Hey Paul,
So first things first with AP.UN - it is undergoing a little bit of a shift here. In the fall it announced it was testing the waters to see if it would sell its urban data centres (UDCs) portfolio. Well today, it announced that it was proceeding with selling the entire portfolio. Now, no deal has been made as of yet, but the markets were waiting to see what was happening with the exploration of a potential sale. The sale is being made for 2 reasons, to focus on low-cost urban office workspace and to improve its balance sheet.
The key here, is that it expects the savings on the interest to completely offset the earnings loss from a potential loss. The portfolio has an IFRS value of $1.3B.
All this said, I do like Allied Properties and this move will not only strengthen the balance sheet but help them focus on their core portfolio which is small, low cost urban centres - which just happens to be one of the highest growth areas in the office space. I think AP is a pretty good company, one of the better ones in the office industry and definitely believe it to be undervalued here.
Personally, I'd have no problems taking a position in this company which as you pointed out, has been quite beat up. Still some challenges ahead with the office space in general, but I do think Allied is better positioned than most.
Mat