Q1 2026 Allied Properties Real Estate Investment Trust Earnings Call Transcript
Key Points
- Leasing activity was strong in Q1, with over 500,000 square feet leased and a 63% retention rate on expiries.
- The leasing pipeline increased by 20%, with new leasing pipeline up by 36%, indicating strong future demand.
- The $500 million disposition program is on track, with $46 million in dispositions completed in Q1 and additional assets expected to generate $201 million in Q2.
- Net debt-to-EBITDA improved from 12.9 times to 12.3 times, showing progress in deleveraging efforts.
- The King Toronto project is 92% pre-sold, with commercial leasing progressing and anchored by Whole Foods.
- Occupancy is expected to decline in Q2 due to known non-renewals, although it is anticipated to be higher than the previously forecasted 82%.
- King Toronto project faces higher costs and delays due to construction challenges, impacting financial performance.
- A 35% default rate is now assumed for King Toronto condo sales, up from a previous estimate of 10%.
- Capital expenditures are expected to be higher by $40 to $50 million in 2026 due to increased construction costs in Toronto.
- The Calgary market recovery remains slow due to consolidation in the energy sector, affecting leasing activity.
Hello, ladies and gentlemen, and thank you for standing by. Welcome to Allied Properties Real Estate first quarter 2026 earnings conference call.
(Operator Instructions)
I would now like to turn the conference over to our President and CEO, Cecilia Williams. Please go ahead.
Thanks, Dustin, and good morning, everyone. Welcome to our Q1 conference call.
Please note that certain statements we make during the course of this conference call that are not statements of historical facts may constitute forward-looking information and forward-looking statements about future events or future performance.
These statements are based on management's current expectations and are subject to risks, uncertainties, and other factors that may cause actual events or results to differ materially from historical results and/or from our forecasts, including those described under the heading Risks and Uncertainties in our 2025 Annual
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