The optimism expressed by Ravelin Properties REIT chief executive officer Shant Poladian in an April conversation with RENX continued in an interview following the release of its Q3 2025 financial and operational results.

“We've had a pretty good pick-up in leasing activity,” Poladian told RENX, “but there is a lag between working on a deal and getting it completed and then getting your rent to commence.”

While Ravelin's Q3 2025 same-property NOI (before lease termination fees) was $21.1 million, compared to $21.3 million for Q3 2024, Poladian expects the recent leasing momentum to be reflected in NOI results over future quarters. 

“It's a bumpy recovery, but there’s a recovery underway,” said Poladian, who became CEO of what was formerly Slate Office REIT after the Dec. 31, 2024 termination of a management agreement with Slate Management ULC which internalized the REIT’s management.

Ravelin’s net Q3 2025 loss (its results were announced Nov. 12) was $17.38 million on rental revenue of $47.54 million, down from a net loss of $182.07 million on rental revenue of $50.16 million a year earlier.

Third-quarter leasing

Ravelin’s portfolio was comprised of 45 properties in Canada, the United States and Ireland, encompassing approximately 6.5 million square feet of mainly office space, at the end of September. 

Twenty-five new leases and renewals covering 235,163 square feet were signed in the third quarter. These deals were completed at a weighted average net rental rate of $18.29 per square foot with a 6.5-year weighted average term. Excluding cases of leasing previously vacant space, they were completed at 20.5 per cent above the prior rental rate.

Ravelin’s current leasing pipeline exceeds 895,000 square feet of renewals and new leases across its global portfolio. It also has more than 100,000 square feet of rent reviews underway in Ireland, whereby the REIT has an opportunity to increase in-place rents to market rent levels during the lease terms.

Occupancy on Sept. 30 was 74.5 per cent, down from 75.8 per cent three months earlier. 

A return to pre-COVID-19 occupancy levels, or to potentially exceed them, is expected to take 24 to 36 months through better tenant service and enhanced execution capabilities under the REIT’s new internalized structure.

The occupancy decline was largely attributable to a previously known tenant departure from 75,000 square feet at the seven-storey, 105,341-square-foot 280 Broadway in Winnipeg.

Repurposing properties is being considered

Ravelin is reviewing the potential to redevelop 280 Broadway into a higher and better use, which may include a partial or full conversion to a self-storage facility. 

There are several other high-vacancy properties for which management is considering other alternatives to traditional office use.

Slate Office REIT built Winnipeg’s WI1 carrier-neutral data centre in 2015. There are potential growth opportunities in the asset class since Ravelin’s portfolio has several properties with attractive data centre attributes, including available surface land, access to fibre and high-power transmission lines.

Capital expenditures to improve properties

Ravelin acquired the remaining 25 per cent interests in Commerce West and Gateway Centre it didn’t already own for an undisclosed price from New-York based Wafra Inc. in September. The two Greater Toronto Area properties have a combined 659,713 square feet of gross leasable area.

“As a landlord, you've got to be investing in the buildings and interacting with the tenants, and having full control over the buildings allows us to do that,” Poladian said, explaining the rationale for the acquisition.

“A lot of buildings over the years have seen capital be deferred. It might have made sense at the time to save a little bit of money, but eventually you've got to pay those bills and have the deferred maintenance corrected so that they're functional — not just at the moment but into the future. 

“Things like parking structures are an area where there's not an immediate return on that investment. But as the buildings go from 70-something per cent occupancy into the 90s, the activity levels around those buildings and parking structures go up a lot. 

“So now's a good time to be investing that money back in and we've got active work that’s underway on these properties.”

Ravelin’s liquidity at the end of the third quarter consisted of unrestricted cash of $12.2 million, compared to $13.6 million on Dec. 31, 2024. This excludes property level restricted cash of $10.8 million, compared to $10.7 million at the end of 2024.

Ravelin’s loan-to-value ratio was 90.7 per cent at the end of the third quarter, compared to 89.4 per cent on Dec. 31, 2024.