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

Held for sale

[HRc60to65]

On December 31, 2023    the GLA were 7 525 170 sqft
On June 30, 2024             the GLA were 7 138 053 sqft
On December 31, 2024  the GLA will be 5 432 058 sqft  1 705 995 sqft to be sold for 212M$

On juily 31, 2024 16.9% of the GLA is for sale for 150M$, at share in assets under contract, Letter of Intent, or in advanced negotiations
On July 31, 2024 5.0% of the GLA will be pagage to sell for 62M$

Those sales are not announced yet.  It is why the sot.un price is going up and SLAM is going out.

GA can made an offer for those assets for sale or for the balance of SOT

[HRc60to65]

Including the past sales from december 2023 and the sales to come (2 165 000 GLA sqft sold)     - 261M$ will be refunded to lenders     - 91M$ (35%) of the 261M$ is unit holders equity

[HRc60to65]

the 91M$ of unit holders equity is not thrue. In fact it is SOT Trust 35% share of all assets.  That 91M$ (35%) of the assets sold or to be sold is debentures holders assets and units holders equity Debentures holders money is 158M$+unpaid interets of all SOT assets Units holders money is 255M$ or 3$/unit

[HRc60to65]

All asstes for sale are valued at 124.26$ per sqft It is less tha 1/3 of new building cost.  New building cost will be close to 400$ per sqft. SOT assets for sale are valued at 218.11$ per sqft. SLAM put for sale SOT asstes at price well below market value, it can be a big mistake. SLAM can be in conflict of interest, if SLAM is keeping management of the assets sold. If it is the case

[HRc60to65]

THe SOT assets was valued and put for sale at distress price and BK price. It is not in the best interest of the units holders and debentures holders. Who had fixed the selling price ? Some board directors was not agreed with those sales price, some of the quite the board some other stay on the board to protect units holders. Now SLAM will be out of the SOT board. What will happened ?

[HRc60to65]

The Irland assets were bought 254.8M$ for 962 000 sqft or 265$ per sqft. Using that 265$ per sqft isvaluating SOT assets at 1 890M$ That is proofing the selling price of SOT assets at 124$ per sqft is too low. It is a mistake of SLAM ? SOT assets at book value are at 218$ per sqft

[Tree2tree]

HR, the fact that proposed sales have not gone through suggests that somebody (probably GA) has been pushing back against desperation sales.  We are still alive, so the potential sale prices and the range of sale options are getting better day by day.   One thing we should not rule out is that GA will bring in cash in the form of equity, thereby increasing his holding.  That could