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

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

[HRc60to65]

From Q2, June 30, 2024

Properties :  1,090,313,000
Properties held for sale : 377,259,000  discount 40%: 150,900,600
Total Properties : 1,467,572,000
Less discount 40%: 150,900,600
Properties net: 1,316,672,000
Debts:                1,209,107,000
Common shares : 107,565,000
unit outstanding:85,909,378  and 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

[HRc60to65]

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..

[Ladislav3]

The 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

[BondManSlate]

your comments are inaccurate, discount seems to be on all properties imo from below: Slate Office REIT - Slate Office REIT Reports Second Quarter  The REIT revalued its property portfolio as at June 30, which resulted in a $154.4 million negative fair value adjustment in the second quarter as a result of third-party appraisals received, the REIT's own estimates, and property sales

[Tree2tree]

Bond, I think you are correct that the entire portfolio has been revalued.  But this is a continuous process when the market is shifting.  In the event of a sale under pressure, the bids might still come in below the revised book value.  But many of us suspect that the market will start to improve from here, in part due to falling interest rates.  So each day that SOT remains

[BondManSlate]

I agree with you. There's a lot of misinformation on this board about debentures, which could be mistaken for an attempt to manipulate in order to acquire more or pure ignorance.