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

Allied Properties Real Estate Investment Trust (TSE:AP.UN)’s stock price dropped 27.8% on Thursday . The company traded as low as C$10.00 and last traded at C$10.14. Approximately 9,155,955 shares changed hands during trading, an increase of 906% from the average daily 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

Analyst Ratings Changes

A number of equities research analysts have recently commented on AP.UN shares. TD Securities cut their price target on shares of Allied Properties Real Estate Investment Trust from C$16.00 to C$14.50 and set a “hold” rating on the stock in a report on Friday, December 12th. Raymond James Financial upgraded Allied Properties Real Estate Investment Trust from an “underperform” rating to a “market perform” rating and cut their target price for the company from C$14.75 to C$14.00 in a research note on Tuesday, December 2nd. 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 for the company in a research note on Monday, November 3rd. Scotiabank reduced their price objective 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, Desjardins lowered their target price on shares of Allied Properties Real Estate Investment Trust from C$18.00 to C$15.50 and set a “sell” rating on the stock in a research note on Friday, October 31st. One investment analyst has rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of C$15.28.

Allied Properties Real Estate Investment Trust Stock Performance

The business’s fifty day moving average is C$13.63 and its 200-day moving average is C$16.22. 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 company has a market cap of C$1.31 billion, a PE ratio of -2.28 and a beta of 1.65.

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. Allied Properties Real Estate Investment Trust had a negative return on equity of 8.01% and a negative net margin of 89.93%.The business had revenue of C$148.77 million during the quarter. As a group, research analysts predict that Allied Properties Real Estate Investment Trust will post 1.8404851 EPS for the current fiscal year.

Allied Properties Real Estate Investment Trust Company Profile

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.