Slate Office REIT Announces Disposition of Office Property in Toronto, Ontario for $97.0 Million

TORONTO--()--Slate Office REIT (TSX: SOT.UN) (the "REIT"), an owner and operator of high-quality workplace real estate, announced today that it has sold the property at 95-105 Moatfield Drive in Toronto, Ontario for a sale price of $97.0 million (the “Disposition”), which represents a 6.4% in-place capitalization rate or $239 per square foot.

Disposition Highlights

  • Advances the REIT’s growth strategy – The Disposition is consistent with the REIT’s strategy to position its portfolio in line with high-quality, modern assets with strong credit tenants, long lease terms, and cash flow yield
  • Validates the REIT’s real estate value – The Disposition is occurring at a 12.0% or $10.4 million premium to the REIT’s purchase price; the sale price represents a 5.0% increase to the REIT’s June 30, 2022 IFRS value, further validating the net asset value of the REIT
  • Increases the REIT’s available equity capital for redeployment – Proceeds from the sale will enable the REIT to immediately reduce its indebtedness and deploy capital towards accretive opportunities

The strategic disposition of the property at 95-105 Moatfield Drive is a testament to our team’s ability to unlock value for the REIT’s unitholders in all market conditions,” said Steve Hodgson, Chief Executive Officer of Slate Office REIT. “The sale price at a significant premium to purchase price further validates the REIT’s net asset value and the upside potential of the REIT’s stock and unlocks equity capital for the REIT to redeploy into more modern, high-quality assets with stable cash flow.”

About Slate Office REIT (TSX: SOT.UN)

Slate Office REIT is a global owner and operator of high-quality workplace real estate. The REIT owns interests in and operates a portfolio of strategic and well-located real estate assets in North America and Europe. The majority of the REIT’s portfolio is comprised of government and high-quality credit tenants. The REIT acquires quality assets at a discount to replacement cost and creates value for unitholders by applying hands-on asset management strategies to grow rental revenue, extend lease term and increase occupancy. Visit slateofficereit.com to learn more.

About Slate Asset Management

Slate Asset Management is a global alternative investment platform targeting real assets. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform has a range of real estate and infrastructure investment strategies, including opportunistic, value add, core plus, and debt investments. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

Forward-Looking Statements

Certain information herein constitutes “forward-looking information” as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “does not expect”, “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.

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Contacts

Investor Relations
+1 416 644 4264
ir@slateam.com

Media Contact
pressinquiries@slateam.com

Contacts

Investor Relations
+1 416 644 4264
ir@slateam.com

Media Contact
pressinquiries@slateam.com