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) were down 27.8% during trading on Thursday . The stock traded as low as C$10.00 and last traded at C$10.14. Approximately 9,155,955 shares were traded during mid-day trading, an increase of 906% from the average daily volume of 909,716 shares. The stock had previously closed at C$14.05.

Allied Properties Real Estate Investment Trust News Summary

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

Analyst Ratings Changes

A number of equities research analysts have recently commented on the company. Desjardins lowered their price objective on Allied Properties Real Estate Investment Trust from C$18.00 to C$15.50 and set a “sell” rating for the company in a research report on Friday, October 31st. Canadian Imperial Bank of Commerce decreased 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 note on Monday, November 3rd. National Bank Financial raised shares of Allied Properties Real Estate Investment Trust from an “underperform” rating to a “sector perform” rating and dropped their price objective for the company from C$14.00 to C$13.00 in a research note on Monday, December 1st. Scotiabank cut their price objective on shares of Allied Properties Real Estate Investment Trust from C$18.00 to C$15.75 and set a “sector perform” rating on the stock in a report on Thursday, December 4th. Finally, Royal Bank Of Canada lowered their target price on shares of Allied Properties Real Estate Investment Trust from C$18.00 to C$16.00 and set a “sector perform” rating for the company in a report on Friday, October 31st. One research analyst has rated the stock with a Buy rating, six have given 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 a consensus rating of “Hold” and a consensus target price of C$15.28.

Allied Properties Real Estate Investment Trust Stock Down 7.8%

The stock has a fifty day moving average price of C$13.63 and a 200-day moving average price of C$16.22. The firm has a market cap of C$1.31 billion, a PE ratio of -2.28 and a beta of 1.65. The company has a debt-to-equity ratio of 71.71, a quick ratio of 0.12 and a current ratio of 0.45.

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