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Allied Properties REIT has reported about a $500-million net loss due to a portfolio writedown.

Allied REIT Suffers $500M Writedown

Allied Properties REIT has reported about a $500-million net loss due to a portfolio writedown.

Toronto-based Allied ranks among Canada’s office landlords while holding a portfolio of mixed-use assets. Allied reported the net loss in its latest quarterly report, attributing the red ink mainly to lower rental-and-development-property valuations.

The declines come as Allied and other Canadian office investors are struggling to balance high vacancy with tenants’ changing employee work patterns following several interest-rate hikes..

Allied’s rental-property value declines totalled $425 million and occurred in Toronto, Montreal, Calgary and Vancouver. Development-property valuations fell by $70 million altogether, covering assets in Toronto and Montreal.

Despite taking the writedown, Allied reported a 6% year-over-year rise in operating income to $82 million. The REIT said its occupancy level is 86.4%, which is well below pre-pandemic standards.

During a conference call with analysts and reporters, Allied President and CEO Cecilia Williams said she is confident that occupancy levels will return to their former stable range of 94% to 95%.

But Williams declined to say when she expects stability to resume.

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Allied Properties REIT

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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