Allied Properties Real Estate Investment Trust (TSE:AP.UN) Trading Down 27.8% – Here’s Why

Allied Properties Real Estate Investment Trust (TSE:AP.UN) fell 27.8% on Thursday . The company traded as low as C$10.00 and last traded at C$10.14. 9,155,955 shares were traded during mid-day trading, an increase of 906% from the average session volume of 909,716 shares. The stock had previously closed at C$14.05.

Key Allied Properties Real Estate Investment Trust News

Here are the key news stories impacting Allied Properties Real Estate Investment Trust this week:

• Positive Sentiment: Company announced an equity financing (~C$500M) aimed at paying down debt — this should reduce leverage and interest‑rate risk and improve the balance sheet over time, which can stabilize future cash flow and credit metrics. Allied Property REIT raising $500-million to pay down debt
• Neutral Sentiment: The Canadian Investment Regulatory Organization (IIROC) imposed a trading halt while material information was released — a procedural step that preceded the announcements and explains the abrupt intraday volatility. Canadian Investment Regulatory Organization Trading Halt – AP.UN
• Negative Sentiment: Q4 results showed a large loss: reported EPS of C($7.93), a negative net margin (~‑89.9%) and negative ROE, despite C$148.8M in revenue — the magnitude of the loss likely reflects one‑time and/or valuation items and has triggered investor concern about underlying earnings quality and distributable cash. Allied Q4 and full-year results (press release)
• Negative Sentiment: Leadership update includes the founder/longtime executive stepping down, increasing near‑term governance and execution uncertainty — a negative catalyst while investors assess the succession and strategic path. Allied Reports Q4 and Full-Year Results; Announces Leadership Update and Equity Financing
• Negative Sentiment: The planned equity raise, while improving leverage, is dilutive and adds near‑term selling pressure on the stock as the market reprices shares to reflect issuance risk and the current weak results. Allied Property REIT raising $500-million to pay down debt

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on AP.UN shares. Royal Bank Of Canada decreased their price objective on Allied Properties Real Estate Investment Trust from C$18.00 to C$16.00 and set a “sector perform” rating on the stock in a report on Friday, October 31st. National Bank Financial raised Allied Properties Real Estate Investment Trust from an “underperform” rating to a “sector perform” rating and decreased their price target for the company from C$14.00 to C$13.00 in a research note on Monday, December 1st. Canadian Imperial Bank of Commerce lowered their price target on Allied Properties Real Estate Investment Trust from C$17.00 to C$15.50 and set a “neutral” rating on the stock in a research report on Monday, November 3rd. TD Securities cut their price objective on Allied Properties Real Estate Investment Trust from C$16.00 to C$14.50 and set a “hold” rating for the company in a report on Friday, December 12th. Finally, Canaccord Genuity Group lowered their target price on shares of Allied Properties Real Estate Investment Trust from C$22.00 to C$18.00 and set a “buy” rating on the stock in a report on Friday, October 31st. One research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Allied Properties Real Estate Investment Trust currently has an average rating of “Hold” and a consensus price target of C$15.28.

Allied Properties Real Estate Investment Trust Trading Down 7.8%

The company has a quick ratio of 0.12, a current ratio of 0.45 and a debt-to-equity ratio of 71.71. The business’s fifty day moving average is C$13.63 and its two-hundred day moving average is C$16.22. The firm has a market cap of C$1.31 billion, a price-to-earnings ratio of -2.28 and a beta of 1.65.

Allied Properties Real Estate Investment Trust (TSE:AP.UN) last posted its quarterly earnings data on Tuesday, February 10th. The real estate investment trust reported C($7.93) earnings per share (EPS) for the quarter. The firm had revenue of C$148.77 million for the quarter. Allied Properties Real Estate Investment Trust had a negative return on equity of 8.01% and a negative net margin of 89.93%. Equities analysts anticipate that Allied Properties Real Estate Investment Trust will post 1.8404851 earnings per share for the current fiscal year.

About Allied Properties Real Estate Investment Trust

Allied Properties Real Estate Investment Trust is a real estate investment trust engaged in the development, management, and ownership of primarily urban office environments across Canada’s major cities. Most of the total square footage in the company’s real estate portfolio is located in Toronto and Montreal. Allied Properties derives nearly all of its income in the form of rental revenue from tenants in its properties. The majority of this revenue comes from its assets located in Central Canada.