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Highlights

  • Allied Properties Real Estate Investment Trust develops, manages, and owns urban office environments across Canada.
  • During Q2 2023, the net revenue of the company was recorded at CAD 136.1 million, versus CAD 130.7 million in Q1 2022.
  • The company’s operating income increased by 4.3% during the reporting period.

A close-ended real estate investment trust (REIT), Allied Properties Real Estate Investment Trust (TSX: AP.UN) develops, manages, and owns urban office environments across Canada's major cities.

During the second quarter of 2023, the company posted decent financial numbers and achieved sequentially growing margin profile. Also, it registered a growth in FFO.

Allied Properties’ net revenue was recorded at CAD 136.1 million in Q2 2023, versus CAD 130.7 million in the previous corresponding period. The year-on-year (YoY) growth of 4.1% can be attributed to the increase in average in-place net rent per occupied square foot. The company’s operating income increased by 4.3%, while its net income jumped by 26.2%, during the reporting period.

As per the company, its urban-data-centre (UDC) property in Downtown Toronto will be bought by KDDI Corporation for an amount of CAD 1.35 billion. It is most likely that the sale will be closed this month. From the total amount obtained through this sale, Allied Properties will use CAD 250 million for future notes payable. The firm will use the rest CAD 740 million for making payments related to its unsecured credit facility.

 The company recently announced to pay a monthly cash distribution of CAD 0.15 per share on August 15, 2023, to unitholders of record as on July 31, 2023. Currently, the company’s dividend yield stands at 8.47%.

Top 10 Shareholders
Around 26.37% of the total shareholding in the company are held by its top ten shareholders. While RBC Global Asset Management Inc. holds a maximum stake in the company of over ­­­6.35%, and BMO Asset Management Inc. owns nearly 4.01% shares of the company.

 

Stock Price Performance
The stock price has jumped by around 1.01% in the last one month, while it witnessed a decline of over 3.47% in the last three months. The stock’s 52-week high and low price stand at CAD 34.52 and CAD 20.26, respectively.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 31, 2023. The reference data in this report has been partly sourced from EODHD/Others.