TORONTO, ON--(Marketwired - November 03, 2016) - Slate Office REIT (TSX: SOT.UN) (the "REIT"), a leading owner of office properties in Canada, today announced its financial results for the three months ended September 30, 2016. Senior management is hosting a conference call at 9:00 a.m. ET Friday, November 4, 2016 to discuss the results and ongoing business initiatives of the REIT.

The REIT reported strong results in a quarter highlighted by the acquisition of a new office building in Winnipeg, Manitoba, increased ownership of the The Places in St. John's, Newfoundland, and significant leasing activity in New Brunswick and Nova Scotia. Reflecting on the last three months of operations, Scott Antoniak, the REIT's Chief Executive Officer, said:

"Slate Office REIT delivered another solid quarter of financial results in Q3 2016 -- we saw continued improvement in some of the REIT's key financial metrics, completed a successful equity offering in order to finance a pair of accretive acquisitions, and executed a long-term lease extension with a key tenant, Medavie Blue Cross. We are very pleased with these results and the direction of the REIT overall as we continue on the path to becoming a dominant owner and operator of Canadian office assets."

Quarterly Highlights

  • AFFO was $9.0 million for the third quarter representing an increase of $0.8 million compared to the second quarter of 2016.
  • The REIT's AFFO pay-out ratio was 87.3%.
  • Same-property NOI increased 0.6% compared to the same quarter in the prior year.
  • Portfolio occupancy during the third quarter increased 50 basis points to 86.3%.
  • Completed 335,231 square feet of leasing.
  • Achieved a 46.2% increase for new leases at the Maritime Centre in Halifax, Nova Scotia over the current in- place rent from Bell Aliant.
  • Completed a renewal of 155,470 square feet with Medavie Blue Cross in Moncton, New Brunswick through to 2029, representing 49% of the property.
  • Increased ownership of The Places in St. John's, Newfoundland, by 51% to 100% for $73.4 million.
  • Acquired 365 Hargrave St. in Winnipeg, Manitoba, a 90.1% occupied office building leased to the Government of Canada through 2025 for $12.3 million.
  • Completed the redevelopment of 2251 Speakman Drive and turned over the property to SNC-Lavalin Nuclear in July 2016.
  • Issued 6,104,500 units of the REIT for gross proceeds of approximately $51.6 million.
  • The volume of units that traded this quarter was over 8.6 million compared to 4.5 million units traded in the previous quarter.
Summary of Results
    Three months ended
(thousands of dollars, except per unit amounts) September 30,
June 30,
September 30,
Revenue $31,330 $28,197 $29,133
Net operating income  14,449  12,760  13,887
Net income and comprehensive income  2,984  15,244  4,830
Funds from operations ("FFO")  9,989  9,078  9,526
Core FFO  10,507  9,588  9,867
Adjusted FFO $9,004 $8,192 $8,294
Weighted average number of trust units (000s)  41,449  35,674  35,567
FFO per unit $0.24 $0.25 $0.27
Core FFO per unit  0.25  0.27  0.28
AFFO per unit  0.22  0.23  0.23
Distributions per unit $0.1875 $0.1875 $0.1875
AFFO payout  87.3%  84.4%  80.4%
Occupancy (1)  90.2%  89.7%  89.2%
Occupancy - portfolio  86.3%  85.8%  89.2%
Interest coverage  3.2x  3.3x  3.0x
Net debt to adjusted EBITDA leverage  9.8x  10.2x  9.4x
(1) Excluding redevelopment properties.

Conference Call and Webcast
Senior management will host a live conference call at 9:00 a.m. ET on Friday, November 4th, 2016 to discuss the results and ongoing business initiatives of the REIT.

The conference call can be accessed by dialing (647) 788-4919 or 1 (877) 291-4570. Additionally, the conference call will be available via simultaneous audio found at A replay will be accessible until November 18, 2016 via the REIT's website or by dialing (416) 621-4642 or 1 (800) 585-8367 (access code 83608480) approximately two hours after the live event.

About Slate Office REIT (TSX: SOT.UN)
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio currently comprises 35 strategic and well-located real estate assets located primarily across Canada's major population centres. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit to learn more.

About Slate Asset Management L.P.
Slate Asset Management L.P. is a leading real estate investment platform with over $3.5 billion in assets under management. Slate is a value-oriented company and a significant sponsor of all 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 proven ability to originate and execute on a wide range of compelling investment opportunities. Visit to learn more.

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