TSX:SOT.DB - Post by User
Post by
Northforce13on Jun 25, 2024 12:11pm
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Post# 36105156
Surprised here
Surprised hereUnexpected. Very rare when a borrower is actively working to reduce debt.
This explains why Armoyan hasn't been buying.
Perhaps the lenders lost patience, maybe the CEO was semi slow walking asset sales and the lenders were unhappy. The CC sort of indicates this possibility, wherein the CEO alludes to hoping debt markets thaw somewhat to facilitate asset sales, which would not only facilitate asset sales, but perhaps also take the pressure off selling assets and thereby allow Slate to hold more assets and achieve its prime directive of maximizing asset management fees.
I guess we will see how this story plays out.
I own some debentures, if they turn into a total fire sale upon market trading resumption, I might contemplate doubling down and buying more, though obviously the dbes are riskier than before. The assets themselves are okish, the problems lie with the REIT itself.