OTCPK:SLTT.F

Stock Analysis Report

Executive Summary

Slate Office REIT is an open-ended real estate investment trust.


Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

How has Slate Office REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SLTT.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

SLTT.F

-4.7%

US REITs

-7.6%

US Market


1 Year Return

-16.1%

SLTT.F

11.6%

US REITs

10.2%

US Market

Return vs Industry: SLTT.F underperformed the US REITs industry which returned 12.8% over the past year.

Return vs Market: SLTT.F underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

SLTT.FIndustryMarket
7 Day-1.7%-4.7%-7.6%
30 Day-2.0%-1.5%-4.5%
90 Day-1.8%0.9%-0.6%
1 Year-10.8%-16.1%16.1%11.6%12.5%10.2%
3 Yearn/a31.7%15.3%37.1%28.3%
5 Yearn/a52.7%21.3%60.8%43.2%

Price Volatility Vs. Market

How volatile is Slate Office REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Slate Office REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLTT.F ($4.37) is trading below our estimate of fair value ($10.13)

Significantly Below Fair Value: SLTT.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SLTT.F is good value based on its PE Ratio (5.6x) compared to the REITs industry average (36.3x).

PE vs Market: SLTT.F is good value based on its PE Ratio (5.6x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SLTT.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SLTT.F is good value based on its PB Ratio (0.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Slate Office REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-2.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SLTT.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if SLTT.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SLTT.F's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: SLTT.F's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SLTT.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Slate Office REIT performed over the past 5 years?

36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLTT.F has a large one-off gain of CA$54.6M impacting its September 30 2019 financial results.

Growing Profit Margin: SLTT.F's current net profit margins (31.6%) are lower than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: SLTT.F's earnings have grown significantly by 36.9% per year over the past 5 years.

Accelerating Growth: SLTT.F's earnings growth over the past year (11.4%) is below its 5-year average (36.9% per year).

Earnings vs Industry: SLTT.F earnings growth over the past year (11.4%) exceeded the REITs industry 5.9%.


Return on Equity

High ROE: SLTT.F's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Slate Office REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SLTT.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SLTT.F's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: SLTT.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SLTT.F has a sufficient allowance for bad loans.

Low Risk Liabilities: SLTT.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SLTT.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SLTT.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SLTT.F has an appropriate level of bad loans.


Next Steps

Dividend

What is Slate Office REIT's current dividend yield, its reliability and sustainability?

7.06%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%1.5%markettop25%4.0%industryaverage3.7%forecastin3Years7.1%

Current dividend yield vs market & industry

Notable Dividend: SLTT.F's dividend (7.02%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: SLTT.F's dividend (7.02%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SLTT.F has been paying a dividend for less than 10 years.

Growing Dividend: SLTT.F has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.6%), SLTT.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLTT.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Scott Antoniak 0

5.1yrs

Tenure

CA$700,000

Compensation

Mr. Scott Raymond Antoniak has been the Chief Executive Officer of Slate Office REIT (Formerly FAM Real Estate Investment Trust) since January 22, 2015. Mr. Antoniak also serves as a Chief Operating Office ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD526.78K) is below average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Antoniak
Chief Executive Officer5.1yrsCA$700.00k0.039% CA$120.6k
Steve Hodgson
Chief Operating Officer3.3yrsCA$400.00k0.014% CA$44.0k
Michael Sheehan
Chief Financial Officer0.2yrsno data0.0016% CA$5.1k
Katie Fasken
Associate4.1yrsno datano data
Ramsey Ali
General Counsel of Slate Asset Management LP0yrsno data0.017% CA$54.7k
Lisa Rowe
Senior Vice President of Finance & Taxation7.1yrsno datano data
Brandon Donnelly
Managing Director of Development of Slate Asset Management L.P.0yrsno datano data
Darrell Shipp
Director of Acquisitions0yrsno datano data
Greg Stevenson
Chief Executive Officer of Slate Retail REIT4.5yrsno datano data
Lindsay Stiles
Vice President of Asset Management4.1yrsno datano data

4.1yrs

Average Tenure

Experienced Management: SLTT.F's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Farley
Independent Trustee2.8yrsCA$79.50k0.10% CA$322.7k
John O'Bryan
Independent Chairman of the Board4.5yrsCA$103.50k0.039% CA$123.2k
Nora Duke
Independent Trustee4.7yrsCA$76.75k0.021% CA$65.0k
Meredith Michetti
Independent Trustee1.1yrsno data0.0044% CA$13.8k
Blair Welch
4.8yrsno data0.030% CA$95.1k
Brady Welch
5.3yrsno data0.15% CA$461.2k
Monty Baker
Independent Trustee2.1yrsCA$86.50kno data

4.5yrs

Average Tenure

57yo

Average Age

Experienced Board: SLTT.F's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SLTT.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.


Top Shareholders

Company Information

Slate Office REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Slate Office REIT
  • Ticker: SLTT.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$416.301m
  • Market Cap: CA$288.814m
  • Listing Market Cap: CA$312.952m
  • Shares outstanding: 73.16m
  • Website: https://www.slateofficereit.com

Location

  • Slate Office REIT
  • 121 King Street West
  • Suite 200
  • Toronto
  • Ontario
  • M5H 3T9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOT.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADDec 2012
SLTT.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDDec 2012

Biography

Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio comprises 38 strategic and well located real estate assets located primarily across Canada's major population centres and includes two downtown assets in Chicago, Illinois. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:55
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.