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

Interest coverage ratio dropping

[rad10]

This is the sick dog of the REIT space.

[Northforce13]

They are hugely cash flow negative and bleeding out on the operating table. Their dispositions are happening at a snails place despite the CEO's blah blah blah about being a "first mover" and other catchy buzzwords.  Either because they don't REALLY want to sell assets, OR they can't sell them at the price they want.  Asset values might be overstated since Slate

[pennydredful]

On  the  C.C.  trans script  it said   properties   being  sold  were   at   30%   of    IRF  values   and  later  refferred  to  a sale  as  " opportunistic"  .    " Read  em  an weep" 

[rad10]

  I wonder who the buyers are?  Manji is getting over IFRS on his sales at Artis. 30% of IFRS with minimal marketing whiffs of a "friends and family special" Armoyan and his guys got an overwhelming endorsement with the vote.  Time to clean up this mess.  

[pennydredful]

They  claim  buyers   are  local  " smaller"  guys not   national   and the  biggest  barrier   to  sales is obtaining  mortgage  money   .   Selling  at   30%  0f   IFRS   smells  like  desperate  fire  sales. 

[Northforce13]

They aren't selling at 30% of IFRS value, the CC is misinterpreted.  Either it means something else, or it means IFRS less 30%.  The latter might be possible.  If taking into consideration my prior statements on these boards speculating that the true value of their properties might be lower than stated book, due to Slate getting a % of GBV and being motivated to inflate the

[pennydredful]

READ  the   transcript  .   They   sold   them   ultra  cheap  as   no   mortgages  on   these   so it raises cash    for    needed   liquidity  .   In  real estate  parlance:   They  were  open   to&

[rad10]

I nearly dropped the phone when I heard it, and waited to read the transcript. "in some cases 30% (of IFRS) is a good number ".....

[Capharnaum]

I think the key comment is they say they are 30%-40% inside IFRS value.

[pennydredful]

and   what  would  you  suggest  the  word   " inside "  means   other  than a deceptive word  designed  to  make  the  truth  cloudy. 

[rad10]

The follow up question clarified it.

[Capharnaum]

I don't think it clarified, since the questions just asks if it's 30% to 40% of the IFRS value, but could refer to what was said "decently inside". I just don't see how selling at 30% of the IFRS value would help in paying net debt down compared to just keeping it leased. 

[pennydredful]

some  of the sold  properties  are  likely largely  unleased  .  It   is  not  so much  about  paying debt down  but  keeping  monthly   payments  current.  Its   like   selling  your  furniture  etc.  at   a garage sale  so   you can&

[rad10]

  that's the frightening part. HR and Artis are both realizing full assessed values on their sales.  This is some scary stuff.  I want to know who the buyers are, and are they really at arms length.

[Northforce13]

I don't it's a conflicted buyer issue, I think it's more of a historical overvaluation of their properties issue, which is being revealed.  If they overvalued their properties by say 30%, that would generate 30% more management fees for Slate management.   An interesting thought is if they overvalued and this could be proven (difficult), then Slate Office could sue

[pennydredful]

As you  say  their  valuations could   be stale   dated  and  there  is   a negative  motivation  to  fix that. 

[Capharnaum]

Their average cap rate at IFRS is 8.07%. Selling at 30% lower than IFRS would mean selling at around 11.4% cap rate. Selling at 30% of IFRS value would mean a cap rate of 26.7 %.

[pennydredful]

Properties  sold   could  have no tenants   or  few   with   high   vacancy   so  the   term  cap  rate would  not apply   as   properties  are  operating  at  a loss.