Slate Workplace REIT Stories Second Quarter 2024 Outcomes

Article content material

TORONTO — Slate Workplace REIT (TSX: SOT.UN) (the “REIT”), an proprietor and operator of high-quality office actual property, reported at the moment monetary outcomes and highlights for the three and 6 months ended June 30, 2024.

To entry the REIT’s Administration Dialogue and Evaluation (MD&A), please comply with the hyperlink right here.

Highlights

• The REIT accomplished 381,595 sq. toes of whole leasing within the quarter
  • New offers have been accomplished at 2.1% above common in-place lease, and renewals at 6.7% above expiring lease
  • The REIT has over 389,000 sq. toes of potential new leases and renewals within the pipeline with high-quality credit score tenants within the Higher Toronto Space, Atlantic Canada, and the US, which might add to internet working earnings starting in late 2024 and into 2025
  • 2.1% of the portfolio’s Gross Leasable Space (“GLA”) is about to mature within the steadiness of 2024, with renewal negotiations ongoing
• Made additional progress on the REIT’s Portfolio Realignment Plan, finishing practically $50.0 million at share in inclinations as at July thirty first, 2024
  • In Might, the REIT accomplished the sale of 84-86 Chain Lake, situated in Halifax, NS, for a gross buy worth of $10.4 million, and a Walmart situated in Flin Flon, MB, for a gross buy worth of $4.0 million
  • Subsequent to quarter finish, the REIT accomplished the sale of 570 Queen Road in Fredericton, NB, for a gross buy worth of $5.2 million
  • As of July thirty first, the REIT has an extra $149.9 million at share in property underneath contract, Letter of Intent, or in superior negotiations, representing 16.3% of the REIT’s GLA
  • Moreover, the REIT is engaged with plenty of potential purchasers on property marketed on the market and the REIT plans to formally launch advertising and marketing of property totaling 0.5 million sq. toes or roughly 7.0% of the REIT’s GLA within the coming weeks
• The REIT revalued its property portfolio as at June 30, which resulted in a $154.4 million unfavorable truthful worth adjustment within the second quarter on account of third-party value determinations obtained, the REIT’s personal estimates, and property gross sales

Article content material

Abstract of Q2 2024 Outcomes

Convention Name

Senior administration shall be foregoing the beforehand introduced dwell convention name scheduled for 9:00 a.m. ET on Friday, August 9, 2024. The REIT’s monetary outcomes and supplemental supplies have been filed on SEDAR+ and are additionally obtainable on the REIT’s web site within the Traders part. For any questions associated to the REIT’s monetary outcomes or ongoing enterprise initiatives, please contact the REIT’s investor relations workforce at ir@slateam.com or (416) 644-4264.

About Slate Workplace REIT (TSX: SOT.UN)

Slate Workplace REIT is a worldwide proprietor and operator of high-quality office actual property. The REIT owns pursuits in and operates a portfolio of strategic and well-located actual property property in North America and Europe. Nearly all of the REIT’s portfolio is comprised of presidency and high-quality credit score tenants. The REIT acquires high quality property at a reduction to substitute value and creates worth for unitholders by making use of hands-on asset administration methods to develop rental income, prolong lease time period and enhance occupancy. Go to slateofficereit.com to study extra.

About Slate Asset Administration

Slate Asset Administration is a worldwide different funding platform. We concentrate on fundamentals with the target of making long-term worth for our traders and companions. Slate’s platform focuses on 4 areas of actual property, together with actual property fairness, actual property credit score, actual property securities, and infrastructure. We’re supported by distinctive individuals and versatile capital, which allow us to originate and execute on a variety of compelling funding alternatives. Go to slateam.com to study extra, and comply with Slate Asset Administration on LinkedIn, X (Twitter), and Instagram.

Article content material

Article content material

Ahead Trying Statements

Sure info herein constitutes “forward-looking info” as outlined underneath Canadian securities legal guidelines which mirror administration’s expectations relating to targets, plans, targets, methods, future development, outcomes of operations, efficiency, enterprise prospects and alternatives of the REIT. The phrases “plans”, “expects”, “doesn’t count on”, “scheduled”, “estimates”, “intends”, “anticipates”, “doesn’t anticipate”, “initiatives”, “believes”, or variations of such phrases and phrases or statements to the impact that sure actions, occasions or outcomes “could”, “will”, “may”, “would”, “may”, “happen”, “be achieved”, or “proceed” and comparable expressions determine forward-looking statements. A few of the particular forward-looking statements contained herein embody, however should not restricted to, statements regarding the affect of the COVID-19 pandemic. Such forward-looking statements are certified of their entirety by the inherent dangers and uncertainties surrounding future expectations.

Ahead-looking statements are essentially primarily based on plenty of estimates and assumptions that, whereas thought-about affordable by administration as of the date hereof, are inherently topic to important enterprise, financial and aggressive uncertainties and contingencies. When counting on forward-looking statements to make choices, the REIT cautions readers to not place undue reliance on these statements, as forward-looking statements contain important dangers and uncertainties and shouldn’t be learn as ensures of future efficiency or outcomes, and won’t essentially be correct indications of whether or not or not the occasions at or by which such efficiency or outcomes shall be achieved. Numerous elements may trigger precise outcomes to vary, presumably materially, from the outcomes mentioned within the forward-looking statements. Extra details about dangers and uncertainties is contained within the filings of the REIT with securities regulators.

Non-IFRS Measures

We disclose plenty of monetary measures on this information launch that aren’t measures used underneath IFRS, together with NOI, identical property NOI, FFO, Core-FFO, AFFO, FFO payout ratio, Core-FFO payout ratio, AFFO payout ratio, NAV, adjusted EBITDA, internet debt to adjusted EBITDA ratio, curiosity protection ratio, debt service protection ratio and LTV ratio, along with sure measures on a fully-diluted per unit foundation.

Article content material

• NOI is outlined as rental income, excluding non-cash straight-line lease and leasing prices amortized to income, much less property working prices previous to Worldwide Monetary Reporting Interpretations Committee 21, Levies (“IFRIC 21”) changes. Rental income for functions of measuring NOI excludes income recorded on account of figuring out lease on a straight-line foundation and the amortization of leasing prices in income for IFRS. Identical-property NOI contains these properties owned by the REIT for every of the present interval and the related comparative interval.
• FFO is outlined as internet earnings adjusted for sure objects together with transaction prices, change in truthful worth of properties, change in truthful worth of economic devices, change in truthful worth of Class B LP models, deferred earnings taxes, tax on features on disposals of funding properties, distributions to Class B unitholders, depreciation and IFRIC 21 property tax changes.
• Core-FFO is outlined as FFO adjusted for the REIT’s share of lease funds obtained for a knowledge centre in Winnipeg, Manitoba (the “Knowledge Centre”), which for IFRS functions is accounted for as a finance lease.
• AFFO is outlined as FFO adjusted for amortization of deferred transaction prices; de-recognition and amortization of mark-to-market (“MTM”) changes on mortgages refinanced or discharged; changes for rate of interest subsidies obtained; recognition of the REIT’s share of lease funds obtained for the Knowledge Centre, which for IFRS functions, is accounted for as a finance lease; amortization of straight-line lease; and normalized direct leasing and capital prices.
• FFO payout ratio, Core-FFO payout ratio and AFFO payout ratio are outlined as mixture distributions made in respect of models of the REIT and Class B LP models divided by FFO, Core-FFO and AFFO, respectively.
• FFO per unit, Core-FFO per unit and AFFO per unit are outlined as FFO, Core-FFO and AFFO divided by the weighted common diluted variety of models excellent, respectively.
• NAV is outlined as the mixture of the carrying worth of the REIT’s fairness, Class B LP models, deferred models, and deferred tax legal responsibility.
• Adjusted EBITDA is outlined as earnings earlier than curiosity, earnings taxes, depreciation, truthful worth features (losses) from each monetary devices and funding properties, whereas additionally excluding non-recurring objects akin to transaction prices from inclinations, acquisitions or different occasions.
• Web debt to adjusted EBITDA is outlined as the mixture quantity of debt excellent, much less money readily available, divided by the trailing twelve month adjusted EBITDA.
• Curiosity protection ratio is outlined as adjusted EBITDA divided by the REIT’s curiosity expense for the interval.
• Debt service protection ratio is outlined as adjusted EBITDA divided by the debt service necessities for the interval, whereby the debt service necessities displays amortizing principal repayments and curiosity expensed throughout the interval. Funds associated to defeasance, prepayment penalties, or funds upon discharge of a mortgage are excluded from the calculation.
• LTV ratio is outlined as whole indebtedness divided by whole property much less restricted money.

Article content material

We use these measures for quite a lot of causes, together with measuring efficiency, managing the enterprise, capital allocation and the evaluation of danger. Descriptions of why these non-IFRS measures are helpful to traders and the way administration makes use of every measure are included in Administration’s Dialogue and Evaluation, which readers ought to learn when evaluating the measures included herein. We consider that offering these efficiency measures on a supplemental foundation to our IFRS outcomes is useful to traders in assessing the general efficiency of our companies in a way just like administration. These monetary measures shouldn’t be thought-about as an alternative to comparable monetary measures calculated in accordance with IFRS. We warning readers that these non-IFRS monetary measures could differ from the calculations disclosed by different companies, and because of this, might not be akin to comparable measures offered by others.

SOT-FR

Calculation and Reconciliation of Non-IFRS Measures

The tables beneath summarize a calculation of non-IFRS measures primarily based on IFRS monetary info.

The calculation of NOI is as follows:

Article content material

The reconciliation of money move from working actions to FFO, Core-FFO and AFFO is as follows:

The calculation of trailing twelve month adjusted EBITDA is as follows:

The calculation of internet debt is as follows:

Article content material

The calculation of internet debt to adjusted EBITDA is as follows:

The curiosity protection ratio is calculated as follows:

The next is the calculation of IFRS NAV on a complete and per unit foundation at June 30, 2024 and December 31, 2023:

View supply model on businesswire.com: https://www.businesswire.com/information/house/20240808660355/en/

Contacts

For Additional Info

Investor Relations
Tel: +1 416 644 4264
E-mail: ir@slateam.com

#distro

Article content material