Inovalis Real Estate Investment Trust T.INO.UN

RE:The numbers look bad. The risk is High.

[hawk35]

Another big concern is that INO is already in breach of several debt covenants on their loan and mortgage debt.  They could be forced to immediately repay the debt if the banks forced their hand.  This was disclosed in the 2022 Q2 report.  The covenant breach was caused by early termination of other smaller tennant leases.  The loss of this big lease in mid 2023 would be another covenant breach and could force them to sell properties to cover debt.  This risk is real.

Another area of concern in the Q2 report is that some of their larger tenants have early lease termination rights.  They can exit their leases without a big financial cost.  If even one more large tenant terminates, its really gonna hurt them.