The following is a summary of the Slate Office REIT (SLTTF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Slate Office REIT completed over 624,000 square feet of leasing in 2023, a significant 11% increase from 2022, and completed an additional 150,000 square feet of new leasing after the quarter ended.
The REIT sold an asset in Mississauga, Ontario for a gross purchase price of $19.2 million, and the proceeds from these dispositions were used to repay around $18 million of debt.
In relation to portfolio realignment, $120 million worth of assets that do not align with their long-term plan are under contract for disposition or in various stages of negotiation.
Business Progress:
There is an accelerating demand for high-quality office space being seen from both emerging and established companies.
Active discussions are ongoing with two users for new or expansion leasing which would contribute to the REIT's net operating income beginning in late '24 and into '25.
Deal signed with a leading financial technology company for a 107,000 square foot space, and their occupancy is expected to increase due to limited lease rollover and a pipeline of over 700,000 square feet for new leasing and renewals.
The Company is expecting to add about $3 million of net operating income at a significant lease location in 2025 with pending costs likely to be around $8-9 million.
An increase in activity noted at the beginning of the year, pointing to interested buyers for their on-market real estate assets, particularly in the smaller snack brackets.
More details: SLATE OFFICE REIT IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
