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

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Allied Properties Real Estate Investment Trust

(TSX:AP.UN)

Rating:65Neutral
Price Target:
C$19.50
▲(9.49%Upside)
The overall score reflects a mixed outlook with positive momentum and strong earnings call highlights. Financial performance is under pressure due to net losses, affecting valuation. However, robust cash flows and strategic achievements provide confidence in the company's resilience and potential for recovery.
Positive Factors
Leasing Activity
Same-property NOI growth turns positive with a 1.5% increase, driven by leasing activity in Montreal.
Market Guidance
Guidance implies momentum heading into strong.
Tenant Retention
The retention ratio improved to 75.1%, compared to 69.3% in the previous year, indicating better tenant retention.
Negative Factors
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.
Global Trade Disruption
Management is less confident in achieving occupancy targets due to disruption in global trade impacting leasing activity.
Interest Expense
FFO per unit drops 12% due to greater interest expense from refinancing debt at higher interest rates.

Allied Properties Real Estate Investment Trust (AP.UN) vs. iShares MSCI Canada ETF (EWC)

Allied Properties Real Estate Investment Trust Business Overview & Revenue Model

Company DescriptionAllied 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 MoneyAllied 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 18.24%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter with positive leasing activity, financial performance, and strategic progress in development and financing. Despite economic uncertainties and specific market challenges, the company demonstrates resilience and confidence in achieving its targets.
Q1-2025 Updates
Positive Updates
Leasing and Operational Resilience
Positive same-asset NOI, improved retention to 75%, and a stable leased area with a 10% increase in tour activity from the prior quarter.
Development and Upgrade Progress
Progress on development projects like M4 in Vancouver and King Toronto, with projects expected to complete by end of next year. Secured a long-term lease with a global retailer at King Toronto.
Strong Balance Sheet and Financing Achievements
Refinanced $850 million, resulting in negligible impact on annual interest expense. Improved debt profile, with a shift from short-term variable rate debt to longer-term fixed rate debt.
Financial Performance Highlights
Operating income grew by 3.5% and same asset NOI increased by 1.5% year-over-year. Average in-place net rent per occupied square foot increased by 5%.
Positive Leasing Activity
Completed 507,000 square feet of leasing activity with a 43% conversion rate. Leasing pipeline increased by 39% compared to the previous quarter.
Negative Updates
Economic Uncertainty Impact
Unclear short-term impact of economic uncertainty on demand for urban office space.
Challenges in Vancouver Market
Working to address vacancy in Vancouver, which was acquired last year, despite it being the strongest leasing market in Canada.
Rising Costs in Development Portfolio
Mention of cost increases in the development portfolio, though specifics were not detailed.
Company Guidance
During the Allied Properties First Quarter 2025 Conference Call, several key metrics were highlighted. The company achieved a 3.5% increase in operating income and a 1.5% rise in same-asset net operating income (NOI) compared to Q1 2024. The average in-place net rent per occupied square foot increased by 5% to $25.30, with a retention rate at a historical level of 75%. They completed $850 million in refinancing with negligible impact on annual interest expenses and maintained strong liquidity with over $700 million available. The balance sheet was strengthened by reducing net debt to EBITDA, targeting below 10x by the end of 2025. Leasing activity showed resilience with a 43% conversion rate from 507,000 square feet of completed leasing, and tour activity was up 10% from the previous quarter. Additionally, the company remained committed to its disposition program with $50 million in assets under contract, aimed at reducing debt further.

Allied Properties Real Estate Investment Trust Financial Statement Overview

Summary
Allied Properties REIT is managing a challenging financial environment with a mixture of positive and negative indicators. The income statement shows revenue growth but significant net losses, impacting profitability. The balance sheet is stable yet leveraged, providing some resilience. Cash flows remain robust, indicating operational efficiency despite earnings challenges.
Income Statement
55
Neutral
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
65
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue592.04M563.98M519.47M568.89M560.50M
Gross Profit328.47M317.03M295.21M329.39M319.01M
EBITDA-227.84M-440.00M299.00M276.08M311.97M
Net Income-342.53M-425.71M103.80M443.15M500.73M
Balance Sheet
Total Assets10.60B10.61B11.91B10.38B9.40B
Cash, Cash Equivalents and Short-Term Investments73.92M211.07M20.99M22.55M45.51M
Total Debt4.42B3.71B4.26B3.61B2.88B
Total Liabilities5.04B4.47B4.78B3.96B3.22B
Stockholders Equity5.56B6.14B6.58B6.43B6.18B
Cash Flow
Free Cash Flow146.88M319.05M320.33M240.78M355.48M
Operating Cash Flow147.84M320.89M321.19M241.11M356.26M
Investing Cash Flow-381.46M659.85M-654.35M-695.80M-960.68M
Financing Cash Flow96.48M-790.66M331.60M431.72M441.02M

Allied Properties Real Estate Investment Trust Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.81
Price Trends
50DMA
16.44
Positive
100DMA
15.97
Positive
200DMA
16.44
Positive
Market Momentum
MACD
0.44
Positive
RSI
60.34
Neutral
STOCH
37.64
Neutral
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 17.81 is above the 20-day moving average (MA) of 17.56, above the 50-day MA of 16.44, and above the 200-day MA of 16.44, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$1.54B26.312.99%5.71%22.60%-48.92%
72
Outperform
C$3.28B14.424.92%5.97%6.68%14.72%
70
Neutral
C$2.76B-0.49%5.97%6.96%85.15%
65
Neutral
$2.50B-7.48%10.11%5.28%-0.79%
63
Neutral
$6.74B18.42-1.93%7.60%4.67%-25.44%
59
Neutral
C$3.12B-3.89%6.26%-6.43%-35204.55%
$546.96M-1.80%1.36%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AP.UN
Allied Properties Real Estate Investment Trust
17.81
2.03
12.86%
TSE:CRR.UN
Crombie Real Estate ate
14.90
1.92
14.79%
TSE:DIR.UN
Dream Industrl REIT
11.73
-1.40
-10.66%
TSE:HR.UN
H&R Real Estate ate Staple
11.85
2.98
33.60%
ARESF
Artis Real Estate Investment
5.63
1.10
24.28%
TSE:PMZ.UN
Primaris Real Estate Investment Trust
15.01
1.91
14.58%

Allied Properties Real Estate Investment Trust Corporate Events

Dividends
Allied Properties REIT Declares July 2025 Distribution
Positive
Jul 15, 2025

Allied Properties REIT has announced a distribution of $0.15 per unit for July 2025, amounting to $1.80 per unit annually. This distribution reflects Allied’s ongoing commitment to delivering value to its unitholders and reinforces its position as a leading provider of urban workspace solutions in Canada.

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.

Financial Disclosures
Allied Properties REIT Schedules Q2 Financial Results Call
Neutral
Jun 27, 2025

Allied Properties Real Estate Investment Trust has announced a conference call and live audio webcast scheduled for July 30, 2025, to discuss its second-quarter financial results, which will be released on July 29, 2025. This announcement underscores Allied’s commitment to transparency and engagement with stakeholders, as it continues to solidify its position in the urban workspace market in Canada.

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.

Business Operations and Strategy
Allied Properties Releases 2024 ESG Report, Showcasing Sustainability Achievements
Positive
Jun 9, 2025

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.

Business Operations and Strategy
Allied Properties Commits to Net-Zero Emissions by 2050
Positive
May 22, 2025

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.

Dividends
Allied Properties REIT Declares May 2025 Distribution
Positive
May 15, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Allied Properties REIT Announces 2025 Meeting Results
Positive
May 6, 2025

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.

Business Operations and StrategyFinancial Disclosures
Allied Properties Reports Strong Q1 2025 Performance and Strategic Portfolio Moves
Positive
Apr 30, 2025

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.

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.Date of analysis: Jul 16, 2025