Slate Office REIT has announced plans to sell 40% of its gross leasable area.

“Management and the board have determined that the best course of action for unitholders is to execute a portfolio realignment plan that will improve the REIT’s liquidity, strengthen its balance sheet through reduced debt, and improve portfolio composition,” said Slate in a news release.

The Toronto-based REIT operates globally.

Slate said it has identified non-core assets in certain Canadian markets for strategic disposition and intends to use sale proceeds for debt repayment and general liquidity. In its third quarter report, Slate said it has about $1.2 billion in debt and $1.8 billion in assets.

“The continuing portfolio will be made up of assets that are similar in terms of their quality, occupancy, tenant profile and cash flow and are located in markets with strong economic drivers and stable office demand,” said the REIT.

Slate said occupancy remained stable at 78.6% in the third quarter.

The divestment process is expected to continue into 2025. A new PwC and Urban Land Institute report says office assets continue to fall out of favour with investors.

Photo: Slate Office REIT