Activist investor George Armoyan is set to take over as chair of the board of trustees at Slate Office, a move that comes after one of the real estate investment trust's largest shareholders terminated its management agreement.
Toronto-based Slate Office REIT, a company that owns property on both sides of the border including three assets in Chicago, said Sam Altman was stepping down as a trustee and a chair. In addition to Armoyan, longtime real estate industry veteran Shant Poladian will join the board, Slate Office said.
"It has been a busy year for the REIT, and it has become clear that a successful turnaround requires a new strategic direction," Armoyan said in a statement. "As chair, I will be working closely with the board on the restructuring of the REIT and internalization of management."
Toronto-based Slate Asset Management, a company that owns almost 10% of Slate Office, said last month it was terminating its management agreement with the REIT. Slate Asset also said it plans to increase its holdings in several commercial property types as it distances itself from the office sector.
Blair Welch and Brady Welch, founding partners of Slate Asset Management, previously stepped down as trustees of Slate Office REIT. Brady Welch has been serving as CEO, and the company website still lists him in that position.
Armoyan, through his holding companies, controls about 20% of the REIT. He had complained about the fees being charged by Slate Asset Management to administer the office REIT.
Slate Office has been forced to slash its dividend and sell off assets to bolster its balance sheet. The REIT's units trade under 50 cents, or 36 U.S. cents, and its market capitalization is less than $40 million, or approximately $28.6 million U.S. dollars.
In appointing Poladian as a trustee, the REIT is adding a senior real estate and capital markets professional with more than two decades of experience.
He has served on the board of Killam Apartment REIT since 2023. He is also managing director of Springhurst Capital, a real estate advisory firm, and CEO and co-founder of Junction Realty Partners, a boutique developer of mini-mid-rise rental apartments in Toronto.
Poladian also previously served as CEO of FAM REIT, the predecessor to Slate Office REIT.