New properties boost cash flow

Article Excerpt

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $32 is a buy. The REIT (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 128.0 million; Market cap: $4.1 billion; Distribution yield: 5.5%; Dividend Sustainability Rating: Above Average; www.alliedreit.com) owns 200 office buildings and 13 properties under development, mainly in major Canadian cities. Starting with the January 2022 payment, Allied raised its monthly distribution by 2.9%. The new annual rate of $1.75 yields a high 5.5%. The REIT recently acquired six office properties in Toronto, Montreal, and Vancouver from Choice Properties REIT (Toronto symbol CHP.UN) for $774.6 million. That’s largely why its revenue in the quarter ended June 30, 2022, rose 11.4%, to $154.4 million from $138.7 million a year earlier. Cash flow per unit also increased 13.4%, to $1.211 from $1.068. Allied Properties REIT is a buy. buy…

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