Slate Office REIT has internalized its management ahead of schedule and rebranded as Ravelin Properties REIT.

In conjunction with those moves, Shant Poladian assumed the role of Ravelin’s CEO on January 1.

In a move designed to streamline operations and reduce costs, the REIT amended its management agreement with Slate Asset Management to accelerate the previously agreed termination. which had been scheduled for March 30, 2025.

“The board is eager to enter a new chapter for the REIT, which begins with an internalized management team,” said activist investor George Armoyan, chair of the REIT’s board. “We believe that the Internalization will significantly reduce costs for the REIT by eliminating the fees payable under the management agreement and better align the interests of management with the REIT’s unitholders to drive long-term value.”

The management agreement termination date was moved to December 31, 2024. To facilitate the acceleration, the REIT made a $2-million termination fee to Slate Asset Management. The payment reflects the approximate net present value of fees that would have been owed under the original timeline, said the REIT.

Additionally, the amendment allows the REIT to offer employment to certain employees of the manager and eliminates the manager’s trustee nomination rights, further solidifying the transition to an internalized management structure, said the REIT.

The moves resulted after Armoyan was appointed chair of the financially troubled REIT’s board. He succeeded Sam Altman, who stepped down both as chair and a trustee.

As part of the transition to internalized management Slate Asset Management initiated the termination of its management agreement with the REIT in October 2024. Brothers Blair Welch and Brady Welch also resigned from the REIT’s board, effective immediately. The Welches are the principals of SAM and Brady Welch serves as the company’s CEO.

Poladian becomes the newly branded REIT’s top executive after joining the board in November 2024. Armoyan credited him with playing a pivotal role in expediting the management-internalization process and guiding the REIT through it.

“While there is important work ahead of us, we are confident that Shant is well suited to lead the internal team going forward and execute on the REIT’s new strategic direction,” said Armoyan.

With the name change to Ravelin, the REIT’s ticker symbols on the Toronto Stock Exchange will change as follows:

• Units: SOT.UN → RPR.UN
• 9.00% Debentures: SOT.DB → RPR.DB
• 5.50% Debentures: SOT.DB.A → RPR.DB.A
• 7.50% Debentures: SOT.DB.B → RPR.DB.B

The REIT’s capitalization will remain unchanged, and no action is required from unitholders regarding the name or trading symbol changes.

The Globe and Mail reported that the REIT has debt of more than $1.1 billion and a market capitalization of $33 million, citing S&P Global Market Intelligence data.

The REIT paid fees of $13.7 million and $20.7 million in 2023 and 2022, respectively, to Slate Asset Management, according to the Globe.

The REIT, which operates a portfolio of commercial real estate assets across North America and Europe, is facing mounting financial pressures due to its high debt levels. The majority of its tenants are government and high-credit-quality clients.

Pictured: Ravelin property in Winnipeg

Photo: Ravelin Properties REIT