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

Allied Properties Real Estate Investment Trust (TSE:AP.UN) traded down 27.8% on Thursday . The stock traded as low as C$10.00 and last traded at C$10.14. 9,155,955 shares changed hands during trading, an increase of 906% from the average session volume of 909,716 shares. The stock had previously closed at C$14.05.

Allied Properties Real Estate Investment Trust News Roundup

Here are the key news stories impacting Allied Properties Real Estate Investment Trust this week:

• Positive Sentiment: Raised capital to reduce leverage — Allied is pursuing an equity financing (reported as roughly C$500M in media reports) specifically to pay down debt, which should lower refinancing risk and improve the balance sheet. Allied Property REIT raising $500-million to pay down debt
• Neutral Sentiment: Regulatory trading halt — Canadian Investment Regulatory Organization (CIRO) placed AP.UN under a trading halt while material disclosures were announced; this pause delayed price discovery but is procedural ahead of the filings. Canadian Investment Regulatory Organization Trading Halt – AP.UN
• Negative Sentiment: Weak Q4 results — Allied reported a C($7.93) EPS for the quarter with revenue of C$148.8M, a negative net margin (~?90%) and negative ROE, signaling operational/valuation stress and contributing to investor selling. Allied Properties Real Estate Investment Trust quarterly results
• Negative Sentiment: Leadership change — management/leadership updates (including founder stepping down per coverage) raise governance and execution questions during a capital raise and operational turnaround. Allied Reports Q4 and Full-Year Results; Announces Leadership Update and Equity Financing

Analyst Ratings Changes

A number of research analysts have recently commented on AP.UN shares. Canaccord Genuity Group dropped their price objective on shares of Allied Properties Real Estate Investment Trust from C$22.00 to C$18.00 and set a “buy” rating for the company in a research note on Friday, October 31st. Raymond James Financial raised 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 report on Tuesday, December 2nd. Royal Bank Of Canada decreased their price target on shares of 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. 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. Finally, Desjardins cut their target price 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 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 company’s stock. According to MarketBeat.com, 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 firm has a market cap of C$1.35 billion, a price-to-earnings ratio of -2.35 and a beta of 1.65. The company has a current ratio of 0.45, a quick ratio of 0.12 and a debt-to-equity ratio of 71.71. The company has a 50 day moving average of C$13.63 and a 200 day moving average of C$16.22.

Allied Properties Real Estate Investment Trust (TSE:AP.UN) last issued its quarterly earnings data on Tuesday, February 10th. The real estate investment trust reported C($7.93) earnings per share (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. Equities 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.