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

RE:Bonds are covered at 100% and common value 1.25$ per unit

[TVR]

If the properties held for sale were really sold for a 40% discount to NPV valuation it would be reasonable to assume the remaining properties were similarly impaired in value and only realizable at $650 million, not the $1,090 million NPV,  If that was the case SOT.UN units would be worthless and so would the convertible debentures.  With REIT sector sentiment improving a little and what looks like a move to sustained lower interest rates I think the 40% value reduction on properties held for sale is too high.  It really would be a forced emergency sale if they had to let them go at a 40% discount.  If SLAM can keep this as a going concern it is quite likely the REIT units will increase over time and debentures will get back to 60% plus.  However, the liklelihood of SOT.UN units ever getting back to the $5 range is now improbable. There has been too much value destruction already with probably more to come.