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 proven track record.

Risks

  • Allied Properties Real Estate Investment Trust is covered by less than 3 analysts.

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


Market Performance


7 Day Return

0.9%

TSX:AP.UN

0.2%

CA REITs

1.6%

CA Market


1 Year Return

15.7%

TSX:AP.UN

7.6%

CA REITs

-0.5%

CA Market

AP.UN outperformed the REITs industry which returned 6.4% over the past year.

AP.UN outperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

AP.UNIndustryMarket
7 Day0.9%0.2%1.6%
30 Day1.3%0.9%3.9%
90 Day7.5%1.6%0.8%
1 Year19.7%15.7%13.5%7.6%3.0%-0.5%
3 Year55.2%38.6%36.1%14.4%19.5%8.8%
5 Year83.6%51.0%65.8%23.2%21.0%3.6%

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 based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Allied Properties Real Estate Investment Trust's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Allied Properties Real Estate Investment Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Allied Properties Real Estate Investment Trust is overvalued based on earnings compared to the CA REITs industry average.

Allied Properties Real Estate Investment Trust is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Allied Properties Real Estate Investment Trust, we can't assess if its growth is good value.


Price Based on Value of Assets

Allied Properties Real Estate Investment Trust is overvalued based on assets compared to the CA REITs industry average.


Next Steps

Future Growth

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

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Allied Properties Real Estate Investment Trust's revenue is expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

Allied Properties Real Estate Investment Trust's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Allied Properties Real Estate Investment Trust's revenue growth is expected to exceed the Canada market average.

Allied Properties Real Estate Investment Trust's earnings growth is positive but not above the Canada market average.

Allied Properties Real Estate Investment Trust's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Allied Properties Real Estate Investment Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

25.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Allied Properties Real Estate Investment Trust has delivered over 20% year on year earnings growth in the past 5 years.

Allied Properties Real Estate Investment Trust's 1-year earnings growth exceeds its 5-year average (61% vs 25.6%)

Allied Properties Real Estate Investment Trust's earnings growth has exceeded the CA REITs industry average in the past year (61% vs 6%).


Return on Equity

Allied Properties Real Estate Investment Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Allied Properties Real Estate Investment Trust used its assets more efficiently than the CA REITs industry average last year based on Return on Assets.


Return on Capital Employed

Allied Properties Real Estate Investment Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Allied Properties Real Estate Investment Trust's financial position?


Financial Position Analysis

Allied Properties Real Estate Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Allied Properties Real Estate Investment Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Allied Properties Real Estate Investment Trust's level of debt (37.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (64.8% vs 37.5% today).

Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

3.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Allied Properties Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Allied Properties Real Estate Investment Trust's dividend is below the markets top 25% of dividend payers in Canada (5.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (180.5x coverage).


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?

3.6yrs

Average management tenure


CEO

Michael Emory (63yo)

31.7yrs

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

Michael's remuneration is about average for companies of similar size in Canada.

Michael's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

59yo

Average Age

The tenure for the Allied Properties Real Estate Investment Trust management team is about average.


Board Age and Tenure

13.3yrs

Average Tenure

72yo

Average Age

The average tenure for the Allied Properties Real Estate Investment Trust board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Allied Properties Real Estate Investment Trust individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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


Management Team

  • Michael Emory (63yo)

    President

    • Tenure: 31.7yrs
    • Compensation: CA$4.05m
  • Tom Burns (63yo)

    Executive VP & COO

    • Tenure: 7.7yrs
    • Compensation: CA$2.02m
  • Jennifer Irwin

    Vice President of Human Resources & Communications

    • Tenure: 8.7yrs
    • Compensation: CA$278.20k
  • Tim Low (55yo)

    Senior Vice President of Leasing

    • Tenure: 2.2yrs
    • Compensation: CA$467.95k
  • Doug Riches (68yo)

    Senior Vice President of Urban Data Centres

    • Tenure: 2.2yrs
    • Compensation: CA$374.64k
  • Hugh Clark (42yo)

    Executive Vice President of Development

    • Tenure: 1.7yrs
    • Compensation: CA$412.89k
  • Cecilia Williams (42yo)

    Executive VP & CFO

    • Tenure: 4.7yrs
    • Compensation: CA$1.14m
  • Luqman Ahmad

    Senior Vice President of Finance & Accounting

    • Tenure: 0yrs
  • David Silva

    Vice President of Technology

    • Tenure: 2.5yrs
  • Colin Worrell

    Managing Director of Leasing

    • Tenure: 0yrs

Board Members

  • Gord Cunningham (74yo)

    Chairman of the Board

    • Tenure: 17.7yrs
    • Compensation: CA$145.00k
  • Michael Emory (63yo)

    President

    • Tenure: 31.7yrs
    • Compensation: CA$4.05m
  • Gerry Connor (73yo)

    • Tenure: 16.9yrs
    • Compensation: CA$115.00k
  • Margaret Nelligan (60yo)

    • Tenure: 4.3yrs
    • Compensation: CA$90.00k
  • Jim Griffiths (72yo)

    • Tenure: 13.3yrs
    • Compensation: CA$90.00k
  • Lois Cormack (58yo)

    • Tenure: 1.3yrs
    • Compensation: CA$60.00k
  • Peter Sharpe (72yo)

    • Tenure: 7.3yrs
    • 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$6.076b
  • 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 Analysis2019/09/16 23:44
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
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.