Allied Provides Update on Non-Core Property Sales

TORONTO, Sept. 16, 2025 (GLOBE NEWSWIRE) -- Allied Properties Real Estate Investment Trust ("Allied") (TSX: "AP.UN") today provided an update with respect to non-core property sales. “We initiated the sale process last year to fund the acquisition of larger than expected interests in 400 West Georgia, 19 Duncan and Calgary House,” said Michael Emory, Founder & Executive Chair. “We’ve continued this year with the immediate objective of improving access to the debt capital markets and the longer-term objective of serving knowledge-based organizations in Canada’s major cities ever-better and more profitably.”

Non-Core Property Sales

In 2024, Allied sold seven non-core properties (four in Montréal, one in Ottawa, one in Toronto and one in Calgary) for aggregate proceeds of $252 million. To date in 2025, Allied has completed the sale of two non-core properties (one in Edmonton and one in Vancouver) and has 10 non-core properties (six in Montréal, two in Toronto, one in Vancouver and one in Calgary) under sale contract or negotiation for aggregate proceeds of approximately $231 million. On closing of the sale of these properties, Management will consider the sale process in Montréal, Vancouver and Calgary to be complete.

Allied now holds nine additional non-core properties for sale in Toronto and anticipates aggregate proceeds of approximately $257 million. On closing of the sale of these properties, Management will consider the sale process in Toronto to be complete. Management has no intention of selling property in Kitchener.

Allied is making progress in its efforts to monetize its loan receivable secured by 150 West Georgia and will provide updates over the remainder of the year as appropriate.

Allied’s Portfolio Going Forward

Allied expects to complete its sale of non-core properties in early 2026 while solidly meeting its target of at least $300 million in aggregate proceeds for 2025. The most important long-term implication for Allied’s business going forward is the enhanced competitive positioning of its portfolio on completion of the process.

Following completion of the sale process, the key attributes of Allied’s portfolio by city will be as follows:

Allied Modern has become a considerably larger component of the overall portfolio in the past five years, particularly in Toronto and Vancouver. Allied Heritage remains the largest component. Together with Allied Modern, it is critical to serving knowledge-based organizations ever-better and more profitably over time. Allied Flex serves rapidly growing enterprises well and represents significant longer-term upgrade and intensification potential, particularly in the Toronto portfolio.

Despite its large average building size, the Montréal portfolio has significant mixed-use intensification potential (estimated at 1.7 million square feet). Because the Toronto portfolio has numerous smaller properties in designated redevelopment areas, it has very significant mixed-use intensification potential (estimated at 5.8 million square feet). The Calgary portfolio has significant mixed-use intensification potential along 10^th and 11^th Avenues (estimated at 1.5 million square feet). The Kitchener and Vancouver portfolios have relatively modest intensification potential going forward.

In addition, Allied owns and operates 464 rental-residential units at 225 Adelaide Street West in Toronto (“Toronto House”, part of what is generally known as 19 Duncan) and has an undivided 50% interest in 326 rental-residential units at 655 Centre Street SW in Calgary (“Calgary House”).

Management believes that the overall quality and competitive positioning of Allied’s portfolio has been materially strengthened by the combination of (i) recent development completions, (ii) the acquisition of larger than anticipated interests in developments undertaken jointly with Westbank and (iii) the non-core property sale process that is now approaching completion. Allied has a broader base of high-quality office and retail tenants, an expanded range of workspace options and greater concentration in stronger and larger mixed-use, amenity-rich urban neighbourhoods in Canada’s major cities.

“Through all the distraction and disruption, we’ve stayed close to our real estate and our customers,” said Mr. Emory. “As a Canadian public real estate entity with a clear investment and operating focus, we’re now emerging stronger in a country that itself is emerging stronger and more unified.”

Cautionary Statements

This press release may contain forward-looking statements with respect to Allied, including with respect to the completion of its non-core property sales. These statements generally can be identified by the use of forward-looking words such as “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 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. Those risks and uncertainties include risks associated with development and construction, financing and interest rates, access to capital, general economic conditions and joint arrangements and partnerships. Allied’s actual results and performance discussed herein could differ materially from those expressed or implied by such statements. These cautionary statements qualify all forward-looking statements 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.

About Allied

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.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Michael Emory
Founder & Executive Chair
(416) 977-9002
memory@alliedreit.com

Cecilia C. Williams
President & Chief Executive Officer
(416) 977-9002
cwilliams@alliedreit.com

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