Mr. Brady Welch reports

SLATE OFFICE REIT REPORTS FOURTH QUARTER AND YEAR END 2023 RESULTS

Slate Office REIT has released financial results and highlights for the three months and year ended Dec. 31, 2023.

"Over the last quarter, our team has been laser focused on the key drivers of stability and performance for the [real estate investment trust]," said Brady Welch, interim chief executive officer of Slate Office. "We have remained active on new leasing and renewals, and are converting the resilient demand for our high-quality office spaces into a robust pipeline of near-term leasing opportunities with rapidly emerging and blue-chip tenants. At the same time, we have made progress on the REIT's portfolio realignment plan, completing a $19.2-million disposition with an additional $120.0-million of dispositions currently under contract or in negotiations."

Highlights:

• Maintained stable leasing volume while establishing a robust pipeline of near-term leasing opportunities with strong, growing tenants:
  • The REIT completed over 624,779 square feet of total leasing in the year, up 10.9 per cent over 2022 volume.
  • Subsequent to quarter-end, the REIT completed over 150,000 square feet of new leasing across Ontario and Atlantic Canada at a weighted-average lease term of 13.1 years.
  • The REIT is currently in active discussions with two users in the Greater Toronto Area for new or expansion leasing totalling nearly 240,000 square feet, which would add to net operating income beginning in late 2024 and into 2025.
  • Only 4.8 per cent of the portfolio's gross leasable area is set to mature in 2024, with renewal negotiations continuing.
• Gained positive momentum on the REIT's portfolio realignment plan during the fourth quarter, with many private regional buyers expressing interest in the REIT's assets identified for disposition:
  • Subsequent to quarter-end, the REIT completed the sale of the Sheridan Exchange, located at 2655 to 2695 North Sheridan Way in Mississauga, Ont., for a gross purchase price of $19.2-million at share.
  • As at Feb. 15, 2024, the REIT has approximately $120.0-million at share in assets under contract for disposition or in various stages of negotiation, representing approximately 12.7 per cent of the REIT's GLA.
  • As at Feb. 15, 2024, the REIT has repaid $17.9-million of debt using proceeds from dispositions executed as part of the portfolio realignment plan.
• Subsequent to quarter-end, the REIT's unitholders passed a special resolution approving an amendment to the REIT's declaration of trust to temporarily remove the restriction imposed on the REIT not to exceed financial leverage of 65 per cent of its gross book value:
  • The amendment to the REIT's declaration of trust provides for greater financial flexibility while management continues to execute on the REIT's portfolio realignment plan and actively manage the REIT's portfolio, as previously defined.

Conference call and presentation details

Senior management will host a live conference call at 9 a.m. ET on Thursday, Feb. 15, 2024, to discuss the results and continuing business initiatives of the REIT. The conference call will be available by dialling 416-764-8658 or 1-888-886-7786. Additionally, the conference call will be available on simultaneous audio. A replay will be accessible until Feb. 29, 2024, on the REIT's website or by dialling 416-764-8692 or 1-877-674-7070 (access code 874565 followed by the number sign) approximately two hours after the live event.

About Slate Office REIT

Slate Office is a global owner and operator of high-quality workplace real estate. The REIT owns interests in and operates a portfolio of strategic and well-located real estate assets in North America and Europe. The majority of the REIT's portfolio is composed of government and high-quality credit tenants. The REIT acquires quality assets at a discount to replacement cost and creates value for unitholders by applying hands-on asset management strategies to increase rental revenue, extend lease term and increase occupancy.

We seek Safe Harbor.