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  "documentTitle": "Oasis Stratus Presentation March 2021",
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  "notes": "The slide uses a strong accusatory tone to frame the REIT conversion as a 'stalling' tactic.",
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      "text": "A REIT conversion effectively halts all asset disposals for the first five years and gives management an excuse to continue to do nothing at the expense of shareholders, just as they have from 2015 through 2020.",
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      "text": "A halt on asset sales impairs the Company's ability to reduce its discount to NAV. Contrary to whatever Stratus believes, turning into a REIT will not magically shrink the NAV discount. There are plenty of examples of REITS that trade at sizeable discounts to NAV because they are out of favor with investors for many of the same reasons highlighted on the previous page.",
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      "text": "The perceived marginal tax savings that come from a REIT structure are unlikely to outweigh the reduction in discounted free cash flow that results from a seven-year delay in asset sales.",
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      "text": "In our view, the main motive for Stratus' management and Legacy Board to explore a REIT conversion is to stall, entrench themselves, and secure their jobs through 2027.",
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      "text": "It is notable that in three of the last five years Stratus did not even report an income tax expense on its income statement due to negative pre-tax income, further calling into question the magnitude of any tax savings benefit it would receive in a REIT conversion.",
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      "text": "In the first five years following REIT conversion, it is disadvantageous to dispose of assets with a low basis due to the potential for REIT shareholders to face double taxation. As a result, a REIT conversion will effectively halt Stratus' asset sales until 2027, five years following its 2022 anticipated conversion. This is the exact opposite of the strategy that Stratus promised shareholders it would pursue.",
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      "kind": "title",
      "text": "Rather than Creating Shareholder Value, We Believe Stratus' Idea of a REIT Conversion is Motivated By Self-Perpetuation",
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