slight increase in leased area from 87.2% to 87.4%.
Negative Updates
Increased Interest Expenses
Higher interest expenses due to timing of dispositions and debt levels, impacting quarterly results negatively.
Read all updates
Q3-2025 Updates
Positive
Negative
Leasing Momentum and Occupancy Stability
882,000 square feet of leasing activity completed, with a conversion rate of 81%. Maintained stable operating fundamentals with a slight increase in leased area from 87.2% to 87.4%.
Read all positive updates
Company Guidance
In the recent Allied Properties REIT Third Quarter 2025 Earnings Conference Call, several key metrics were highlighted. The company reported leasing 882,000 square feet across its rental and development portfolios, achieving an 81% conversion rate from tours to signed deals. The leased area increased slightly from 87.2% to 87.4%. Significant development milestones included M4 in Vancouver reaching 90% leased, driven by Netflix's expansion, and progress at KING Toronto with Whole Foods secured as an anchor tenant. Financially, the company faced pressure from higher interest expenses and slower lease finalizations but maintained strong liquidity at $903 million. The balance sheet is expected to strengthen further through asset dispositions, aiming for $500 million from sales and the 150 West Georgia loan monetization. The target is to achieve a 10x debt-to-EBITDA ratio and 90% occupancy in leased areas by the end of 2026.Allied Properties Real Estate Investment Trust Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 592.38M | 592.04M | 563.98M | 519.47M | 472.80M |
| Gross Profit | 313.21M | 325.40M | 314.03M | 292.56M | 265.67M |
| EBITDA | -1.19B | -222.80M | -436.97M | 248.80M | 446.74M |
| Net Income | -1.33B | -342.53M | -425.71M | 368.86M | 443.15M |
Balance Sheet | |||||
| Total Assets | 9.26B | 10.60B | 10.61B | 11.91B | 10.38B |
| Cash, Cash Equivalents and Short-Term Investments | 96.61M | 73.92M | 211.07M | 20.99M | 22.55M |
| Total Debt | 4.73B | 4.42B | 3.71B | 4.26B | 3.61B |
| Total Liabilities | 5.24B | 5.04B | 4.47B | 4.78B | 3.96B |
| Stockholders Equity | 4.02B | 5.56B | 6.14B | 6.58B | 6.43B |
Cash Flow | |||||
| Free Cash Flow | 254.47M | 146.88M | 319.05M | 320.33M | 240.78M |
| Operating Cash Flow | 255.29M | 147.84M | 320.89M | 321.19M | 241.11M |
| Investing Cash Flow | -208.19M | -381.46M | 659.85M | -654.35M | -695.80M |
| Financing Cash Flow | -24.41M | 96.48M | -790.66M | 331.60M | 431.72M |
Allied Properties Real Estate Investment Trust Technical Analysis
Neutral
9.69
Price Trends
10.24
Negative
11.71
Negative
14.50
Negative
Market Momentum
-0.11
Negative
51.41
Neutral
70.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AP.UN, the sentiment is Neutral. The current price of 9.69 is above the 20-day moving average (MA) of 9.29, below the 50-day MA of 10.24, and below the 200-day MA of 14.50, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 70.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AP.UN.
Allied Properties Real Estate Investment Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
53 Neutral | C$2.73B | -2.68 | -17.10% | 7.05% | -0.83% | -56.21% | |
49 Neutral | C$444.06M | -25.11 | -1.91% | 3.85% | -5.37% | 13.86% | |
45 Neutral | C$1.35B | -1.41 | -10.26% | 13.67% | 1.86% | 1.84% | |
| ― | C$2.58M | -0.03 | -141.77% | ― | -6.21% | 65.52% | |
45 Neutral | C$313.69M | -2.20 | -16.57% | 5.65% | -1.06% | -20.07% |
* Real Estate Sector Average
TSE:AP.UN
Allied Properties Real Estate Investment Trust
9.69
-3.40
-25.96%
TSE:HR.UN
H&R Real Estate ate Staple
10.31
1.68
19.41%
TSE:MRT.UN
Morguard Real Estate ate
6.65
1.37
25.88%
TSE:RPR.UN
Slate Office REIT
0.03
-0.44
-93.62%
TSE:D.UN
Dream Office Real Estate Investment
16.50
1.91
13.08%
Allied Properties Real Estate Investment Trust Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Allied Raises $560 Million in Equity to Refinance Debt and Bolster Balance Sheet
Positive
Feb 18, 2026
Allied Properties Real Estate Investment Trust has closed a combined $560 million equity raise through a marketed public offering and a concurrent private placement of 56 million units priced at $10. The public component was underwritten by a majo...
Dividends
Allied Properties REIT Declares February 2026 Cash Distribution
Positive
Feb 17, 2026
Allied Properties REIT has declared a cash distribution of $0.06 per unit for February 2026, equivalent to $0.72 per unit on an annualized basis. The payout will be made on March 16, 2026, to unitholders of record as of February 27, 2026, signalin...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresPrivate Placements and Financing
Allied REIT Tightens Balance Sheet With $500 Million Equity Raise and Leadership Transition
Negative
Feb 10, 2026
Allied Properties Real Estate Investment Trust reported 2025 results showing steady rental revenue of about $592 million but lower operating income, pressured by dispositions, non-renewals, higher debt costs, and a $128 million expected credit los...
Financial Disclosures
Allied Properties REIT Schedules Call on Fourth-Quarter 2025 Results
Neutral
Jan 15, 2026
Allied Properties Real Estate Investment Trust has scheduled a conference call and live audio webcast for February 11, 2026, to discuss its financial results for the fourth quarter ended December 31, 2025, which will be released after markets clos...
Dividends
Allied Properties REIT Declares January 2026 Monthly Distribution
Positive
Jan 15, 2026
Allied Properties REIT has declared a cash distribution of $0.06 per unit for January 2026, equivalent to $0.72 per unit on an annualized basis, payable on February 17, 2026 to unitholders of record as of January 30, 2026. The announcement undersc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.