AP.UN is now up 8.2% this year, and up 17% over 52 weeks. This has been a big bounce from declines into the first half of 2025. Generally, investors have been wary due to its office exposure in a work-from-home type of work world (this is changing, though). The 9.7% yield reflects slow growth but also a high payout ratio, leaving very little room for growth and/or a cushion if there is a recession. Certainly we would not see the distribution as completely safe but would not expect an imminent cut. Interest rates are heading down in Canada which may help the company and its unit value over time. Cash flow per unit did miss estimates in the Q2. But as noted, there has been some insider buying, and a recent update on two project developments was positive. Debt is on the high side, still, and it is hard for us to be really positive here, but certainly momentum has shifted and the very low valuation reflects a lot of the concerns already.
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