Allied Properties Real Estate Investment Trust

TSX:AP.UN Stock Report

Market Cap: CA$2.5b

Allied Properties Real Estate Investment Trust Valuation

Is AP.UN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AP.UN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AP.UN (CA$17.98) is trading below our estimate of fair value (CA$28.66)

Significantly Below Fair Value: AP.UN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AP.UN?

Key metric: As AP.UN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for AP.UN. This is calculated by dividing AP.UN's market cap by their current revenue.
What is AP.UN's PS Ratio?
PS Ratio4.3x
SalesCA$590.25m
Market CapCA$2.52b

Price to Sales Ratio vs Peers

How does AP.UN's PS Ratio compare to its peers?

The above table shows the PS ratio for AP.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
D.UN Dream Office Real Estate Investment Trust
1.6x-0.5%CA$368.3m
TNT.UN True North Commercial Real Estate Investment Trust
1.2xn/aCA$161.0m
SOT.UN Slate Office REIT
0.2x-2.3%CA$40.3m
CRR.UN Crombie Real Estate Investment Trust
5.7x3.1%CA$2.6b
AP.UN Allied Properties Real Estate Investment Trust
4.3x11.9%CA$2.5b

Price-To-Sales vs Peers: AP.UN is expensive based on its Price-To-Sales Ratio (4.3x) compared to the peer average (2.2x).

Price to Sales Ratio vs Industry

How does AP.UN's PS Ratio compare vs other companies in the North American Office REITs Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
AP.UN 4.3xIndustry Avg. 2.7xNo. of Companies5PS01.63.24.86.48+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: AP.UN is expensive based on its Price-To-Sales Ratio (4.3x) compared to the North American Office REITs industry average (2.7x).

Price to Sales Ratio vs Fair Ratio

What is AP.UN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AP.UN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.3x
Fair PS Ratio3.4x

Price-To-Sales vs Fair Ratio: AP.UN is expensive based on its Price-To-Sales Ratio (4.3x) compared to the estimated Fair Price-To-Sales Ratio (3.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AP.UN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$17.98
CA$20.08
+11.7%
6.7%CA$23.00CA$18.50n/a9
Nov ’25CA$17.96
CA$20.08
+11.8%
6.7%CA$23.00CA$18.50n/a9
Oct ’25CA$20.25
CA$19.33
-4.5%
8.4%CA$23.00CA$18.00n/a9
Sep ’25CA$17.39
CA$19.28
+10.9%
7.9%CA$22.50CA$17.50n/a9
Aug ’25CA$16.33
CA$19.28
+18.1%
7.9%CA$22.50CA$17.50n/a9
Jul ’25CA$15.31
CA$19.67
+28.5%
6.5%CA$22.50CA$18.50n/a9
Jun ’25CA$16.89
CA$19.67
+16.4%
6.5%CA$22.50CA$18.50n/a9
May ’25CA$16.91
CA$19.89
+17.6%
6.4%CA$22.50CA$18.75n/a9
Apr ’25CA$17.38
CA$20.47
+17.8%
7.4%CA$24.00CA$19.00n/a9
Mar ’25CA$17.29
CA$20.94
+21.1%
7.6%CA$24.00CA$19.50n/a9
Feb ’25CA$17.78
CA$21.45
+20.6%
6.5%CA$23.50CA$19.50n/a10
Jan ’25CA$20.18
CA$21.40
+6.0%
9.3%CA$25.00CA$19.00n/a10
Dec ’24CA$18.51
CA$20.80
+12.4%
7.9%CA$25.00CA$19.00n/a10
Nov ’24CA$16.69
CA$20.80
+24.6%
7.9%CA$25.00CA$19.00CA$17.9610
Oct ’24CA$17.93
CA$26.18
+46.0%
7.1%CA$30.50CA$24.00CA$20.2511
Sep ’24CA$20.89
CA$26.18
+25.3%
7.1%CA$30.50CA$24.00CA$17.3911
Aug ’24CA$21.87
CA$26.18
+19.7%
7.1%CA$30.50CA$24.00CA$16.3311
Jul ’24CA$21.72
CA$29.50
+35.8%
10.5%CA$36.00CA$24.75CA$15.3111
Jun ’24CA$22.30
CA$30.27
+35.8%
10.7%CA$36.00CA$24.75CA$16.8911
May ’24CA$22.73
CA$30.95
+36.2%
11.8%CA$36.50CA$24.75CA$16.9111
Apr ’24CA$24.36
CA$35.65
+46.3%
5.1%CA$39.50CA$32.25CA$17.3810
Mar ’24CA$27.87
CA$35.65
+27.9%
5.1%CA$39.50CA$32.25CA$17.2910
Feb ’24CA$29.67
CA$35.95
+21.2%
5.5%CA$39.50CA$32.25CA$17.7810
Jan ’24CA$25.60
CA$37.30
+45.7%
14.0%CA$52.00CA$31.00CA$20.1811
Dec ’23CA$26.35
CA$38.02
+44.3%
12.3%CA$52.00CA$33.75CA$18.5111
Nov ’23CA$26.44
CA$38.02
+43.8%
12.3%CA$52.00CA$33.75CA$16.6911

Analyst Forecast: Target price is less than 20% higher than the current share price.

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