TSX:AP.UN

Stock Analysis Report

Allied Properties Real Estate Investment Trust

Executive Summary

Allied is a leading owner, manager and developer of (i) distinctive urban workspace in Canada’s major cities and (ii) network-dense urban data centres in Toronto that form Canada’s hub for global connectivity.

Snowflake

Fundamentals

Established dividend payer with questionable track record.

Share Price & News

How has Allied Properties Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AP.UN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

AP.UN

1.7%

CA REITs

0.6%

CA Market


1 Year Return

23.2%

AP.UN

14.3%

CA REITs

7.1%

CA Market

Return vs Industry: AP.UN exceeded the Canadian REITs industry which returned 14.3% over the past year.

Return vs Market: AP.UN exceeded the Canadian Market which returned 7.1% over the past year.


Shareholder returns

AP.UNIndustryMarket
7 Day1.6%1.7%0.6%
30 Day1.0%-0.3%3.2%
90 Day4.8%3.1%4.3%
1 Year27.3%23.2%20.3%14.3%10.7%7.1%
3 Year83.1%63.8%47.6%24.4%18.4%7.8%
5 Year75.7%44.8%63.9%22.2%26.8%8.2%

Price Volatility Vs. Market

How volatile is Allied Properties Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Allied Properties Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

11.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AP.UN (CA$54.07) is trading above our estimate of fair value (CA$53.53)

Significantly Below Fair Value: AP.UN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AP.UN is poor value based on its PE Ratio (11.7x) compared to the REITs industry average (10.2x).

PE vs Market: AP.UN is good value based on its PE Ratio (11.7x) compared to the Canadian market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AP.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AP.UN is overvalued based on its PB Ratio (1.2x) compared to the CA REITs industry average (1x).


Next Steps

Future Growth

How is Allied Properties Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AP.UN's forecast earnings growth (4.4% per year) is above the savings rate (1.9%).

Earnings vs Market: AP.UN's earnings (4.4% per year) are forecast to grow slower than the Canadian market (9.9% per year).

High Growth Earnings: AP.UN's earnings are forecast to grow, but not significantly.

Revenue vs Market: AP.UN's revenue (8.2% per year) is forecast to grow faster than the Canadian market (4.8% per year).

High Growth Revenue: AP.UN's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AP.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Allied Properties Real Estate Investment Trust performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AP.UN has large one-off items impacting its financial results.

Growing Profit Margin: AP.UN's current net profit margins (102.3%) are lower than last year (108.1%).


Past Earnings Growth Analysis

Earnings Trend: AP.UN's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: AP.UN's earnings growth over the past year (7.6%) is below its 5-year average (24.2% per year).

Earnings vs Industry: AP.UN earnings growth over the past year (7.6%) exceeded the REITs industry 7%.


Return on Equity

High ROE: AP.UN's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Allied Properties Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AP.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: AP.UN's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: AP.UN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AP.UN has a sufficient allowance for bad loans.

Low Risk Liabilities: AP.UN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AP.UN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AP.UN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AP.UN has an appropriate level of bad loans.


Next Steps

Dividend

What is Allied Properties Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

2.95%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.0%markettop25%5.7%industryaverage4.7%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: AP.UN's dividend (2.95%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: AP.UN's dividend (2.95%) is low compared to the top 25% of dividend payers in the Canadian market (5.67%).


Stability and Growth of Payments

Stable Dividend: AP.UN's dividends per share have been stable in the past 10 years.

Growing Dividend: AP.UN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84%), AP.UN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AP.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of Allied Properties Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Michael Emory (63yo)

31.8yrs

Tenure

CA$4,053,238

Compensation

Mr. Michael R. Emory has been the Chief Executive Officer and President of Allied Properties REIT since 2003. Mr. Emory is active in the commercial real estate business. He has experience in Real Estate, S ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD3.06M) is about average for companies of similar size in the Canadian market ($USD2.90M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

59yo

Average Age

Experienced Management: AP.UN's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

13.5yrs

Average Tenure

72yo

Average Age

Experienced Board: AP.UN's board of directors are seasoned and experienced ( 13.5 years average tenure).


Insider Trading

Insider Buying: AP.UN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$388,45314 Nov 19
Gerald Connor
EntityIndividual
Role
Member of the Board of Directors
Shares7,212
Max PriceCA$53.86
SellCA$269,22523 Sep 19
Gordon Cunningham
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares5,000
Max PriceCA$53.85
SellCA$252,64013 Aug 19
Gordon Cunningham
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares5,000
Max PriceCA$50.53
SellCA$65,97013 Aug 19
Cumberland Partners Limited
EntityCompany
Shares1,300
Max PriceCA$50.75
SellCA$95,50014 Mar 19
James Griffiths
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceCA$47.75
SellCA$21,10908 Mar 19
Gordon Cunningham
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares438
Max PriceCA$48.20
BuyCA$24,47002 Jan 19
Margaret Nelligan
EntityIndividual
Role
Member of the Board of Directors
Shares550
Max PriceCA$44.49

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.


Management Team

  • Michael Emory (63yo)

    President

    • Tenure: 31.8yrs
    • Compensation: CA$4.05m
  • Tom Burns (63yo)

    Executive VP & COO

    • Tenure: 7.8yrs
    • Compensation: CA$2.02m
  • Jennifer Irwin

    Vice President of Human Resources & Communications

    • Tenure: 8.8yrs
    • Compensation: CA$278.20k
  • Tim Low (55yo)

    Senior Vice President of Leasing

    • Tenure: 2.3yrs
    • Compensation: CA$467.95k
  • Doug Riches (68yo)

    Senior Vice President of Urban Data Centres

    • Tenure: 2.3yrs
    • Compensation: CA$374.64k
  • Hugh Clark (42yo)

    Executive Vice President of Development

    • Tenure: 1.8yrs
    • Compensation: CA$412.89k
  • Cecilia Williams (42yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: CA$1.14m
  • Luqman Ahmad

    Senior Vice President of Finance & Accounting

    • Tenure: 0yrs
  • David Silva

    Vice President of Technology

    • Tenure: 2.7yrs
  • Colin Worrell

    Managing Director of Leasing

    • Tenure: 0yrs

Board Members

  • Gord Cunningham (74yo)

    Chairman of the Board

    • Tenure: 17.8yrs
    • Compensation: CA$145.00k
  • Michael Emory (63yo)

    President

    • Tenure: 31.8yrs
    • Compensation: CA$4.05m
  • Gerry Connor (73yo)

    • Tenure: 17.1yrs
    • Compensation: CA$115.00k
  • Margaret Nelligan (60yo)

    • Tenure: 4.5yrs
    • Compensation: CA$90.00k
  • Jim Griffiths (72yo)

    • Tenure: 13.5yrs
    • Compensation: CA$90.00k
  • Lois Cormack (58yo)

    • Tenure: 1.5yrs
    • Compensation: CA$60.00k
  • Peter Sharpe (72yo)

    • Tenure: 7.5yrs
    • Compensation: CA$90.00k

Company Information

Allied Properties Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Allied Properties Real Estate Investment Trust
  • Ticker: AP.UN
  • Exchange: TSX
  • Founded: 2002
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: CA$6.287b
  • Shares outstanding: 116.27m
  • Website: https://www.alliedreit.com

Number of Employees


Location

  • Allied Properties Real Estate Investment Trust
  • 134 Peter Street
  • Suite 1700
  • Toronto
  • Ontario
  • M5V 2H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AP.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADFeb 2003
APYR.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDFeb 2003

Biography

Allied is a leading owner, manager and developer of (i) distinctive urban workspace in Canada’s major cities and (ii) network-dense urban data centres in Toronto that form Canada’s hub for global connectiv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:48
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.