Allied Properties Real Estate Investment Trust specializes in owning Class I office properties across major Canadian cities, boasting over 10 million square feet of leasable space. While it currently offers an attractive dividend yield of 11.33%, the stock has faced challenges, with a 1-year return of -17.86% and a significant 5-year return decline of -61.23%. Analysts from Scotiabank and Raymond James maintain an "Outperform" rating, suggesting potential for recovery and growth in the next 12 months.
Pros:
- High dividend yield
- Strong urban presence
Cons:
- Recent poor performance
- Market volatility risk
Allied Properties Real Estate Investment Trust may appeal to income-focused investors seeking high dividend yields, particularly those willing to accept volatility and potential short-term losses in exchange for possible long-term recovery. However, given its declining returns over the past five years, this investment may be more suitable for those with a higher risk tolerance and a belief in the rebound of the commercial real estate sector in Canada.