Wednesday, December 9, 2015

Fortis Inc. Is Buying Slate Office REIT Units. Should You? | The Motley Fool Canada

Fortis Inc. Is Buying Slate Office REIT Units. Should You? | The Motley Fool Canada: "Slate Office REIT (TSX:SOT.UN) at $7.40 per unit, invests in non-core office properties because it finds value there. These non-core assets make up 66% of Canada’s office space inventory, and they’re often overlooked by big investors. So, Slate can buy them at significant discounts.

Slate buys downtown and suburban office assets, and it only targets assets that have stable operating fundamentals and strong tenant profiles. Specifically, it has strict acquisition criteria. Assets must

be located in business centres across the country with sustainable/improving economies;
be situated in strategic office nodes with limited risk of new development and a history of stable vacancy;
be tenanted by quality businesses with strong credit profiles; and
be accretive to adjusted funds from operations (AFFO) per unit on a leverage neutral basis."



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