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), 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. Kalkine’s Real Estate Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~26.56% of the total shareholding. RBC Global Asset Management Inc. and BlackRock Institutional Trust Company, N.A. hold a maximum stake in the company at ~­­­7.55% and ~3.84%, respectively.

1.4 Key Metrics:

The company reported decent financial numbers in Q3 2023 and clocked growing Adjusted EBITDA and Same asset NOI for the total portfolio, which is a key positive, Furthermore, in Q3 2023 its FFO also grew sequentially, demonstrating its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of the company’s recent activity, such as the announcement regarding its dividend distribution.

2.2 Insights on Q3 2023 Financial Performance:

Section 3: Key Risks, Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed an upside of ~5.84% and ~5.12% in 1 last week and a month respectively. Moreover, the stock is trading below the average of 52-week high price of CAD 30.95 and 52-week low price of CAD 15.01 providing an opportunity to accumulate the stock. Allied Properties Real Estate Investment Trust (TSX: AP.UN) was last covered on 27^th October 2023.

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: 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 December 4, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.