Allied Properties REIT sees unit price fall 17% after management floats distribution cut

Allied Properties Real Estate Investment Trust AP-UN-T , one of Canada’s largest publicly traded office building owners, disappointed investors with weak leasing figures and the possibility of a distribution cut, sending its unit price tumbling 17 per cent.

Allied, best known for its low-rise office buildings in downtown cores, has been asked about its monthly distribution for months because the REIT continues to struggle with a heavy debt burden, and office leasing activity has remained muted relative to levels prior to the pandemic. Each year, the monthly payouts total around $250-million.

Despite the woes, Allied has long stressed that its payout, which hovers around 100 per cent of available cash, was sustainable. After reporting second-quarter earnings in August, management said t