Allied Properties Real Estate Investment Trust T.AP.UN

Letter to the CEO: Ms Cecillia Williams

[NikoDoughski]

Dear Cecillia Williams,

As the famous song reminds me:

"Cilia, you're breaking my heart

You're shaking my confidence daily

Oh, Cecilia, I'm down on my knees"

Today as long-term Allied Properties investor, I would like your reassurance that the distribution is safe. Now trading at an 11% yield as investor confidence has been rattled in the office space and commercial real estate market, weary eyed investors eagerly wait a catalyst to restore trust.

Miss Williams, I am proposing to you that it's time to begin selling assets. SELL WHATEVER IT TAKES. The IFRS NAV is carried at a 4.83% cap rate while the REIT is currently trading at an implied cap rate of around 9%. Basically you could sell a parking lot and it would be accretive here.

Miss Williams, it is time to take the bull by the horns and skin the bears. I am begging you, as my daily life expenditures depends on this yield, to do WHATEVER IT TAKES to preserve it. Without the AP yield I will be unable to pay my real life mortgage. Our family entrusted you and Mr. Emory to manage the headwinds so please do not let us down.

Miss Williams, I re-located a seven figure position into Allied after NWH cut the dividend and I was down over 50% on that, believing your REIT was better managed with a long-term record of constant distribution growth, only to be badly battered and now down another 50% since the time I added it minus the distributions which have not offset my losses.

Miss Williams, with sincerity I ask that you ask quick.

Thank you so much for your time.

Niko Doughski
CEO, Doughski Enterprises
Ph 613-XXX-XXXX
 

[spacegimp]

Micheal Emory gave a good interview recently basically stating they will continue selling underperforming assets(sub 3% yield ) to retire more debt to bring debt/asset ratio to under 30% . They already have one of the lowest debt/ asset ratio . I would like to see some share buybacks here and insider purchases. https://www.bnnbloomberg.ca/real-estate/video/we-don-t-need-to-and-we-won-t-cut-our

[Frankie10]

The Emory interview was great. He seems very interested in dispositions based on the unsolicited offers they've been receiving. For Emory to say below 30%  debt to GBV - that would mean Allied is contemplating a decent amount of disposition activity. "Special" distribution incoming? With respect, I don't think buybacks make sense following a rating downgrade to junk

[NikoDoughski]

Agree. Cillia needs to start buying units. I am losing my dough watching this dog tank everyday. Market not believing the Emory interview. Cillia can change that with serious market buys at over 60% discount to NAV. Cheers, Niko Doughski CEO, Doughski Enterprises

[rabnud]

I agree I sold 100K of it last week and took my loses and will move on I really thought this reit was for real but its just another nighmare run on market thoughts and rumors and just bad informations and speculations I always wonder when I see a companty that has 52 high paid Upper management always a bad signal I should have known better

[BlueJay2020]

Rabbud - you should have known better. Yiu should have stuck with GiCs.  Fancy buying so much of the stock with such little conviction.

[rabnud]

This post has been removed in accordance with Community Policy

[BlueJay2020]

:) An illiquid REIT is probably the best vehicle for you - harder to dump and run if you were to lose your nerve again. Remind me why you are still here again?