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

Can anyone shed any light on this

[rad10]

https://greenstreetnews.com/article/slate-office-reit-selling-gateway-centre-for-42-5m/

[TVR]

I think the Greenstreet source is reliable but the article is not available without a subscription and a quick Google search did not show anybody else reporting this.  Assuming this is accurate it does not sound like a good deal  - $42.5 million for a property they paid $57.5 million for 8 years ago. Jun 7, 2016 · Slate Office REIT has a deal to acquire Gateway 

[Tree2tree]

Remember most of the assets have been substantially written down already.  So that sale price could even be above the current carrying value.  It's safe to say with hindsight that they overpaid for some assets, but that is water under the bridge now.  The key question is whether they can extract something close to carrying value and well above mortgage debt on any sales.

[pennylane101]

They sold a 25% interest in that property a few years ago.  It's on the web somewhere and not difficult to find. Their ownership interest is now only 75%.  I did a few quick calculations a week back and it appears that they'll just break even if the property sells for what it is listed at.  If I'm wrong, let me know.

[Tree2tree]

"break even" vs what?  Purchase price?  Book value?  Mortgage on the property?

[pennylane101]

The purchase price, of course.  When they acquired that property, they announced $85 million of acquisitions and $50 million public offering of units. Does anyone know what the mortgage on the property is?  Here is the link to the article: https://www.globenewswire.com/fr/news-release/2016/06/06/1323881/0/en/Slate-Office-REIT-Announces-85-Million-of-Acquisitions-and-50-Million-Public

[Tree2tree]

Re the mortgage on the property, they don't show that information in the property list.  But I am looking closer at note 9, page 13 of the financial report, where they show the categories of secured and unsecured debt.   The "Term loan" has a ratio to fair value of the pledged properties of just 51%, and is secured by the Irish properties.  So they would get the most

[pennydredful]

THey   have  been    insolvent   for   sometime   ie   failed  to  make   mortgage and bond  interest payments   when   due.  

[Northforce13]

"I have seen companies sell off assets before in a way that showed no concern for the common shareholders." Often controlled by directors that own little shares "The fact that they are not dumping everything on the market suggests to me that the goal is still to preserve some amount of equity for the common shareholders." They own a tremendous amount of shares, it is in

[TVR]

When the Irish Property package acquistion from Yew Grove was announced in 2021 the REIT raised $130 million from a combined share and convertible debenture offering to fund the $255 purchase so it looks like the term loan may be the only financial liability against the Irish Portfolio, unless it has been subsequently pledged as security elsewhere.  If this is the case a sale of the irish

[TVR]

Current occupancy for the Gateway Centre is 82% (Q2 MD&A), down from the reported 95% when the REIT acquired the  property so that will account for some of the lower value.