Allied Properties REIT reported a resilient quarter with a 1.1% increase in rental portfolio NOI, driven by strong leasing activity and strategic development progress despite macroeconomic challenges.
- NOI growth of 1.1% attributed to development completions and stabilization efforts.
- Leasing activity surged with 588,000 square feet leased, pushing leased area to 87.2% and resulting in a 69% retention ratio.
- Strategic acquisition of the remaining 50% interest in the M4 property positions the firm for enhanced urban office platform growth.
- Continued focus on balance sheet optimization with plans to reduce net debt-to-EBITDA ratio below 10x by end-2025 and below 9x by end-2026.
- Disposals of noncore assets progressing, with $200 million under contract, aiming to redirect proceeds towards debt reduction.
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