Allied helps RioCan move beyond retail

Article Excerpt

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $41 (Toronto symbol AP.UN; Cyclical- Growth Payer Portfolio, Manufacturing & Industry sector; Units outstanding: 92.7 million; Market cap: $3.8 billion; Dividend yield: 3.7%; Dividend Sustainability Rating: Above Average; www.alliedreit.com) owns 157 office buildings, mainly in major Canadian cities. Together, they comprise over 11.8 million square feet of leasable space. Most of the properties are classified as Class I buildings. That designation refers to 19th- and early-20th-century industrial buildings now used as office space. They often have exposed beams and brick walls, and hardwood floors. With the January 2017 payment, Allied raised its monthly distribution by 2.0%. The trust’s annualized distribution of $1.53 per unit yields 3.7%. Allied continues to grow steadily by acquisition. In the first half of 2017, it spent $76.5 million on three properties. In October 2017, the trust shared the results of its condo marketing program for Toronto’s King Portland Centre. Allied owns 50% of the centre. RioCan owns the remaining interests (see below). The partners…