Core Viewpoint - Allied Properties Real Estate Investment Trust reported encouraging operational results for Q2 2025, with slight increases in leased area, stable average net rent, accelerated non-core property sales, and progress in balance-sheet management [1]. Operations - Allied's portfolio includes three urban workspace formats: Allied Heritage, Allied Modern, and Allied Flex, with strengthened utilization and demand in Q2 2025. The occupied area was 84.9% and leased area was 87.2% at the end of the quarter [2]. - A total of 588,373 square feet of Gross Leasable Area (GLA) was leased in Q2, with 546,437 square feet from the rental portfolio and 41,936 square feet from the development portfolio [3]. - The average in-place net rent per occupied square foot was $25.32, reflecting a 1.0% increase from the previous year. Renewals accounted for 54% of leases maturing in the quarter [4]. Portfolio Optimization and Non-Core Property Sales - The company is finalizing a large multi-city development pipeline initiated in 2012, with significant progress on properties like 150 West Georgia and KING Toronto [5]. - Allied sold seven non-core properties for $229 million last year and plans to sell additional non-core properties for at least $300 million this year to strengthen its balance sheet [7][8]. - In Q2, Allied closed the sale of a non-core property in Edmonton and has nine non-core properties under contract for approximately $200 million [8]. Balance-Sheet Management - As of the end of Q2, Allied had $120 million drawn on its $800 million unsecured revolving operating facility, with expectations to have no draws by year-end [10]. - The company is committed to maintaining access to debt capital markets and managing its balance sheet effectively [10]. Outlook - Management anticipates steady demand for urban workspace and expects Same Asset NOI growth of approximately 2% in 2025, despite a projected contraction in FFO and AFFO per unit by about 4% due to higher interest costs from acquisitions [11]. - Specific operating goals for year-end 2025 include achieving at least 90% occupied and leased area and selling non-core properties at or above IFRS value [12][15]. Financial Measures - For Q2 2025, rental revenue was $145.045 million, a decrease of 1.2% from $146.750 million in Q2 2024. Operating income was $79.950 million, down 3.0% from the previous year [13]. - The net income (loss) for Q2 2025 was $(94.740) million, compared to $28.062 million in Q2 2024, reflecting a significant decline [25]. - Total assets decreased to $10.416 billion from $10.981 billion year-over-year, a reduction of 5.1% [16].