Allied Properties Real Estate Investment Trust (TSE:AP.UN) Trading Down 27.8% – Should You Sell?

Allied Properties Real Estate Investment Trust (TSE:AP.UN) was down 27.8% on Wednesday . The company traded as low as C$10.00 and last traded at C$10.14. Approximately 9,155,955 shares changed 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.

Key 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 Ratings Changes

A number of research firms have weighed in on AP.UN. Raymond James Financial raised Allied Properties Real Estate Investment Trust from an “underperform” rating to a “market perform” rating and decreased their price objective for the company from C$14.75 to C$14.00 in a report on Tuesday, December 2nd. Canaccord Genuity Group cut their target price 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 research report on Friday, October 31st. Royal Bank Of Canada cut 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 report on Friday, October 31st. National Bank Financial raised shares of Allied Properties Real Estate Investment Trust from an “underperform” rating to a “sector perform” rating and lowered their target price for the stock from C$14.00 to C$13.00 in a report on Monday, December 1st. Finally, Desjardins dropped their target price 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 report on Friday, October 31st. One investment 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, the company currently has an average rating of “Hold” and an average price target of C$15.28.

Allied Properties Real Estate Investment Trust Stock Performance

The stock has a 50 day moving average price of C$13.63 and a two-hundred day moving average price of C$16.22. 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 company has a market capitalization of C$1.42 billion, a price-to-earnings ratio of -2.47 and a beta of 1.65.

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) EPS for the quarter. The company had revenue of C$148.77 million 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%. On average, 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.