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

Shares of Allied Properties Real Estate Investment Trust (TSE:AP.UN) traded down 27.8% on Wednesday . The company traded as low as C$10.00 and last traded at C$10.14. 9,155,955 shares were traded during trading, an increase of 906% from the average session volume of 909,716 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: 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

AP.UN has been the topic of several research analyst reports. Canadian Imperial Bank of Commerce decreased their target price on Allied Properties Real Estate Investment Trust from C$17.00 to C$15.50 and set a “neutral” rating on the stock in a report on Monday, November 3rd. Canaccord Genuity Group reduced their price target 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 research report 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 decreased their price objective for the stock from C$14.75 to C$14.00 in a report on Tuesday, December 2nd. TD Securities dropped their target price 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, Scotiabank reduced 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. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of C$15.28.

Allied Properties Real Estate Investment Trust Stock Performance

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. The stock 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 earnings results 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 net margin of 89.93% and a negative return on equity of 8.01%. The business had revenue of C$148.77 million during the quarter. On average, analysts expect that Allied Properties Real Estate Investment Trust will post 1.8404851 EPS 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.