Allied Properties REIT Announces Second-Quarter Results

Allied Properties REIT (TSX:AP.UN) today announced results for its second
quarter ended June 30, 2012. "We had a very strong first half, and the outlook
for the remainder of the year and beyond is positive," said Michael Emory,
President and CEO. "We expect our FFO and AFFO per unit to continue to grow and
our acquisition and value- creation activity to continue to accelerate. We also
believe that our conservative balance sheet, low debt ratio, moderate mortgage
maturity schedule and abundant liquidity will provide stability and facilitate
growth going forward."


The results for the second quarter are summarized below and compared to the same
quarter in 2011:




(In thousands except for per                                                
 unit and % amounts)              Q2 2012    Q2 2011     Change    % CHANGE 
----------------------------------------------------------------------------
                                                                            
Net income                         22,163     12,550      9,613        76.6%
Same-asset NOI                     25,930     22,828      3,102        13.6%
Funds from operations ("FFO")      24,424     14,683      9,741        66.3%
FFO per unit (diluted)           $   0.44   $   0.32   $   0.12        37.5%
FFO pay-out ratio                    75.5%     104.2%     (28.7%)           
Adjusted FFO ("AFFO")              18,224     10,822      7,402        68.4%
AFFO per unit (diluted)          $   0.33   $   0.23   $   0.10        43.5%
AFFO pay-out ratio                  101.2%     141.3%     (40.1%)           
Debt ratio (% of fair value)         41.9%      43.4%      (1.5%)           
Interest coverage ratio             3.3:1      2.7:1      0.6:1             
                                                                            
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The results for the six-month period ended June 30, 2012, are summarized and
compared to the same period in 2011:




(In thousands except for per                                                
 unit and % amounts)            h1 2012     h1 2011      Change    % CHANGE 
----------------------------------------------------------------------------
                                                                            
Net income                       44,082      25,385      18,697        73.7%
Same-asset NOI                   52,790      44,562       8,228        18.5%
Funds from operations                                                       
 ("FFO")                         47,355      27,826      19,529        70.2%
FFO per unit (diluted)        $    0.88   $    0.63   $    0.25        39.7%
FFO pay-out ratio                  75.1%      106.5       (31.4%)           
Adjusted FFO ("AFFO")            36,663      21,337      15,326        71.8%
AFFO per unit (diluted)       $    0.68   $    0.47   $    0.21        44.7%
AFFO pay-out ratio                 96.9%      138.9%      (42.0%)           
Debt ratio (% of fair value)       41.9%       43.4%       (1.5%)           
Interest coverage ratio           3.3:1       2.6:1       0.7:1             
                                                                            
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Allied's financial performance measures for the second quarter and six-month
period were up significantly from the comparable periods in 2011, reflecting
increased occupancy, portfolio-wide rental growth and accretion from
acquisitions completed in the past 18 months.


Allied leased 1.45 million square feet of space in the first half of 2012. It
finished the first half with its rental portfolio 92.3% leased, 94.4% leased if
upgrade properties are excluded. Over the course of the first half, it renewed
or replaced 72.5% of its leases maturing over the course of the year, resulting
in an overall increase of 8.7% in net rental income per square foot from the
affected space.


Allied's value-creation activity accelerated in the first half, with the
addition of a large upgrade opportunity in Montreal, the acquisition of a
redevelopment project in Calgary and the advancement of a growing number of
urban intensification opportunities in Toronto. Allied also established two new
and promising avenues of growth. One was the expansion of its telcom and IT
facilities through the long-term lease of space at 250 Front Street West in
Toronto. The other was the establishment of an urban intensification joint
venture with RioCan REIT.


Allied's balance sheet continued to grow and strengthen through the first half.
At June 30, 2012, its weighted-average mortgage term was five years, its
weighted-average interest rate 5.1%, its debt ratio 42% and its
interest-coverage ratio 3.3:1. On August 14, 2012, Allied completed a $115
million offering at $30 per unit, once again locking in an all-time low cost of
equity and further strengthening its balance sheet. In addition to funding
future growth, Allied intends to use a portion of the proceeds to retire
higher-rate mortgage indebtedness as it comes due.


FFO and AFFO are not financial measures defined by International Financial
Reporting Standards ("IFRS"). Please see Allied's MD&A for a description of
these measures and their reconciliation to net income and comprehensive income
under IFRS, as presented in Allied's condensed interim consolidated financial
statements for the quarter ended June 30, 2012. 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.alliedreit.com.


NOI is not a measure recognized under IFRS and does not have any standardized
meaning prescribed by IFRS. NOI is presented in this press release because
management of Allied believes that this non-IFRS measure is an important
financial performance indicator. NOI, as computed by Allied, may differ from
similar computations as reported by other similar organizations and,
accordingly, may not be comparable to NOI reported by such organizations.


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 a leading owner, manager and developer of urban office
environments that enrich experience and enhance profitability for business
tenants operating in Canada's major cities. 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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