Allied Properties Real Estate Investment Trust (TSX: “AP.UN”) reported results for Q3 2025, highlighting progress in debt profile strengthening and development completion. Urban office fundamentals in major Canadian cities improved, but occupancy and leases didn’t meet expectations, impacting results. Portfolio comprised of three workspace formats. Allied leased more vacant space in Montréal and Vancouver. Occupied and leased areas stand at 84% and 87.4%, respectively. Google renewed lease for 194,842 sq ft at The Breithaupt Block. 241 lease tours conducted in Q3, with a notable increase in average requirement size. 881,628 sq ft leased in total, with 187,153 sq ft for expansion by existing users and 324,063 sq ft for new users. Average in-place net rent per occupied sq ft at $25.19 in Q3, slightly down from prior quarter. Portfolio optimization includes sale of non-core properties in Edmonton, Vancouver, and Montréal, with $46 million in proceeds. Additional non-core properties under contract for $55 million in Vancouver, Montréal, and Toronto. Toronto and Calgary non-core office properties targeted for sale, with potential to double proceeds. Balance-sheet management focused on debt reduction, with $1.3 billion raised from bond market. New unsecured revolving operating facility secured from Canadian financial institutions. Net debt as multiple of adjusted EBITDA at 12.3x. Outlook for 2025 revised with slower lease pace and higher interest costs, expecting no major change in occupancy, 1% decrease in same asset NOI, and 10% contraction in FFO and AFFO per unit. Financial measures for Q3 and 9 months ended Sept 30, 2025, show slight changes in rental revenue, operating income, interest expenses, general and administrative expenses, and net loss. Non-GAAP measures include adjusted EBITDA, same asset NOI, FFO, and AFFO. Allied continues to focus on providing sustainable and creative workspace for knowledge-based organizations in major Canadian cities. Contact Cecilia C. Williams, President & CEO, for further information.
Read more at GlobeNewswire: Allied Announces Third-Quarter Results
