TORONTO--(BUSINESS WIRE)--Slate Office REIT (TSX: SOT.UN) (the "REIT") today provided an update regarding the impact of COVID-19 on its business.
“At Slate Office REIT, our priority continues to be ensuring the safety and well-being of our team and tenants as we work together to navigate the impacts of COVID-19,” said Scott Antoniak, Chief Executive Officer of Slate Office REIT. “As a result of our team’s active outreach and dialogue with tenants, we are pleased to report that the REIT expects to substantially collect April rents, demonstrating the quality and strength of the REIT’s tenant base.”
Rent Collections
- The REIT’s April rent collections are 97%, inclusive of government tenants who typically pay at the end of the month which is consistent with the historical monthly collection cycle
- The REIT expects to substantially collect the remaining 3% of April rents through immediate cash collection or short-term deferral programs
Maritime Centre Refinancing
After creating value through leasing activity, the REIT refinanced the Maritime Centre in Halifax, Nova Scotia with a leading global financial institution on April 2, 2020. The refinancing is comprised of a $62.5 million mortgage and a $12.6 million construction facility for a term of 5 years with interest-only payments at a fixed rate of 2.8%. This transaction provides the REIT with $19.7 million of additional liquidity.
About Slate Office REIT (TSX: SOT.UN)
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio comprises 36 strategic and well positioned real estate assets located primarily across Canada's major population centres and includes two downtown assets in Chicago, Illinois. 61% of the REIT’s portfolio is comprised of investment grade or government tenants. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit slateofficereit.com to learn more.
About Slate Asset Management
Slate Asset Management is a leading real estate focused alternative investment platform with over $6.5 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability 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.
