Allied Properties REIT is looking to sell more assets after divesting three properties in the third quarter.

The REIT said in its third-quarter report that it sold the assets, located in Edmonton, Vancouver and Montreal, for a total of $46 million. The properties include a small office building in Edmonton, a retail site in Vancouver and a mixed-use building in Montreal.

“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 and CEO of Allied.

Allied said it has also agreed to sell four other properties for $55 million and is finalizing the divestment of three Montreal properties for $85 million, with the deals slated to close in December.

Meanwhile, the REIT recently changed its approach to non-core office sales in Toronto and Calgary. The REIT is now holding four non-core office Toronto properties for sale and one in Calgary, and expects to receive $85 million when the proposed transactions close.

“Having made better-than-expected progress in finalizing the construction and lease-up of Toronto House and the lease-up of Calgary House, management has added these properties to its non-core sales initiative,” said the REIT. “Toronto House has recently received unsolicited expressions of interest from qualified buyers and, with Calgary House, has the potential to more than double the aggregate proceeds from Allied’s non-core sales initiative.”

Allied is targeting the closings of the Toronto House and Calgary House for the second quarter of 2026.

During the third quarter, Allied suffered a large dent in its bottom line, posting a $113.4-million loss as the Canadian office market’s recovery, particularly, in Toronto, in the post-pandemic era continues to proceed slowly.

“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,” said Williams. “Along with elevated interest expense, the slower pace of lease finalization put downward pressure on our results.”

Pictured (foreground): Toronto House office building.

Photo: Hariri Pontarini Architects