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

Allied Properties Real Estate Investment Trust (TSE:AP.UN)’s stock price 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 traded hands 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.

More 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 Upgrades and Downgrades

Several brokerages have weighed in on AP.UN. Royal Bank Of Canada lowered their price objective on 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 report on Friday, October 31st. TD Securities lowered 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 for the company in a research note on Friday, December 12th. Raymond James Financial upgraded shares of Allied Properties Real Estate Investment Trust from an “underperform” rating to a “market perform” rating and dropped their price target for the stock from C$14.75 to C$14.00 in a research note on Tuesday, December 2nd. Desjardins reduced their price objective on shares of 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 note on Friday, October 31st. Finally, Scotiabank dropped 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 note on Thursday, December 4th. One analyst has rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Allied Properties Real Estate Investment Trust currently has a consensus rating of “Hold” and a consensus price target of C$15.28.

Allied Properties Real Estate Investment Trust Price Performance

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’s fifty day moving average is C$13.63 and its two-hundred day moving average is C$16.22. The company has a market cap of C$1.42 billion, a P/E ratio of -2.47 and a beta of 1.65.

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) 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 return on equity of 8.01% and a negative net margin of 89.93%. As a group, analysts anticipate that Allied Properties Real Estate Investment Trust will post 1.8404851 earnings per share for the current fiscal 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.