Allied Properties Real Estate Investment Trust (TSE:AP.UN) Shares Down 26.6% – Should You Sell?

Allied Properties Real Estate Investment Trust (TSE:AP.UN)’s share price was down 26.6% during mid-day trading on Wednesday . The stock traded as low as C$10.00 and last traded at C$10.31. Approximately 7,961,018 shares traded hands during mid-day trading, an increase of 830% from the average daily volume of 855,826 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: Management announced a roughly C$500-million equity raise intended to pay down debt, which should reduce leverage and near?term refinancing risk. Read More.
• Neutral Sentiment: Trading in AP.UN was halted by the industry regulator (IIROC) while material news was disclosed — a typical procedural step that preceded the public filings and can increase short?term volatility once resumed. Read More.
• Negative Sentiment: Q4 results showed a large per?share loss (C($7.93)) and an 89.9% negative net margin; these weak operating results and negative ROE underscore near-term profitability and cash?flow pressure. Read More.
• Negative Sentiment: The founder/longtime leader is stepping down as part of the leadership update, adding governance and execution uncertainty at a sensitive time for the REIT. Read More.

Analyst Ratings Changes

Several brokerages have recently weighed in on AP.UN. Scotiabank decreased their target price 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. Royal Bank Of Canada decreased their price objective 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. Desjardins dropped their target price 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 report on Friday, October 31st. Canaccord Genuity Group decreased their price target on 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 note on Friday, October 31st. Finally, TD Securities lowered their price target on 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 report on Friday, December 12th. 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 company. Based on data from MarketBeat, Allied Properties Real Estate Investment Trust currently has an average rating of “Hold” and an average target price of C$15.28.

Allied Properties Real Estate Investment Trust Trading Down 27.8%

The business has a 50 day simple moving average of C$13.69 and a 200-day simple moving average of C$16.26. The stock has a market capitalization 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 current ratio of 0.45 and a quick ratio of 0.12.

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) 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. As a group, equities analysts expect that Allied Properties Real Estate Investment Trust will post 1.8404851 earnings per share 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.