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

RE:RE:RE:RE:RE:RE:Q4 Earnings Opinion

[Capharnaum]

The whole point is that value can be argued a thousand ways... SOT ain't my top reit, I have small position due to the current cashflows. I think using .48 for FFO is a bit of a worst case. The hotel asset generates negative FFO and hotels in general are expected to improve in 2021. Their Atlantic property had enclosed retail and they are working with the city to repurpose it. They also have committed leases in 2021 which aren't included in the 2020 end of year occupancy.

It is not impossible that they have .48 FFO, but that would be really disappointing. I expect them to have at least .54 FFO in my projections (anything below would be a disappointment to me), and based on that, SOT would still be amongst the cheaper REITs.

Also, I do own larger positions in other REITs, which I think will have better outcomes (and while I've looked at HR and Dream Office, they don't move the needle much more than SOT to me). However, there's no point in me listing which one and why as it's pretty much based on my own perceptions and projections... I'll discuss those on their own board.