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

• Market Cap: C$2.60B
• Dividend Yield: 9.68%
• Average Volume (3M): 534.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 3.06%
• EPS Growth: -5.77%
• Country: CA
• Employees: 352
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Office
• EPS (TTM): -0.68
• Shares Outstanding: 127,955,986
• 10 Day Avg. Volume: 446,890
• 30 Day Avg. Volume: 534,640
• 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$17.46
• Price Target Upside: -6.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: C$19.00 ▲(2.15% Upside)

The overall stock score reflects a mixed outlook. The most significant factor is the company's financial performance, which is challenged by declining revenues and profitability. However, technical analysis shows positive momentum, and the earnings call provided a positive outlook with strategic initiatives to improve operations. The valuation is mixed, with a high dividend yield but negative earnings. These factors combined result in a moderate overall score.

Positive Factors

Leasing Activity

Positive leasing spreads drive same-property NOI growth, with the second consecutive quarter of organic growth.

Market Fundamentals

A recovery in fundamentals is likely to show greater traction as the office market has bottomed.

Tenant Retention

The retention ratio improved to 75.1%, compared to 69.3% in the previous year, indicating better tenant retention.

Negative Factors

Debt and 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.

Financial Performance

FFO per unit drops 12% due to greater interest expense from refinancing debt at higher interest rates and dilution from the Westbank transaction.

Occupancy Challenges

Allied's results leave little to be encouraged about and reaching guidance of 90% occupancy in 2025 appears a stretch.

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 retail spaces to a diverse range of tenants, including businesses from technology, media, and other professional service sectors. Rental income forms the core of its revenue stream. The company also benefits from property management fees and development projects, where they enhance the value of existing properties or develop new ones, increasing potential rental income. Strategic acquisitions and partnerships further contribute to revenue by expanding their portfolio and leveraging economies of scale in property management.

Allied Properties Real Estate Investment Trust Financial Statement Overview

Summary

Allied Properties REIT exhibits stable cash flows and a balanced capital structure, despite negative net income and profitability pressures. Revenue growth is modest, and the balance sheet is leveraged but resilient, indicating potential for recovery with strategic financial management.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	597.39M	592.04M	563.98M	519.47M	568.89M	560.50M
Gross Profit	328.80M	328.47M	317.03M	295.21M	329.39M	319.01M
EBITDA	-393.04M	-227.84M	-440.00M	299.00M	276.08M	311.97M
Net Income	-554.23M	-342.53M	-425.71M	103.80M	443.15M	500.73M
Balance Sheet
Total Assets	10.42B	10.60B	10.61B	11.91B	10.38B	9.40B
Cash, Cash Equivalents and Short-Term Investments	11.83M	73.92M	211.07M	20.99M	22.55M	45.51M
Total Debt	4.58B	4.42B	3.71B	4.26B	3.61B	2.88B
Total Liabilities	5.17B	5.04B	4.47B	4.78B	3.96B	3.22B
Stockholders Equity	5.24B	5.56B	6.14B	6.58B	6.43B	6.18B
Cash Flow
Free Cash Flow	170.91M	146.88M	319.05M	320.33M	240.78M	355.48M
Operating Cash Flow	171.87M	147.84M	320.89M	321.19M	241.11M	356.26M
Investing Cash Flow	-213.83M	-381.46M	659.85M	-654.35M	-695.80M	-960.68M
Financing Cash Flow	33.63M	96.48M	-790.66M	331.60M	431.72M	441.02M

Allied Properties Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 18.6 is above the 20-day moving average (MA) of 17.78, above the 50-day MA of 17.47, and above the 200-day MA of 16.17, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 71.24 is Negative, neither overbought nor oversold. The STOCH value of 76.54 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIR.UN	76 Outperform	C$3.49B	16.40	4.60%	5.71%	7.23%	20.37%
PMZ.UN	75 Outperform	C$1.61B	25.81	3.26%	5.69%	23.01%	-50.29%
CRR.UN	69 Neutral	C$2.79B	―	-0.21%	5.92%	6.86%	92.60%
AP.UN	61 Neutral	C$2.60B	―	-9.62%	9.68%	3.06%	-5.77%
HR.UN	55 Neutral	C$3.19B	―	-1.99%	6.10%	-5.67%	54.92%
Sector *	53 Neutral	$1.21B	2.73	-5.63%	5.80%	-3.40%	-78.11%
ARESF	―	$508.72M	―	-3.37%	8.18%	―	―

Allied Properties Real Estate Investment Trust Corporate Events

Allied Properties REIT Declares August 2025 Distribution

Allied Properties REIT has announced a distribution of $0.15 per unit for August 2025, amounting to $1.80 per unit annually. This distribution will be paid on September 15, 2025, to unitholders recorded by August 29, 2025, reflecting the company’s commitment to delivering consistent returns to its stakeholders.

The most recent analyst rating on ($TSE:AP.UN) stock is a Buy with a C$22.00 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 Strong Q2 Results and Strategic Developments

Allied Properties Real Estate Investment Trust reported encouraging second-quarter results with a slight increase in leased area and stable net rent per square foot. The company is progressing with its balance-sheet management and non-core property sales, aiming to strengthen its financial metrics. Allied is in the final stages of a multi-city development pipeline, with significant leasing progress in its properties, including 400 West Georgia and 19 Duncan. The company plans to sell additional non-core properties to fund its developments and improve debt metrics.

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.

Allied Properties REIT Declares July 2025 Distribution

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.

Allied Properties REIT Schedules Q2 Financial Results Call

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.

Allied Properties Releases 2024 ESG Report, Showcasing Sustainability Achievements

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.

Allied Properties Commits to Net-Zero Emissions by 2050

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.

Allied Properties REIT Declares May 2025 Distribution

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.