Could AskHank.Money Help Identify this REIT Dog?

I’ve had a lot of fun putting our new app through its paces. I’m hoping you have given it a spin as well.

This week, I back-checked Allied Properties REIT, a true dog today, because of how it has mismanaged its debt and equity dilution.

If we had used AskHank.money in 2020, would it have shed light on the impending issues?

Quick answer: NO.

I completed a comprehensive analysis of the company's current state by downloading the last 3 years of financials. I also loaded up the 2020 financials to do a back-check as if we were there at that time. 

The most concerning was that the company operated like a mortgage company, extending credit to other companies for projects. 

Despite this issue, Hank scored Allied at 76 in 2020. In 2025, it is at 56. 

While the nibble prices are indicated, I would NEVER buy this company. I don’t trust them. Period.

I’ve never owned Allied, but this exercise has been a valuable learning experience. For me, it’s not about blaming COVID, working from home, or anyone else. They were incompetent managers. They believed their own story. They believed, as with a Mesiah Complex, that they could not only run office buildings but also act as mortgage lenders. Lack of focus and poor management.

This is an important lesson. Tools such as AskHank.money are helpful for expanding knowledge, learning about an investment, or hunting for potential acquisitions. No tool should ever replace your gut instinct or common sense when investing. Here’s the analysis. I would appreciate your comments. Here is the corrected email address to send comments directly to me; I believe the incorrect version was loaded last week. [email protected]

Allied Properties REIT (TSX: AP.UN)
Master Ask Hank™ Institutional Analysis Report
2020 Back-Check + 2025 Full Analysis
Market Price: $9.37 CAD

This information is for Educational Purposes only.
Do not make portfolio changes without speaking with your financial advisor.
I am not a financial advisor.

Executive Summary

This master report combines the full 2020 Ask Hank™ Back-Check analysis with the complete 2025 audited financial review, incorporating current market pricing ($9.37 CAD), a dividend reset, the impact of a $500M equity raise, and disclosed loan/credit exposure.

PART I — 2020 Back-Check (As of December 31, 2020)

2020 Audited Snapshot

Leased Area: 92.5%

Debt Ratio: 29.2%

Net Debt / EBITDA: 7.4x

Interest Coverage: ~5.1x

AFFO Payout Ratio: ~82%

NAV per Unit: $42.12

2020 Hank 10-Rule Scorecard

Hive First: 7.5 / 10

Nature Knows Best: 8.0 / 10

Recycle (Debt Discipline): 8.5 / 10

Focus & Efficiency: 7.0 / 10

Live in the Right Place: 8.5 / 10

Compounding Over Time: 7.0 / 10

Capital Allocation Discipline: 7.0 / 10

Probability of Success: 8.0 / 10

Governance & Feedback: 7.5 / 10

Listen to the Buzz: 7.0 / 10

Overall 2020 Hank Score: 76 / 100 (7.6 / 10)

2020 Probability of Failure (3–5 year window): 5%–10%

PART II — 2025 Full Hank Analysis (Audited 2023–2025)

2025 Audited Snapshot

Investment Properties: ~$8.44B

Total Debt: ~$4.68B

Debt Ratio: 50.7%

Net Debt / EBITDA: 12.3x

Interest Coverage: 2.1x

AFFO: ~$240.6M

NAV per Unit: $29.87

Dividend Reset: $0.72 annually

Loans & Credit Exposure

Expected Credit Loss (2025): ~$128M

Loans Issued to Third Parties (2025): ~$43M

TELUS Sky Loan (2023 reference): ~$93M outstanding

Dilution Impact ($500M Raise)

Estimated New Units Issued: ~53M

Post-Raise Net Debt / EBITDA: ~11x

Post-Raise AFFO per Unit: ~$1.25

Post-Raise Dividend Payout Ratio: ~58%

Valuation at $9.37 CAD

Equity Market Cap: ~$1.31B

Enterprise Value: ~$6.0B

AFFO Yield (Pre-Dilution): ~18.4%

Dividend Yield: ~7.7%

Price-to-NAV: ~0.31x

2025 Hank 10-Rule Scorecard

Hive First: 7 / 10

Nature Knows Best: 7 / 10

Recycle (Debt Discipline): 3 / 10

Focus & Efficiency: 6 / 10

Live in the Right Place: 8 / 10

Compounding Over Time: 4 / 10

Capital Allocation Discipline: 6 / 10

Probability of Success: 5 / 10

Governance & Feedback: 7 / 10

Listen to the Buzz: 4 / 10

Overall 2025 Hank Score: 56 / 100 (5.6 / 10)

Probability of Failure (Updated)

2025 Pre-Equity Raise: 12%–22%

2025 Post-Equity Raise: 8%–15%

Hank Nibble Price

Pre-Dilution Nibble Range: ~$10.00 CAD

Post-Dilution Nibble Range: ~$7.30–$7.80 CAD

Final Comparative Summary

2020: Strong balance sheet, cyclical risk. Hank Score 7.6/10. Failure Risk 5–10%.

2025: Levered balance sheet, structural office headwinds. Hank Score 5.6/10. Failure Risk 8–15% post-repair.

This information is for Educational Purposes only.
Do not make portfolio changes without speaking with your financial advisor.
I am not a financial advisor.