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Slate Office REIT (TSE:RPR.UN)
:RPR.UN
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Slate Office REIT
(TSX:RPR.UN)
53Neutral
Slate Office REIT (RPR.UN) vs. S&P 500 (SPY)
Market Cap
C$43.78M
Dividend Yield1.79%
Average Volume (3M)64.37K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth0.66%
EPS Growth-178.71%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength78
IndustryREITs
Share Statistics
EPS (TTM)-5.33
Shares Outstanding80,562,460
10 Day Avg. Volume95,436
30 Day Avg. Volume64,369
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)2.80
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Slate Office REIT Business Overview & Revenue Model
Company DescriptionSlate Office REIT is a real estate investment trust focused on acquiring, owning, and leasing high-quality office properties across North America. The company's portfolio primarily consists of office spaces that cater to a range of tenants across various sectors, including but not limited to finance, technology, and government services. Slate Office REIT is dedicated to providing stable and growing cash flows to its investors through strategic property management and acquisitions.
How the Company Makes MoneySlate Office REIT generates revenue primarily through the leasing of office spaces within its property portfolio. The company earns rental income from tenants who occupy these spaces, and it may also benefit from ancillary services related to property management. Additionally, Slate Office REIT actively seeks to enhance its earnings through strategic acquisitions of new properties, aiming to increase occupancy rates and rental income. Partnerships with real estate brokers and other stakeholders in the real estate sector can further influence its revenue generation. The REIT may also engage in dispositions of properties where it sees an opportunity to realize capital gains, contributing to its overall income.
Slate Office REIT Financial Statement Overview
Summary
Slate Office REIT's financial health is under pressure with declining revenues, increasing losses, and high leverage. While some cash flow metrics are positive, the overall trajectory suggests financial instability. The company needs to address profitability issues and reduce leverage to improve its financial standing.Income Statement
The income statement shows a concerning trend with declining revenues and increasing net losses. The TTM data highlights a negative net profit margin and a significant decrease in EBITDA. The revenue growth rate has been modest, but profitability remains a critical issue.45
Neutral
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio that has worsened over time. The decrease in stockholders' equity and the increase in total debt are concerning trends. While asset levels remain relatively stable, the equity ratio has declined, indicating potential financial instability.50
Neutral
Cash Flow
Cash flow analysis shows a positive free cash flow and operating cash flow, but these have been declining. The operating cash flow to net income ratio is favorable due to negative net income, but sustainability is in question given the cash flow trends. Free cash flow growth is also showing signs of stress.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 198.78M | 197.62M | 196.51M | 172.65M | 183.59M | 215.52M | Gross Profit |
| 85.42M | 87.64M | 91.75M | 78.07M | 85.94M | 100.25M | EBIT |
| 52.61M | -69.11M | 78.63M | 69.61M | 81.02M | 92.63M | EBITDA |
| -342.63M | -69.11M | 79.59M | 70.63M | 82.08M | 93.63M | Net Income Common Stockholders |
| -408.09M | -113.12M | -18.10M | 53.30M | 6.72M | 64.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.85M | 11.27M | 19.91M | 9.91M | 8.52M | 6.12M | Total Assets |
| 1.71B | 1.75B | 1.87B | 1.81B | 1.68B | 1.71B | Total Debt |
| 924.60M | 983.01M | 1.15B | 1.05B | 972.60M | 1.00B | Net Debt |
| 912.75M | 971.74M | 1.13B | 1.04B | 964.08M | 995.83M | Total Liabilities |
| 1.22B | 1.23B | 1.22B | 1.19B | 1.07B | 1.08B | Stockholders Equity |
| 495.87M | 515.37M | 644.37M | 621.97M | 604.74M | 627.30M |
| Cash Flow | Free Cash Flow | ||||
| 28.25M | 30.14M | 26.64M | 13.53M | 23.46M | 22.32M | Operating Cash Flow |
| 37.48M | 40.12M | 49.56M | 38.23M | 46.45M | 49.30M | Investing Cash Flow |
| 24.15M | -26.36M | -88.37M | -134.27M | -7.89M | 116.57M | Financing Cash Flow |
| -64.74M | -15.20M | 49.75M | 95.33M | -35.98M | -166.91M |
Slate Office REIT Technical Analysis
Negative
0.51
Price Trends
0.53
Negative
0.50
Positive
0.47
Positive
Market Momentum
0.01
Negative
51.11
Neutral
52.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RPR.UN, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.53, and above the 200-day MA of 0.47, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RPR.UN.
Slate Office REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $4.94B | 10.54 | 6.34% | 6.91% | 11.62% | 1120.60% | |
68 Neutral | $8.30B | 37.15 | 14.89% | 0.27% | 13.08% | 146.40% | |
67 Neutral | $709.39M | ― | -2.86% | 8.41% | -10.56% | 81.41% | |
63 Neutral | C$2.66B | ― | -2.29% | 6.17% | -6.92% | -310.05% | |
61 Neutral | $4.44B | 16.16 | -3.31% | 11.40% | 5.81% | -21.40% | |
53 Neutral | C$43.78M | ― | -158.74% | 1.79% | 0.66% | -178.71% | |
53 Neutral | $329.80M | ― | -9.20% | 6.02% | 4.16% | -57.38% |
* Real Estate Sector Average
Performance Comparison
TSE:RPR.UN
Slate Office REIT
0.51
-0.20
-28.17%
TSE:REI.UN
RioCan Real Estate Investment
16.61
-0.79
-4.53%
TSE:D.UN
Dream Office Real Estate Investment
16.41
-2.12
-11.44%
TSE:CIGI
Colliers International Group
159.99
-0.86
-0.54%
TSE:AX.UN
Artis Real Estate Investment
7.17
1.19
19.90%
TSE:HR.UN
H&R Real Estate ate Staple
9.72
1.04
11.98%
Slate Office REIT Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -13.56% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with significant achievements in leasing activities and strategic dispositions, but also highlights the challenges faced in asset sales and financing. The REIT has taken steps to enhance financial flexibility and maintain stability amidst market headwinds.Highlights
Increased Leasing Activity
Completed over 270,000 square feet of total leasing in Q1 2024, up 120% from the first quarter of '23. Leasing was completed at positive spreads and a weighted average lease term of over 10 years.
Robust Leasing Pipeline
Built a robust leasing pipeline with over 350,000 square feet of new potential lease deals and renewals, expected to add to net operating income in late 2024 and into 2025.
Strategic Asset Dispositions
Completed over $40 million at share in asset dispositions in Canada and Ireland, with an additional $109 million at share of assets under contract or in letter of intent.
Financial Flexibility
Unitholders passed a resolution to temporarily remove the restriction on financial leverage, providing greater financial flexibility.
Lowlights
Asset Sales Below IFRS Value
Asset sales were about 30% below IFRS expectations, reflecting market challenges and the need to repay debt.
Challenges in Office Asset Financing
Limited debt capital availability is the biggest impediment to closing deals, affecting market efficiency and pricing.
Market Conditions for Asset Sales
Current market interest primarily from private buyers for smaller transactions, with limited institutional buyer activity.
Occupancy Challenges
Occupancy took a dip in Q1 2024, though efforts are being made to boost it with new leases.
Company Guidance
During the Q1 2024 earnings call, Slate Office REIT provided detailed guidance on its operational and financial performance. The company reported a significant increase in leasing activity, completing over 270,000 square feet of leasing, up 120% from the first quarter of the previous year, with a weighted average lease term of over 10 years. Furthermore, the REIT has built a robust pipeline with over 350,000 square feet of potential lease deals. On the portfolio management front, Slate Office REIT completed over $40 million in asset dispositions and has an additional $109 million under contract or in letters of intent. The REIT's balance sheet management included a special resolution allowing increased financial leverage beyond 65% of its gross book value to enhance financial flexibility amidst ongoing portfolio realignment. Despite the challenging market conditions, the REIT expressed optimism about the rebounding tenant demand and its strategic measures to retain cash and pay down debt.Slate Office REIT Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Ravelin Properties REIT Strengthens Leadership and Rebrands
Neutral
Jan 28, 2025
Ravelin Properties REIT has expanded its leadership team with several key appointments, solidifying its internal management structure. The move aligns with the company’s strategic goals following the termination of its external management agreement. Concurrently, Ravelin has changed its name and ticker symbols on the Toronto Stock Exchange, reflecting its new operational phase with no change in capitalization, ensuring a seamless transition for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.