Allied Properties Real Estate Investment Trust (AP) Q1 2026 earnings summary

Executive summary

• Q1 2026 results aligned with expectations, reflecting progress on strategic priorities and resilience in the portfolio.

• Leasing activity was strong, with a 36% increase in the new leasing pipeline and 323,632 sq. ft. of new leasing delivered.

• Disposition and deleveraging programs are on track, with $46 million in dispositions closed and further sales firmed post-quarter.

Financial highlights

• Rental revenue was $144 million, and operating income was $70 million, both in line with expectations for Q1 2026.

• Net loss and comprehensive loss for Q1 2026 was $146.7 million, compared to a loss of $107.7 million in Q1 2025.

• Adjusted EBITDA for Q1 2026 was $83.3 million, down 11.9% year-over-year.

• FFO per unit (diluted) was $0.274, down 46.2% year-over-year; AFFO per unit (diluted) was $0.203, down 56.3%.

• Same Asset NOI for the rental portfolio declined 10.4% year-over-year.

Outlook and guidance

• Occupied area by year-end 2026 expected in the 84% to 86% range; all other key metrics remain on track.

• Capital expenditures for 2026 revised upward to $40–$50 million due to higher construction costs at KING Toronto.

• Net debt to EBITDA targeted in the mid-11x range by year-end 2026.

• $500 million in non-core property dispositions targeted for 2026, with $46 million closed and $201 million firmed post-quarter.