K
ey Highlights:
Net Operating Income Soars: Allied Properties Real Estate Investment Trust (APYRF) achieved a 6.5% net operating income increase in Q4 2024, outpacing the previous year's performance.
Rent Growth Accelerates: Average in-place net rent surged by 5.4%, reaching $25.41 per occupied square foot, while same asset NOI rose 2.2% for the total portfolio in 2024.
Development Delivers: Development completions contributed approximately $26 million to 2024 EBITDA and $14 million net of decapitalization of interest to FFO.
Debt Management: APYRF successfully fixed $818 million in variable rate debt, bolstering its liquidity with $863 million available under an unsecured facility. Unencumbered investment properties account for 83% of the portfolio.
2025 Outlook: The company expects same asset NOI increases of approximately 2% and 4.8% for the rental and total portfolios, respectively. Development completions are projected to contribute $13 million to EBITDA and $6.5 million to FFO in 2025.
Leasing Momentum: Leasing activity jumped by 14% in square feet leased in 2024 compared to 2023, with new leasing activity increasing by 41%. The retention rate improved to 69%, up from 61% in the previous year.
User Engagement Soars: APYRF's net promoter score skyrocketed by 30% in 2024, outperforming the index average by a significant margin of 150%.
Challenges Ahead: The company faces challenges in Vancouver due to acquired vacancy and longer deal closure times. Net interest expense is expected to increase in 2025, driven by lower capitalized interest and higher interest expenses.
Leverage Concerns: APYRF aims to reduce its net debt to EBITDA below 10 times by the end of 2025, addressing current leverage concerns.
