1. The last time a question was posted on this platform, regarding Allied was in November. Does that suggest a lack of interest? 11 year lows can't be helping much.
2. There are many insider buys at less than $200 per transaction. On January 14th, an insider spent just $43! To my eyes, unusual, so my question - why would insiders buy in such tiny tranches?
3. Payout ratio's - I'm having trouble trusting some of the numbers out there. What do you think it is and after the December dividend reduction, do you think future dividends are relatively safer?
4. What's the connection with CHP.UN and is it a good sign?
5. Oversold? At what price would you consider the purchase worth the risk / reward ?
All the very best
A
AP.UN recently raised money, but many investors believe it will not be enough. The balance sheet is still stretched. AI is expected to see office vacancies rise, as companies reduce staff. Sentiment towards the sector is highly negative. The stock of course is also experiencing negative momentum. 10-year return is now minus 70%. The insider buys are likely dividend re-investment or automatic purchase plans. We cannot tell by the filings but would not see this as particularly noteworthy in any way. 2025 operating cash flow was $255M. Dividends last year were $230M. The new distribution is 40% of last year's levels, which would be $92M, but then some adjustment is needed for the new units issued (and some debt reduction). If cash flow is the same this year (debatable), payout ratio should be near 50%. This makes the payout 'safer' but we are always cautious after a cut. It is a very small company now with $5B in debt and interest costs last year of $135M. AP.UN bought some assets from CHP.UN in 2022 and received AP.UN units as part of the payment. But CHP.UN does not show as a unitholder in any of our data feeds. AP.UN is very cheap, but that in itself does not make it a buy. It has been a disaster, the sector outlook is not great, and it continues to have high risks. We would not be interested.