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

Business overview and strategy

• Operates 192 urban rental properties totaling 14.9M SF GLA, with $11.0B in total assets and $5.9B enterprise value as of June 30, 2024.

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

• Diverse tenant base across Heritage, Modern, and Flex asset categories, with a fully internalized management team.

• Strategic objectives include capital recycling, balance sheet strengthening, and expanding rental-residential portfolio.

• Maintains a self-imposed 15% cap on development costs as a percentage of total assets.

Financial and operating performance (Q2 2024)

• FFO per unit was $0.526 and AFFO per unit was $0.477, both down year-over-year due to asset transactions.

• Leased area at 87.1% and occupied area at 85.8%, with same asset NOI-rental declining 2.3%.

• Average in-place net rent per occupied SF rose to $25.08, with a 9.7% rent growth on renewals.

• Retention rate on maturities increased to 58.6%, and sub-lease space as a percentage of GLA decreased to 5.0%.

• Leasing momentum is positive, with tour counts up 5% and several major renewals and expansions executed.

Portfolio and development

• Portfolio valued at $8.8B (excluding $1.0B under development and $0.3B held for sale), with 14.9M SF GLA.

• Vacancy is concentrated, with 52% of total vacancy in 12 properties.

• 1.9M SF under development; 82% of ground-up office developments are pre-leased.

• Current developments expected to generate $102M in annual NOI upon completion.

• Potential for 9.9M SF of incremental density, with additional intensification opportunities identified.