Core Viewpoint - Allied Properties REIT is positioned as a low-risk investment in the Canadian office recovery, supported by a strong balance sheet, high-quality assets, and effective management [1]. Company Overview - Founded in 2002 by Michael Emory, Allied Properties REIT went public on the Toronto Stock Exchange in 2003 [2]. - Initially focused on Class I workspace, the company has expanded its asset types to include mixed-use developments and previously owned urban data centers [3][4]. Asset Composition - Allied owns 201 properties across six major Canadian markets, totaling nearly 15 million square feet, with a valuation of $8.5 billion [4]. - Over 40% of its space is located in Montreal, with Toronto being the second-largest market [5]. Historical Performance - The company experienced significant growth, with total assets increasing from $128 million at IPO to $9.4 billion by the end of 2020, reflecting a compound annual growth rate of over 20% [6]. - Despite a decline of more than 70% from early 2020 highs, Allied has consistently outperformed the S&P TSX Total Returns Index since its IPO [6]. Recent Developments - Allied has been active in M&A, acquiring six office towers for $794 million in 2021 and consolidating ownership in various projects with Westbank [8]. - The company sold its data center portfolio for $1.35 billion, significantly improving its balance sheet and reducing its debt-to-assets ratio to 34.7% by the end of 2023 [9]. Current Market Position - As of the end of 2023, Allied's occupancy rate was 87.3%, down from the 90% range in 2021 and 2022 [11]. - The company faces upcoming lease renewals, with 7.1% of its space due in 2024 and 9.9% in 2025, which could impact rental spreads [11]. Financial Outlook - Analysts project flat earnings over the next couple of years, with a consensus estimate for funds from operations (FFO) of $2.26 per share in 2024, slightly increasing to $2.27 in 2025 [15]. - The current distribution yield is 10.5%, with a payout ratio of approximately 80%, indicating that while the distribution is currently sustainable, there are risks associated with future leasing and debt obligations [16][17]. Valuation and Investment Thesis - Allied is trading at a low valuation of 7.5 times the expected FFO for 2024, providing a margin of safety for investors [18]. - The company's strong balance sheet and focus on Class I office space in downtown areas are seen as positive factors for long-term recovery in the office sector [19].

Ampco-Pittsburgh Corporation (NYSE:AP) Q4 2023 Results Earnings Conference Call March 26, 2024 10:30 AM ET Company Participants Kim Knox - Corporate Secretary Brett McBrayer - Chief Executive Officer Sam Lyon - President, Union Electric Steel Corporation David Anderson - President, Air & Liquid Systems Corporation Mike McAuley - Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants Justin Bergner - Gabelli Funds David Wright - Henry Investment Trust Dennis Scannell - Ruta ...

Financial Performance - Net sales for 2023 reached $422,340, an increase of $32,151 compared to $390,189 in 2022, with the majority of the increase attributed to the Air and Liquid Processing segment [82]. - The Forged and Cast Engineered Products segment reported net sales of $303,761, representing 72% of total sales, while the Air and Liquid Processing segment accounted for $118,579, or 28% [82]. - The consolidated loss from operations was $34,574 in 2023, compared to an income of $2,778 in 2022, with the Air and Liquid Processing segment experiencing a significant loss of $29,084 [82]. - Net loss attributable to Ampco-Pittsburgh was $(39,928) or $(2.04) per share for 2023, compared to a net income of $3,416 or $0.18 per share in 2022 [93]. - Total net sales for 2023 reached $422,340 thousand, an increase of 8.2% compared to $390,189 thousand in 2022 [120]. - Operating costs and expenses totaled $456,914 thousand in 2023, up from $387,411 thousand in 2022, reflecting a significant increase of 17.9% [120]. - The net loss for the year ended December 31, 2023, was $38,119 thousand, compared to a net income of $3,980 thousand for the year ended December 31, 2022 [128]. Backlog and Orders - The backlog of orders as of December 31, 2023, was approximately $378.9 million, an increase from $369.0 million at year-end 2022, with a 13% expectation of backlog release after 2024 [24]. - The ALP segment's backlog increased by approximately $14.5 million due to improved order intake across product lines [24]. - The backlog for the Forged and Cast Engineered Products segment was $247,603, while the Air and Liquid Processing segment had a backlog of $131,309, totaling $378,912 for the Corporation [82]. - Backlog increased to $378,912 as of December 31, 2023, from $369,018 in 2022, with approximately 13% expected to be released after 2024 [86]. Employee and Labor Relations - Approximately 58% of the Corporation's 1,697 active employees are based in the United States, with 31% covered by collective bargaining agreements [26]. - The company faces potential disruptions to operations due to industrial actions or work stoppages related to collective bargaining agreements with unions [51]. Financial Position and Liquidity - The company has a $100 million senior secured asset-based revolving credit facility, which is subject to various covenants; failure to meet these could materially affect financial position and liquidity [35]. - Liquidity is dependent on cash on-hand, operational cash flows, and access to capital markets; failure to maintain adequate liquidity could hinder financial obligations [36]. - Cash and cash equivalents decreased by $1,449 during 2023, ending the period at $7,286 compared to $8,735 at the end of 2022 [105]. - The Corporation's total assets increased to $565,654,000 in 2023 from $502,774,000 in 2022, reflecting a growth of approximately 12.5% [117]. - The Corporation's total shareholders' equity decreased to $71,571,000 in 2023 from $113,396,000 in 2022, a decline of approximately 37% [118]. Costs and Expenses - Selling and administrative expenses rose to $50,884 (12.0% of net sales) in 2023 from $43,527 (11.2% of net sales) in 2022, mainly due to increased employee-related costs [88]. - Interest expense increased to $9,347 in 2023 from $5,434 in 2022, attributed to higher average interest rates and increased borrowings [89]. - The charge for asbestos-related costs in 2023 was $40,696, compared to a credit of $(2,226) in 2022, reflecting increased estimated settlement costs [88]. - Operating costs and expenses totaled $456,914 thousand in 2023, up from $387,411 thousand in 2022, reflecting a significant increase of 17.9% [120]. Market and Economic Factors - The FCEP segment's sales are significantly influenced by the global steel and aluminum industry, which may experience cyclical downturns affecting demand and profitability [32]. - Excess global capacity in the steel industry may lead to lower prices, adversely affecting sales, margins, and profitability [33]. - Increases in energy and commodity prices, along with geopolitical factors, have raised costs and may disrupt production, impacting profitability [38]. - The company is subject to tariffs of 25% on primary steel imports and 10% on primary aluminum imports, which could reduce margins and market share [46]. Cybersecurity and Risk Management - Cybersecurity risks pose a significant threat to the company's financial condition and operations, necessitating robust risk management and incident response strategies [60]. - The company has established a Cybersecurity Materiality Assessment Team to evaluate the potential impact of cyber incidents on operations and financial position [66]. - The Audit Committee oversees the Corporation's cybersecurity program, with regular updates provided to senior management regarding cyber risks and incidents [70]. - The Corporation has not experienced any known material breaches related to cyber-attacks, but recognizes cybersecurity as a top risk management priority [68]. Environmental and Regulatory Factors - The Corporation's management anticipates that expenditures for environmental control matters will not be material in 2024 [25]. - The company is subject to increased costs and operational impacts due to environmental regulations and climate change-related risks, which may affect manufacturing processes and material availability [50]. Pension and Employee Benefits - The Corporation's long-term rate of return on domestic pension plan assets is estimated at 7.70%, while actual returns approximated 12.41% for 2023 [111]. - The fair value of the defined benefit pension plan assets was $163,929 million as of December 31, 2023, compared to accumulated benefit obligations of $185,839 million [197]. - The total employee benefit obligations decreased to $30,436 million in 2023 from $32,296 million in 2022, representing a reduction of approximately 5.76% [205].

Sales Performance - Q4 2023 sales increased by 16% to $108.1 million compared to Q4 2022, while full year 2023 sales rose by 8% to $422.3 million compared to 2022[2]. - The Air and Liquid Processing segment saw a 35% increase in sales for Q4 2023 and a 31% increase for the full year 2023 compared to the prior year periods[2][10]. - The Forged and Cast Engineered Products segment sales increased by 9% for Q4 2023, driven by higher mill roll shipments and improved pricing[8]. - Total net sales for the three months ended December 31, 2023, were $108,108,000, an increase of 15.6% from $93,534,000 in the same period of 2022[20]. - Net sales for the twelve months ended December 31, 2023, reached $422,340,000, up 8.2% from $390,189,000 in 2022[20]. Financial Losses - The full year 2023 loss from operations was $34.6 million, which includes a $40.9 million non-cash asbestos-related revaluation charge recorded in Q4 2023[1][3]. - Net loss attributable to Ampco-Pittsburgh for Q4 2023 was $41.8 million, or $2.12 per share, compared to a net loss of $0.5 million, or $0.02 per share, in Q4 2022[7]. - The net loss attributable to Ampco-Pittsburgh for the three months ended December 31, 2023, was $(41,836,000), compared to a loss of $(463,000) in the same period of 2022[20]. - Basic net loss per share attributable to Ampco-Pittsburgh common shareholders for the three months ended December 31, 2023, was $(2.12), compared to $(0.02) in the prior year[20]. Operational Performance - The Forged and Cast Engineered Products segment reported a net income from operations of $4,000 for the three months ended December 31, 2023, down from a loss of $(1,648,000) in the same period of 2022[19]. - The Air and Liquid Processing segment experienced a loss from operations of $(38,470,000) for the three months ended December 31, 2023, compared to a profit of $5,509,000 in the same period of 2022[19]. - Total operating costs and expenses for the three months ended December 31, 2023, were $149,685,000, compared to $92,590,000 in the same period of 2022[20]. - The adjusted (loss) income from operations for the three months ended December 31, 2023, was $(690,000), compared to $(1,282,000) in the same period of 2022[21]. Tax and Charges - The income tax provision for the full year 2023 included a $1.3 million tax benefit related to the asbestos-related charge[6]. - The company reported an income tax benefit of $1,699,000 for the three months ended December 31, 2023, compared to a provision of $(144,000) in the same period of 2022[20]. Future Outlook - The conclusion of the U.S. forged business equipment modernization program is expected in Q1 2024, positioning the company to capture market opportunities[5]. - Interest expense increased due to a rise in total debt and interest rates compared to the prior year[5]. - The company operates manufacturing facilities in the U.S., England, Sweden, and Slovenia, and participates in joint ventures in China[12].

Core Viewpoint - Allied Properties REIT is facing challenges in the office market due to weak demand and an anticipated oversupply in 2024, despite improvements in its balance sheet and rental revenue growth [2][3][14] Company Overview - Allied Properties invests in office properties across major Canadian cities, with a focus on maintaining a sustainable dividend [1] - The company has shown resilience with a 5.0% increase in rental revenue to C$138.5 million in Q3 2023, and a 5.7% increase in same asset net operating income (NOI) to C$86.4 million [3][4] Financial Performance - Q3 2023 financial highlights include: - Same asset NOI increased by 5.7% year-over-year - Adjusted funds from operations (AFFO) rose by 3.6% to C$76.2 million - Occupancy rate decreased by 280 basis points to 86.8% [3][4] - The overall office vacancy rate in Canada reached 16.7% in Q4 2024, up 90 basis points from the previous year, indicating a trend of increasing vacancies [5][6] Market Conditions - The Canadian office market is expected to see an influx of 5.7 million square feet of new office space in 2024, significantly higher than the 3.8 million square feet added in the previous year [5][6] - Net absorption of new office supply has been negative since 2020, with a negative absorption of 5.2 million square feet in 2023, suggesting continued challenges for occupancy rates [6] Balance Sheet and Debt Management - Allied Properties' net debt to EBITDA ratio improved to 7.9x at the end of Q3 2023, down from 9.6x in Q2 2022, due to asset disposals [7] - The company faces significant debt maturities in 2025 and 2026, with C$893.4 million and C$936.4 million maturing, representing 20.5% and 21.5% of total loans, respectively [7][8] Future Outlook - Management anticipates continued development projects, with 1.8 million square feet of ground-up developments, 81% of which are pre-leased [11][12] - The company is expected to generate an AFFO of about C$2 per share, resulting in a price to AFFO ratio of 10.4x, which is low compared to historical trading ranges [13] Investment Considerations - Despite attractive valuation metrics, the ongoing weak demand for office properties and potential economic recession in 2024 suggest that investors may want to remain cautious and consider waiting on the sidelines [14]

Ampco-Pittsburgh Corporation (NYSE:AP) Q3 2023 Earnings Conference Call November 14, 2023 10:30 AM ET Company Participants Kim Knox – Corporate Secretary Brett McBrayer – Chief Executive Officer Sam Lyon – President-Union Electric Steel Corporation Dave Anderson – President-Air & Liquid Systems Corporation Mike McAuley – Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants Justin Bergner – Gabelli Funds Operator Welcome to the Ampco-Pittsburgh Corporation Third Quarter 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-898 AMPCO-PITTSBURGH CORPORATION Pennsylvania 25-1117717 (State of Incorporation) (I.R.S. Employer Identification No.) 726 Bell Avenue, S ...

Ampco-Pittsburgh Corporation (NYSE:AP) Q2 2023 Results Conference Call August 10, 2023 10:00 AM ET Company Participants Kim Knox - Corporate Secretary Brett McBrayer - CEO Mike McAuley - SVP, CFO & Treasurer Sam Lyon - President, Union Electric Steel Corporation Dave Anderson - President of Air & Liquid Systems Corporation Conference Call Participants David Wright - Henry Investment Trust Justin Bergner - Gabelli Funds Operator Good day. and welcome to the Ampco-Pittsburgh Corporation Second Quarter 2023 Ea ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-898 AMPCO-PITTSBURGH CORPORATION Pennsylvania 25-1117717 (State of Incorporation) (I.R.S. Employer Identification No.) 726 Bell Avenue, Suite ...

Ampco-Pittsburgh Corporation (NYSE:AP) Q1 2023 Earnings Conference Call May 16, 2023 10:30 AM ET Company Participants Kim Knox - Corporate Secretary Brett McBrayer - CEO David Anderson - President of Air & Liquid Systems Corporation Sam Lyon - President of Union Electric Steel Corporation Mike McAuley - CFO Conference Call Participants Justin Bergner - Gabelli Funds David Wright - Henry Investment Trust Operator Welcome to the Ampco-Pittsburgh Corporation First Quarter 2023 Earnings Results Conference Ca ...