Allied Properties Real Estate Investment Trust (TSE:AP.UN) Trading Down 27.8% – Should You Sell?

Shares of Allied Properties Real Estate Investment Trust (TSE:AP.UN) traded down 27.8% during mid-day trading 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 trading, an increase of 906% from the average session volume of 909,716 shares. The stock had previously closed at C$14.05.

Key Stories Impacting Allied Properties Real Estate Investment Trust

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

• Positive Sentiment: Raised capital to reduce leverage — Allied is pursuing an equity financing (reported as roughly C$500M in media reports) specifically to pay down debt, which should lower refinancing risk and improve the balance sheet. Allied Property REIT raising $500-million to pay down debt
• Neutral Sentiment: Regulatory trading halt — Canadian Investment Regulatory Organization (CIRO) placed AP.UN under a trading halt while material disclosures were announced; this pause delayed price discovery but is procedural ahead of the filings. Canadian Investment Regulatory Organization Trading Halt – AP.UN
• Negative Sentiment: Weak Q4 results — Allied reported a C($7.93) EPS for the quarter with revenue of C$148.8M, a negative net margin (~‑90%) and negative ROE, signaling operational/valuation stress and contributing to investor selling. Allied Properties Real Estate Investment Trust quarterly results
• Negative Sentiment: Leadership change — management/leadership updates (including founder stepping down per coverage) raise governance and execution questions during a capital raise and operational turnaround. Allied Reports Q4 and Full-Year Results; Announces Leadership Update and Equity Financing

Analysts Set New Price Targets

A number of brokerages recently commented on AP.UN. National Bank Financial upgraded Allied Properties Real Estate Investment Trust from an “underperform” rating to a “sector perform” rating and dropped their price target for the stock from C$14.00 to C$13.00 in a report on Monday, December 1st. Raymond James Financial raised shares of Allied Properties Real Estate Investment Trust from an “underperform” rating to a “market perform” rating and dropped their price objective for the stock from C$14.75 to C$14.00 in a report on Tuesday, December 2nd. Canadian Imperial Bank of Commerce cut their target price on Allied Properties Real Estate Investment Trust from C$17.00 to C$15.50 and set a “neutral” rating for the company in a research note on Monday, November 3rd. Scotiabank dropped their target price on Allied Properties Real Estate Investment Trust from C$18.00 to C$15.75 and set a “sector perform” rating for the company in a report on Thursday, December 4th. Finally, Canaccord Genuity Group decreased their price objective 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 research report on Friday, October 31st. One analyst has rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Allied Properties Real Estate Investment Trust presently has a consensus rating of “Hold” and an average target price of C$15.28.

Allied Properties Real Estate Investment Trust Stock Performance

The firm has a market capitalization of C$1.35 billion, a PE ratio of -2.35 and a beta of 1.65. The company has a current ratio of 0.45, a quick ratio of 0.12 and a debt-to-equity ratio of 71.71. The business’s 50 day simple moving average is C$13.63 and its two-hundred day simple moving average is C$16.22.

Allied Properties Real Estate Investment Trust (TSE:AP.UN) last released its quarterly earnings results on Tuesday, February 10th. The real estate investment trust reported C($7.93) earnings per share for the quarter. The business had revenue of C$148.77 million during 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%. Research analysts expect 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.