Slate Office REIT Announces $21.3 Million of Property Dispositions in Manitoba and Provides Update on Unit Repurchase Activity

TORONTO–(BUSINESS WIRE)–Slate Office REIT (TSX: SOT.UN) (the “REIT”) announced today that it has
entered into an agreement to sell 895 Waverley Street and 1000 Waverley
Street in Winnipeg, Manitoba for a combined sale price of $21.3 million.
The REIT expects to use the net proceeds to reduce outstanding debt and
to fund continued unit repurchases.

“The disposition of 895 Waverley Street and 1000 Waverley Street
demonstrate the REIT’s ability to generate meaningful returns for
unitholders,” said Scott Antoniak, the REIT’s Chief Executive Officer.
“The dispositions are consistent with our plan to strategically recycle
capital to reduce debt and create liquidity for future opportunities.”

Disposition Highlights

• The asset sales will result in a levered internal rate of return of
  19%.
• The disposition price is at an 8.1% premium to the REIT’s IFRS value.
• These dispositions, in addition to the previously announced joint
  venture in the Greater Toronto Area, provide further validation for
  the net asset value of the REIT.
• The transaction is expected to close in the second quarter of 2019.

Normal Course Issuer Bid (“NCIB”) Update

• To date in 2019, the REIT has invested $11.3 million to repurchase and
  cancel approximately 1.8 million units. The repurchases have been
  completed at a weighted average price of $6.10 per unit.
• Management continues to believe that the REIT’s units are trading at a
  significant discount to the REIT’s net asset value and represent a
  compelling investment opportunity.

About Slate Office REIT (TSX: SOT.UN)

Slate Office REIT is an open-ended real estate investment trust. The
REIT’s portfolio comprises 41 strategic and well-located real estate
assets located primarily across Canada’s major population centres
including two downtown assets in Chicago, Illinois. The REIT is focused
on maximizing value through internal organic rental and occupancy growth
and strategic acquisitions. Visit slateofficereit.com
to learn more.

About Slate Asset Management L.P.

Slate Asset Management L.P. is a leading real estate investment platform
with over $6 billion in assets under management. Slate is a
value-oriented manager and a significant sponsor of all of 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.

Contacts

Investor Relations
+1 416 644 4264
ir@slateam.com