Allied Properties Real Estate Investment Trust
TSX : AP.UN

Allied Properties Real Estate Investment Trust

November 08, 2007 17:34 ET

Allied Properties Real Estate Investment Trust Announces Continued Strengthening Across Key Performance Measures

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2007) - Allied Properties REIT (TSX:AP.UN) today announced results for the third quarter ended September 30, 2007. On a fully diluted, per-unit basis, Distributable Income ("DI"), Funds From Operations ("FFO") and Adjusted Funds From Operations ("AFFO") were up quarter-over-quarter by 19.8%, 3.2% and 30.2%, respectively. The REIT's DI, FFO and AFFO pay-out ratios for the quarter were 71.9%, 75.5% and 80.6%, respectively.

The financial results for the third quarter are summarized below and compared to the same quarter in 2006:



(In thousands except for
per unit and % amounts) Q3 2007 Q3 2006 Change % Change
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DI 10,934 6,080 4,854 79.8%
DI per unit (diluted) $0.435 $0.363 $0.072 19.8%
DI pay-out ratio 71.9% 83.9% (12.0%)
FFO 10,423 6,734 3,689 54.8%
FFO per unit (diluted) $0.415 $0.402 $0.013 3.2%
FFO pay-out ratio 75.5% 75.8% (0.3%)
AFFO 9,762 5,004 4,758 95.1%
AFFO per unit (diluted) $0.388 $0.298 $0.090 30.2%
AFFO pay-out ratio 80.6% 102.0% (21.4%)
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The financial results for the nine-month period ended September 30,
2007, are summarized below and compared to the same period in 2006:

(In thousands except for 9-Month 9-Month
per unit and % amounts) Period 2007 Period 2006 Change % Change
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DI 28,632 17,420 11,212 64.4%
DI per unit (diluted) $1.229 $1.066 $0.163 15.3%
DI pay-out ratio 76.5% 84.7% (8.2%)
FFO 28,799 18,786 10,013 53.3%
FFO per unit (diluted) $1.236 $1.150 $0.086 7.5%
FFO pay-out ratio 76.0% 78.6% (2.6%)
AFFO 25,940 15,096 10,844 71.8%
AFFO per unit (diluted) $1.114 $0.924 $0.190 20.6
AFFO pay-out ratio 84.4% 97.8% (13.4%)
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In the nine-month period ended September 30, 2007, the REIT increased its leased area to 97.9%, increased same-asset net operating income ("NOI) by 6% and completed $290 million in accretive acquisitions, all of which drove per-unit growth in DI, FFO and AFFO during the period. The REIT also maintained a conservative debt ratio, ending the period at 54.2%, and reduced the weighted average interest rate on its mortgages to 5.59% . The weighted average term of the REITs mortgages at the end of the period was seven years.

"As we consolidate ownership within our target markets, our key performance measures continue to strengthen," said Michael Emory, President and CEO. "We intend to continue the systematic consolidation of Class I and other office properties in our target markets. We also intend to accelerate the growth of our portfolio through focused intensification and development activities. Our conservative balance sheet, low pay-out ratios and buoyant target markets will be very helpful to us in this regard."

DI, FFO, AFFO and NOI are not financial measures defined by Canadian GAAP. Please see the REIT's MD&A for a description of these measures and their reconciliation to net income or cash flow from operations, as presented in the consolidated financial statements of the REIT for the quarter ended September 30, 2007. These statements, together with accompanying notes and MD&A, have been filed with SEDAR, www.sedar.com, and are also available on the REIT's web-site, www.alliedpropertiesreit.com.

This press release may contain forward-looking statements with respect to the REIT, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the REIT discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Annual Information Form of the REIT which is available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the REIT has no obligation to update such statements.

Allied Properties REIT is the leading provider of Class I office space in Canada, with portfolio assets in the urban areas of Toronto, Montreal, Winnipeg and Quebec City. The objectives of the REIT are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

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