TSX:SOT.DB - Post by User
Comment by
Roxy27on Nov 06, 2015 12:51pm
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Post# 24267139
RE:RE:Q3 looks good
RE:RE:Q3 looks goodThis is an $8.50 stock in 6 months. Check out their peer group on pg. 13 of their presentation.
It's pretty clear that with their AFFO payout, size and leverage metrics that this should yield under 9%.
it trading where it is because its an unknown. Its was FAM REIT and floundered under a "too smart for its own good growth plan", over distributing, forward purchase/lease agreement, yadadadada.
Then Slate took over and changed asset focuss, mangement contract, etc. All the while the share price dropped.
Retail investors don't have ability to figure this out.
Now they have a competant mgmt team, with a track record, skin in the game by way of shares (sweet mgm't contract offsets this a bit). They've delivered by growing (Fortis portfolio), they've delivered operationally (increasing rental rates on renewal) and previous "too smart for its own good forward purchase/lease agreements" are now kicking in.
This is a diamond in the rough for sure.
And oh yeah, an office portoflio with only 3% exposure to Alberta.
Looking forward to a 20% all in return next 6 months.