TSX:SOT.DB - Post by User
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MARKOPOLISon Apr 21, 2023 8:46am
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Post# 35406819
BREAKING NEW DOWNGRADE SLATE OFFICE SUBURBAN OFFICE HIT
BREAKING NEW DOWNGRADE SLATE OFFICE SUBURBAN OFFICE HIT* IA Capital Markets’ Gaurav Mathur reduced his Slate Office REIT (SOT.UN-T) target by $1 to $3 with a “hold” rating. The average is $3.77. “Slate Office REIT cut its monthly distribution by 70 per cent on April 4,” he said. “Post the announcement, we discussed the outlook for Canadian suburban office properties with CRE brokers. Unsurprisingly, the data provided did not post a favourable view. Given the highest concentration in Canada, we spoke with CRE brokers on the state of the suburban office market. Collectively, tenants continue to give back space on the sublease market after an initial slowdown in 2022. Based on data provided by CRE brokers for the Toronto suburban office market, the increase in vacancy rates and decrease in net rents mirror market sentiment. The more interesting aspect of the data is the doubling of tenant incentives (TI) between Q1/19 and Q1/23, based on leases signed among various CRE brokers. We have decreased our revenue and NOI estimates amid sector headwinds, bringing our NAV to $4.00 per unit.”