Q: a number of questions related to the Slate family of companies.
1) What is the relationship to each other, and the purpose of the different Slate ticker symbols?
2) For SGR.un, are they impacted or could problems at SOT.un spill over to them?
3) For SGR.un their payout ratio is very high. i) have they shown forward finacials that imply this will come down? ii) if not do you have any data which suggests the dividend could be at risk? I am thinking of investing just for the dividend, and hope that the principal will simply hold where it is. Thanks
1) What is the relationship to each other, and the purpose of the different Slate ticker symbols?
2) For SGR.un, are they impacted or could problems at SOT.un spill over to them?
3) For SGR.un their payout ratio is very high. i) have they shown forward finacials that imply this will come down? ii) if not do you have any data which suggests the dividend could be at risk? I am thinking of investing just for the dividend, and hope that the principal will simply hold where it is. Thanks
5i Research Answer:
SGR.UN is the symbol for common units of Slate Grocery REIT. SGR.U is the same, but traded in US dollars. SOT.UN is the common units for Slate Office REIT. SGR.R were rights associated with SGR.UN, but these rights have expired. Slate Asset Management, the management company, owns 4.9% of SOT.UN and 5.7% of SGR.UN. They are separately entities and issues at SGR should not impact SOT, other than perhaps 'reputational impacts'. SGR payout is 99.4%. The company has not provided recent guidance here. Per unit cash flow is expected to be flat this year and next. We would consider the risk of a cut to be quite high.