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

Alternate Symbol(s):  SLTTF | T.SOT.UN | T.SOT.DB.A | T.SOT.DB.B

Slate Office REIT (the REIT) is a Canada-based global owner and operator of workplace real estate. The REIT is an unincorporated, open-ended real estate investment trust. The REIT owns interests in and operates a portfolio of real estate assets in North America and Europe. The REIT's portfolio is primarily comprised of government and credit tenants. The REIT's portfolio consists of approximately 54 commercial properties located in Canada, the United States and Ireland. The REIT's Canada operations include Atlantic, Ontario and Western. The REIT is externally managed and operated by Slate Management ULC.


TSX:SOT.DB - Post by User

Comment by Ladislav3on Aug 26, 2024 8:49am
116 Views
Post# 36195796

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

RE:RE:RE:Bonds are covered at 100% and common value 1.25$ per unitThe point is you are only discounting the properties held for sale and not all of the properties. If there was a liquidation event then the properties would all be sold and you would need to apply the discount to the total property value. 

Even a 30% discount to the total property value would result in a $1,027,300,400 valuation, so about $180M short to cover all of the debts and leaving no value for the shares. So we have to hope that the discount is closer to 20% (which would get us closer to paying off all of the debts). The real hope, of course, is that after selling the properties which are held for sale SOT.UN will be a going concern and have no need for further sales.

HRc60to65 wrote: SOT had already took a 150M$ discount to NAV on the properties held for sale, in Q2 2024.

The worst case is an other 150M$ discount for a 300M$ discount on the properties for sale..



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