Allied Properties Real Estate Investment Trust $32.83 - Toronto symbol AP.UN

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $32.83 (Toronto symbol AP.UN; Units outstanding: 78.3 million; Market cap: $2.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.6%; www.alliedreit.com) owns 147 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 10.5 million square feet of leasable area. Class I refers to 19th- and early-20th-century industrial buildings that have been converted to retail space. They usually feature exposed beams, interior brick and hardwood floors. Allied spent $400 million acquiring properties in 2012, $182.4 million in 2013 and $234.9 million in 2014. In the first three quarters of 2015, it added four more for $164.4 million. The new buildings helped raise the trust’s revenue by 5.6% in the quarter ended September 30, 2015, to $90.7 million from $85.8 million a year earlier. Cash flow rose 12.3%, to $42.9 million from $39.2 million. Cash flow per unit gained 1.9%, to $0.55 from $0.54, on more units outstanding. The units trade at 12.6 times Allied’s forecast 2016 cash flow of $2.61 a unit. They yield 4.6%. Allied Properties REIT is a buy.