Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB.A

RE:RE:RE:RE:Offering is $4.90 but trading for $5+

[CanSiamCyp]

Hey Altman!

BMO Capital has teamed with RBC on the secondary SR bought deal. BMO has been reporting on SOT.un for many years, and I bought in when BMO had an Outperform rating on the REIT. That was before the REIT mismanaged grossly, and had to cut the distribution in half (where it has remained to date) - at which point BMO adopted a Market Perform rating (where it has remained to date). The one saving grace is that I hold SOT.un in a non-registered account and the REIT has always paid a high % of RoC in their distribution - so my ACB has almost reduced to the current market price at present. Maybe another year or two of RoC will lead me to a breakeven point!

I believe that the Welch brothers at SLAM have noted the excellent results that DIR.un has achieved with their partial pivot to European properties. By holding the non-European properties unencumbered by mortgages and concentrating all mortgages on the European properties - at interest rates sub 2% - DIR.un has implemented a very profitable combo strategy. I believe that SLAM wants to try to replicate that. Fingers crossed that SOT.un's external management team with minimal alignment to unitholder interests and a major focus on incentives linked to new acquistions will actually accomplish something beneficial to the unitholders!

Cheers!

Altman1979 wrote: Hi Guys, RBC's SELL-side analysts are seperate from the investment bank. No relation due to securities regulations. Perhaps this is the reason they went with RBC (there is no SELL recommendation fro mthe sell-side!) There are no BUY recommendations from any research house on this name. They went with the big guys at RBC. It was a BOIUGHT deal, meaning that SOT already received the proceeds, and now it's up to RBC to divy it up among investors wantign a slice of the pie. SOT is definitely a contrarian call on the office market. I have a meaningful holding in this name and my thesis is that many can withstand an 8% drop in stock price (which would bring them to breakeven at year end due to the 8% divy) in order to have a "call option" on the office market. Diversification is always good, and I believ ethey were telegraphing expansion into EU in their latest earnings release.