Allied Announces Third-Quarter Results

TORONTO, Oct. 26, 2022 (GLOBE NEWSWIRE) — Allied Properties Real Estate Investment Trust (“Allied”) (TSX: “AP.UN”) in the present day introduced outcomes for its third quarter ended September 30, 2022. “Allied’s third-quarter operations were encouraging, especially in the context of growing macro-economic uncertainty,” mentioned Michael Emory, President & CEO. “Average in-place net rent per occupied square foot in our rental portfolio rose to $25.56, up 3.8% from the comparable quarter last year and 1.1% from the second quarter. For us, this is a key operating metric with respect to the productive capacity of our rental portfolio and bodes well for our future.”

Financial Results

Allied’s third-quarter monetary outcomes have been in-line with its inner forecast and with exterior expectations. FFO per unit was 60.6 cents, down 2.9% from the comparable quarter final yr and equivalent to the second quarter. AFFO per unit was 52.6 cents, up 1.3% from the comparable quarter final yr and down 3.1% from the second quarter. NAV per unit at quarter-end was $51.10, down barely from the top of the second quarter resulting from a decline in worth in Allied’s Calgary portfolio. The monetary outcomes are summarized beneath:

^{(1) This measure is introduced on an IFRS foundation.
(2) This is a non-IFRS measure. Refer to the Non-IFRS Measures part beneath and on web page 21 of the Management’s Discussion and Analysis of Results of Operations and Financial Condition (the “MD&A“) as at September 30, 2022.
(3) For the three and nine months ended September 30, 2022, Allied incurred $nil and $nil, respectively, (September 30, 2021 – $37,728 and $51,889, respectively) of financing prepayment prices in reference to the beneficial refinancing of unsecured debentures and first mortgages.
(4) Prior to This autumn 2021, the comparative figures for funding properties, whole belongings, and rental income have been reported on a proportionate share foundation. The comparative figures for the prior interval have been revised to an IFRS foundation.
(5) Prior to This autumn 2021, the comparative determine for internet revenue excluding honest worth changes, financing prepayment prices and impairment was calculated on a proportionate share foundation. The comparative determine for the prior interval has been revised to be calculated on an IFRS basis.
(6) Net asset worth per unit (“NAV per unit”) is calculated as follows: whole fairness as on the corresponding interval ended, (per the unaudited condensed consolidated steadiness sheets) divided by the precise variety of Units and sophistication B restricted partnership units of Allied Properties Exchangeable Limited Partnership (“Exchangeable LP Units”) excellent at interval finish.}

Leasing Results and Highlights

For the 9 months ended September 30, 2022, Allied leased 56.9% of the GLA coated by expiring leases, with a mean enhance in internet hire per sq. foot of seven.5%. Combined with new leasing exercise, this gave rise to the lease metrics set out within the desk beneath:

Given the dimensions of Allied’s rental portfolio, improve exercise is now fixed in all markets, notably Montréal, Toronto and Vancouver. The aim of the improve exercise is to serve customers higher and to spice up internet hire per occupied sq. foot over time. At the top of the third quarter, Allied’s rental portfolio was comprised of (i) 14,407,984 sq. ft of GLA in buildings which are largely stabilized and (ii) 559,741 sq. ft of GLA in buildings which are present process energetic improve. The occupied space of the previous was 90.2%, with leased space at 91.4%. The occupied space of the latter was 74.6%, with leased space at 74.6%.

Allocation of Capital

Allied is specializing in finishing the developments in its pipeline, which Management expects will add roughly $82 million to annual EBITDA over the following few years. This alone will enhance Allied’s comparatively sturdy debt-metrics in an natural method.

Outlook

Allied’s inner forecast for 2022 requires low-to-mid-single-digit proportion progress in every of same-asset NOI, FFO per unit and AFFO per unit. Allied doesn’t forecast NAV per unit progress in any given time interval.

Allied continues to have deep confidence in, and dedication to, its technique of consolidating and intensifying distinctive city workspace and network-dense UDCs in Canada’s main cities. Allied firmly believes that its technique is underpinned by a very powerful secular developments in Canadian and world actual property. Allied additionally firmly believes that it has the properties, the monetary energy, the individuals and the platform essential to execute its technique for the continuing good thing about its Unitholders and different constituents.

Non-IFRS Measures
Management makes use of monetary measures based mostly on International Financial Reporting Standards (“IFRS”) and non-IFRS measures to evaluate Allied’s efficiency. Non-IFRS measures would not have any standardized that means prescribed beneath IFRS, and due to this fact, shouldn’t be construed as options to internet revenue or money movement from working actions calculated in accordance with IFRS. Refer to the Non-IFRS Measures part on web page 17 of the MD&A as at September 30, 2022, obtainable on www.sedar.com, for a proof of the composition of the non-IFRS measures used on this press launch and their usefulness for readers in assessing Allied’s efficiency. Such clarification is included by reference herein.

Reconciliations of Non-IFRS Measures

The following tables reconcile the non-IFRS measures to essentially the most comparable IFRS measures for the three and 9 months ended September 30, 2022 and the comparable intervals in 2021. These phrases would not have any standardized that means prescribed beneath IFRS and will not be corresponding to equally titled measures introduced by different publicly traded entities.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)
The following desk reconciles Allied’s internet revenue and complete revenue to Adjusted EBITDA, a non-IFRS measure, for the three and 9 months ended September 30, 2022 and September 30, 2021.

^{(1) Includes Allied’s proportionate share of the fairness accounted funding for curiosity expense of $nil and $nil for the three and 9 months ended September 30, 2022, respectively (September 30, 2021 – $180 and $190, respectively).
(2) Includes Allied’s proportionate share of the fairness accounted funding for honest worth loss on funding properties of $8,056 and $6,794 for the three and 9 months ended September 30, 2022, respectively (September 30, 2021 – honest worth loss on funding properties of $888 and $730, respectively).}

Net revenue excluding honest worth changes, financing prepayment prices and impairment

The following desk reconciles Allied’s internet revenue and complete revenue to internet revenue excluding honest worth changes, financing prepayment prices and impairment, a non-IFRS measure, for the three and 9 months ended September 30, 2022 and September 30, 2021.

^{(1) The comparative determine for the prior interval has been revised to be calculated on an IFRS foundation.}

Same Asset NOI

Same asset NOI, a non-IFRS measure, is measured as the online working revenue for the properties that Allied owned and operated for the whole period of each the present and comparative interval. Same asset NOI of the belongings held on the market for the three and 9 months ended September 30, 2022 consists of 1 funding property that Allied labeled as held on the market. The following tables reconcile Allied’s identical asset NOI to working revenue for the three and 9 months ended September 30, 2022 and September 30, 2021.

Funds from operations (“FFO”) and Adjusted funds from operations (“AFFO”)
The following tables reconcile Allied’s internet revenue to FFO, FFO excluding condominium associated gadgets, financing prepayment prices and the mark-to-market adjustment on unit-based compensation, AFFO, and AFFO excluding condominium associated gadgets, financing prepayment prices and the mark-to-market adjustment on unit-based compensation, that are non-IFRS measures, for the three and 9 months ended September 30, 2022 and September 30, 2021.

^{(1) Property, plant and gear pertains to owner-occupied property.
(2) This quantity represents curiosity expense on Allied’s three way partnership funding in TELUS Sky and isn’t capitalized beneath IFRS, however is allowed as an adjustment beneath REALPAC’s definition of FFO.
(3) The weighted common variety of models contains Units and Exchangeable LP Units. The Exchangeable LP Units are labeled as fairness within the unaudited condensed consolidated steadiness sheets as non-controlling pursuits.}

Cautionary Statements

This press launch might include forward-looking statements with respect to Allied, its operations, technique, monetary efficiency and situation and the anticipated affect of the worldwide pandemic and consequent financial disruption. These statements usually could be recognized by use of forward-looking phrases reminiscent of “forecast”, “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the detrimental thereof or comparable variations. Allied’s precise outcomes and efficiency mentioned herein may differ materially from these expressed or implied by such statements. Such statements are certified of their entirety by the inherent dangers and uncertainties surrounding future expectations, together with the impact of the worldwide pandemic and consequent financial disruption. Important components that might trigger precise outcomes to vary materially from expectations embrace, amongst different issues, common financial and market components, competitors, adjustments in authorities laws and the components described beneath “Risk Factors” in Allied’s Annual Information Form which is accessible at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to Allied and individuals performing on its behalf. Unless in any other case acknowledged, all forward-looking statements communicate solely as of the date of this press launch, and Allied has no obligation to replace such statements.

About Allied

Allied is a number one operator of distinctive city workspace in Canada’s main cities and network-dense UDC house in Toronto. Allied’s mission is to supply knowledge-based organizations with workspace and UDC house that’s sustainable and conducive to human wellness, creativity, connectivity and variety. Allied’s imaginative and prescient is to make a steady contribution to cities and tradition that elevates and conjures up the humanity in all individuals.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Michael Emory
President & Chief Executive Officer
(416) 977-0643
[email protected]

Tom Burns
Executive Vice President & Chief Operating Officer
(416) 977-9002
[email protected]

Cecilia Williams
Executive Vice President & Chief Financial Officer
(416) 977-9002
[email protected]