Allied Properties REIT: Rating Report

DBRS Limited (DBRS) confirmed the rating of Allied Properties Real Estate Investment Trust’s (Allied or the Trust) Senior Unsecured Debentures at BBB (low) with a Stable trend. The rating takes into consideration Allied’s leading position in the Class I office property segment in Canada (estimated target market share of 24%), diverse tenant base, quality portfolio and robust development pipeline with currently estimated 1.9 million sq. ft. slated for completion through 2021. The rating is limited by Allied’s overall size relative to its investment-grade-rated real estate peers (LTM EBITDA of $234.7 million), portfolio concentration (office accounts for 85.8% of gross leasable area (GLA), with 76% of GLA located in Toronto and Montréal) and weakened debt metrics (notably, total debt-to-EBITDA of 8.5 times (x)).