Monthly Dividend Stock In Focus: Allied Properties Real Estate Investment Trust

Published on January 13th, 2026 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of over 100 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

Monthly Dividend Stock In Focus: Allied Properties Real Estate Investment Trust

Allied Properties Real Estate Investment Trust (APYRF) is a monthly dividend stock based in Canada. This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze Allied Properties Real Estate Investment Trust in greater detail.

Business Overview

Allied Properties REIT is a Canadian real estate investment trust focused on owning, operating, and developing urban workspace properties in major cities such as Toronto, Montréal, Vancouver, Calgary, and Kitchener.

Based on the latest filings, the REIT’s portfolio includes 191 rental properties totaling 14.4 million sq. ft., primarily composed of Class I and mixed-use urban office assets.

At the end of September, its portfolio was 87.4% leased and 84.0% occupied, supported by a modest 1.5% rent increase on renewals. The REIT generated revenue of $413.4 million last year.

All figures in this report have been converted to USD unless otherwise noted. The stock trades at a market cap of ~$1.3 billion.

On October 29th, 2025, Allied reported its Q3 results for the quarter ended September 30th, 2025, Rental revenue came in at $106.3 million (up ~1% year over year), property operating costs came in at $48.3 million (up ~5%), and operating income came in at $58.0 million (down ~3%).

Portfolio fundamentals remained relatively stable at 87.4% leased (flat year-over-year) and 84.0% occupied (down ~160 bps YoY), with average in-place net rent of $18.10 per occupied square foot (down ~0.4%) and +1.5% rent growth on renewals versus negative spreads in the prior year.

However, higher borrowing costs continued to weigh on results, with interest expense of $25.5 million (up ~13%) and SG&A expenses of $5.4 million (up ~2%) for the quarter.

As a result, cash flow weakened year over year, with AFFO per-share of $0.315 (down ~6%) for the period. For FY2025, we expect AFFO/share of $1.20.

On December 1st, 2025, Allied Properties slashed its dividend by 60% to a monthly rate of C$0.06.

Growth Prospects

Allied Properties REIT’s AFFO per share has failed to grow meaningfully over the past decade. AFFO per share peaked at $1.72 in 2019 and has since been quite underwhelming.

In 2020, AFFO softened due to the pandemic, but results were shielded by lower leasing and maintenance expenditures, followed by a recovery in 2021 as operations normalized and leasing activity strengthened.

During 2022 and 2023, AFFO remained relatively stable, with solid performance and controlled capital spending offsetting the early effects of higher interest rates.

However, the decline in 2024 reflects a clear shift in the macro and capital structure environment, due to higher interest expense, reduced income following asset disposals and loan repayments, transaction-related impacts from development monetizations, and increased leasing expenditures.

These items will be only partly offset by lower straight-line rent amortization.

Moving forward, we don’t forecast any growth in AFFO per share, as the company’s high leverage (net debt at ~12.3x annualized adjusted EBITDA) and elevated interest expense are likely to absorb operating improvements from leasing and rent growth.

We do forecast the dividend grow at a CAGR of 10%, as eventually the company should be able to resume to its prior levels after this year’s dividend reduction.

Dividend & Valuation Analysis

Allied Properties combines high-quality, well-located urban workspace assets with a challenging financial risk profile.

The portfolio’s focus on distinctive, amenity-rich properties in major Canadian cities offers a durable competitive advantage and supports relatively stable leasing and renewal activity.

However, high leverage and elevated interest costs materially weaken balance-sheet safety and reduce flexibility. While prime locations and knowledge-based tenants offer some recession resilience, office exposure and ongoing leasing capital needs limit downside protection in a recession.

With a 2025 forecast dividend payout ratio of 43%, the current payout looks safe with room for increases.

Allied Properties’ valuation has compressed significantly lately given its underwhelming performance and dividend cut.

We don’t expect a valuation expansion toward to the low to mid-teens anytime soon as the REIT remains highly levered.

Shares trade for a 2025 price-to-FFO ratio of 8.7, above our fair value estimate of 8.0. Therefore, the stock seems slightly overvalued, which could weigh on future returns.