Interesting sale of esprit business.  Buyers paying 6 percent cap rate on normalized NOI.

Business being sold 10 percent of NOI 2021 YTD, or $10 million.   

long term debt was $558 million at Sep 30 while cash was $132 million.  The proceeds from this transaction is $308 million.   They will pay back $172 million in associated debt and deal with some debt prepayment costs and have additional cash post transaction of $115 million.

this really takes leverage down .   Unless I'm mistaken, Long term debt now down to $386 million ($558 less $172) while cash up to $247 million ($132 plus $115).  

Clear that secular demand for LTC will only grow going forward.   Once they settle the Saskatchewan LTC matter, I wonder if this would be an interesting takeover for somebody .   A buyer Could lever up considerably from here and we know the economics around building new LTC facilities are favourable when govt funding factored in.  

Stock looks relatively attractive just on the current yield (dividend has been unchanged since mid 2013 at $0.04 per month).   

There is a 10 percent holder (sandpiper ) who has been rattling some chains .   Would they be opposed to starting a strategic review ?   Unknown, but this chart looks good and as we exit from Covid, not a bad place to be with the turbulence around growth stocks/high beta these days...