Allied Properties Takes $371M Hit Amid Remote Work Shift

Shares plunge 8.2% as office occupancy drops and company sells assets to shore up balance sheet

Allied Properties Real Estate Investment Trust marked down the value of its holdings by nearly C$500 million ($371 million) due to the persistence of remote work and high interest rates impacting the market for commercial property.
Occupancy at Allied's properties fell to 86% from around 90% the year before, and nearly 95% before the pandemic.
Allied's shares dropped 8.2%, marking the steepest decline since the onset of the pandemic in March 2020.
Allied sold two Toronto data centers for C$1.35 billion to shore up its balance sheet as borrowing costs climbed to a 20-year high and the outlook for office demand became more uncertain.
Allied continues to invest in new developments that include residential and retail components to diversify its asset base, now valued at C$8.8 billion.