Allied Properties REIT (AP-UN-T) reports it has 10 “non-core” Canadian properties either under contract or in negotiations for sale, and has an additional nine properties for sale in Toronto.

In a release issued Tuesday morning, the Toronto-based REIT reports it expects the properties to provide almost a half-billion dollars in proceeds if and when all are sold. Executive chair Michael Emory said the proceeds will be utilized, at least in part, to help it pay for acquisitions of newer, higher-end properties.

“We initiated the sale process last year to fund the acquisition of larger-than-expected interests in 400 West Georgia, 19 Duncan and Calgary House,” Michael Emory, founder and executive chair of Allied, said in the announcement. “We’ve continued this year with the immediate objective of improving access to the debt capital markets and the longer-term objective of serving knowledge-based organizations in Canada’s major cities ever-better and more profitably.”

The 10 non-core properties which are under contract or in negotiations include six Montreal assets, two in Toronto, and one each in Vancouver and Calgary. Allied expects to receive approximately $231 million for these assets. On the closing of these planned transactions, the REIT will have divested all its current non-core assets in Montreal, Vancouver and Calgary.

Allied is anticipating proceeds of approximately $257 million for the nine Toronto assets it has for sale. 

The trust is also “making progress in its efforts to monetize its loan receivable secured by 150 West Georgia.” That property is a downtown Vancouver development site by Westbank, which includes a new power generation facility and an office and commercial building. The loan is for up to $185 million plus interest, at seven per cent annually.

The REIT does not plan to sell any of its half dozen assets in the city of Kitchener, just west of Toronto.

Allied's portfolio breakdown

So far in 2025, Allied has sold properties in Edmonton and Vancouver, after selling $252 million of assets during 2024 (four in Montreal, one each in Ottawa, Calgary and Toronto).

Allied has broken its portfolio into three divisions known as Heritage, Modern and Flex. Together, they comprise 174 buildings, with almost 13.5 million square feet of office GLA and 164,000 square feet of retail GLA. Not including the assets held for sale, the portfolio is broken down into:

The Flex portfolio is designed to serve “rapidly growing enterprises well and represents significant longer-term upgrade and intensification potential, particularly in the Toronto portfolio.”

Allied also sees significant mixed-use intensification potential in its Montreal portfolio (estimated at 1.7 million square feet) and in Toronto (estimated at 5.8 million square feet).

A more upbeat tone

While Allied has recently been hit with significant markdowns in the values of its properties due to an extended slowdown in some sectors of the office leasing market, and the resulting impact on its financial reports, its CEO remained upbeat in her recent comments about the REIT’s Q2 financials.

“Our urban portfolio is not only unique, but strategically positioned for the future,” Cecilia Williams said at that time, noting a marked increase in leasing activity and tours. “I say this as Canadian cities are increasingly concentrating into centres of creativity, innovation and opportunity, and urban workspace plays a critical role in that, making Allied well-positioned to meet the growing demand.” 

In the Tuesday release, Allied continued with the optimistic tone, citing several reasons for what it feels is a strengthening of its position due to:

1. recent development completions; 
2. the acquisition of larger interests in developments undertaken jointly with Westbank; and 
3. the non-core property sale process. 

“Through all the distraction and disruption, we’ve stayed close to our real estate and our customers,” Emory said in the update. “As a Canadian public real estate entity with a clear investment and operating focus, we’re now emerging stronger in a country that itself is emerging stronger and more unified.”