Allied Properties Real Estate Investment Trust (AP) Investor Presentation summary

Company overview and strategy

• Operates 188 urban workspace properties totaling 14.5M SF GLA, with $10.9B in total assets and $6.7B enterprise value as of September 30, 2024.

• Focuses on mixed-use intensification in major Canadian cities, leveraging underutilized land for growth.

• Strategic objectives include capital recycling, completing developments, expanding rental-residential, and ongoing portfolio upgrades.

• Portfolio includes Heritage, Modern, and Flex assets, with a diverse tenant base and internalized management.

Financial and operational performance (Q3 2024)

• FFO per unit was $0.535 and AFFO per unit was $0.466, both down year-over-year due to asset transactions; stabilization expected to improve EBITDA.

• Leased area at 87.2% and occupied area at 85.6%, with average in-place net rent per occupied SF at $25.30.

• Same asset NOI-rental declined by 3.1%, while total same asset NOI grew 1.1%.

• Retention rate increased to 60.4%, but rent on renewal declined by 6.3%.

Portfolio and leasing highlights

• Vacancy is concentrated, with over half in 12 properties; top 12 account for 7.1% of total GLA and 55% of total vacancy.

• Tenant base includes major tech, media, and financial firms; top 10 tenants account for 18.6% of rental revenue.

• Weighted average in-place net rent has grown at a 3.7% CAGR over 10 years.