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

Allied Properties Real Estate Investment Trust (TSE:AP.UN)’s share price was down 27.8% during trading on Wednesday . The company traded as low as C$10.00 and last traded at C$10.14. Approximately 9,155,955 shares traded 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.

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: 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

Analysts Set New Price Targets

A number of brokerages have issued reports on AP.UN. National Bank Financial upgraded Allied Properties Real Estate Investment Trust from an “underperform” rating to a “sector perform” rating and reduced their target price for the stock from C$14.00 to C$13.00 in a report on Monday, December 1st. Scotiabank cut their price target 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 research report on Thursday, December 4th. TD Securities reduced their price objective 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 research note on Friday, December 12th. 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 research note on Friday, October 31st. Finally, Canaccord Genuity Group cut 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 equities research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of C$15.28.

Allied Properties Real Estate Investment Trust Price Performance

The company has a 50-day moving average of C$13.63 and a 200-day moving average of C$16.22. 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 firm has a market capitalization of C$1.42 billion, a price-to-earnings ratio of -2.47 and a beta of 1.65.

Allied Properties Real Estate Investment Trust (TSE:AP.UN) last announced its earnings results on Tuesday, February 10th. The real estate investment trust reported C($7.93) EPS 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 company had revenue of C$148.77 million for the quarter. As a group, research analysts anticipate 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.