Allied Announces Third-Quarter Results

About this update from Allied Properties Real Estate Investment Trust

[{"type":"text","content":"Allied Announces Third-Quarter Results\n\n\n\n TORONTO, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Allied Properties Real Estate Investment Trust (\"Allied\") (TSX: \"AP.UN\") today announced results for the three months ended September 30, 2025. “We continued the strengthening of our debt profile and moved steadily toward completion of our developments and non-core property sales in the third quarter,” said Cecilia Williams, President & CEO. “Although urban office fundamentals are improving in Canada's major cities, our occupied and leased areas didn't increase at the pace we expected in the quarter. Along with elevated interest expense, the slower pace of lease finalization put downward pressure on our results.”\n \n\n\n Operations\n \n\n\n Allied’s portfolio is comprised of three urban workspace formats -- Allied Heritage, Allied Modern and Allied Flex. By the end of the third quarter, Allied had leased more vacant space in Montréal and Vancouver and in the Allied Modern segment of its portfolio. Velocity is increasing discernably in Toronto and the Allied Heritage segment, but the pace has been slower than expected over the course of the year, with the result that Allied will not achieve targeted occupancy of 90% by year-end.\n \n\n Allied conducted 241 lease tours in its rental portfolio in the third quarter. While below the number of tours in the prior quarter, the average size of the requirement per tour more than doubled compared to the prior quarter.\n \n\n Allied's occupied and leased area at the end of the quarter was 84% and 87.4%, respectively. Allied renewed 62% of the leases maturing in the quarter, bringing renewals for the nine-month period ended September 30 to 69%, just below its normal range of 70% to 75%. Notably, Google renewed its lease of 194,842 square feet at The Breithaupt Block (97,421 square feet at Allied's share), a large Allied Heritage complex in Kitchener.\n \n\n Allied leased a total of 881,628 square feet of GLA in the third quarter, 795,969 square feet in its rental portfolio and 85,659 square feet in its development portfolio. Of the 795,969 square feet Allied leased in its rental portfolio, 214,767 square feet were vacant, 250,374 square feet were maturing in the quarter and 330,828 square feet were maturing after the quarter.\n \n\n 187,153 square fe...

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