Is it a good company at a reasonable price? A problem is that when the stock price is cheap, a stock purchase is not always a good idea. This is true if the stock is cheap for a good reason. This stock seems to have fallen because of a dividend cut. Investors generally behave in this way. A dividend cut is never good news. Some analysts think that the company is doing the right thing to shore up their balance sheet. Most of the analysts have a Hold rating on this stock and I can see why. It is sort of waiting to see what happens. The stock is testing as cheap.
I do not own this stock of Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF). Since several stocks that I followed in 2015 were deleted from the stock exchange, I was looking for other stocks to follow. I am sure that I got this from a Canadian Dividend site called Think Dividends, but I cannot find it at present.
When I was updating my spreadsheet, I noticed in 2026 they decreased their dividend by 60%. There was little growth in Revenue (up by 0.06%) with AFFO down 12% and FFO down 13% for 2025.
If you had invested in this company in December 2015, for $1,010.24 you would have bought 32 shares at $31.57 per share. In December 2025, after 10 years you would have received $544.93 in dividends. The stock would be worth $427.84. Your total return would have been $972.77. This would be a total loss of 0.49% per year with 8.26% from capital loss and 7.74% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $31.57 | $1,010.24 | 32 | 10 | $544.93 | $427.84 | $972.77 |
The current dividend yield is high with a current dividend cut. The dividend yield is currently high (7% and above) at 7.49%. The 5 year median dividend yield is high at 7.85%. the 10 year median dividend yield is moderate (2% to4% ranges) at 4.29%. The historical median dividend yield is good (5% to 6% ranges) at 5.67%. The dividend growth for the 5 years to 2025 is low at 1.8%. However, in 2026, the dividends were cut 60%.
The Dividend Payout Ratios (DPR) were too high and a dividend cut was needed. The DPR for 2025 for Earnings per Share (EPS) is non-calculable for 2025 and currently due to earnings losses. The DPR for 2025 for Adjusted Funds from Operations (AFFO) is too high at 105% with 5 year coverage at better at 91%. The DPR for 2025 for Funds from Operations (FFO) is high at 95% with 5 year coverage better at 81%. The DPR for 2025 for Cash Flow per Share (CFPS) is too high at 62% with 5 year coverage at 65%. I have no DPR for 2025 for Free Cash Flow because no one seems to calculate this value this year.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | -18.95% | -104.47% |
| AFFO | 104.59% | 90.60% |
| FFO | 95.19% | 81.26% |
| CFPS | 62.37% | 65.15% |
Debt Ratios are mostly fine, but the Liquidity Ratio is a problem. The Long Term Debt/Market Cap Ratio for 2025 is high at 2.31 and currently at 3.22. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2025 which is good at 0.46 and currently at 0.46 because this is a more important ratio for a REIT. The Liquidity Ratio for 2025 is far too low at 0.53 and 0.53 currently. If you added in Cash Flow after dividends, the ratios are still too low at 0.55 and currently at 0.66. If you add back in the current portion of the dividend, the ratios are acceptable at 1.31 and currently at 1.57. The Debt Ratio for 2025 is good at 1.77 and 1.77 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.31 and 1.31 and currently at 2.31 and 1.31.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R A | 0.46 | 0.46 |
| Lg Term R | 2.31 | 3.22 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 0.53 | 0.53 |
| Liq. + CF | 0.55 | 0.66 |
| Liq. + CF +Dd | 1.31 | 1.57 |
| Debt Ratio | 1.77 | 1.77 |
| Leverage | 2.31 | 2.31 |
| D/E Ratio | 1.31 | 1.31 |
The Total Return per year is shown below for years of 5 to 22 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 1.81% | -11.33% | -18.78% | 7.45% |
| 2015 | 10 | 2.12% | -0.49% | -8.23% | 7.74% |
| 2010 | 15 | 2.09% | 5.54% | -3.13% | 8.67% |
| 2005 | 20 | 2.18% | 7.99% | -1.18% | 9.17% |
| 2003 | 22 | 3.61% | 10.53% | 0.18% | 10.35% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and so unusable. The corresponding 10 year ratios are 7.53, 8.68 and 9.83. The corresponding historical ratios are 8.76, 11.03 and 12.60. The current ratio is 6.24 based on a stock price of $9.61 and EPS estimate for 2026 of $1.54. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/ Funds from Operations Ratios are 7.06, 9.61 and 12.87. The corresponding 10 year ratios are 13.75, 16.52 and 19.50. The corresponding historical ratios are 12.82, 15.58 and 18.13. The current ratio is 5.03 based on a stock price of $9.61 and FFO estimate for 2026 of $1.91. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 7.82, 10.51 and 14.07. The corresponding 10 year ratios are 16.35, 19.58 and 22.43. The corresponding historical ratios are 16.04, 19.20 and 16.04. The current ratio is 6.12 based on a stock price of $9.61 and AFFO estimate for 2026 of $1.57. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $32.98. The 10-year low, median, and high median Price/Graham Price Ratios are 0.50, 0.62 and 0.71. The current ratio is 0.29 based on a stock price of $9.61. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 0.88. the current ratio is 0.31 based on a Book Value of $4,016M, Book Value per Share of $31.39 and a stock price of $9.61. The current ratio is 65% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 16.10. The current ratio is 4.82 based on Cash Flow for the last 12 months of $255M, Cash Flow per Share of $2.00 and a stock price of $9.61. The current ratio is 70% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 5.67%. The current dividend yield is 7.49% based on Dividends of $0.72 and a stock price of $9.61. The current dividend yield is 32% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median dividend yield of 4.29%. The current dividend yield is 7.49% based on Dividends of $0.72 and a stock price of $9.61. The current dividend yield is 75% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 8.72. The current P/S Ratio is 2.12 based on Revenue estimate for 2026 of $580.2M, Revenue per Share of $4.53 and a stock price of $9.61. The current ratio is 76% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is that the stock is relatively cheap. The dividend yield tests say that the stock price is cheap. It is confirmed by the P/S Ratio test. All the tests are pointing that way.
When I look at analysts’ recommendations, I find Hold (7) and Sell (1). The consensus would be a Hold. The 12 months stock price is $11.16 with a high of $15.75 and a low of $8.50. The consensus stock price of $11.16 implies a total return of 23.62% with 16.13% from capital gains and 7.49% from dividends based on a current stock price of $9.61.
Analysts on Stock Chase mainly talk about the company cutting the dividend to shore up its balance sheet. Jitendra Parashar on Motley Fool says that the company is positioning itself for the future. Christopher Liew on Motley Fool says this stock is a dividend trap. The company put out a press release via Global Newswire about their fourth quarter results for 2025.
Simply Wall Street via Yahoo Finance reviews this company and says that there is a wide variation in what people think the true value is from the stock being 40% above its fair value of $9.16 to a fair value between $13.34 and $48.53.
Allied Properties Real Estate Investment Trust is a real estate investment trust engaged in the development, management, and ownership of urban office environments across Canadian cities. The company also controls a number of telecommunications / IT and retail properties within its real estate portfolio. Its web site is here Allied Properties Real Estate Investment Trust.
The last stock I wrote about was about was FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more. The next stock I will write about will be Toromont Industries Ltd (TSX-TIH, OTC-TMTNF) ... learn more on Wednesday, February 18, 2026 around 5 pm. Tomorrow on my other blog I will write about Intact Financial and In the Money.... learn more on Thursday, February 19, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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