Allied Properties Real Estate Investment Trust AP-UN-T slashed its cash distribution by 90 per cent, its second payout cut in the past 12 months, as the office building owner puts a priority on paying down debt.
Late Wednesday, Toronto-based Allied reduced the monthly distributions it makes to unitholders, who are typically individual investors looked for income, to 0.006 cents per unit, or 7 cents each year. The REIT’s board of trustees said the decision reflected “Allied’s priority of strengthening its balance sheet and improving financial flexibility.”
The distribution cut will boost Allied’s cash flow by $126-million a year.
When trading began on Thursday, the price of Allied units dropped by 20 per cent to $4.15 on the Toronto Stock Exchange.
“The 90 per cent distribution reduction is far greater than our 50-per-cent forecast,” said analyst Mario Saric at Bank of Nova Scotia in a report on Wednesday.
In the spring of 2025, Allied units changed hands at $20. The unit price has declined sharply as the REIT’s new executive team cut distributions by 60 per cent in 2025 and raised $560-million by selling units at $10 each in February.
As part of February’s equity offering, Allied sold $160-million of units to the Alberta Investment Management Corp. (AIMCo).
More Stories
Joly demands ‘concrete and credible plan’ from Cliffs as condition for meeting
Caterpillar tops quarterly profit view, but shares sink on unchanged annual sales forecast
U.S. inflation heats up in September, supporting expectations of Fed rate hike