Slate Office REIT

SOT.UN-T

Analysis and Opinions about SOT.UN-T

Signal
Opinion
Expert
WATCH
WATCH
July 8, 2016

He likes the Slate team which are doing a lot of really interesting things across the board. This is more secondary office, suburban office buildings. It will be an interesting vehicle in the future, but we are not there yet, as he expects more pressure of people leaving older buildings in the suburbs and coming towards downtown cores. There will be a rebound at some point, and that is what they are going to profit from. These guys are masters at repositioning, and he is looking for them to dip their toes into Calgary, while it is cheap, and that is when you really want to take advantage of this REIT.

He likes the Slate team which are doing a lot of really interesting things across the board. This is more secondary office, suburban office buildings. It will be an interesting vehicle in the future, but we are not there yet, as he expects more pressure of people leaving older buildings in the suburbs and coming towards downtown cores. There will be a rebound at some point, and that is what they are going to profit from. These guys are masters at repositioning, and he is looking for them to dip their toes into Calgary, while it is cheap, and that is when you really want to take advantage of this REIT.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$7.840
Owned
No
COMMENT
COMMENT
April 27, 2016

This has started to recover in the last year. Pays a slightly better than 10% yield. There are 2 issues. A slowing economy hurts all REITs, but you also have an added premium on quality dividends, which is a tailwind. As long as management can continue to keep occupancy relatively high and run the business well, he thinks the dividend is fine, and that sentiment towards the business is going to improve.

This has started to recover in the last year. Pays a slightly better than 10% yield. There are 2 issues. A slowing economy hurts all REITs, but you also have an added premium on quality dividends, which is a tailwind. As long as management can continue to keep occupancy relatively high and run the business well, he thinks the dividend is fine, and that sentiment towards the business is going to improve.

Fabrice Taylor
Publisher, The President's Club Newsletter
Price
$7.900
Owned
Yes
COMMENT
COMMENT
December 18, 2015

A REIT that has gone through a couple of transitions and is in transition now. He tries not to own companies in transition, but wants to make sure they find their way properly. Their final destination is to be a suburban office REIT in Canada. A play that is early, but has potential. They have to manage very carefully. 10.95% distribution, which is high out of neglect, not weakness.

A REIT that has gone through a couple of transitions and is in transition now. He tries not to own companies in transition, but wants to make sure they find their way properly. Their final destination is to be a suburban office REIT in Canada. A play that is early, but has potential. They have to manage very carefully. 10.95% distribution, which is high out of neglect, not weakness.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$6.820
Owned
No
PAST TOP PICK
PAST TOP PICK
December 4, 2015

(A Top Pick Jan 28/15. Down 4.02%.) People are concerned about interest rates. They had a problem when the management contract was bought. New management had a private REIT and were moving assets from that into Slate at prices that were too high. However, the numbers they put out are pretty good. Yield is 10% which he thinks is pretty safe.

(A Top Pick Jan 28/15. Down 4.02%.) People are concerned about interest rates. They had a problem when the management contract was bought. New management had a private REIT and were moving assets from that into Slate at prices that were too high. However, the numbers they put out are pretty good. Yield is 10% which he thinks is pretty safe.

Fabrice Taylor
Publisher, The President's Club Newsletter
Price
$7.360
Owned
Yes
PAST TOP PICK
PAST TOP PICK
November 16, 2015

(Top Pick Jan 28/15, Down 6.49%) The management contract for this company was taken over and there were concerns. He is getting a decent coupon. Payout is about 80%. The discount on the stock is from skepticism about the relationship between the private and public companies.

(Top Pick Jan 28/15, Down 6.49%) The management contract for this company was taken over and there were concerns. He is getting a decent coupon. Payout is about 80%. The discount on the stock is from skepticism about the relationship between the private and public companies.

Fabrice Taylor
Publisher, The President's Club Newsletter
Price
$7.330
Owned
Yes
COMMENT
COMMENT
August 12, 2015

He recommended it to his subscribers, it has not done well. The yield has been very nice and has protected against capital losses. There has been an issue with the new management team . There is a view that they might not have shareholders interest best at heart. Management owns a bunch of stock privately. So they have to prove that they can deliver. The last numbers were very good. They have to subdue the worries from the investors. If they can do this, the stock should trade above 10. They do have some attractive assets (Data Centre in Winnipeg), just a credibility problem.

He recommended it to his subscribers, it has not done well. The yield has been very nice and has protected against capital losses. There has been an issue with the new management team . There is a view that they might not have shareholders interest best at heart. Management owns a bunch of stock privately. So they have to prove that they can deliver. The last numbers were very good. They have to subdue the worries from the investors. If they can do this, the stock should trade above 10. They do have some attractive assets (Data Centre in Winnipeg), just a credibility problem.

Fabrice Taylor
Publisher, The President's Club Newsletter
Price
$7.020
Owned
Yes
DON'T BUY
DON'T BUY
May 15, 2015

Their methodology is looking at the suburban office market, and continuing to grow on that. He is not a huge fan of office right now. It will be interesting to watch as the office market progresses, and once it stabilizes, it could provide some interesting opportunities.

Their methodology is looking at the suburban office market, and continuing to grow on that. He is not a huge fan of office right now. It will be interesting to watch as the office market progresses, and once it stabilizes, it could provide some interesting opportunities.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$7.900
Owned
No
TOP PICK
TOP PICK
January 28, 2015

All of the REITs took a beating about 1.5 years ago when investor started worrying about higher interest rates. Then they had a bit of controversy about the sale of the management contracts. A lot of investors, institutional especially, bailed out and drove the stock price down. Doesn’t think interest rates are going to go up a lot. This yields 9.29%, and he thinks you will get this plus a little bit of capital gain as people accept this new management team. Balance sheet is very, very conservative. Not a lot of debt. He can see 20% gain in the next year.

All of the REITs took a beating about 1.5 years ago when investor started worrying about higher interest rates. Then they had a bit of controversy about the sale of the management contracts. A lot of investors, institutional especially, bailed out and drove the stock price down. Doesn’t think interest rates are going to go up a lot. This yields 9.29%, and he thinks you will get this plus a little bit of capital gain as people accept this new management team. Balance sheet is very, very conservative. Not a lot of debt. He can see 20% gain in the next year.

Fabrice Taylor
Publisher, The President's Club Newsletter
Price
$8.400
Owned
Yes
DON'T BUY
DON'T BUY
November 13, 2014

Huntington Corporation spun this out. They were then purchased by the Slate Group. Because Huntington had the controlling interest in this REIT, the Slate Group decided they were going to turn it into a secondary office REIT and transition it. You now have 3 different groups shuffling around and it is in a transition situation that costs a lot. He doesn't like stocks in transition.

Huntington Corporation spun this out. They were then purchased by the Slate Group. Because Huntington had the controlling interest in this REIT, the Slate Group decided they were going to turn it into a secondary office REIT and transition it. You now have 3 different groups shuffling around and it is in a transition situation that costs a lot. He doesn't like stocks in transition.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$7.620
Owned
No
WAIT
WAIT
September 5, 2014

A little small for him. There is a transition happening. He would not be in it at all at this point. Buy it at the right price.

A little small for him. There is a transition happening. He would not be in it at all at this point. Buy it at the right price.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$8.370
Owned
No
BUY
BUY
September 24, 2013

They are trying, from humble beginnings, to become a blue chip REIT. They want to maintain proper debt levels, proper governance, proper structure and proper payout. Disadvantage is that they are very small right now and in order to grow through acquisitions, they are somewhat stuck while they wait for the equity markets to recover. Until then, you’re getting a safe yield. Good management team. 8.6% yield.

Slate Office REIT (SOT.UN-T)
September 24, 2013

They are trying, from humble beginnings, to become a blue chip REIT. They want to maintain proper debt levels, proper governance, proper structure and proper payout. Disadvantage is that they are very small right now and in order to grow through acquisitions, they are somewhat stuck while they wait for the equity markets to recover. Until then, you’re getting a safe yield. Good management team. 8.6% yield.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$8.710
Owned
Unknown
BUY
BUY
July 26, 2013

Why have REITs pulled back is much as they have and is there a favourite one that you like? REITs have pulled back because people are starting to price in higher interest rate. This is one that he finds intriguing because it is small and it is new. Doesn’t have any coverage, which he always finds attractive because when coverage does come, and if you own, it is going to go up. A controlling shareholder did a private placement at $9.40, which is encouraging. Pays a nice dividend of 8.3%. Payout ratio is very reasonable.

Why have REITs pulled back is much as they have and is there a favourite one that you like? REITs have pulled back because people are starting to price in higher interest rate. This is one that he finds intriguing because it is small and it is new. Doesn’t have any coverage, which he always finds attractive because when coverage does come, and if you own, it is going to go up. A controlling shareholder did a private placement at $9.40, which is encouraging. Pays a nice dividend of 8.3%. Payout ratio is very reasonable.

Fabrice Taylor
Publisher, The President's Club Newsletter
Price
$9.000
Owned
Yes
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