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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.
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Q2 2025 earnings summary30 Jul, 2025

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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Frequently asked questions

Allied Properties Real Estate Investment Trust is a Canadian REIT focused on owning, managing, and developing urban office properties. The company specializes in workspace environments that support knowledge-based and creative economy tenants. Its portfolio includes office and data center properties concentrated in major Canadian cities. Allied Properties Real Estate Investment Trust is headquartered in Toronto, Canada, and its shares are listed on the TSX.

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