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

• Market Cap: $1.96B
• Dividend Yield: 13.67%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• 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: 3.36
• Enterprise Value/Revenue: 11.02
• Enterprise Value/Gross Profit: 20.27
• Enterprise Value/Ebitda: -18.68
• 1Y Price Target: $15.25
• Price Target Upside: 8.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$14.50 ▲(3.20% Upside)

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 momentum & conversion

Sustained strong leasing activity and a high tour-to-deal conversion indicate durable tenant demand across Allied’s urban office portfolio. This supports predictable rental income, reduces vacancy risk over time, and underpins cash flow stability needed to fund operations and development through economic cycles.

Strong liquidity and unencumbered assets

A large liquidity cushion and mostly unencumbered assets give Allied structural flexibility to refinance, fund development, or execute asset dispositions without urgent distress. That optionality materially lowers refinancing risk and supports execution of strategic deleveraging over the medium term.

Development progress with marquee tenants

Progressing developments leased to high-quality, strategic tenants strengthens long-term cash flow and asset values. Anchor tenants enhance building desirability, attract complementary tenants, and lower leasing risk, supporting durable rental growth and value creation from completed projects.

Negative Factors

Severely negative profitability

Deeply negative margins reflect persistent operating losses and weak earnings conversion. Over months, sustained negative profitability undermines internal capital generation, forces reliance on external financing or asset sales, and raises the risk of reduced reinvestment or distributions.

Elevated leverage trends

Rising leverage increases sensitivity to rate moves and constrains financial flexibility. Elevated debt levels can necessitate asset monetizations or cost controls to meet covenants, limiting growth investments and elevating refinancing risk if credit markets tighten over the next several quarters.

Interest expense pressure & distribution risk

Growing interest costs and management’s consideration of distribution cuts indicate structural cash-flow stress. Persistent interest burdens reduce free cash available for payouts and capex, weakening investor income reliability and possibly necessitating ongoing balance-sheet repair via lower distributions or asset sales.

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

The company faces challenges with profitability and increasing leverage, as reflected in the income statement and balance sheet. While revenue growth is positive, significant losses and declining margins raise concerns about operational efficiency. The balance sheet shows increased debt levels, which could impact financial stability. On the positive side, cash flow metrics indicate effective cash management, providing some resilience.

Income Statement

The income statement shows a mixed performance with declining profitability. The TTM (Trailing-Twelve-Months) data indicates a negative net profit margin of -92.77% and a negative EBIT margin of -53.48%, reflecting significant losses. Revenue growth is positive at 22.4%, indicating some top-line growth, but the negative EBITDA margin suggests operational challenges. Historical data shows fluctuating revenue growth and declining margins, highlighting potential instability in earnings.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.87 in the TTM period, which is higher than previous years, indicating increased financial risk. The return on equity is negative, suggesting inefficiencies in generating returns for shareholders. However, the equity ratio remains stable, indicating a balanced capital structure. The increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth at 17.33% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.12, reflecting challenges in converting earnings to cash. However, the free cash flow to net income ratio is nearly 1, suggesting effective cash management despite profitability issues. Historical data shows fluctuating cash flow metrics, highlighting potential volatility.

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: Negative
• Last Price: 14.05
• 50DMA: Positive
• 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 14.05 is below the 20-day moving average (MA) of 14.08, above the 50-day MA of 13.42, and below the 200-day MA of 15.73, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 41.81 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%
AX.UN	63 Neutral	C$856.02M	-10.04	-4.93%	7.28%	-20.06%	19.27%
AP.UN	55 Neutral	$1.96B	-3.42	-10.26%	13.67%	1.86%	1.84%
MRT.UN	55 Neutral	C$441.78M	-9.69	-4.91%	3.85%	-5.37%	13.86%
RPR.UN	53 Neutral	C$18.46M	-0.13	-141.77%	―	-6.21%	65.52%
D.UN	53 Neutral	$356.93M	-2.35	-14.98%	5.65%	-1.06%	-20.07%
HR.UN	52 Neutral	C$2.84B	-6.88	-8.74%	7.05%	-0.83%	-56.21%

Allied Properties Real Estate Investment Trust Corporate Events

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.

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.