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The following table reconciles Allied’s net loss and comprehensive loss to FFO, FFO excluding condominium-related items, financing prepayment costs, transaction costs and the mark-to-market adjustment on unit-based compensation, AFFO, and AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation, which are non-GAAP measures, for the three months ended March 31, 2026, and 2025.
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| Three months ended | |||||||||
| March 31, 2026 | March 31, 2025 | Change | |||||||
| Net loss and comprehensive loss(1) | $ | (146,694 | ) | $ | (107,660 | ) | $ | (39,034 | ) |
| Adjustment to fair value of investment properties and investment properties held for sale | 134,357 | 164,099 | (29,742 | ) | |||||
| Adjustment to fair value of Exchangeable LP Units | (49,480 | ) | (8,975 | ) | (40,505 | ) | |||
| Adjustment to fair value of derivative instruments | (911 | ) | 6,095 | (7,006 | ) | ||||
| Expected credit loss on loans and notes receivable | 44,000 | — | 44,000 | ||||||
| Impairment of residential inventory | 48,065 | — | 48,065 | ||||||
| Transaction costs | 1,879 | — | 1,879 | ||||||
| Incremental leasing costs | 2,186 | 2,601 | (415 | ) | |||||
| Amortization of improvement allowances | 9,825 | 9,510 | 315 | ||||||
| Amortization of property, plant and equipment(2) | 104 | 100 | 4 | ||||||
| Distributions on Exchangeable LP Units | 2,126 | 5,314 | (3,188 | ) | |||||
| FFO | $ | 45,457 | $ | 71,084 | $ | (25,627 | ) | ||
| Condominium marketing costs | 34 | 8 | 26 | ||||||
| Financing prepayment costs | — | — | — | ||||||
| Mark-to-market adjustment on unit-based compensation | 2,397 | 423 | 1,974 | ||||||
| FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation | $ | 47,888 | $ | 71,515 | $ | (23,627 | ) | ||
| FFO | $ | 45,457 | $ | 71,084 | $ | (25,627 | ) | ||
| Amortization of straight-line rent | (2,919 | ) | (987 | ) | (1,932 | ) | |||
| Regular leasing expenditures | (6,634 | ) | (2,453 | ) | (4,181 | ) | |||
| Regular and recoverable maintenance capital expenditures | (536 | ) | (998 | ) | 462 | ||||
| Incremental leasing costs (related to regular leasing expenditures) | (1,714 | ) | (1,821 | ) | 107 | ||||
| AFFO | $ | 33,654 | $ | 64,825 | $ | (31,171 | ) | ||
| Condominium marketing costs | 34 | 8 | 26 | ||||||
| Financing prepayment costs | — | — | — | ||||||
| Mark-to-market adjustment on unit-based compensation | 2,397 | 423 | 1,974 | ||||||
| AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation | $ | 36,085 | $ | 65,256 | $ | (29,171 | ) | ||
| Weighted average number of units(3) | |||||||||
| Basic and diluted | 165,898,461 | 139,765,128 | 26,133,333 | ||||||
| Per unit – basic and diluted(1) | |||||||||
| FFO | $ | 0.274 | $ | 0.509 | $ | (0.235 | ) | ||
| FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation | $ | 0.289 | $ | 0.512 | $ | (0.223 | ) | ||
| AFFO | $ | 0.203 | $ | 0.464 | $ | (0.261 | ) | ||
| AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation | $ | 0.218 | $ | 0.467 | $ | (0.249 | ) | ||
| Payout Ratio | |||||||||
| FFO | 70.1 | % | 88.5 | % | (18.4)% | ||||
| FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation | 66.6 | % | 87.9 | % | (21.3)% | ||||
| AFFO | 94.7 | % | 97.0 | % | (2.3)% | ||||
| AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation | 88.3 | % | 96.4 | % | (8.1)% | ||||
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(1) For the three months ended March 31, 2026, includes interest income and interest income per unit on loans receivable on KING Toronto and 150 West Georgia of $9,583 and $0.058 (March 31, 2025 – $8,527 and $0.061), respectively. An expected credit loss on loans receivable of $44,000 (March 31, 2025 – $nil) was recognized for the three months ended
March 31, 2026.
(2) Property, plant and equipment relates to owner-occupied property.
(3) The weighted average number of units includes Units and Exchangeable LP Units.
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Conference Call
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The Company will hold a conference call at 10:00 a.m. (ET) on Thursday, April 30, 2026, to discuss financial results for the quarter ended March 31, 2026.
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Participants may access the conference call by dialing 1 (800) 715-9871 or (647) 932-3411, conference ID #2415499. A replay of the call will be available here or at www.alliedreit.com and will be archived for 90 days.
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Cautionary Statements
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This press release may contain forward-looking statements (which includes the Outlook) with respect to Allied, including with respect to its operations, strategy, financial performance and condition, market demand and supply for Allied’s properties and market trends, occupancy rates, cash flow growth, the timing and results of the non-core low-yielding property dispositions, the timing for successful execution of the Action Plan and the results of the Action Plan, the Outlook, the timing and completion of the KING Toronto development, no new development projects in the foreseeable future for Allied, the anticipated use of proceeds from property dispositions and the assumptions underlying any of the foregoing. These statements generally can be identified by the use of forward-looking words such as “forecast”, “goals”, “outlook”, “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe”, “assume”, “plans” or “continue” or the negative thereof or similar variations. The forward-looking statements in this press release and the Outlook are not guarantees of future results, operations or performance and are based on estimates and assumptions that are subject to risks and uncertainties, including those described under “Risks and Uncertainties” in Allied’s Annual MD&A, as updated by quarterly reports, which are available at www.sedarplus.ca. Actual results may differ materially from the Outlook. Those risks and uncertainties include risks associated with availability of cash flow and distributions, timing of property sales and the proceeds therefrom, financing and interest rates, satisfying financial and non-financial covenants, access to capital, general economic conditions and joint arrangements and partnerships, debtor credit risk, credit rating risk, unit-based compensation liabilities, dilution of Unitholders, financial leverage, non-systemic risk associated with the ownership of real estate, competitiveness of the real estate market, the current stage of the cycle for residential condominiums and rental-residential units, reliance on key personnel, unexpected costs or liabilities related to acquisitions, the accuracy and reliability of forward looking financial information, guidance and the Outlook, the Assumptions used in the Outlook are incorrect, lease roll-over risk, user termination and financial stability, development and construction risk, access to capital, valuation risk, general global market, economic and political conditions, cybersecurity, data and privacy risks, taxation risk and changes in legislation, environmental and climate change risk, public health crises, litigation and uninsurable losses. Allied’s actual results and performance for future periods, including the timing, extent and success of the Action Plan could differ materially from what is discussed herein. These cautionary statements qualify all forward-looking statements (including the Outlook) attributable to Allied and persons acting on its behalf. All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, Allied has no obligation to update such statements.
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About Allied
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Allied is a leading owner-operator of distinctive urban workspace in Canada’s major cities. Allied’s mission is to provide knowledge-based organizations with workspace that is sustainable and conducive to human wellness, creativity, connectivity and diversity. Allied’s vision is to make a continuous contribution to cities and culture that elevates and inspires the humanity in all people.
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FOR FURTHER INFORMATION, PLEASE CONTACT:
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Investor Relations
[email protected]
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