Canadian office space operator Allied Properties REIT experienced a nearly 10% slump in shares after it disclosed a C$499 million writedown, citing sparse staffing in major Canadian cities like Toronto and Montreal. The REIT reported losses of C$70 million from development property valuations in Toronto and Montréal and C$425 million from rental property valuations in Toronto, Montréal, Calgary, and Vancouver.
Allied Properties reported occupancy at its properties falling to 86.4% from nearly 90% a year ago. The Toronto-based firm’s shares were on track for their worst day in nearly four years and dragged down peer Dream Office Real Estate Investment Trust. The results come just a day after New York Community Bancorp reported pain in its commercial real estate portfolio and slashed divided.
Canada’s big banks have warned about weakness in office real estate space, especially in the U.S., and the head of the banking regulator Peter Routledge warned that global banks were poised to take a hit as the risk of commercial real estate grows.
Source: CTV News
Source: Yahoo Finance
