Allied Properties REIT (TSX:AP.UN) today announced results for its first quarter
ended March 31, 2013. "Our momentum continued into and through the first
quarter," said Michael Emory, President and CEO. "The environment remained
supportive, and our operating and financial performance measures continued to
strengthen."


The results for the first quarter are summarized below and compared to the same
quarter in 2012:




(In thousands except for per unit                                           
 and % amounts)                      Q1 2013   Q1 2012    CHANGE   % CHANGE 
----------------------------------------------------------------------------
Net income                            26,849    21,919     4,930       22.5%
Same-asset net operating income                                             
 ("NOI")                              33,889    31,373     2,516        8.0%
Funds from operations ("FFO")         29,582    22,931     6,651       29.0%
FFO per unit (diluted)              $   0.45  $   0.44  $   0.01        2.3%
FFO pay-out ratio                       75.2%     74.6%      0.6%           
Adjusted FFO ("AFFO")                 23,948    18,439     5,509       29.9%
AFFO per unit (diluted)             $   0.36  $   0.35  $   0.01        2.9%
AFFO pay-out ratio                      92.9%     92.7%      0.2%           
Total debt as a % of fair value of                                          
 investment properties                  34.6%     44.5%     (9.9%)          
Net debt as a multiple of                                                   
 annualized Q1 EBITDA                  6.2:1     7.1:1    (0.9:1)           
Interest-coverage ratio                4.2:1     3.3:1     0.9:1            
----------------------------------------------------------------------------



Allied's financial performance measures for the first quarter were up from the
comparable quarter in 2012, despite a very significant reduction in its debt
ratios quarter-over-quarter. This is a result of increased occupancy,
portfolio-wide rental growth and accretion from recent acquisitions.


Having leased over 800,000 square feet of space in the first quarter, Allied
finished the quarter with its rental portfolio 92.8% leased, 94.7% leased if
upgrade properties are excluded. Allied renewed or replaced leases for 94.1% of
the GLA that matured in the first quarter and leases for 49.6% of the GLA that
mature over the course of 2013. This resulted in an overall increase of 6.6% in
net rental income per square foot from the affected space.


With $146 million in acquisitions announced and completed thus far in the year,
Allied is on pace to exceed its initial target substantially. As expected, the
vast majority of acquisitions completed this year are immediately accretive to
FFO and AFFO per unit. They are also heavily weighted in Western Canada,
continuing the ongoing improvement in Allied's geographic diversification.


Allied's value-creation activity is progressing well. It has three upgrade
projects underway, one of which is scheduled for completion this year and the
remaining two next year. It has eight redevelopment projects underway, five of
which are scheduled for completion this year and the remaining three next year.


Allied also has ten intensification projects underway, two of which are
Properties Under Development and the remaining eight of which are rental
properties going through the municipal approval or pre-development process. QRC
West, Phase I, is Allied's first large-scale intensification project. It is
scheduled for completion in early 2015. Allied's second large-scale
intensification project is a joint-venture with RioCan and Diamond and involves
the construction of a landmark office-retail building on 410 Front Street West
in Toronto.


Allied's balance sheet continued to grow and strengthen in the first quarter. At
the end of the quarter, the fair value of its assets was $3.1 billion, up $815
million from the comparable quarter last year through a combination of
acquisitions ($522 million) and value appreciation ($318 million), offset
somewhat by dispositions ($25 million). Its weighted-average mortgage term was
five years, its weighted-average interest rate 5.0%, its total debt as a
percentage of fair value 34.6% and its net debt as a multiple of its annualized
Q1 EBITDA 6.2:1. This was reflected in an interest-coverage ratio of 4.2:1 in
the quarter.


"We expect our FFO and AFFO per unit to continue to grow, and we expect the
demand for space across our target markets to remain strong," said Mr. Emory,
summarizing Allied's outlook for 2013. "We intend to continue the consolidation
of ownership in our target markets, but with a more exclusive focus than last
year on the acquisition of stabilized properties. We also intend to focus on the
execution of our value-creation opportunities as part of our ongoing effort to
build a value-creation pipeline that in time will make a recurring, annual
contribution to the growth of our business."


FFO and AFFO are not financial measures defined by International Financial
Reporting Standards ("IFRS"). Please see Allied's MD&A for a description of
these measures and their reconciliation to net income and comprehensive income
under IFRS, as presented in Allied's condensed interim consolidated financial
statements for the quarter ended March 31, 2013. These statements, together with
accompanying notes and MD&A, have been filed with SEDAR, www.sedar.com, and are
also available on Allied's web-site, www.alliedreit.com.


NOI is not a measure recognized under IFRS and does not have any standardized
meaning prescribed by IFRS. NOI is presented in this press release because
management of Allied believes that this non-IFRS measure is an important
financial performance indicator. NOI, as computed by Allied, may differ from
similar computations as reported by other similar organizations and,
accordingly, may not be comparable to NOI reported by such organizations.


This press release may contain forward-looking statements with respect to
Allied, its operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking words such as
"may", "will", "expect", "estimate", "anticipate", intends", "believe" or
"continue" or the negative thereof or similar variations. Allied's actual
results and performance discussed herein could differ materially from those
expressed or implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Important factors that could cause actual results to differ
materially from expectations include, among other things, general economic and
market factors, competition, changes in government regulations and the factors
described under "Risk Factors" in the Allied's Annual Information Form which is
available at www. sedar.com. The cautionary statements qualify all
forward-looking statements attributable to Allied and persons acting on its
behalf. Unless otherwise stated, all forward-looking statements speak only as of
the date of this press release, and Allied has no obligation to update such
statements.


Allied Properties REIT is a leading owner, manager and developer of urban office
environments that enrich experience and enhance profitability for business
tenants operating in Canada's major cities. Its objectives are to provide stable
and growing cash distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio growth.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Allied Properties REIT
Michael R. Emory
President & Chief Executive Officer
416.977.9002
memory@alliedreit.com
www.alliedreit.com
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