TSX:SOT.DB - Post by User
Comment by
Malpeque2on Oct 23, 2022 3:39pm
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Post# 35042206
RE:RE:RE:SOT Haters
RE:RE:RE:SOT HatersSclarda: Let me help you out with the financials. Slate Office represents a "basket" of Office properties thru Canada and US. And one retail in Flim Flam. Where the Welch Bros and this BOD have their world headquarters :)
From the June 2022 Financials Release. LTV is 59%. Debt/EBITDA is 13.1. Interest Coverage Ratio is 2.1. There are all kind of near the high end of Public traded REIT's in US or Canada, making Slate a bit on the "risky" side.
FFO was .14c Canadian for the June 2022 Q. This is 56c Annualized.
AFFO was .13c Canadian for the same Q. This is 52 cents Annualized.
On a $4.50 Stock price, we are trading at a levered Cap Rate of 12.44% FFO and 11.55% AFFO Cap Rate.
We financed the Chicago acquisiton on the margin with Convert Debentures yielding 7.5% to get an 8.4% NOI Cap Rate.
You have to realize that the NOI number is before paying SLAM for their Managment Fees And the Company Reported FFO is AFTER paying SLAM am their management Fees.
My business judgement is that the Trustees for SOT made a "mistake" in not using the Cash Proceeds from the Toronto sale to both pay down some of the highest cost debt available to be paid, and using some of the CASH on the margin to repurchase shares at a discount to IFRS NAV and a 11.55% AFFO levered or equity yield.