Allied Properties Units Drop Amid Q4 Loss, $500M Fundraising Plan
Units of Allied Properties Real Estate Investment Trust (REIT) experienced a significant decline in early trading, dropping over 20%. This downturn follows the announcement of a substantial loss and a fundraising initiative.
Q4 Financial Results
Allied Properties reported a staggering fourth-quarter loss of $1.01 billion. This loss includes a fair-value decline on investment properties and properties held for sale.
Key Financial Figures
- Total loss for Q4: $257.7 million
- Rental revenue: $148.8 million (down from $155.1 million in the previous year)
Fundraising Plans
To address its financial situation, Allied has initiated a fundraising plan totaling $500 million. This will include:
- A private placement of units aiming to raise $150 million
- A marketed public offering seeking $350 million
The proceeds from these offerings will primarily be used to manage and reduce debt.
Recent Changes in Distributions
In conjunction with these developments, Allied slashed its monthly distributions to unitholders. The payment was reduced from 15 cents per unit to just six cents per unit late last year.
This financial strategy comes as Allied faces challenges in a changing market landscape.
The latest developments were initially reported by The Canadian Press on February 11, 2026.
