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Allied Properties Real Estate Investment Trust (AP) investor relations material
Allied Properties Real Estate Investment Trust Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Leased area increased to 87.2% with average net rent per occupied square foot up 1% year-over-year to $25.32.
Progress made toward 2025 goals, focusing on leasing, operational results, development completion, and balance sheet strength.
Non-core property sales accelerated, with $200M in sales closed or under contract and a $300M target for 2025.
Balance sheet management advanced, with $167.7M drawn on a $800M facility at quarter-end, expected to be repaid by year-end.
Urban market fundamentals and leasing momentum are improving, especially in Toronto.
Financial highlights
NOI of the rental portfolio grew by 1.1% year-over-year, driven by development completions and stabilization.
Q2 2025 rental revenue was $145M, down 1.2% year-over-year; operating income was $79.95M, down 3%.
Net loss for Q2 was $94.7M, mainly due to higher fair value losses on investment properties.
FFO per unit (diluted) was $0.494, down 4.3%; AFFO per unit (diluted) was $0.454, down 2.8% year-over-year.
Leased over 588,000 sq ft in Q2, including 75,000 sq ft of expansions.
Outlook and guidance
Targeting net debt to EBITDA below 10x by year-end 2025 and below 9x by 2026.
FFO and AFFO per unit expected to contract by 4% in 2025 due to higher interest costs from 2024 acquisitions.
Path to 90% occupancy by year-end relies on continued lease-up and positive leasing momentum.
Disposition program on track to divest $300M in non-core assets in 2025.
Macroeconomic uncertainty may impact ability to achieve goals within estimated timeframe.
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