AP.UN Allied Properties Real Estate Investment Trust

Allied Properties REIT (TSX:AP.UN) today announced results for its third quarter
ended September 30, 2013. "We continued to achieve above-average growth in FFO
and AFFO per unit, driving our pay-out ratios down considerably," said Michael
Emory, President and CEO. "At the same time, we improved our already
conservative debt-ratios and bolstered our immediate and near-term liquidity."


The results for the third quarter are summarized below and compared to the same
quarter in 2012:




(In thousands except for per unit and       Q3        Q3                  % 
 % amounts)                               2013      2012    Change   Change 
----------------------------------------------------------------------------
                                                                            
Net income                              31,155    23,719     7,436     31.4%
Same-asset net operating income                                             
 ("NOI")                                37,598    35,421     2,177      6.1%
Funds from operations ("FFO")           34,441    26,777     7,664     28.6%
FFO per unit (diluted)                $   0.50  $   0.46  $   0.04      8.7%
FFO pay-out ratio                         67.3%     72.4%     (5.1%)        
Adjusted FFO ("AFFO")                   29,872    21,614     8,258     38.2%
AFFO per unit (diluted)               $   0.44  $   0.37  $   0.07     18.9%
AFFO pay-out ratio                        77.7%     89.7%    (12.0%)        
Total debt as a % of fair value of                                          
 investment properties                    36.1%     39.9%     (3.8%)        
Net debt as a multiple of annualized                                        
 Q3 EBITDA                               6.3:1     6.2:1     0.1:1          
Operating interest-coverage ratio          4:1     3.2:1     0.8:1          
Total interest-coverage ratio            3.1:1     2.7:1     0.4:1          
----------------------------------------------------------------------------



The results for the nine-month period ended September 30, 2013, are summarized
below and compared to the same period in 2012:




                                          Nine      Nine                    
(In thousands except for per unit and   months    months                  % 
 % amounts)                               2013      2012    Change   Change 
----------------------------------------------------------------------------
                                                                            
Net income                              87,065    67,801    19,264     28.4%
Same-asset net operating income                                             
 ("NOI")                               103,096    94,662     8,434      8.9%
Funds from operations ("FFO")           96,883    74,132    22,751     30.7%
FFO per unit (diluted)                $   1.43  $   1.34  $   0.09      6.7%
FFO pay-out ratio                         70.8%     74.1%     (3.3%)        
Adjusted FFO ("AFFO")                   82,629    58,277    24,352     41.8%
AFFO per unit (diluted)               $   1.23  $   1.05  $   0.18     17.1%
AFFO pay-out ratio                        83.0%     94.2%    (11.2%)        
Total debt as a % of fair value of                                          
 investment properties                    36.1%     39.9%     (3.8%)        
Net debt as a multiple of annualized                                        
 Q3 EBITDA                               6.3:1     6.2:1     0.1:1          
Operating interest-coverage ratio        3.9:1     3.1:1     0.8:1          
Total interest-coverage ratio            3.1:1     2.7:1     0.4:1          
----------------------------------------------------------------------------



Allied's financial performance measures for the third quarter and first nine
months were up from the comparable quarter and period in 2012, despite a
significant reduction in its debt ratios. This is a result of increased
occupancy, portfolio-wide rental growth, accretion from recent acquisitions and
increasing NOI as a result of value-creation activity.


Allied's operating performance measures were also strong. Having leased nearly
1.5 million square feet of space in the first nine months of 2013, Allied
finished the third quarter with its rental portfolio 92.7% leased, 95.1% leased
if upgrade properties are excluded. Allied renewed or replaced leases for 84.2%
of the GLA that matured in the first nine months and leases for 78.3% of the GLA
that matures over the course of 2013. This resulted in an overall increase of
8.6% in net rental income per square foot from the affected space.


With $179 million in acquisitions completed thus far in 2013, Allied has
exceeded its targets for the year. As expected, most of the acquisitions are
immediately accretive to FFO and AFFO per unit. They are also heavily weighted
in Western Canada, continuing the ongoing improvement in Allied's geographic
diversification.


Allied's value-creation activity is progressing well. Having completed one
upgrade project in the third quarter, Allied has two remaining upgrade projects
underway, both of which are scheduled for completion next year. Having completed
three redevelopment projects in the last two quarters, Allied now has five
redevelopment projects underway, two of which are scheduled for completion this
year and the remaining three next year, as well as a small repositioning project
in Winnipeg.


Allied also has ten intensification projects underway, two of which are
Properties Under Development and the remaining eight of which are rental
properties going through the municipal approval or pre-development process. QRC
West, Phase I, is Allied's first large-scale intensification project. It is
scheduled for completion in early 2015. Allied's second intensification project
is a joint-venture with TELUS and Westbank involving the development of TELUS
Sky, a mixed-use tower on the northwest corner of 7th Avenue S.W. and Centre
Street in Calgary. It is scheduled for completion in the second half of 2017.
Allied's largest intensification project, 20 York Street in Toronto, has
progressed rapidly through pre-development and is about to be exposed to the
market for pre-leasing.


Allied's balance sheet continued to grow and strengthen in the second quarter.
At the end of the quarter, the fair value of its assets was $3.3 billion, up 24%
from the comparable quarter last year through a combination of acquisitions
($302 million) and value appreciation ($345 million), offset somewhat by
dispositions ($7 million). Allied's total debt was 36% of fair value and
comprised entirely of first mortgages with a weighted average term of six years
and a weighted average interest rate of 4.8% Its immediate liquidity was $150
million, and it had approximately $400 million in unencumbered properties,
affording it very considerable near-term liquidity.


FFO, AFFO, EBITDA, total debt and net debt 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 financial
measures defined by IFRS, as presented in Allied's condensed interim
consolidated financial statements for the quarter ended September 30, 2013.
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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Allied Properties REIT
Michael R. Emory
President & Chief Executive Officer
416.977.9002
memory@alliedreit.com
www.alliedreit.com

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