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

• Market Cap: C$1.96B
• Dividend Yield: 13.67%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 1.86%
• EPS Growth: 1.84%
• Country: CA
• Employees: 352
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.81
• Shares Outstanding: 127,955,986
• 10 Day Avg. Volume: 921,413
• 30 Day Avg. Volume: 1,146,168
• PEG Ratio: 0.36
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 16.32
• 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$15.39
• Price Target Upside: 9.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$13.50 ▼(-3.85% Downside)

Allied Properties REIT shows mixed performance with significant financial challenges. The most significant factor is the financial performance, which is under pressure due to profitability issues and increased leverage. Technical analysis indicates a bearish trend, while the valuation is somewhat supported by a high dividend yield. The earnings call provides a mixed sentiment with positive leasing and liquidity developments but also highlights financial pressures. Overall, the stock score reflects the need for improved profitability and financial stability.

Positive Factors

Leasing Activity

Strong leasing activity indicates robust demand for Allied's properties, supporting stable revenue streams and long-term occupancy rates.

Financial Liquidity

High liquidity provides financial flexibility to navigate market challenges and invest in growth opportunities, enhancing long-term resilience.

Development Progress

Successful development projects and high pre-leasing rates ensure future revenue growth and strengthen market position in key locations.

Negative Factors

Profitability Challenges

Significant losses and declining margins highlight operational inefficiencies, threatening long-term profitability and financial health.

Increased Debt Levels

Rising debt levels can strain cash flow and limit financial flexibility, impacting the company's ability to manage economic downturns.

Interest Expense Pressure

Increased interest expenses reduce net income and cash flow, potentially hindering investment in growth and affecting financial stability.

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 commercial spaces to tenants. The company signs long-term leases with businesses, which provide a stable and predictable income stream. Additionally, Allied benefits from rental escalations, which increase lease revenues over time. The REIT also earns money through property management fees and ancillary services related to its real estate holdings. Strategic partnerships with local businesses and community organizations enhance tenant relationships and attract high-quality tenants. Moreover, Allied's focus on sustainable development and energy-efficient buildings can lead to lower operational costs and increased demand for its properties, further contributing to its revenue.

Allied Properties Real Estate Investment Trust Financial Statement Overview

Summary

Allied Properties REIT faces significant challenges with declining revenues and profitability. The income statement shows a negative revenue growth rate and substantial losses. While the balance sheet indicates manageable leverage, the negative return on equity is concerning. Cash flow is a relative strength with positive free cash flow growth, but profitability issues need addressing.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -28.5% in the TTM period. Gross profit margin remains stable around 55%, but net profit margin has significantly deteriorated to -92.8% in the TTM period, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.87 in the TTM period, suggesting manageable leverage. However, the return on equity is negative, reflecting recent losses. The equity ratio is stable, indicating a balanced asset structure, but the declining equity value is a concern.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 20.2% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is low, reflecting the impact of net losses. However, the free cash flow to net income ratio is nearly 1, suggesting efficient cash management despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	598.73M	592.04M	563.98M	519.47M	568.89M	560.50M
Gross Profit	325.65M	328.47M	317.03M	295.21M	329.39M	319.01M
EBITDA	-353.33M	-227.84M	-440.00M	299.00M	276.08M	311.97M
Net Income	-573.44M	-342.53M	-425.71M	103.80M	443.15M	500.73M
Balance Sheet
Total Assets	10.38B	10.60B	10.61B	11.91B	10.38B	9.40B
Cash, Cash Equivalents and Short-Term Investments	63.21M	73.92M	211.07M	20.99M	22.55M	45.51M
Total Debt	4.70B	4.42B	3.71B	4.26B	3.61B	2.88B
Total Liabilities	5.31B	5.04B	4.47B	4.78B	3.96B	3.22B
Stockholders Equity	5.07B	5.56B	6.14B	6.58B	6.43B	6.18B
Cash Flow
Free Cash Flow	200.52M	146.88M	319.05M	320.33M	240.78M	355.48M
Operating Cash Flow	201.66M	147.84M	320.89M	321.19M	241.11M	356.26M
Investing Cash Flow	-193.00M	-381.46M	659.85M	-654.35M	-695.80M	-960.68M
Financing Cash Flow	36.65M	96.48M	-790.66M	331.60M	431.72M	441.02M

Allied Properties Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.04 is above the 20-day moving average (MA) of 13.36, above the 50-day MA of 13.59, and below the 200-day MA of 15.90, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 85.77 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PMZ.UN	76 Outperform	C$1.98B	14.02	6.52%	5.52%	26.88%	77.26%
DIR.UN	72 Outperform	C$3.76B	15.32	5.27%	5.56%	7.31%	74.70%
CRR.UN	70 Outperform	C$2.93B	1,057.33	0.14%	5.82%	6.32%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	63 Neutral	C$761.01M	-8.92	-4.93%	7.28%	-20.06%	19.27%
AP.UN	55 Neutral	C$1.96B	-3.42	-10.26%	13.67%	1.86%	1.84%
HR.UN	52 Neutral	C$2.87B	-7.00	-8.74%	7.05%	-0.83%	-56.21%

Allied Properties Real Estate Investment Trust Corporate Events

Allied Properties REIT Reduces Distributions Amid Debt Reduction Efforts

Allied Properties Real Estate Investment Trust announced a significant reduction in its monthly distribution to unitholders by 60% starting December 2025, following a strategic move to reduce debt through the sale of non-core assets and successful bond offerings in 2024 and 2025. This decision reflects Allied’s ongoing efforts to improve its financial position by lowering indebtedness and interest expenses, which could impact stakeholders by altering expected returns and signaling a shift in the company’s financial strategy.

The most recent analyst rating on ($TSE:AP.UN) stock is a Buy with a C$18.00 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 and RioCan Announce Major Leasing Deal at The Well

Allied Properties and RioCan have announced a significant office leasing agreement at The Well in Toronto, where a Canadian company will lease over 124,000 square feet of office space, enhancing the area’s appeal as a core office hub. This leasing activity reduces the available sublease space to 10%, signaling strong demand and contributing to the transformation of King West Village into a bustling urban office node, which is expected to attract thousands of new knowledge workers and boost the local economy.

The most recent analyst rating on ($TSE:AP.UN) stock is a Hold with a C$14.00 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 Reports Q3 Results Amid Strategic Portfolio Optimization

Allied Properties Real Estate Investment Trust reported its third-quarter results, highlighting a strengthening debt profile and ongoing property sales. Despite improvements in urban office fundamentals, the company faced slower-than-expected lease finalizations, impacting occupancy targets and financial results. Allied made significant progress in its portfolio optimization strategy, closing sales of non-core properties for substantial proceeds and planning further sales in major cities. The company also focused on balance-sheet management, raising $1.3 billion from the bond market to retire various debts, aligning with its strategic objectives for 2025.

The most recent analyst rating on ($TSE:AP.UN) stock is a Hold with a C$19.00 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 Leasing Successes and Leadership Appointments

Allied Properties Real Estate Investment Trust has announced significant leasing achievements in Montréal and Vancouver, with notable expansions by existing tenants and new long-term leases. Despite these successes, the company has not met its year-end target for occupied and leased areas, particularly in Toronto. Additionally, Allied has strengthened its leadership team by appointing J.P. Mackay as Senior Vice President & Chief Operating Officer and Gord Oughton as Senior Vice President, National Leasing, to enhance its operational capacity and capitalize on improving office fundamentals in Canada’s major cities.

The most recent analyst rating on ($TSE:AP.UN) stock is a Sell with a C$18.00 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 Achieves High GRESB Score, Reinforcing Sustainability Commitment

Allied Properties Real Estate Investment Trust announced its 2025 GRESB score, achieving a score of 87 for its standing investments, reflecting continuous improvement. This score was bolstered by exceeding environmental reduction targets for GHG emissions, energy, and water consumption, setting science-based emissions reduction targets, and increasing the percentage of its portfolio certified to LEED or BOMA BEST. These results underscore Allied’s commitment to long-term sustainability and its strategic focus on embedding sustainability into its operations, thereby enhancing its industry positioning and stakeholder value.

The most recent analyst rating on ($TSE:AP.UN) stock is a Sell with a C$18.00 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.