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Investor Insights

This summary was created by AI, based on 20 opinions in the last 12 months.

Allied Properties REIT is facing significant challenges, particularly in the office rental market, which has been severely impacted by the post-Covid environment. Current occupancy rates in major cities like Toronto are notably low, contributing to high vacancy levels, which limit the potential for rental increases. While the company boasts a high dividend yield over 10%, experts express concerns regarding its sustainability due to a high payout ratio and increasing debt. Some analysts suggest that the REIT is currently undervalued, trading below its book value, and may present an opportunity for patient investors as interest rates potentially decline. Nevertheless, the overall sentiment indicates that until the office demand rebounds and occupancy rates improve, investors should exercise caution.

Consensus
Hold
Valuation
Undervalued
Similar
CNR,CS
DON'T BUY

Not entirely clear to him what future of back-to-the-office is. Not sure we'll have the same office boom we did pre-Covid. Lower 10-year yield in Canada is helpful, but other sectors in the space are preferable.

HOLD

Would recommend holding shares. Payout ratio is high, but appears to be able to manage. Occupancy numbers will be interesting to watch. As Toronto grows, will be good for business. Just takes time. 

WAIT

Thinks rates are heading higher, so REITs are going to come under pressure. If the S&P 500 real estate sector is down 2%, perhaps the Canadian sector won't be hit as hard, but it'll still head lower. If his call is correct about a bigger correction later on, it'll be a better opportunity.

Look to energy names instead for a strong dividend yield.

DON'T BUY

Doing the best it can, but fundamentals have been really difficult. Vacancy rates are quite high. Sold off data centre assets to build up balance sheet, but then acquired more assets. Distribution coverage not what it once was. Yield is ~10%.

BUY

In his dividend growers mandate. Very high dividend yield, over 10%, and is sustainable (though may not grow in near term). Debt to capital ratio ~40%, selling non-core properties. Closing deals will add cash this year. Vacancy rates should stabilize. Private market value is significantly higher. Needs patience.

TOP PICK

Dark horse candidate. Former market darling. Trades at 0.4x book value. Office and retail in Toronto. 6M square feet of space in Montreal; 3M across Vancouver, Calgary, Ottawa and Kitchener. 17% compound growth rate total return since IPO, until their Covid fall. Yield is 10%, very sustainable.

(Analysts’ price target is $20.03)
DON'T BUY

Lots of "brick and beam" properties, very beautiful. Redevelopment of those heritage buildings is much more difficult. Smaller square footage actually hurt them more from Covid, as many decided they didn't even need an office. Rental dynamics have changed since Covid.

DON'T BUY

Office has suffered since the pandemic, supply/demand are out of balance everywhere. Occupancy has slipped to lowest level in 2 years. Leverage is quite high, while net operating income is down this quarter. An execution story. Some wonder if distribution can be sustained.

DON'T BUY

They rank among the top REITs in Canada and the U.S. They have a history of buying and spending well and adding a lot of value. They were a darling until Covid hammered the office market. Now, AP.UN faces a tough office market. Toronto remains a major city that hasn't returned to the office, so vacancy rates remain high. He doesn't know if this huge wave will return. But AP's dividend is sustainable, though it should be cut to do things like buyback stock and paying down debt.

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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

The Well, a new and dazzling commercial-office-residential behemoth in downtown Toronto, bodes well for Allied's future mixed-use projects.
Caveat: The payout ratio of Allied's near-9% dividend yield is almost 400%, though Bay Street feels that divvy is safe. Be patient with this one. It holds more upside than down, and you can collect that 9% while you wait. 

WAIT

Starting to see strength in REIT's with lower interest rates. Would wait for trend to head up before investing. Breakout would be above $20/share. 

TOP PICK

Deep value, turnaround story. Gentrifies warehouse and industrial corridors in Toronto. Also in Montreal, Calgary, Vancouver and Kitchener. Getting some love and accolades for The Well, multi-use residential & commercial & office. Former darling, compounding at 17% annual pace from 2003-2019. Trading at less than half book value. Yield is 9%, which he feels is sustainable.

People returning to office. Debt refinancing, construction financing. Macro tailwinds with interest rates falling. In its new first inning.

(Analysts’ price target is $19.33)
BUY

Likes real estate in general, sector will benefit from lower interest rates. In particular, likes those that are building their businesses; not the ones that are just collecting rents, paying dividends, and going sideways. A good business run by good people. Yield is 10%, sustainable, won't get cut.

WATCH
Why lagging the market? Is 10.2% dividend sustainable?

Incredibly tied to a lot of the big issues going on. Lots of exposure to office throughout Canada, especially to The Well in Toronto. Return-to-office has been slower to pick up. REITs tend to really suffer with higher interest rates. 

The worst might be priced in, could be time to sharpen your pencil and take a look. Good operator, great assets. If you feel that interest rates have peaked and fear around office is waning, will benefit as those sentiments start to reverse.

He's not an expert in the payout ratio for REITs and whether dividend can be maintained.

DON'T BUY

Is not buying into REIT sector yet. Waiting for interest rates to fall. Vacancy rates still high with "work from home" trend. Not cheap enough to buy. Would rather growth sector (A.I., data centers, healthcare, energy). 

Showing 1 to 15 of 189 entries

Allied Properties REIT(AP.UN-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 10

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 10

Total Signals / Votes : 21

Stockchase rating for Allied Properties REIT is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Allied Properties REIT(AP.UN-T) Frequently Asked Questions

What is Allied Properties REIT stock symbol?

Allied Properties REIT is a Canadian stock, trading under the symbol AP.UN-T on the Toronto Stock Exchange (AP.UN-CT). It is usually referred to as TSX:AP.UN or AP.UN-T

Is Allied Properties REIT a buy or a sell?

In the last year, 21 stock analysts published opinions about AP.UN-T. 10 analysts recommended to BUY the stock. 10 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Allied Properties REIT.

Is Allied Properties REIT a good investment or a top pick?

Allied Properties REIT was recommended as a Top Pick by on . Read the latest stock experts ratings for Allied Properties REIT.

Why is Allied Properties REIT stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Allied Properties REIT worth watching?

21 stock analysts on Stockchase covered Allied Properties REIT In the last year. It is a trending stock that is worth watching.

What is Allied Properties REIT stock price?

On 2025-03-19, Allied Properties REIT (AP.UN-T) stock closed at a price of $16.73.