Allied Reveals Q4 Earnings, Leadership Changes, and New Equity Financing
In a recent announcement, Allied Properties Real Estate Investment Trust detailed its financial performance for the fourth quarter of 2025, highlighted leadership changes, and outlined plans for new equity financing.
Q4 Earnings Overview
Allied’s financial results for the fourth quarter indicate an occupied area of 85.3% and a leased area of 87.4%. In comparison, the occupied and leased areas were 85.9% and 87.2%, respectively, at the end of 2024. The company leased a total of approximately 2.7 million square feet in 2025, consisting of both its rental and development portfolios.
Condo Closings and Proceeds
- Expected condo closings between August 2026 and March 2027.
- Proceeds anticipated to reach $245 million (net of HST and deposits).
- Funds from these sales will fully repay the construction loan.
Leadership Changes and Equity Financing
Allied has made strategic leadership adjustments as it aims to strengthen its operational direction. In February 2026, Allied is set to conduct a marketed public offering and a concurrent private placement targeted to raise approximately $500 million. This financing will indirectly support the repayment of its $600 million Series H debentures.
Property Disposition Program
As part of a comprehensive property disposition initiative, Allied is focusing on generating approximately $500 million in gross proceeds. Specific highlights include:
- $29 million closed in Q1 2026.
- $17 million under firm agreement expected to finalize by the end of Q1 2026.
- Roughly $454 million at various stages of marketing.
Industry Insights and Market Conditions
Allied’s management remains vigilant in assessing additional properties for sale. This approach aims to achieve deleveraging goals while responding to current market dynamics, including anticipated credit losses recognized for loans receivable.
Current Development and Future Plans
The KING Toronto project has achieved pre-sale success, with about 92% of its 440 condominium units sold by unit count. The full completion of this development is expected in the first half of 2027. No new development projects are planned in the near future.
Allied Properties continues to adapt to evolving market conditions, focusing on sustainable and profitable growth activities while enhancing its operational strategies to meet investor expectations.
