Slate Office REIT

Good morning, ladies and gentlemen, and welcome to the Slate Office Street First Quarter 2024 Financial Results Conference Call. At this time, all lines are in the listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, May 3, 2024. I would now like to turn the conference over to Jennifer Titor, Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to the Q1 2024 Conference Call for Slate Office Reads. I am joined this morning by Brady Welch, Interim Chief Executive Officer, Robert Armstrong, Interim Chief Financial Officer, Evan Meister, Managing Director, Farid Jainoshe, Vice President, Andrew Broad, Vice President, and Jeremy Kopp, Vice President. Before getting started, I would like to remind participants that our discussion today may contain forward-looking statements, and therefore we ask you to review the disclaimers regarding forward-looking statements as well as non-IFRS measures, both of which can be found in Management Discussion and Analysis. You can visit Slate Office REIT's website to access all of the REIT's financial disclosure, including our Q1 2024 Investor Update, which is now available. I will now hand over the call to Brady Welch for opening remarks.

Thank you, Jen, and hello, everyone. I'm pleased to report a number of operational, financial, and transaction highlights from the first quarter. While the office sector continues to face headwinds, our team has remained focused on taking the necessary steps to position the REITs portfolio for long-term stability and growth through a focus on its balance sheet, value preservation, and hands-on asset management. Our team continued to drive steady leasing volumes in the first quarter. converting interest and demand from high quality credit tenants into new leases and renewals at positive leasing spreads and longer lease terms. We completed over 270,000 square feet of total leasing in the quarter, which is up 120% from the first quarter of 23. We believe this highlights a trend of steadily rebounding tenant demand. Leasing was completed at positive spread and weighted average lease term of over 10 years. Additionally, we've built a robust leasing pipeline with over 350,000 square feet of new potential lease deals and renewals in the works. With high quality credit tenants in the greater Toronto area, Atlantic Canada and Ireland, which would add to the net operating income beginning in late 2024 and into 2025. Only 3.6% of the portfolio's gross leaseable area is set to mature in the balance of the year, and we are leveraging our positive relationship with our tenants to sign renewals and extensions. We also continue to make progress on the REITs portfolio realignment plan this quarter. To date, we've completed over $40 million at share in dispositions through strategic sales of assets in Canada and Ireland. We currently have an additional 109 million at share of assets under contract or in letter of intent, and we are actively engaged with a number of potential purchasers for single assets and small portfolio transactions across Canada. Finally, our team continues to prudently manage the REITs balance sheet to ensure financial flexibility and stability for the REIT. In January, The REIT's unit holders passed a special resolution approving an amendment to the REIT's declaration of trust to temporarily remove the restriction imposed on the REIT to not exceed financial leverage of 65% of its gross book value. This amendment provides the REIT with greater financial flexibility while management continues to execute on the portfolio realignment plan and actively manage the REIT's portfolio. We are encouraged by the green shoots we are seeing in the global office market And we continue to have conviction in the value of our office portfolio and the actions the REIT has taken to retain cash, pay down debt, and proactively create value. On behalf of the Slate Office REIT team and the board, I'd like to thank the investor community for the continued support. And now I will hand it over for questions.