Allied cuts monthly payout by 90% to pay down debt

Allied, a landlord that leases office and other urban space, is cutting its monthly payout to investors by 90%. Allied said the cut, from November 2026, keeps about $126 million a year in the company for debt reduction.

Its net debt to EBITDA rose to 12.5 times in the nine months to September 30 from 12.0 in the second quarter. That ratio compares debt, less cash, with earnings before interest, taxes, depreciation and amortization (EBITDA); higher means more debt per dollar earned. Allied expects it to fall to the mid-11 range by year end, with property sale proceeds going to debt.

Occupancy was higher than Allied expected, at 84.9% of its space at the end of September. CBRE reported that downtown Toronto office vacancy fell more in the third quarter than in Calgary, Ottawa or Halifax. The board reviews the payout every quarter.

Sources: GlobeNewswire · CBRE Canada · Allied Properties REIT