TSX:AP.UN

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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. More Details

Rewards

Trading at 23.4% below our estimate of its fair value

Revenue is forecast to grow 7.29% per year

Earnings grew by 25.7% over the past year

Pays a reliable dividend of 4.62%

Risk Analysis

Earnings are forecast to decline by an average of 17.8% per year for the next 3 years

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and good value.

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

-3.8%

AP.UN

-3.7%

CA REITs

-2.3%

CA Market


1 Year Return

-33.2%

AP.UN

-26.9%

CA REITs

-8.6%

CA Market

Return vs Industry: AP.UN underperformed the Canadian REITs industry which returned -26.9% over the past year.

Return vs Market: AP.UN underperformed the Canadian Market which returned -8.6% over the past year.


Shareholder returns

AP.UNIndustryMarket
7 Day-3.8%-3.7%-2.3%
30 Day-6.4%-4.7%-4.5%
90 Day-13.2%-2.6%5.7%
1 Year-31.1%-33.2%-23.1%-26.9%-5.5%-8.6%
3 Year-0.6%-10.4%1.9%-13.3%5.8%-4.4%
5 Year23.6%2.5%22.3%-7.5%38.3%17.1%

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?

23.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AP.UN (CA$35.71) is trading below our estimate of fair value (CA$46.64)

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


Price To Earnings Ratio

PE vs Industry: AP.UN is good value based on its PE Ratio (5.8x) compared to the CA REITs industry average (7.2x).

PE vs Market: AP.UN is good value based on its PE Ratio (5.8x) compared to the Canadian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: AP.UN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AP.UN's PB Ratio (0.7x) is in line with the CA REITs industry average.


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 3 analysts?

-17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AP.UN's earnings are forecast to decline over the next 3 years (-17.8% per year).

Earnings vs Market: AP.UN's earnings are forecast to decline over the next 3 years (-17.8% per year).

High Growth Earnings: AP.UN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AP.UN's revenue (7.3% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: AP.UN's revenue (7.3% 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?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AP.UN has a large one-off gain of CA$538.5M impacting its June 30 2020 financial results.

Growing Profit Margin: AP.UN's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: AP.UN's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: AP.UN's earnings growth over the past year (25.7%) exceeds its 5-year average (22.4% per year).

Earnings vs Industry: AP.UN earnings growth over the past year (25.7%) exceeded the REITs industry 15.1%.


Return on Equity

High ROE: AP.UN's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: AP.UN's short term assets (CA$165.4M) do not cover its short term liabilities (CA$316.5M).

Long Term Liabilities: AP.UN's short term assets (CA$165.4M) do not cover its long term liabilities (CA$2.8B).


Debt to Equity History and Analysis

Debt Level: AP.UN's debt to equity ratio (45.1%) is considered high.

Reducing Debt: AP.UN's debt to equity ratio has reduced from 60.9% to 45.1% over the past 5 years.

Debt Coverage: AP.UN's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: AP.UN's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.62%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AP.UN's dividend (4.62%) is higher than the bottom 25% of dividend payers in the Canadian market (1.74%).

High Dividend: AP.UN's dividend (4.62%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).


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: With its reasonable payout ratio (72.2%), AP.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AP.UN's dividends in 3 years are forecast to be covered by earnings (69.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Michael Emory (64 yo)

32.67yrs

Tenure

CA$4,090,807

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 ($USD3.05M) is about average for companies of similar size in the Canadian market ($USD3.04M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Emory
President32.67yrsCA$4.09m0.88%
CA$ 40.1m
Cecilia Williams
Executive VP & CFO5.67yrsCA$1.29m0.016%
CA$ 748.4k
Thomas Burns
Executive VP & COO8.67yrsCA$2.12m0.062%
CA$ 2.8m
Sean Low
Senior Vice President of Leasing3.17yrsCA$469.49k0.0049%
CA$ 220.4k
Hugh Clark
Executive Vice President of Development2.67yrsCA$725.73k0.014%
CA$ 649.8k
Luqman Ahmad
Senior Vice President of Finance & Accountingno datano data0.0017%
CA$ 78.6k
David Silva
Vice President of Technology3.5yrsno datano data
Jennifer Irwin
Vice President of Human Resources & Communications9.67yrsCA$278.20kno data
Douglas Riches
Senior Vice President of Urban Data Centres3.17yrsCA$374.64kno data
Colin Worrell
Managing Director of Leasingno datano datano data
Ana Lopes
Managing Director of Lease Documentationno datano datano data
Michelle Tremblay
Managing Director of Lease Documentationno datano datano data

4.6yrs

Average Tenure

60yo

Average Age

Experienced Management: AP.UN's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Emory
President32.67yrsCA$4.09m0.88%
CA$ 40.1m
Gordon Cunningham
Independent Chairman of the Board18.67yrsCA$160.00k0.019%
CA$ 867.5k
Gerald Connor
Independent Trustee17.92yrsCA$130.00k0.23%
CA$ 10.4m
Margaret Nelligan
5.33yrsCA$105.00k0.0059%
CA$ 267.2k
Jennifer Tory
0.17yrno datano data
James Griffiths
Independent Trustee14.33yrsCA$105.00k0.017%
CA$ 750.3k
Lois Cormack
Independent Trustee2.33yrsCA$135.00k0.0051%
CA$ 230.4k
Leonard Sharpe
Independent Trustee8.33yrsCA$105.00k0.016%
CA$ 724.8k
Stephen Sender
Independent Director0.33yrno data0.013%
CA$ 610.8k

8.3yrs

Average Tenure

68.5yo

Average Age

Experienced Board: AP.UN's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AP.UN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Top Shareholders

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$4.544b
  • Shares outstanding: 127.26m
  • 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
5G8DB (Deutsche Boerse AG)YesTrust UnitsDEEURFeb 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 Analysis2020/09/26 06:07
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.