Allied Properties REIT Slashes Distribution by 90% to Prioritize Debt Repayment
Allied Properties Real Estate Investment Trust has cut its monthly cash distribution by 90 per cent, marking its second payout reduction in the past year. The move aims to strengthen the balance sheet and boost annual cash flow by $126 million, but sent units plunging 20 per cent on the Toronto Stock Exchange.
Allied Properties Real Estate Investment Trust (AP-UN-T) announced late Wednesday that it is slashing its monthly cash distribution by 90 per cent, a decision aimed at prioritizing debt repayment and strengthening its balance sheet.
The new monthly distribution is set at 0.006 cents per unit, which equates to 7 cents annually. According to the company, this reduction will boost Allied’s cash flow by $126 million a year.
This marks the second payout cut for the real estate investment trust in the past 12 months. Earlier in 2025, Allied reduced its distributions by 60 per cent.
Investors reacted sharply when trading began on Thursday. Allied units dropped 20 per cent to $4.15 on the Toronto Stock Exchange. The decline represents a steep fall from spring 2025, when the units changed hands at $20.
Market observers noted the severity of the latest reduction. Mario Saric, an analyst at Bank of Nova Scotia, stated that the 90 per cent cut was far greater than their forecast of a 50-per-cent reduction.
Prior to this announcement, Allied took steps to shore up its finances through equity markets. In February 2025, the trust raised $560 million by selling units at $10 each. As part of that offering, the Alberta Investment Management Corp. (AIMCo) purchased $160 million worth of Allied units.