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

Shares of Allied Properties Real Estate Investment Trust (TSE:AP.UN) dropped 27.8% during trading on Wednesday . The stock traded as low as C$10.00 and last traded at C$10.14. Approximately 9,155,955 shares were traded 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: Plan to raise C$500M to pay down debt could materially reduce leverage and near-term refinancing risk, improving balance-sheet flexibility if executed as described. Allied Property REIT raising $500-million to pay down debt
• Neutral Sentiment: Canadian Investment Regulatory Organization imposed a trading halt on AP.UN while the company’s material disclosures were imminent; halts are procedural but increase short-term volatility and uncertainty. Canadian Investment Regulatory Organization Trading Halt – AP.UN
• Negative Sentiment: Q4 and full-year results showed a large per-share loss (C($7.93)) and very weak profitability (negative net margin ~89.9%), signaling operating or non‑cash/one‑off issues that hit earnings and may weigh on investor confidence. View Press Release
• Negative Sentiment: Company announced an equity financing (size and terms to be finalized). Equity issuance reduces leverage but is typically dilutive to existing shareholders and often triggers downward price pressure on announcement. Allied Reports Q4 and Full-Year Results; Announces Leadership Update and Equity Financing
• Negative Sentiment: Leadership update includes founder/longstanding executive stepping down, which raises near-term governance and execution uncertainty during a capital‑markets sensitive period. Allied Property REIT raising $500-million to pay down debt

Analyst Ratings Changes

AP.UN has been the subject of several research analyst reports. Raymond James Financial upgraded shares of Allied Properties Real Estate Investment Trust from an “underperform” rating to a “market perform” rating and reduced their price target for the company from C$14.75 to C$14.00 in a report on Tuesday, December 2nd. National Bank Financial raised shares of Allied Properties Real Estate Investment Trust from an “underperform” rating to a “sector perform” rating and cut their price objective for the company from C$14.00 to C$13.00 in a research report on Monday, December 1st. Canadian Imperial Bank of Commerce reduced their target price on shares of 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. Desjardins dropped their price target on 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. Finally, Royal Bank Of Canada cut their price target 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. One investment analyst has rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of C$15.28.

Allied Properties Real Estate Investment Trust Price Performance

The stock has a market cap of C$1.42 billion, a price-to-earnings ratio of -2.47 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. The company has a 50-day simple moving average of C$13.63 and a two-hundred day simple moving average of C$16.22.

Allied Properties Real Estate Investment Trust (TSE:AP.UN) last released its quarterly earnings data on Tuesday, February 10th. The real estate investment trust reported C($7.93) EPS for the quarter. The company had revenue of C$148.77 million during 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%. As a group, equities research analysts forecast that Allied Properties Real Estate Investment Trust will post 1.8404851 EPS for the current 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.