TSX:AX.P.E - Post by User
Comment by
EstevanOutsideron Mar 16, 2024 6:20pm
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Post# 35936835
RE:ARTICLE ABOUT DISTRIBUTION POSSIBLE CUT
RE:ARTICLE ABOUT DISTRIBUTION POSSIBLE CUTArtis net debt to ebitda ratio has improved. GBV ratio creeped up because of expansion of cap rates. That can become compression in a falling rate enviornment, especially on the retail + industrial side. Selling at full value to buy heavily discounted prefs / units is highly accretive.
Other facts:
- 300 main to contribute $10 million NOI annualized & reduction of capex
- yoy resets on sp noi
- potential of up to $144 million paid on the cominar pref (noted on the call as a possibility) with the due date on it being march 2025
- potential to get cooper to sell some assets at dream office which could lead to unit price appreciation
- large pool of encumbered assets to put secured mortgages on and reduce interest rates
- likliehood of falling rates which will benefit variable debt structure
just a few small ways to increase affo payout likely in 2024.
while a reduction in distribution is certainly possibly, it's far from a certainity.