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Allied Properties Real Estate Investment Trust
(TSX:AP.UN)
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Rating:51Neutral
Price Target:
C$7.50
▼(-16.20% Downside)
Action:Reiterated
Date:07/30/26
The score is held back primarily by weak recent profitability (large losses and steep TTM revenue decline) and still-elevated leverage/negative ROE, despite supportive recurring cash flow. Earnings-call commentary adds a modest positive offset from improving leasing/occupancy and active dispositions/deleveraging, but is tempered by fair-value write-downs, NOI pressure, and a payout ratio above 100% near term. Technically, the stock remains below key moving averages (notably the 200-day), while valuation is mixed with a high yield but negative P/E.
Positive Factors
Recurring cash generation
Consistently positive operating and free cash flow gives Allied internal funding capacity despite reported losses and supports ongoing property operations. This cash-generation base can help fund leasing, maintenance, and selective investment while reducing reliance on external capital over the next several quarters.
Negative Factors
Severe profitability deterioration
The sharp revenue decline and large recent net losses weaken Allied’s earnings quality and reduce the margin for error in operating decisions. Persistent bottom-line pressure can constrain reinvestment, make distributions less secure, and increase dependence on asset sales or financing actions to support the business.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring cash generation
Consistently positive operating and free cash flow gives Allied internal funding capacity despite reported losses and supports ongoing property operations. This cash-generation base can help fund leasing, maintenance, and selective investment while reducing reliance on external capital over the next several quarters.
Read all positive factors
Allied Properties Real Estate Investment Trust (AP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.11B
Dividend Yield12.89%
Average Volume (3M)644.82K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-2.72%
EPS Growth-221.24%
CountryCA
Employees350
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-14.43
Shares Outstanding127,955,986
10 Day Avg. Volume907,592
30 Day Avg. Volume644,816
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.47
Price to Sales (P/S)3.15
P/FCF Ratio7.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$10.25Price Target Upside14.53% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.25
Revenue Forecast (FY)C$565.89M
Allied Properties Real Estate Investment Trust Business Overview & Revenue Model
Company Description
Allied Properties REIT operates as a prominent real estate investment trust, specializing in the acquisition, stewardship, and expansion of two key asset types. This encompasses distinctive, character-rich office properties situated within Canada'...
How the Company Makes Money
Allied Properties REIT primarily makes money by generating rental income from its office properties. The largest recurring revenue stream is base rent paid by tenants under lease agreements for office space; in addition, many leases provide for re...
Allied Properties Real Estate Investment Trust Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call balanced material near-term challenges (a large fair-value/write-down across the portfolio, loan impairments reducing interest income, AFFO payout above 100%, and a weakened same-asset NOI) with several constructive operational and financial developments: occupancy and leasing outperformed expectations, a significantly larger leasing pipeline, proactive leasing strategy initiatives showing early traction, meaningful dispositions (~$321M) and improved leverage (net debt/EBITDA 12.0x). Management maintained FFO guidance and emphasized that the fair-value adjustment reflects market rate movements rather than portfolio fundamentals and that the company is executing on deleveraging and leasing plans. Overall, operational momentum and balance-sheet actions mitigate but do not eliminate near-term accounting and cash-flow headwinds.Positive Updates
Improved Occupancy and Leasing Activity
Portfolio occupancy finished at 84.4% occupied and 86.7% leased, both ahead of internal outlook (occupancy outlook was ~82%). The company completed 522,000 sq ft of leasing in Q2 and has leased 633,000 sq ft year-to-date against a year target of 1.05–1.35 million sq ft.
Negative Updates
Significant Fair Value Adjustment / Write-downs
Management recorded a material fair value adjustment across the portfolio driven by higher market discount rates and cap rates; analysts referenced approximately $760 million of write-downs tied in part to recent disposition price points (applied across Toronto, Montreal, some Vancouver, Toronto House and Calgary House).
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Occupancy and Leasing Activity
Portfolio occupancy finished at 84.4% occupied and 86.7% leased, both ahead of internal outlook (occupancy outlook was ~82%). The company completed 522,000 sq ft of leasing in Q2 and has leased 633,000 sq ft year-to-date against a year target of 1.05–1.35 million sq ft.
Read all positive updates
Company Guidance
Management reaffirmed its 2026 guidance while flagging one‑time and accounting impacts that trim near‑term results: same‑asset NOI declined 12% (vs prior 10% expectation) due to a retroactive tax, a fair‑value adjustment was recorded, FFO/unit was $0.24 and AFFO/unit $0.17, and interest income largely ended in H1. Balance‑sheet actions included ~ $321M of dispositions completed/secured and net debt/EBITDA of 12.0x; AFFO payout is expected to be modestly above 100% near‑term but improve as dispositions deleverage. Operationally Allied reiterated an 84–86% year‑end occupancy target (currently 84.4% occupied, 86.7% leased), noting they must lease 1.05–1.35M sf in the rental portfolio to hit that (633k sf YTD; 522k sf in Q2 — 463k rental: 105k new / 358k renewals), with a 1.7M sf pipeline (1.0M new, 717k renewals) up 33% overall and new pipeline up 42%; conversion rate for new leasing is 29%, average leasing costs YTD $6.27/sf/yr ($9.50 new, $3.76 renewals), leasing spreads ex‑flex +8% ending-to-start and +9% avg-to-avg, sublease availability 2.7% of GLA (up 30 bps, weighted avg term 5 years), and management expects occupancy flat or slightly down in Q3 with most gains weighted to Q4.Allied Properties Real Estate Investment Trust Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 581.14M | 592.38M | 592.04M | 563.98M | 519.47M | 472.80M |
| Gross Profit | 292.89M | 313.21M | 325.40M | 314.03M | 292.56M | 265.67M |
| EBITDA | -1.87B | -1.19B | -222.80M | -436.97M | 248.80M | 446.74M |
| Net Income | -2.02B | -1.33B | -342.53M | -425.71M | 368.86M | 443.15M |
Balance Sheet | ||||||
| Total Assets | 8.22B | 9.26B | 10.60B | 10.61B | 11.91B | 10.38B |
| Cash, Cash Equivalents and Short-Term Investments | 83.51M | 96.61M | 73.92M | 211.07M | 20.99M | 22.55M |
| Total Debt | 4.10B | 4.73B | 4.42B | 3.71B | 4.26B | 3.61B |
| Total Liabilities | 4.63B | 5.24B | 5.04B | 4.47B | 4.78B | 3.96B |
| Stockholders Equity | 3.60B | 4.02B | 5.56B | 6.14B | 6.58B | 6.43B |
Cash Flow | ||||||
| Free Cash Flow | 243.14M | 254.47M | 146.88M | 319.05M | 320.33M | 240.78M |
| Operating Cash Flow | 243.68M | 255.29M | 147.84M | 320.89M | 321.19M | 241.11M |
| Investing Cash Flow | 22.32M | -208.19M | -381.46M | 659.85M | -654.35M | -695.80M |
| Financing Cash Flow | -194.32M | -24.41M | 96.48M | -790.66M | 331.60M | 431.72M |
Allied Properties Real Estate Investment Trust Technical Analysis
Negative
8.95
Price Trends
9.10
Negative
9.44
Negative
10.23
Negative
Market Momentum
-0.38
Positive
28.07
Positive
37.87
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 8.95 is above the 20-day moving average (MA) of 8.23, below the 50-day MA of 9.10, and below the 200-day MA of 10.23, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 28.07 is Positive, neither overbought nor oversold. The STOCH value of 37.87 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
59 Neutral | C$478.58M | 99.51 | 0.56% | 3.40% | -4.01% | ― | |
51 Neutral | C$1.11B | -0.53 | -47.27% | 12.89% | -2.72% | -221.24% | |
51 Neutral | C$2.51B | -4.35 | -13.51% | 6.35% | -6.50% | -488.63% | |
51 Neutral | C$338.23M | -4.02 | -9.12% | 5.83% | -4.54% | 51.54% |
* Real Estate Sector Average
TSE:AP.UN
Allied Properties Real Estate Investment Trust
7.68
-11.58
-60.12%
TSE:HR.UN
H&R Real Estate ate Staple
9.45
-1.67
-15.03%
TSE:MRT.UN
Morguard Real Estate ate
7.07
1.52
27.37%
TSE:D.UN
Dream Office Real Estate Investment
17.14
-1.01
-5.59%
Allied Properties Real Estate Investment Trust Corporate Events
Dividends
Allied Properties REIT Declares September 2026 Monthly Distribution
Positive
Sep 16, 2026
Allied Properties REIT has declared a cash distribution of $0.06 per unit for September 2026, equivalent to $0.72 per unit on an annualized basis. The September distribution will be paid on October 15, 2026 to unitholders of record as of September...
Dividends
Allied Properties REIT Declares August 2026 Monthly Distribution
Positive
Aug 17, 2026
Allied Properties REIT has declared a cash distribution of $0.06 per unit for August 2026, equivalent to $0.72 per unit on an annualized basis. The payout will be made on September 15, 2026, to unitholders of record as of August 31, 2026, undersco...
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.