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

RE:Like A Bikini

[Northforce13]

Appreciate the post

""Much is left to be revealed here post the SOT press release regarding SLAM. Resigning from the Board allows the Welchs to negiotate with the Board without a conflict. It is very unlikely that SLAM will not get compensation for relinquishing the management contract. That is just what happens in this scenario."

I agree.  I do not know how GA managed to get this done.  Either
1)  Offering something to the SLAM
2)  Forcing SLAM; threat of letting the REIT go bankrupt while simultaneously presenting a viable plan to the board and lenders if the SLAM contract & Welches are gone.  This would bring pressure from the board and the lenders onto the Welches to acquiesce.

#2 likely

"The notion that a micro REIT can efficiently internalize should be bothersome to all unitholders. Normally efficiency is not gained until a billion dollars in market cap. This is precedent setting!"

GA has done so several times.  Googling George Armoyan + Royal Host, then Holloway, then Clarke will reveal a rich history that is entertaining to read.  Many instances where GA usurped BODs in companies and turned them around.  There are 3 instances, all with much smaller companies than SOT, where he got rid of similar management contracts. 

Further to GA's history, generally those buying into situations whereby he is involved have done well alongside him.  This last point was the primary motivator of such research.  


"Those that are blaming SLAM for this fiasco, are unwittingly ignoring the fact that the office market has changed drastically since Covid in 2020."

That is true, yet SOT's problems far exceed those of the average office REIT.  

An expensive management contract which, firstly is expensive, but more importantly incentivizes loading up on leverage and debt to expand the asset base beyond prudence is the fault of SLAM. 

SOT is one of the most levered office REITs in Canada.  Attributable to motivation to increase asset management fees.  This is what GA has been fighting to fix for years.  He has succeeded.

"Hanging your hat on GA  after he has lost his shirt here is a bold move IMO."

GA still has his shirt.  He has not sold.  His shirt may be dirty and unattractive at this time, after a long fight rolling around in mud and grime, and emerging victorious.  He just threw his shirt in the wash, from which it is likely to come out good as new -)

I am all in on GA, though admittedly uncertain of what will transpire.