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

• Market Cap: C$1.30B
• Dividend Yield: 13.67%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 1.86%
• EPS Growth: 1.84%
• Country: CA
• Employees: 352
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -7.24
• Shares Outstanding: 127,955,986
• 10 Day Avg. Volume: 921,413
• 30 Day Avg. Volume: 1,146,168
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 3.15
• P/FCF Ratio: 7.34
• 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$10.13
• Price Target Upside: 8.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.54
• Revenue Forecast (FY): C$571.55M

• Rating: 45 Neutral
• Price Target: C$9.00 ▼(-3.33% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 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.

Prime urban portfolio

A focus on well-located urban office assets in major Canadian cities underpins long-term demand resilience and leasing attractiveness. Location-driven scarcity and active asset management increase likelihood of stable occupancy and rental renewal potential over multi-year horizons.

Stable gross margins / revenue resilience

Relatively steady mid-50% gross margins and modest year-over-year revenue resilience indicate the core leasing business retains pricing power and cost recovery mechanics. This stability supports longer-term net operating income potential once non-operating pressures subside.

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.

Deteriorating profitability

Persistent net losses erode retained earnings and equity, weakening the REIT's capital base and reducing internal funding for capex or redevelopment. Continued accounting losses can constrain dividend policies and limit investor confidence in long-term earnings recovery.

Weak debt coverage from cash flow

Low operating-cashflow-to-debt coverage signals limited ability to deleverage via operations alone and heightens refinancing and interest-rate sensitivity. This structural constraint can force reliance on external capital or asset sales, affecting long-term strategy execution.

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

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), supplemented by recoveries and reimbursements where tenants pay their proportionate share of certain property operating costs (often structured as additional rent, depending on lease terms). The REIT also earns ancillary property revenues (e.g., fees and other property-level income) when applicable. Beyond recurring rental income, AP.UN can generate value and earnings through its development and redevelopment activities by creating new leasable space, improving properties, and increasing net operating income once projects are completed and leased; any gains realized from the disposition of investment properties can also contribute to earnings in periods when sales occur. Operating performance and cash flow are influenced by factors such as occupancy, lease renewal spreads, tenant credit quality, market rents, operating cost inflation and recovery mechanisms, interest rates and refinancing costs, and the timing and leasing success of development/redevelopment projects. Specific significant partnerships contributing to earnings: null.

Allied Properties Real Estate Investment Trust Financial Statement Overview

Summary

Income statement weakness (large and worsening recent net losses despite relatively steady gross margin) and rising leverage as equity/assets decline outweigh the positive, resilient operating/free cash flow; cash flow coverage of debt remains low, limiting deleveraging flexibility.

Income Statement

Revenue has been roughly flat over time (2024 annual up ~5% vs. 2023, but TTM (Trailing-Twelve-Months) shows a steep decline), while profitability has deteriorated materially: results moved from solid profits in 2020–2022 to sizable losses in 2023–2024 and an even larger loss in TTM (Trailing-Twelve-Months). Gross margin remains relatively steady in the mid‑50% range, but operating performance and net results are deeply negative in the most recent periods, pointing to significant non-operating/valuation or cost pressures and weak earnings quality.

Balance Sheet

Leverage is meaningful but not extreme for a REIT, with debt-to-equity rising from ~0.47 (2020) to ~0.79 (2024) and ~0.93 in TTM (Trailing-Twelve-Months). Equity and total assets have trended down since 2022, consistent with a pressured office environment and/or asset write-downs. Returns on equity are negative in 2023–TTM (Trailing-Twelve-Months), signaling that the current capital base is not generating accounting profits, and rising leverage reduces balance-sheet flexibility.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow are positive across all periods, with a strong rebound in TTM (Trailing-Twelve-Months) versus 2024 annual. Free cash flow is closely tracking net income (despite net losses recently), which suggests cash flow is holding up better than reported earnings. However, operating cash flow covers only a small portion of debt in the last two periods (coverage ratio ~0.09 in 2024 and ~0.16 in TTM (Trailing-Twelve-Months)), implying refinancing/interest-rate sensitivity and limited deleveraging capacity from operating cash alone.

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

• Technical Analysis Sentiment: Negative
• Last Price: 9.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 9.31 is below the 20-day moving average (MA) of 9.32, below the 50-day MA of 11.62, and below the 200-day MA of 15.02, indicating a bearish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 71.08 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HR.UN	53 Neutral	C$2.68B	-3.39	-17.10%	7.05%	-0.83%	-56.21%
RPR.UN	53 Neutral	C$8.16M	-0.06	-141.77%	―	-6.21%	65.52%
MRT.UN	49 Neutral	C$439.57M	-25.11	-1.91%	3.85%	-5.37%	13.86%
AP.UN	45 Neutral	C$1.30B	-1.41	-10.26%	13.67%	1.86%	1.84%
D.UN	44 Neutral	C$300.37M	-2.20	-16.57%	5.65%	-1.06%	-20.07%

Allied Properties Real Estate Investment Trust Corporate Events

Allied Raises $560 Million in Equity to Refinance Debt and Bolster Balance Sheet

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 major Canadian bank syndicate and sold across all provinces and territories, while Alberta Investment Management Corporation acquired 16 million units in the private placement subject to resale restrictions.

The REIT plans to use the net proceeds to repay amounts drawn on its operating line of credit, which it had used to retire $600 million of 1.726% series H senior unsecured debentures earlier in February. The transaction strengthens Allied’s balance sheet by replacing short-term credit with fresh equity capital, potentially improving its financial flexibility and supporting its positioning as a key provider of urban workspace in Canada’s major cities.

The most recent analyst rating on ($TSE:AP.UN) stock is a Sell with a C$9.00 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 February 2026 Cash Distribution

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, signaling ongoing income returns for investors and stability in the REIT’s regular distribution policy.

The most recent analyst rating on ($TSE:AP.UN) stock is a Sell with a C$9.00 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 REIT Tightens Balance Sheet With $500 Million Equity Raise and Leadership Transition

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 loss on loans receivable. The trust also recorded a $1.4 billion IFRS valuation adjustment amid slower leasing and higher development costs, though leasing momentum improved with 801,000 square feet of new activity in the second half and occupancy holding around the mid-80% range.

To reinforce its balance sheet ahead of a hoped-for Canadian office market recovery, Allied is executing an Action Plan that includes a 60% distribution cut, an expanded non-core asset sale program, and a $500 million equity financing split between a marketed public offering and a private placement, with proceeds earmarked for debt reduction. The trust also confirmed a leadership transition, with founder Michael Emory stepping down as Executive Chair and not standing for re-election as trustee, underscoring the board’s confidence in CEO Cecilia Williams and the current management team to drive the next phase of the strategy.

The most recent analyst rating on ($TSE:AP.UN) stock is a Hold with a C$14.50 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 Schedules Call on Fourth-Quarter 2025 Results

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 close on February 10, 2026. The event underscores the REIT’s ongoing engagement with investors and stakeholders as it updates the market on its financial performance and operational progress in its portfolio of urban workspaces across Canada’s major cities.

The most recent analyst rating on ($TSE:AP.UN) stock is a Hold with a C$13.00 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 January 2026 Monthly Distribution

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 underscores Allied’s ongoing income distributions to investors, reflecting its continued operations as an income-focused urban workspace REIT in Canada’s major city markets.

The most recent analyst rating on ($TSE:AP.UN) stock is a Hold with a C$13.00 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.