Allied Properties Real Estate Investment Trust Announces Strong Second-Quarter Results

Allied Properties REIT (TSX:AP.UN) today announced results for its second
quarter ended June 30, 2009. "Our second-quarter results represent further
confirmation of the durability of Class I office space in an economic downturn,"
said Michael Emory, President & CEO. "Our leasing results were solid, our FFO
and AFFO per unit grew by 7.3% and 5.3%, respectively, our pay-out ratios
remained conservative and our liquidity position remained strong."




Financial and Operating Results

The financial results for the quarter are summarized below and compared to
the same quarter in 2008:

(In thousands except for per
 unit and % amounts)                  Q2 2009   Q2 2008    Change   %Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income                           $  3,950  $  2,561  $  1,389      54.2%
Net income per unit (diluted)        $   0.13  $   0.09  $   0.04      44.4%
Funds from operations ("FFO")        $ 13,928  $ 11,512  $  2,416      21.0%
FFO per unit (diluted)               $   0.44  $   0.41  $   0.03       7.3%
FFO pay-out ratio                        74.0%     80.3%     (6.3%)
Adjusted FFO ("AFFO")                $ 12,632  $ 10,759  $  1,873      17.4%
AFFO per unit (diluted)              $   0.40  $   0.38  $   0.02       5.1%
AFFO pay-out ratio                       81.6%     86.0%     (4.4%)
Debt ratio                               49.3%     52.7%     (3.4%)
----------------------------------------------------------------------------



Allied maintained a high level of leased area, finishing the second quarter at
96.3%, down from 97.2% at the end of the first quarter. A large portion of the
decline was a consequence of 96 Spadina Avenue in Toronto having been
transitioned from a property under development to a rental property for
accounting purposes on May 1, as planned. Allied achieved substantial completion
of the redevelopment of this property in just over one year and expects to lease
most of the remaining 22,446 square feet of available space by year-end.


Demand for office and retail space in Allied's target markets remained
encouraging in the second quarter. Allied leased 14,102 square feet of
storefront retail space at 522 King Street West in Toronto to a high-end food
store for a term of 15 years at rental rates equal to and rising above prior
in-place rents over the term. It also completed another large-scale renewal at
Cite Multimedia in Montreal (25,051 square feet) at rental rates equal to
in-place rents and an early replacement of a large tenant at 469 King Street
West in Toronto (29,246 square feet) at rental rates above in-place rents.
Finally, Allied experienced a decrease in the already minimal levels of space
available for sub-lease in its portfolio. Finally, Allied finished the second
quarter in a strong liquidity position, with a conservative debt ratio of 49.3%.
Aside from $28 million drawn on its $70 million line of credit, it had no
variable rate debt at the end of the quarter. In July, Allied placed a $5.2
million first mortgage on 4446 Saint-Laurent Boulevard in Montreal, enabling it
to reduce the amount drawn on its line of credit to just under $23 million.
Allied has no mortgages maturing in the remainder of 2009, $7 million in
mortgages maturing in 2010 and $15 million in mortgages maturing in 2011.




The financial results for the six-month period ended June 30, 2009, are
summarized below and compared to the same period in 2008:

(In thousands except for per
 unit and % amounts)                  H1 2009   H1 2008    Change  %Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income                           $  7,826  $  5,506  $  2,320     42.1%
Net income per unit (diluted)        $   0.25  $   0.20  $   0.05     25.0%
Funds from operations ("FFO")        $ 27,857  $ 23,346  $  4,511     19.3%
FFO per unit (diluted)               $   0.89  $   0.83  $   0.06      7.2%
FFO pay-out ratio                        74.0%     77.9%     (3.9%)
Adjusted FFO ("AFFO")                $ 24,902  $ 22,457     2,445     10.9%
AFFO per unit (diluted)              $   0.79  $   0.80  $  (0.01)    (1.2%)
AFFP pay-out ratio                       82.7%     81.0%      1.7%
Debt ratio                               49.3%     52.7%     (3.4%)
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Cautionary Statements

FFO and AFFO are not financial measures defined by Canadian GAAP. Please see
Allied's MD&A for a description of these measures and their reconciliation to
net income or cash flow from operations, aspresented in Allied's consolidated
financial statements for the six-month period and quarter ended June 30, 2009.
These statements, together with accompanying notes and MD&A, have been filed
with SEDAR, www.sedar.com, and are also available on Allied's web-site,
www.alliedpropertiesreit.com.


This press release may contain forward-looking statements with respect to
Allied, its operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking words such as
"may", "will", "expect", "estimate", "anticipate", intends", "believe" or
"continue" or the negative thereof or similar variations. Allied's actual
results and performance discussed herein could differ materially from those
expressed or implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Important factors that could cause actual results to differ
materially from expectations include, among other things, general economic and
market factors, competition, changes in government regulations and the factors
described under "Risk Factors" in the Allied's Annual Information Form which is
available at www.sedar.com. The cautionary statements qualify all
forward-looking statements attributable to Allied and persons acting on its
behalf. Unless otherwise stated, all forward-looking statements speak only as of
the date of this press release, and Allied has no obligation to update such
statements.


Allied Properties REIT is the leading provider of Class I office space in
Canada, with portfolio assets in the urban areas of Toronto, Montreal, Winnipeg,
Quebec City and Kitchener-Waterloo. Its objectives are to provide stable and
growing cash distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio growth.
Allied Properties Real E... (TSX:AP.UN)
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