TSX:SOT.DB - Post by User
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MARKOPOLISon May 03, 2023 8:44am
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DOWNGRADES SLATE OFFICE REIT MANY DROP TARGETS
DOWNGRADES SLATE OFFICE REIT MANY DROP TARGETS
* CIBC’s Dean Wilkinson lowered his Slate Office REIT (SOT.UN-T) target to $2.50 from $3 with a “neutral” rating. Others making changes include: Raymond James’ Brad Sturges to $2.25 from $3.25 with a “market perform” rating, TD’s Jonathan Kelcher to $2.50 from $3.75 with a “hold” rating and RBC’s Tom Callaghan to $2.75 from $4.75 with a “sector perform” rating. The average is $2.83.
“While SOT has experienced a deep contraction in its 2023E P/AFFO multiple following its decision to prudently reduce its annualized distribution rate in April, we believe a recovery in SOT’s unit price may be constrained until such time that the REIT meaningfully reduces its significant near-term debt maturity exposure and financial leverage metrics trend closer to long-term target levels once private market activity allows for SOT to prudently pursue asset sales at deemed new FMVs,” said Mr. Sturges