TORONTO, ON--(Marketwired - August 05, 2016) - Slate Office REIT (TSX: SOT.UN) (the "REIT"), a leading owner of office properties in Canada, today announced its financial results for the three months ended June 30, 2016. Senior management is hosting a conference call at 9:00 a.m. ET Friday, August 5th, 2016 to discuss the results and ongoing business initiatives of the REIT.

The REIT reported strong results in a quarter highlighted by the acquisition of a new office building in the GTA, increased ownership in the Places assets, the sale of a non-core asset and significant leasing activity. Reflecting on the last three months of operations, Scott Antoniak, the REIT's Chief Executive Officer, said in a letter to unitholders:

"We saw continued improvement in a number of key financial metrics and completed a successful equity offering in order to finance a pair of accretive acquisitions. We are pleased with these results and realize that we are still in the early stages of what will be an exciting journey. We remain convinced that our strategy is sound and we are prepared to execute on that basis."

Read the full letter to unitholders here

Quarterly Highlights

• Same-property NOI was $12.3 million representing a 2.5% increase, Core-FFO was up 8.0% to $0.27 per unit and AFFO was up 9.5% to $0.23, all compared to Q1 2016.
• The REIT's AFFO payout ratio was 84.4% for the three months ended June 30, 2016, compared to the payout ratio of 90.3% for the previous quarter and 128.3% for the same quarter of the previous year.
• Completed the acquisition of Gateway Centre in Markham, Ontario for an aggregate purchase price of $57.5 million.
• Increased the REIT's interest in the Places assets in St. John's, Newfoundland by 19% to 49% for an additional investment of $27.4 million.
• Completed the issuance of 4,531,137 units for gross proceeds of $35.6 million.
• Disposed of 125-185 First Street, located in Cochrane, Alberta, a non-core retail property, for a sale price of $4.1 million, realizing proceeds of $2.3 million after repayment of debt and transaction costs.
• Completed lease transactions for 187,375 square feet during the quarter, highlighted by the 101,170 square foot renewal of the Province of Nova Scotia, a 27,618 square foot renewal of SNC-Lavalin Nuclear Inc., a new 16,000 square foot lease with a technology company and, subsequent to quarter-end, the 82,955 square foot lease extension exercised by the Federal Government.

                                                                            
Summary of Results                                                          
                                                                            
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                                                          Three months ended
(thousands of dollars,                                                      
 except per unit amounts)      June 30, 2016  March 31, 2016   June 30, 2015
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Revenue                      $       28,197  $       27,569  $       14,390 
Net operating income                 12,760          11,774           7,634 
Net income and comprehensive                                                
 income                              15,244           3,621          10,480 
Funds from operations                                                       
 ("FFO")                              9,078           8,173           4,719 
Core FFO                              9,588           8,676           4,763 
Adjusted FFO                 $        8,192  $        7,338  $        3,684 
                                                                            
Weighted average number of                                                  
 trust units (000s)                  35,674          35,334          20,024 
FFO per unit                 $         0.25  $         0.23  $         0.24 
Core FFO per unit                      0.27            0.25            0.24 
AFFO per unit                          0.23            0.21            0.18 
Distributions per unit       $       0.1875  $       0.1875  $       0.1875 
AFFO payout                            84.4%           90.3%          128.3%
                                                                            
Occupancy (1)                          89.7%           89.4%           90.0%
Occupancy - portfolio                  85.8%           85.0%           90.0%
Interest coverage                      3.3x            3.2x            2.5x 
Net debt to adjusted EBITDA                                                 
 leverage                             10.2x            9.7x            9.8x 
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(1) Excluding redevelopment properties.                                     
                                                                            

/EINPresswire.com/ -- Distributions and Fully-Covered Payout Ratio
During the quarter the REIT paid monthly distributions of $0.1875 per unit, or $0.75 per unit on an annualized basis. Distributions paid to unitholders are paid at the same rate to holders of the REIT's Class B LP units and are paid on or about the 15th day of the month following declaration.

For the three months ended June 30, 2016, the AFFO payout ratio was 84.4%, compared to the payout ratio of 90.3% for the previous quarter and 128.3% for the same quarter in the previous year. The significant decrease in payout ratio is mainly due to the overall growth of the portfolio.

Conference Call and Webcast
Senior management will host a live conference call at 9:00 a.m. ET on Friday, August 5th, 2016 to discuss the results and ongoing business initiatives of the REIT.

The conference call can be accessed by dialing (647) 788-4919 or 1 (877) 291-4570. Additionally, the conference call will be available via simultaneous audio found at http://www.gowebcasting.com/7697. A replay will be accessible until August 19, 2016 via the REIT's website or by dialing (416) 621-4642 or 1 (800) 585-8367 (access code 41595270) approximately two hours after the live event.

About Slate Office REIT (TSX: SOT.UN)
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio currently comprises 34 strategic and well-located real estate assets located primarily across Canada's major population centres. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit slateam.com/SOT to learn more.

About Slate Asset Management L.P.
Slate Asset Management L.P. is a leading real estate investment platform with over $3 billion in assets under management. Slate is a value-oriented company and a significant sponsor of all its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

For Further Information:
Investor Relations
Tel: +1 416 644 4264
E-mail: ir@slateam.com

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