TSX:INO.UN - Post by User
Comment by
stockrook86on Nov 09, 2022 9:18am
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Post# 35084822
RE:RE:RE:If I owned this stock ....
RE:RE:RE:If I owned this stock ....These breaches of debt covenant, need to remember they are asset class mortgages that are none recourse. If a mortgage is in breach, the lenders don't have say over distributions coming from other properties.
The Arcueil property was a signifcant chunk, about a third of the rent - but even if the slashed the distribution by a third it would be yielding 8% now. I'm not saying they are going to do that - they knew this was a strong possibility when they cut last and know it is better to do these cuts all at once.
This lease goes to March 2023 and they will be bringing in about $15-20 million net on the sale of the Corbueil property before the end of the year. This property has largely been vacant so was not contributing to earnings, with the extra cash given flexibility to maintain distributions and reposition Arcuiel.