TSX:AP.UN - Post Discussion
Post by
incomedreamer11 on Oct 24, 2023 11:24am
National Bank comments
Allied Properties REIT (AP.UN-T) to $19 from $24 with an “outperform” rating. The average is $25.73.
Mr. Kornack: “Our highest total return to target in the office sector is Allied, given the REIT’s relative asset quality (including an exceptional urban footprint) and capital structure vs. an increasingly tempting valuation. Given an ongoing flight to quality where tenants are prioritizing quality, built-out space with access to amenities, we believe Allied is best positioned despite broader office turbulence.
Additionally, their above-noted ultra-core urban portfolio provides for a value floor as it would appeal to investors with a long-term view on the Canadian market and particularly its top cities.
Allied trades at a depressed valuation of 7 times FFO, a 30-plus-per-cent discount to NAV and a 9-per-cent cap rate, which we think provides enough of a cushion to own the name at current levels.”
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