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

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

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: 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

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Raymond James Financial upgraded Allied Properties Real Estate Investment Trust from an “underperform” rating to a “market perform” rating and dropped their price objective for the stock from C$14.75 to C$14.00 in a research note on Tuesday, December 2nd. Royal Bank Of Canada cut their price objective 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. Canaccord Genuity Group lowered their price target on Allied Properties Real Estate Investment Trust from C$22.00 to C$18.00 and set a “buy” rating for the company in a report on Friday, October 31st. Desjardins cut their price objective 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 report on Friday, October 31st. Finally, Canadian Imperial Bank of Commerce lowered their target price on Allied Properties Real Estate Investment Trust from C$17.00 to C$15.50 and set a “neutral” rating for the company in a research note on Monday, November 3rd. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of C$15.28.

Allied Properties Real Estate Investment Trust Stock Performance

The stock has a 50 day simple moving average of C$13.63 and a 200 day simple moving average of C$16.22. 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 stock 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 released its earnings results 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 company had revenue of C$148.77 million during the quarter. On average, 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.