Section 1: Company Overview and Fundamental Insights

1.1 Company Overview:

Allied Properties Real Estate Investment Trust (TSX: AP.UN) is a closed-end real estate investment trust (REIT), which is 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. The company also controls a number of telecommunications/IT and retail properties within its real estate portfolio.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~28.20% of the total shareholding. RBC Global Asset Management Inc. and CI Global Asset Management are holding a maximum stake in the company at ~6.69% and ~5.02%, respectively.

1.4 Key Metrics:

In Q1 2022, the company reported a higher financial number, where its rental revenue, Adjusted EBITDA and net income were at elevated levels. Moreover, it reported healthy funds from operations and same property NOI, which indicates resilient business.

Section 2: Business Updates and Financial Highlights 

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as appointing a new person on Board, dividend distribution and announcement regarding its Q2 2022, financial results:

2.2 Insights of Q1 2022:

Section 3: Key Risks and Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

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: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.

Disclaimer

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